System loss charge

This is an analysis of the TV commercial made for Meralco with Judy Ann Santos (who i first knew as Ula, ang batang gubat) on the system loss charge.

This post is in no way is being used against Meralco, Ms. Santos, or the ad agency. It merely analyzes the presentation of their point regarding system loss.

Here's how I see this production and expense happens. Electricity is produced by the power plants. They spend for that production and sell it to distributors. Distributors like Meralco pay the marked up value of the power and sells it to users. Users then pay for the marked up cost of electricity.

In the commercial, Judy Ann explains that system loss is similar to ice losing its solidity. If you purchase a bag of ice from a store and carry it home, some get lost as it melts. They say that in the same manner, system loss is the weakening of the strength of purchased electricity as it is transmitted from the independent power producers to your home.

After some thought, I realized that they missed something in the commercial.

The melting ice is paid for and turns to liquid after the purchase during the transit from store to home. And the buyer pays for this loss in terms of reduced coldness. The loss is that of the buyer and not of the vendor since the merchandise has been paid for.

Now, if you relate this to electrical consumption, system loss is not the loss of the user but the distributor or power producer.

I think they should come up with a better presentation.