Power, Profit, and Public Interest (Part 1 of 2)

A nation can survive if it has 1. electricity, 2. water, 3. one language. A family needs electricity to light their homes and power electronics like computers, T.V., aircon, ovens, washing machine/dryers, electric fans. A hospital needs electricity for its computers, monitors, and equipment linked to the patient’s heartbeat and blood pressure. Factories can produce/process meat, fish, vegetables, palay to rice, mix chemicals to make medicine, tablets, syrup, and assemble cars and cell phones. Planes can safely take off and land with control towers, which rely on computers and AI for weather forecasts and to communicate with planes taking off and landing. The newspapers, Telecom, radio, and TV firms need electricity to do their job and reach the public. Schools, government, military, and police can do their jobs fast through quick, accurate communication using computers, phones linked by transmission towers and satellites. All modern activities need reliable electricity delivery.

A Nation’s power and distribution system could be run by 1. the govt alone like Russia and China, 2. It may be run mainly by the private sector, like the USA. 3. It could be a State-Private sector effort like the Philippines, where the hydro dams and the transmission/grid lines belong to the government, the private sector buys the electricity and sells directly to the public or 4. where the private sector creates electricity, builds the transmission lines, and sells to the public. Our nation’s biggest electric producers are 1. Meralco, owned by Mr. Pangilinan, 2. San Miguel Power of Ramon Ang, 3. First Gen Corp of the Lopez family (Former Meralco Owners). The owner of San Miguel (the second biggest) also owns 3.8 percent of the Stocks of Meralco (the Number one producer). On Aug 12, 2026, the Philippine Star Newspaper posted as its second banner headline: SMC’s Ramon Ang buys into Lopez Empire The Energy Regulatory Chain. Cruz’s concern was to assure the 110 million Filipinos in the area where each firm will sell and others will not enter to compete.

The 1930s was a profit superwaterfall for them broken only by world war 2 (1939-45). US as the world’s richest nation had the worlds’ biggest electrical manufacturer led by General Electric, Westinghouse, Allis Chalmers, etc. GE its competitors to a price fixing cartel instead of price war, where all will sell their products at higher prices everywhere and each company will get a slice of America’s territory as their exclusive territories. Whistleblowers forced the government to file cases otherwise the 250 million Americans will think even government officials were bribed. In 1961, 29 executives of the biggest electrical equipment industry (generators, transformers, etc.) pleaded guilty, 7 were jailed, 23 had suspended sentences with 5 year probation. GE was fined 475,000 dollars. This changed the mentality of business to belittle the power of the press and of the government to protect the public/consumer.

Today, there is talk of cartels/combination in social media (Apple, Google, Meta, Amazon, H.P., etc.). We have laws on price fixing such as Sec. 19 of Article 12 of the Constitution says, “The state shall regulate or prohibit monopolies when public interest so requires. No combination in restraint of trade or unfair competition shall be allowed.” Article 28 of the Civil Code says, “Unfair Competition in agricultural, commercial or industrial enterprises or in labor through the use of force, intimidation, deceit, machination or any other unjust oppressive or high-handed method shall give rise to a right of action by the person who thereby suffers damage.” In the steel, oil, and electrical equipment cases, the defendants raised unique points.

1. Collusion/combination/Cartel is illegal but it is not unethical.
2. My duty as stockholder is to my corporation, not to the public.
3. The just duty of a businessman is to make a profit for his company. The consumer comes a far, far, second.
4. Morality and ethics are good in schools but not in a dog eat dog world.
5. If I don’t do it (cartel) somebody (other competitors) will.
6. Moral Ethical issue, profit before people or people before profit?

That there will be no collusion/combination that will raise the price of electricity affecting the consumers, especially those in Metro Manila and the nearby provinces. Monopoly means one company dominates the market with very few small weak competitors. Oligopoly means very few firms dominate the market. In an oligopoly firms may form a cartel and raise artificially the prices of their products. The stockholders (monopoly oligopoly) earn big profits than if there was competition. The Government regulations are made to correct a morally ethically failure in the market. The government protects the consumer through laws/regulations. The best examples are of the dangers: 1. Gary dinners, 2. Scotland parties in isolated, protected harbors, 3. The 1961 electrical Manufacturers conspiracy.