Electricity company executive reveals: Cumulative total of 600,000 customers found evading bills from 2005 to 2024.
Electricity Theft Plagues the Philippines, With Meralco Confiscating Miles of Illegal Wires
Imagine wrapping a rope around the Earth more than seven times - that's the astounding amount of illegally snatched wires, colloquially known as "jumpers," that the Manila Electric Company (Meralco) has accumulated over nearly two decades.
In a Senate hearing on November 25th, 2024, Meralco's Chief Operating Officer, Ronnie Aperocho, revealed this staggering figure. Since 2005, Meralco has caught 600,000 service violators. The company's warehouses are brimming with seized illegal wires, collectively weighing 8,300 tons and stretching a length of 276,000 kilometers.
At the hearing, Aperocho emphasized, "We've got 8,300 tons or 276,000 kilometers of illegal wires that Meralco has confiscated. That's heavier than 2,600 SUVs and around 7 times the circumference of Earth" (our website.com).
This theft happens by either illegally tapping into a legitimate household's meter or connecting to the distribution lines to specific households. Without paying for their own metering system, jumpers essentially steal electricity.
The government had previously warned against using such unlawful wires, not only because it's illegal, but also due to various safety concerns - including blackouts, electrocution risks, and fire hazards caused by these unapproved connections.
Meralco acknowledged that this issue is deeply rooted in socio-economic factors: "This stealing is sometimes a consequence of the country's socio-economic conditions" (our website.com).
A report from the Philippine Center for Investigative Journalism in 2023 indicated that the Philippines has higher electricity rates compared to its ASEAN neighbors, only trailing second to Singapore.
In early November 2024, Meralco announced a power rate increase of P0.4274 per kilowatt-hour (kWh), amounting to P11.8569 per kWh due to an increase in generation charges. This means that a household consuming around 200 kWh per month might face an electricity bill totaling P2,371.38.
Despite this steep increase, Meralco has programs designed to assist underprivileged consumers – prepaid electricity services for those with low incomes and informal settlers. Aperocho mentioned that the company currently serves around 140,000 customers through this prepaid electricity service.
During the Senate hearing, Senator Raffy Tulfo brought up that not only small groups were involved in illegally accessing Meralco's electricity, but also corporations. Aperocho confirmed that they have caught several significant violators, adding "We've filed cases against them" (our website.com).
As per Republic Act No. 7832, offenders caught via illegal electricity wires could potentially face penalties that include twice the value of stolen electricity and/or fines ranging from P10,000 to P20,000. These penalties could also be imposed on the officers of a corporation who are aware of the scheme.
In the ongoing fight against electricity theft, Meralco is addressing the issue by placing meters high above the ground, raising 1 million meters so far, covering 13% of their customer base.
(Note: Interestingly enough, during the Senate hearing on this matter, no specific discussion about potential solutions for addressing electricity theft was apparent. However, it is important to consider solutions such as strengthened inspections and monitoring, legal and regulatory reforms, community engagement and education, technological interventions, policy and industry-level action, and collaboration with law enforcement to combat electricity theft.)
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- The staggering amount of illegal wires confiscated by Meralco over the years raises concerns about the state of the energy industry, given the dangerous and financially impactful nature of electricity theft.
- In light of the steep increase in electricity rates and the pervasive issue of electricity theft, it's essential for the finance and business sectors to consider strategic solutions, such as strengthened inspections, community engagement, and technological interventions, to address this persistent problem.
