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why is electricity and water charged higher for business establishment than residential units?
4 Answers
- 8 years agoFavorite Answer
The Philippines is among the countries that impose a socialized pricing structure for social services with the aim of alleviating the burden on the poor by way of allowing the richer part of society to shoulder the cost of basic commodities like water, electricity, fuel and the like at the same time pass the profit to selected companies like Meralco, Manila Water and others. This practice if left unchecked could lead to uncontrolled increases which is already happening in the power sector making the country among the highest to charge electricity in the region.
- QwertyLv 58 years ago
because the are very good in ripping off the small businesses . Simple, if the factory is using too much electricity they will pay the consumption of the electricity they have use but putting the higher rate on electricity in commercial area than residential area doesn't sound right. Example if the rate per minute is 10 cents in commercial, then 1 cent per minute for residential. It will turn the factory will pay 10 times than home consumption because of rate. On this, they are killing the small businesses, they are paying too much on unnecessary expenses. They are not supporting them to survive. .
If the small establishment has no income or below income. The expenses exceeded the income.
The Medium & large scale businesses can cope because of high income. This strategy are favour for them because the little fishes can hardly survive.
Electricity & water are the biggest milking cow. Actually water is free from nature as well as the electricity which came from air, sun, uranium plus the operation expenses. They overcharged the rate consumption per KWh and sewerage. Sometimes, the game is , they charge the fixed usage per month on top of the rate consumption which is a double dipping cash cow. This is the big boys game run by ill corporates who don't care but the fat pay cheque and company share. .
- ΣΨξ Θ∱ ЯΛLv 68 years ago
because meralco and maynilad thinks if you have a business, then it means you are sure to make a profit. so they triple their rate on business establishments
- Anonymous8 years ago
It is commonly known as -- User Pays, and is really quite simple.
The more you use, the more you pay. This practise is world wide.