7 New VAT Charges on Electric Bill - Ouch!

Have you folks noticed your electric bill, lately? There are 7 new VAT charges added on everyone's electric bill. Actualy this was since Dec. 2005 when they started implementing VAT (value added tax) adjustments. When I say everyone, of course, I mean everyone who has legal connections, not those stealing electricity by tapping on someone else's connections maybe because they think they could smart out everyone or want to get even with the Manila Electric Company. But least they know, Meralco could be passing all their revenue losses (from stolen electricity) to legitimate subscribers like you and me, through any one of those tricky charges. Who knows?

That's how they do it with this new VAT charges, according to Atty. Anthony Rosete (Meralco VAT Implementation Task Force Chairman), "The VAT is revenue neutral to Meralco and that all VAT collections will accrue to the government. The VAT component on the charges to be reflected in the Meralco bill is only a passthrough charge. Hence, Meralco only serves as a collecting agent of the government for the collection of the VAT."

Anyway, here are the 7 new VAT charges, the value in % varies depending on your KWH electricity usage:
1. VAT for Generation Charge (7.30%)
2. VAT for Transmission Charge (8.22%)
3. VAT for System Loss Charge (7.44%)
4. VAT for Power Act Reduction (7.96%) this one is not included in the bill but with VAT :D
5. VAT for Distribution Rev. (wonder what this is) & Subsidy (10%)
6. VAT Backbilling
7. Franchise Tax Backbilling - also not included in the bill but with VAT :D

I was trying to look for an explanation on each one of these VAT charges but so far I haven't got any clear explanation yet, either from the customer service reps or the website www.meralco.com.ph. Well, accoding to the website, the only items that Meralco charges are:

--> Distribution Charge, Metering, Supply, and CERA

While the rest of the items go to the government, NPC, independent power producers, Transco and other socalled players or conduits in this industry:

--> Pass Through Charges, Generation, Transmission, System Loss, Franchise Tax, Universal Charge, Lifeline Subsidy, Lifeline Discount, and Interclass Subsidy

I will leave it with you folks, if you want to believe all these :D but for me and all those consumers out there, do we have a choice?

Why can't we make the playing field competitive in the power industry by allowing other power companies to provide service, aside from just Meralco, which has got a long history of monopoly in this business. See what happened to the telephone industry after we have liberalized it by letting other players to join in? We now enjoy affordable rates and more choices of better and quality service.