Electrified: a comparative study on electric cooperative and private distribution utility: the case of KAELCO and MERALCO

Abstract

High prices of electricity has always been a problem in the Philippines. In 2001, the Electric Power Industry Reform Act (EPIRA) was passed into law as a solution to the increasing power rates in the country. After ten years of implementation, EPIRA has nothing but failed promises. This study explains why electricity rates in the country remains high. Moreover, this study also focuses on the perception of the consumers regarding the efficiency of their distribution utilities. The researcher conducted a survey on consumers of the KalingaApayao Electric Cooperative and the Manila Electric Company. The efficiency of electric cooperatives and private distribution utilities was based on three indicators: frequency of power interruptions, quick response to customers‘ needs and information dissemination. In conclusion, the researcher found out that the EPIRA failed to deliver its promise of affordable electricity. On the other hand, the researcher found out that Meralco is more efficient than Kaelco primarily because of its size and resources. This study also shows that consumers lack awareness regarding the electric power industry. Majority of them are not aware of the EPIRA law.