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Sunday, May 25, 2008

Should We Pay Meralco's Systems Loss Charge?



Since the first time I first posted it in Ellen's Blog, everybody has increased their own awareness of the little devil called systems loss. The fact that Meralco has been passing these charges and that government even collects taxes from it, has angered many of Meralco's clients. You now hear calls to scrap the tax on systems loss or scrap the whole thing altogether. Some morons in Congress are even threatening to file class suits when they were responsible for EPIRA that allowed the charging of systems loss. No different is Malacañang stooge Mr. Wetness Apostol who is encouraging that class suit, he voted in favor of EPIRA. At that time he was a Congressman of Leyte. So what really is systems loss?

To make things simple, systems loss is the difference BETWEEN the total power generated by the plants AND the sum of all the power ACCOUNTED FOR in the residential, commercial and industrial electricity bills. Not all is stolen, though.

Allow me to make a SHORT (heheh) distinction between what is likely to be "tongpats" and what is inevitable systems loss. (I hope I can make it in simple layman's terms.)

A. Technical Losses -

1. Conductors such as copper and aluminum for domestic utility voltage transmission and distribution (220/440V)and steel-reinforced aluminum for medium and high voltage transmission(4.16KV to 138KV) all consume electricity since copper, aluminum, and steel are not "perfect" conductors. They will consume some of the electricity and dissipate it as heat. This energy will of course be "missing" from the utilized sum from the bills.

2. Add to that those consumed in the substations (switching yards that connect your city lines to the power grid) which may come from Substation Transformer (huge, floor-mounted types) which step-down High Voltage coming from TRANSCO to a lower, "safe" distribution voltage. These transformers have so-called core losses because again, transformer coil windings are made from copper or aluminum. Further, energized transformers, even if not connected to any load will still consume power in the primary (higher voltage) windings.

3. Transformers also have cooling systems which utilize huge electric fans which operate much like the radiator system on your air conditioning unit. This also consumes electricity.

4. The different aspects of power in these substations are measured for control and monitoring purposes using, again, smaller instrument transformers which also consume power. Solid state electronics, including on-site computers and transmitters, are also installed for a more efficient supervision in a central area, say Meralco Bldg. in Ortigas, which controls the whole of its franchise area in Luzon. These peripheral equipment's consumption, likewise, is "missing" from the sum.Power System Diagram

5. After power leaves the substation through the distribution lines (which conductors will consume some more power), it goes to the distribution transformer on top of the electric post nearest your house. Again this transformer has its own systems loss. Meralco's area of responsibility ends where the service-drop cable enters your electric meter.

B. Non-Technical or Pilferage Losses - Unauthorized tapping into the system, using of jumpers to bypass the electric meter, use of devices that alter the meters' reading, and generally all usage that is not reflected in the bills by fraudulent methods. The meter readers' errors also fall into this category.

C. Administrative Consumption Losses- Every substation has its own office building which consumes electricity for its lighting, office equipment, maybe appliances such as coffee-maker, water dispensers, and cellphone chargers also adds to systems loss.

What I'm not sure, since it's not clear from the answers given in the Senate, if the power consumed in the whole Meralco complex in Ortigas, or in their other offices in the franchise area, which may include the collection offices, are also included in the systems loss computation. If so, this belongs to administrative consumption

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Linemen At Work

It's standard practice worldwide that distributors are ALLOWED a certain amount of systems loss since there are no perfect machines, so transformers and conductors are not an exemption to this. The amount of energy leaving the power plant will always be bigger than the energy that the distributor will collect based on the meters.

Therefore, technical losses are inherent to the system thus, we can allow Meralco or whoever runs distribution to pass this on to the consumers wholly.

Some may argue that technical losses can be minimized. That's true but in the case of transformers, oversizing is the only way to improve efficiency, but that will also increase capital machinery cost and the bottom line is it will just be reflected on the Return On Rate Base (RORB)- a percentage of profit the government's regulating agency like ERC, or a law like EPIRA, may fix for utility companies. No gain there. Conductors? Copper is the cheapest material presently known to man that serves the purpose. Improving systems loss on conductors by installing silver or gold cables will definitely be a bigger headache later.

Pilferage, the last time I checked is already a crime. Going after criminals is whose business, Meralco? Of course Meralco will be needed to identify and prove pilferage, but excuse me, I have yet to see PNP Chief Razon or Sir Raul O. Gonzales who heads NBI ordering their men to investigate wide scale pilferage in many squatters' areas in the Metropolis. Or a systems loss investigation for whole cities and provinces.

To ensure Meralco will participate in apprehending and prosecuting pilferers, a reward system is necessary even if just to reimburse Meralco for its expenses and effort.

In this case, I say charge systems losses from pilferage to government This government wants to earn taxes without doing its job? By charging it to government, they will be forced to protect the paying consumers and ensure that the distributors will be rewarded. The present system only encourages thieves and punishes honest consumers. Do I hear a lawyer saying it's unconstitutional?

On administrative losses, this is a contentious issue since we or I am not yet sure if the Meralco Office building in Ortigas Ave., or that Meralco Office in Harrison St. where I pay my bills and other similar offices are consuming power that are included in our billed system loss charge. If they do, does EPIRA allow it?

EPIRA did provide a 9.5% cap on Meralco's pass on systems loss, what I don't know is how the law's sponsors arrived at the figure. To come to this specific percentage, the drafters should have first determined the industry standards in US since our electrical system designs are patterned after the Americans' National Fire Protection Agency (NFPA), National Electrical Manufacturers' Association (NEMA), and the Institute of Electrical and Electronics Engineers (IEEE) among the main ones. We can also consult for comparison the Europeans' International Electrotechnical Commission (IEC) and the Japanese Institute Standards (JIS) which is also the basis of some Asian countries like South Korea.Electrical Substation

It is not enough that we know the percentage in other countries but also what items comprise this figure. At maximum, we can allow Meralco to charge to systems loss only up to the essential parts of their business. I don't think we should be paying the electric bills for example of Meralco Theater that is used for staging concerts, or MIESCOR, a Meralco subsidiary that is also a sub-contractor, or any of the other businesses of the Lopezes that are also consuming power in the Meralco building.

This is a long, and detailed study that needs to be made and like chaffs and grains, remove those not integral to the business. What remains, we can allow to be passed on BUT always within the percentage cap we have determined earlier. This will require the modification of EPIRA by Congress.

Of the different utilities, it is only in electricity that we are complaining
about systems loss. Water distribution has its own systems loss also, coming from evaporation, leaks and again, pilferage, why is nobody complaining? Similar with gas and petrol. Because electricity is heavily regulated we get to see the unbundled items in our electric bills. For me, transparency from Meralco is not a problem. The problem lies with ERC and EPIRA sponsors in Congress which should have been auditing the records of the distributors before they approved the rates. Several reviews had been undertaken by government people from other departments (of course, not from the moron Reyes' Department of Energy) and they all came up with nothing. That always happens when you have incompetents, morons and the corrupt running government. I guess their stupid purpose was only to search for items they could tax. Systems loss should in no way be taxed by government.

The total removal of systems loss charges, as some are now espousing, will in the end be detrimental to ensuring that the distributor will not go bankrupt and result to massive blackouts like California experienced and ended with the people paying more later.

My proposal would therefore be determine systems losses separately for technical, pilferage and administrative. Check if the technical losses are within standards and set a limit there. Pilferage is the responsibility of government so they must account for it. Absolutely no pass on. Reward the distributor if it helps catch power thieves. Administrative losses must ensure only the power consumed for integral essential activities are allowed to be passed on to consumers.

It must be a balance of the interests of the power investor, the benefits to honest and paying consumers, and fair taxation for government.

As for taxes, sales to government had always been exempted from taxes and import duties. In the same manner, government money invested in private businesses should also be tax-free. At the very least, proportionate to the percentage of government ownership at the time the purchase was made. For example, purchases made by PNOC, which is roughly half-owned by government, should only be taxed and duties levied in proportion to the amount owned by private persons. Therefore, the price of Petron should be much lower since pass-on duties and taxes are only half of what it had been collecting! Same with government investments in banks, Meralco, Transco, GOCCs, etc. That should be fair enough.

Implementing these proposals will need a lot of serious, honest work from government.

I can dream can't I?

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50 Comments:

At 7:59 PM, May 25, 2008, Blogger manuelbuencamino said...

Correct. Pilferage, theft should be charged to the government. Meralco pays taxes so the government should do its job - cacth theieves!

 
At 1:13 PM, May 26, 2008, Anonymous Anonymous said...

AGREE! if the government, winston garcia and their friends in congress and senate are REALLY interested in lowering electricity cost...pinning down meralco was such a stupid move. it just goes to show their level of intellegence and therefore do not deserve their position

 
At 5:23 PM, May 26, 2008, Anonymous reyna elena said...

Ay NAKU tangIN-AHHH-nya (alam mo na kung sino tinutukoy ko noh! haha) i read this on the paper kasi last 5/21 there was an ad on Phil Star diva? I think Meralco ata ang nag-ad nun saka ko lang na getz ang systems loss chorva. I will blog it too kasi, bat mo nga naman ipapasa sa consumers ang systems loss? haller? hindi public utility ang meralco! FOR PROFIT ho sila! taz i-ja-justify nila dahil ang 1st world daw eh mas malaki pa ang systems loss? halllerrr! sinong ginagago nila???

 
At 6:32 PM, May 26, 2008, Blogger Tongue's Wrath said...

Reyna kong Mahal,
Bihira ka, umuwi ka pala hindi ka man lang nagdala ng pasalubong. Totoo pala ang chismax, may karapatang mag-away ang mga boylets sa ganda mo.

Palagay ko hindi parehas ang sustento mo ng load!

Balak sana kitang kuning tunay na Reyna Elena sa Santakrusan dito sa Pasay, nagdonate yata ako ng malaki.

Pero teka, Pasay Gay Society yata yung nagpadala ng solicitation?

 
At 6:33 PM, May 26, 2008, Blogger Tongue's Wrath said...

MB,
Thieves catching thieves?

 
At 6:39 AM, May 27, 2008, Blogger mschumey07 said...

We can never expect anything honest from this government.

 
At 1:44 PM, May 27, 2008, Blogger Tongue's Wrath said...

Schumey,
We can never expect anything, period.

 
At 7:53 AM, May 28, 2008, Blogger orly_habari said...

I, too, dream such dreams Tongue_in.

 
At 10:10 AM, May 28, 2008, Anonymous hawaiianguy said...

I agree with you. That moronic Reyes, and now this idiotic Garcia (of GSIS) would like to dip their dirty fingers into the situation without knowing what they are doing (they know, of course, TONGPATS, where they are most clever). All I can say is, they are a Bunch of IDIOTS!

Tongue ynah nylah!

 
At 12:41 PM, May 28, 2008, Anonymous Anonymous said...

AGREE!!! MORONIC AND IDIOTIC INDEED! How the f**k can Garcia 'lower the cost of electricity' by replacing manolo lopez? replace him with who? HIM???

 
At 12:58 PM, May 28, 2008, Anonymous Anonymous said...

ON LOWERING POWER RATES - UNFORTUNATELY, the ball is in the government's court already (Scrap EVAT & GOV. ROYALTIES, REVISE EPIRA for a lower System Loss cap, PRIVATIZE NAPOCOR ETC...)

So what are they waiting for? The next elections?

What's Winston Garcia's role again??? What does he want again??? Did I hear nationwide MONOPLY on power distribution??? (VECO in VisMin while MERALCO in Luzon)

 
At 2:15 PM, May 28, 2008, Blogger Tongue's Wrath said...

Hahaha. I was already about to think I was on the wrong side of this proxy fight!

 
At 2:48 PM, May 28, 2008, Blogger Tongue's Wrath said...

To the last anonymous commenter:

VECO is just one of the companies that the Aboitizes own. They are also producers/distributors in the Luzon Area:

1. Bakun/Hedcor Hydro in Ilocos Sur
2. San Fernando Electric in Pampanga
3. Subic Enerzone in the Zambales Freeport
4. Benguet Hydropower/Luzon Hydro
5. Northern Minihydro in Northern Luzon
6. Magat Hydro in Bulacan(?)

Aboitiz also has a power consultancy firm and a generator-supplying company, Abomar.

Their main power businesses are situated in the Visayas and Mindanao but look where they have been expanding!

Meralco is only in Calabarzon and Metro Manila.

Garcia started to tone down, or at least speak of breaking Meralco's franchise when talks in both houses of congress and in media was focusing on disallowing producers to be distributors.

Delikado, baka masagasaan pati yung ibang kampon. Balik na lang siya uli sa proxy votes.

 
At 6:10 PM, May 30, 2008, Anonymous reyna elena said...

ayan, me ginawa na akong entry sa linsyak na systems loss na yan. i can't accept nang aking apdo na just because 1st world kuno is charging 7.7 sumtin sumtin taz eto pala 11% ang charge nang meralco! ek kaya pala kahit naka=off ang koryente ko, anlaki pa rin nang binayaran ko noh! hahaha

nga pala, dinispatsa ko na mga boylets ko. magintay na lang akong bumalik ang palit nang peso to Php60 to $1. hehehe

 
At 12:11 PM, May 31, 2008, OpenID cocoy826 said...

Ang galing naman ng mga inilatag mo Pakner Tongue tungkol sa issue ng Meralco.Sa aking palagay kung bakit iniintriga ni Garcia ang Meralco dahil malaking pera ang makukurakot ng mga MAFIA ni Gloria.

 
At 4:56 PM, May 31, 2008, Blogger Tongue's Wrath said...

reynz,
Pakawalan mo na yang dolyares mo. Iinvest mo na lang. Pag ginastos na ng mga kurakot yung perang nakulimbat nila sa susunod na eleksiyon, wala nang halaga yang dollar. P38=$1 estimate ko.

 
At 5:07 PM, May 31, 2008, Blogger Tongue's Wrath said...

Cocoy,
Maganda sana yung pag-ipit na ginagawa sa mga Lopez tungkol sa Meralco. Pero dahil alagad ni Pandak ang tirador, imbes bababa yan siguradong tataas pa pagkatapos bumaba ng ilang buwan. Siyempre, pilit kasing maglalagay ng proxy/dummy yung mafia fund doon. Pag tumanggi sila Lopez, pilit maaagaw sa kanya ang Meralco. No choice sila kundi patago na lang na accommodation sa mafia.

Ang nanggagalaiti ako e walang kahirap-hirap nilang aagawin yang Meralco samantalang matagal kong iningatan yung konti kong stocks doon. Sinong gagong stockholder ang natutuwa sa bagsak na presyo? Lalo na sa isang gagong kapwa stockholder na nangunguna sa paagpapababa ng revenues.

Nasa investment side si Garcia, ang dapat niyang intindihin, kung paano mamemaintain yung kita ng investment, kung gusto niyang magpapogi dahil magsesenador siya, dapat siya ang kumumbinsi sa gobyerno na bawasan ang tax sa koryente.

 
At 9:35 PM, June 04, 2008, Anonymous GMLet said...

Tongue,
dun sa power theft, we are doing our best dyan, but our best is not good enough. may mga namatay ng employees dahil dyan, may nabaril na rin ang escort na military na mga customers because of that. although in my view, kulang pa rin ang suporta ng gobyerno sa amin pagdating sa panghuhuli ng power thieves.
sa Pasay ka pala nagbabayad, retired na ako dun, ako yung teller na hindi nagbe-breaktime, jingle lang ang pahinga, tapos balik uli sa upuan. almost 18 years ako dyan sa Pasay.
pagdating duon sa konsumo, may electric meter din kami, binabasa din ng meter reader, at mino-monitor ng branch head yan pag tumataas ang konsumo. yung nakaiwan ng PC na bukas overnight, alam nila, yari ka, sermon. we, the employees, are urge to conserve electricity sa ofis, pati tubig, ayaw nila na tumutulo ang gripo, yun bang hindi pinatay ng ayos. ngayon ko lang nalaman na sa system loss pala nakacharge ang kuryente ng ofis, kung tama ang unawa ko sa news. Pero si manager kung makaasta, wag kayong mag aksaya ng kuryente, pag wala ng customers, patayin na ang aircon, tama na yun hanggang umuwi kayo. akala ko tuloy nagbabayad din kami, hehehe.

 
At 12:28 AM, June 05, 2008, Blogger Tongue's Wrath said...

gmlet,
Kung sakaling may mga nagmurang nagbabayad ng koryente sa iyo, malamang isa ako doon. I apologize. Hehehe.

Seriously, the allowed 9.5% systems loss is actually a very generous percentage allowed by the law. One blogger, vic, says their systems loss used to be 9.2% and that is in Canada, where systems are supposed to be more efficient and the loss from heat is negligible.It's good to hear that Meralco's management actually practices and promotes conservation. I am also aware that Meralco has not been "abusing" this allowance. For the month of April, and before Garcia started his electrodramatics, my systems loss billing has gone down to 7.8%. If all the accusations against Meralco were true, it would have been really close to 9.5%. A difference of 1.7% is a huge amount of money considering that Meralco distributes about 14,000 Megawatts per month. If the Lopezes are as greedy as the greedy group plus plus, or greedier as Winston wants us to believe, throwing away that amount is the last thing they'd do!

Regarding power theft, I know that it is very risky, in fact, the guy who used to collect our payments was held up twice in my neighboorhood, his predecessor was shot near our place. They had to reimburse a portion of the amounts to keep their jobs. Also the guy who inverts the meters of delinquent clients told us one time a fierce dog was tied to his ladder he had to climb all the way to the roof. He paid for the ladder which he never retrieved.

Those things eventually disappeared when Meralco required the customers to pay to the collection centers. These were criminal activities which should be the concern of police and security agencies of government, not Meralco's. Meralco could only provide help in prosecuting them.

 
At 10:55 PM, June 06, 2008, Anonymous GMLet said...

Tongue,
sabi ng mga boss ko when i was new in the company, kaya daw malaki sweldo namin, kasama duon yung bayad sa pagmumura ng customers, hehehe, kaya ok lang, bayad na ng meralco yung pagmumura nyo sa amin.
when Don Manolo visited Pasay Branch nung 2003 yata, nakita nya serious kami lahat duon sa harap. Tinawag kami sabay sabi, ang mahal na nga ng kuryente, seryoso pa kayo, aba e ngumiti naman kayo sa customers natin, at kahit pangit ang hitsura, asikasuhin nyong mabuti. Mahal na kuryente, nakasimangot pa kayo, aba e hindi tama yan. Pati guards, dapat laging naka-good morning sa tao, pag lalabas, dapat may thank you sir!
Dyan ko napatunayan na si Don Manolo mismo, hindi pera lang ang importante.

Gandang Araw po! Salamat po! Parang Jollibee at McDo, yan ang utos nya sa aming mga empleyado.

 
At 4:52 PM, June 07, 2008, Blogger Bambit said...

hi tongue, mas mainam pala makinig sayo kesa key Juday -- hehehe.

Mang gmlet, sana naman pasyalan nyo at pagsabihan yung meralco office sa may tambo, paranaque. ang susungit ng mga tao dun from the guard to the counter personnel, parang nakahanda na wag ma wow-mali.

 
At 9:40 PM, June 08, 2008, Anonymous GMlet said...

Bambit,
kaya pala maraming taga-Tambo ang nagbabayad sa akin noon sa Pasay, minsan pag sabado, kahit ako lang ang teller at yung boss ko, sabi ko sa customers, taga-Paranaque kayo dito pa kayo napunta? sagot: kahit isa ka lang mabilis ka, at yung boss mo tumutulong sayo, duon mabagal na, suplado pa. aba, hindi pa pala nagbago ang mga yun.
sorry i am retired already, but i will email the branch head as soon as i get his email add. there were times na minsan nagsuplado din ako, but when the customer comes back, bumabawi ako, or nag-aapologize, kilala mo naman yung regular na pumupunta sa branch.
sorry sa mga ginagawa ng mga dating kasama ko, bambit, patawarin mo sila, hindi nila alam ang kanilang ginagawa.
Mga taga Meralco Tambo, mahiya naman kayo sa tao, ngumiti naman kayo sa customers! WAG kayong suplado!
Ako nga kahit alam kong mentally disturbed yung customer, pinapakinggan ko, habang tumatanggap ng bayad ng ibang customers. Nakabarong tapos nakashorts, e di sira ang ulo, tapos ang complaint e wala sa lugar. sasabihin ng ibang customers, ang tiyaga nyo naman, kahit sira ulo pinapakinggan nyo. Ang gusto lang ng maraming tao pakinggan ang hinaing nila, mailabas ang sama ng loob. it is wrong na magsuplado sa customers anuman ang status nya sa buhay.

 
At 1:24 PM, June 14, 2008, Blogger Jason said...

hi tongue,

this is a nice blog here..but i just want to comment on the few facts you have mentioned above..first, on your assumption that "oversizing transformers is the only way to improve efficiency (that is, minimize electrical losses)," that is absolutely wrong because a transformer actually attains its highest efficiency when it is loaded within 95% to 98% of its rated capacity. You could see this if you look at a transformer's efficiency curve. So, oversizing actually render the transformer to be inefficient because of low loading. Why is this so? Because a transformer has two kinds of losses: (1) copper losses that vary with the loading; and (2) iron or core losses that are constant regardless of its loading. Maybe you were referring to oversizing the size of the wires to minimize losses (since oversizing the wire has in effect of reducing the resistance and thus result to lower losses). Second (actually the last), you questioned whether EPIRA allows the administrative loss to be included in the system loss charges. The answer is YES. Actually, 1% of the total purchased energy is allocated for the administrative use. The catch here is whether the electrical energy being tagged as "administrative use" is really consist of energy usage in the operation of a distribution utility? Well, in the case of Meralco Theater that should not be included as part of the administrative loss since it didn't use its theater in providing you with electricity (most especially if they profited from the rental of it by users). Administrative loss should only consist of energy usage due to servicing the customers. If it's for fun, then absolutely it should be excluded! That's all and keep this good blog up!

Jason

 
At 4:32 PM, June 14, 2008, Anonymous Ake said...

I personally learned so much from your post!

Si Juday at yung baklang amo nya nagmamarunong lang.

Mabuhay ka!

 
At 8:20 AM, June 15, 2008, Blogger Tongue's Wrath said...

Jason,
Thanks for pointing that out. As I said, I will try to be as "layman" as possible.

Anyways, there are actually more than just copper and core losses. Connected loads are the "culprits" for copper loss (or I-squared-R) in the line side as well as the load side. While it is true, as you say, that higher loads means more efficiency, the primary side will always produce a loss as long as it is energized whether there is a load or not. What I meant therefore by "oversizing" as a means to increase efficiency is increasing the cross-sectional area of the coil conductor which is inversely propotional to the conductor/winding resistance; This will reduce copper loss in the coil, although a physical upsizing is also necessary because of the magnetic as well as electric factors. Realigning the molecular magnets per cycle consumes energy that increasing the conductor area ONLY while maintaining the same coil diameter also decreases the magnetic property. K-rated transformers, used in loads with high harmonic contents basically use oversized units. But after NEMA TP1-2002, K-rated transformers are on the way out.

On the other type of loss which is produced in the core, after 1986, when Westinghouse (which, btw is the brand I am familiar but is now known as ABB out of the South Boston plant) mass-produced distribution transformers whose core laminations are now made of amorphous metal in lieu of the traditional anisotropic steel, core losses caused by hysteresis have been greatly reduced. Unless new materials are found, I stand by my theory that nothing from modern transformer manufacturing can be adjusted to further minimize internal losses.

I understand your disagreement is mainly on system design while my theory is on the product's design. Actual average loads whether in the US or the Phils. are generally lower than 50%, even NEMA TP1-2002 standards for "Typical Premium" transformers are tested at about 35% average load only while prescribing higher efficiency rates at 97% and up.

The other losses are negligible thus not worth calculating into the formula, could be dielectric loss in the insulator, eddy current losses and stray losses. Distance from the generating source and downstream loads from the transformer will also affect the transformer's external losses. But again that is more of system than manufacturing design.

Thanks for the input, Jason hope to see you more often here. At least someone understands (and can add inputs) when it comes to electricity, which issue has hugged the news in recent weeks.

Welcome!

 
At 8:37 AM, June 15, 2008, Blogger Tongue's Wrath said...

Bambit, Ake,
Di dapat kainisan si Juday, nagtatrabaho lang yung tao. Kunsabagay, ako nga nagpapaliwanag din pero wala namang bayad. Hehehe. (Paging Meralco! Helllooo!)

Sige kayo baka magalit yung tao, baka magmahal ang ensaymada! Joke.

Ake, Welcome ka din dito!.

 
At 8:40 AM, June 15, 2008, Blogger Tongue's Wrath said...

gmlet,
Grabe naman yang mga taga-Tambo. Mahirap din kasi yang mga kahero/kahera. Marami ring mainit ang ulo na nagbabayad. Yung iba kasi ibibili na lang ng pagkain, napupunta pa sa kuryente.

Dapat mahaba ang pasensiya nila, kundi baka sila mawalis..tambo!

 
At 4:14 PM, June 18, 2008, Anonymous Anonymous said...

Wow after reading this, it kept me wandering if we are being charged for the electricity consumed by Las Pinas Branch. My husband waited for me outside the building while I was paying. About 5 feet away from the door and he can feel the cold from the airconditioning, because the main door is left wide open by the guards!!

What a waste of electricity, while I kept switching off the lights when its unnecessary.

Yvonne

 
At 10:50 PM, July 01, 2008, Anonymous Jef said...

I enjoyed reading your post.

And enjoyed even more the comments. Talino ng pinoy!

 
At 9:42 AM, July 06, 2008, Blogger Tongue's Wrath said...

MrG,
If you are here, I saw your among.reklamo.ph site and you referred to this and the previous blog entry. Thanks. If you will notice, the VECO website I linked to, is now off the web. Suspicious, ha?

On the computations, I have not read the RVAT law in its entirety, and have no idea if NAPOCOR, being a gov't owned corporation, is even covered by RVAT, like all other gov't entities. If it is exempt, and charges us taxes, you might as well modify your complaint to plunder and include BIR, which have been collecting the taxes.

There is an explanation I can think of at the moment:

The difference in VAT of 1.62% when 10.38% is subtracted from 12% reflects the input taxes NAPOCOR paid in its purchases - meaning majority of their puchases from their suppliers (IPPs, Spare Parts, Security Agencies, etc. may be VAT-exempt themselves) while sales to Meralco are not VAT-exempt thus the remainder is passed. I'm sure, some IPPs are located in Freeport Zones and are not subject to VAT. If this is the case, your conclusion in the last slide in the powerpoint link you provided in the shoutbox may be overstated. Also, BOI approves power investments from time to time, tax holidays are granted to entice them. The Expenses may be huge yet not all are VAT-covered.

What you should do is get the data from BIR and get separate lists of NAPOCOR purchases that are VAT-exempt and those which are VAT-covered.

 
At 9:34 AM, July 10, 2008, Blogger Tet said...

Tongue,
Will look into the data from the BIR. I would like to refer you to the complaint and affidavits that have been filed in connection with the Class Suit. These are found at http://www.among.reklamo.ph/meralco.htm .

I need your comments on my computations regarding the cost-revenue-vat linear relationship.

Thanks for the assist, too.

 
At 10:03 AM, July 10, 2008, Blogger Tet said...

Tongue,

You are correct, the page at http://www.aboitiz.com.ph/Site/Aboitiz3/VECO.aspx cannot be found. However, if you click on the "Cached" page, you will still see the text content of the page. Takes sometime before a webmaster can totally delete the information.

Try: http://209.85.175.104/search?q=cache:2hrpN8QkNM0J:www.aboitiz.com.ph/Site/Aboitiz3/VECO.aspx+veco,+website,+aboitiz&hl=en&ct=clnk&cd=4

 
At 9:19 AM, July 11, 2008, Blogger Tongue's Wrath said...

I've read the pdf file, tet. It is you who is the complainant in this case! Good luck.

Better get that figure from BIR soon. I'm sure the extrapolation to arrive at the figures in the last slide is inaccurate even if the formula is correct. One more thing, those docs will also reveal how much Meralco is actually buying from the Lopez plants. The Meralco passed-on VAT is a mixture of Napocor (who in turn buys power from both VAT and non-VAT power producers) and First Gen (which is VAT-covered).

 
At 9:26 AM, July 15, 2008, Blogger Tet said...

It's not just the VECO site that is offline. Suddenly, the ERC's page where one downloads issuances and decisions is guarded by a benign virus that doesn't allow access to the files. Are these just pure coincidences, or is there a malicious hand at work?

 
At 11:00 PM, July 19, 2008, Blogger Tongue's Wrath said...

We can only speculate. Much more now that the former Congresswoman of Pampanga who was "convinced" to step back to give way to the presidential son's congressional ambition has been generously rewarded with the ERC's top plum. She now even gets full support of the congressional Energy Committee chairman who could have not gotten in congress in the first place without her uncontesting the post.

Cabalen Ducut might just do what her name suggests with the blessings from above.

 
At 1:40 PM, August 27, 2008, Blogger Tet said...

Tongue,
I have something for you pertaining to VECO and their latest application for cost recovery which is actually another rate increase. Please see http://among.reklamo.ph/veco.htm

 
At 12:18 PM, December 26, 2008, Anonymous GabbyD said...

great blog!

question, is it feasible to separate pilfirage from other types of systems loss?

can you describe briefly how this may be done in practice? i guess the estimate would be dicey even in the best situations, because pilferage is illegal, hence, hard to measure...

 
At 3:56 AM, July 13, 2009, Blogger Philip Jarina said...

Yes, it is possible to get separate pilferage measurement. This can be done by metering the secondary of every distribution transformer.

 
At 10:19 AM, July 15, 2009, Blogger Tongue's Wrath said...

Philip is partly right. Getting the demand reading at the transformer's secondary and deducting the sum of all billed clients connected to that transformer will result in the systems loss for that circuit. But NOT ALL is pilferage. There will still be technical losses in the result.

 
At 9:55 AM, January 15, 2010, Blogger Philip Jarina, PEE said...

Inability to determine technical losses is incompetence and lack of knowledge of the new metering technologies available.

Passing the losses to the customer is a sign of ineptitude with now desire to improve efficiency.

 
At 8:22 PM, September 21, 2012, Blogger gj84 said...

Nice article! system's loss is really a critical issue today. all of us are affected.
Loss Reduction Guide

 
At 3:22 PM, July 19, 2013, Anonymous Anonymous said...

start using solar power guys...it's not so expensive now adays...thank you.

 
At 12:40 PM, September 23, 2013, OpenID trisontech said...

Nice article. Thanks for sharing this information. It's a good addition to my reference.

Check this out too:
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