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Manila Electric Co. (Meralco)

The Manila Electric Company (Meralco) was one of the largest corporations in the Philippines before the declaration of martial law. It was owned and controlled by the Lopez family. After martial law was imposed, it became the prime target for takeover by the Marcos-Romualdez family. Among the first things the clan did was to arrest the eldest son of Eugenio Lopez Sr., the major stockholder of Meralco for allegedly plotting the assassination of Ferdinand Marcos.

In the years 1973–1974, the Organization of Petroleum Exporting Countries (OPEC) started applying the oil prize squeeze. As a public utility that supplies power needs of the metro, Meralco was caught in a vicious vice. Its fuel costs started to double, triple, and quadruple but the government refused to allow them to charge higher consumer rates. Within a year, Meralco was at the brink of bankruptcy. Government financing institutions refused to guarantee Meralco's foreign loans. As a result, the company was pushed to the edge of massive defaults in loans.

It was here that the Marcos-Romualdez clan stepped in. According to Eugenio Lopez Sr., he was promised the release of his eldest son from prison in exchange for the sale of his control in Meralco to the Marcos-Romualdez group. After several months of negotiations and with the increasing loan defaults, Mr. Lopez conceded defeat. He even died without seeing his son Eugenio Jr. released from the Marcos martial law prison.

After the Marcos-Romualdez takeover, the government allowed Meralco to increase consumer rates. The government gave huge subsidies to the company. On the fifth anniversary of martial rule, Jesus Bigornia of Bulletin Today wrote that Meralco rose as one of the top earners. Around Php 200 million in net income was recorded. This was 168% more than the previous year. Aside from being allowed to raise electricity rates, Meralco was also exempted from paying the duty of oil imports, which is a form of indirect subsidy it should share with poor consumers.