Date Published:
Dec 27, 2018
Category:
Policy Notes
Code:
PN 2018-19

The Electric Power Industry Reform Act (EPIRA) is one of the landmark promarket reforms implemented to achieve reliable and competitively priced electricity in the Philippines. This Policy Note revisits the achievements and concerns regarding the implementation of EPIRA in the country. Among others, it finds that the supply of electricity has been adequate to ensure consumers’ continuous access to electricity since the passage of EPIRA. The country has also seen a generally declining electric price since its implementation. Nonetheless, the study still noted several issues pertaining to the implementation of EPIRA. These include the failure of the government to eliminate cross-subsidization and create a competitive electricity retail sector. With these concerns, it recommends a number of measures that should be in place to sustain the progress under EPIRA and promote more competitive power supply and retail rates for all consumers. For instance, it urges the Department of Energy to undertake generation mapping, as a policy and regular practice, and implement optimal decisionmaking on the location of the generation plants. The government should also consider reviewing the legislation on taxes on electric power and whether or not these can be gradually reduced or phased out.

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