"This is an excellent outcome for consumers," Mr. Morris said, considering that the Luzon power market is unsubsidized and the majority of electricity is produced using imported fuel. Meralco's tariff reductions are mainly due to the addition of competitively priced power supply contracts in the generation portfolio. To ensure that Meralco holds or improves its position relative to tariffs in other markets, it is critical that regulators and legislators focus on facilitating investment in new generation to meet strong demand growth and promote retail competition so that wholesale electricity cost reductions are fully passed on to consumers. — Victor V. Saulon