Transcript Document
Overview of the Philippine Electric Industry Power Reform Act passed NEA created Massive blackouts in late ‘80s 1980s 2001 1990s BOT Law passed Luzon&Visayas interconnected IPPs negotiated NPC created 1936 1970s Electric coops created 1900s Integrated Electric Utilities formed NPC developed nationwide grid Generation nationalized to NPC Governance Pre-EPIRA • Civil society participation in pre-EPIRA stage • separate hearings per sector • most consumer groups and other advocacy groups mostly against its passage • bias FOR big industries and AGAINST consumers (bear the brunt of the cost) • increase in electricity rates while there will be a decrease in the quality of service • foreign ownership of utilities as forms of neocolonialism • Pay-off scandal • Php500,000.00 per legislator • some admit to and others not Governance Post-EPIRA • PGMA’s 10-point plan: to address issues of transparency, accountability, power cost reduction, efficiency, cost competency and fair market competition • True cost of service (question of transparency) • Rates unbundling as reflective of the true cost of service • Caveat: former PPA hidden in the generation, transmission, distribution and supply charges as reflected in the billing statements • Rates unbundling criteria/formula of the ERC not available for public consumption • IPP review and renegotiations done behind closed doors; guidelines not clear; lack of time as an excuse to questionable decisions made • Universal charge: inefficiency of ECs passed on to consumers Governance Post-EPIRA • Occasional petition for rate increase on the part of NPC and Meralco (question of transparency and public awareness) • ERC not willing to divulge information as to how often they can petition for such increases • Contract violation leading to double billing (question of accountability) • Meralco’s breach of the CSE reduced utilization of NPC’s power plants higher NPC rates burden on consumersc • Performance standards for ECs • Enhancement of ERC’s technical capabilities through capacity building programs provided by the USAID question of efficiency Governance Post-EPIRA • WESM plans being laid out and put into place (question of fair market competition) • appreciation programs for different stakeholders (government, private entities, civil society) • Monitoring and evaluation system (Power Tracker) • updates on EPIRA reform activities (transparency and accountability) • database on performance indicators (efficiency) Opportunities and Challenges • Under the WESM: More customer options Costs reduction Economic gain (increased employment and productivity) Welfare loss due to removal of subsidies • Geographic setup • Potential for NRE sources utilization • Increased private sector participation • Market-driven industry • Willingness vs. capacity to pay • Rates fluctuation • Agency cooperation • Confidentiality vs. transparency Salamat at magandang araw! Yolando T. Velasco UNFCCC Secretariat Email: [email protected] Zarky C. Pilapil Energy and Environmental Training Program Email: [email protected]