By Alena Mae S. Flores

SAN Miguel Corp.’s calls for Manila Electric Co. to lower power rates might be “an impossible task,” Oscar Lopez, the patriarch of the Lopez Group, said yesterday.

San Miguel, which bought 27 percent of the Lopez-controlled utility last year, wants to cut power rates by as much as P4 to P5 per kilowatt-hour.

But Lopez told reporters during a chance interview at the Harvard Club of the Philippines that he “cannot fathom the intentions” of San Miguel.

He said talking about San Miguel’s entry in Meralco was a ticklish issue.

“It depends, if they want to just live with us or they want to go ahead and get majority. I cannot fathom their intentions right now,” Lopez said, reacting to recent comments by San Miguel president Ramon Ang.

Ang, elected vice chairman of Meralco last month, told President Arroyo this week that the utility could generate new income by providing broadband Internet access over its power lines.

“He wants to make use of Meralco lines... to generate more income... [so] he can lower the rates of Meralco. I want to see it,” Lopez said.

Lopez said Meralco was still waiting for the Energy Regulatory Commission to rule on its performance-based rate application.

The commission had earlier granted Meralco an average increase of P0.1449 per kilowatt hour in its distribution charges, but held off the new rates after consumer groups and the Trade Department called for a deferment.

“Let’s see what happens,” Lopez said, but added that a performance-based rate would raise rates, not lower them.

He said Meralco’s finances would suffer if it didn’t raise its rates, and that it would fail to carry out improvements in its system.

The Lopez Group and a minority stockholder, the Government Service Insurance System, had a long-drawn battle over power rates, with the state-owned pension fund wanting power rates lowered.

The pension fund sold its 27-percent stake in Meralco to San Miguel last year for about P26 billion.