Manila: The Senate on Thursday began reassessing the 25-year-old Electric Power Industry Reform Act (EPIRA) amid reports that the Philippines now has Southeast Asia's highest electricity rates despite the law's promise of cheaper power through competition.
According to Philippines News Agency, Sen. Erwin Tulfo, chair of the Senate Committee on Energy, said the inquiry would determine whether Republic Act 9136 had delivered its intended benefits or needed to be amended to better protect consumers and improve electricity services. 'Has EPIRA really delivered on its promises? Has it? I don't know. That's what we're going to find out today,' Tulfo said during a joint hearing with the committees on public services, ways and means and finance.
Enacted in 2001, EPIRA restructured and privatized the power industry in the expectation that competition would improve efficiency and reduce electricity costs. Tulfo, however, noted that consumers continue to face expensive monthly bills while several provinces suffer frequent brownouts that disrupt households, businesses, schools and hospitals. 'Reliable and affordable electricity is not a luxury. It is essential to economic development, public services, education, healthcare and the quality of life of every Filipino family,' he said.
Senate President Win Gatchalian said the country's deregulated power industry requires a strong and effective Energy Regulatory Commission (ERC) because generation, transmission, distribution and retail are largely in private hands. He proposed giving the ERC greater authority and resources to review charges passed on to consumers and increasing penalties that have remained largely unchanged since EPIRA was enacted. 'Importante po ang isang malakas at epektibong regulator (A strong and effective regulator is important),' Gatchalian said.
Gatchalian also proposed staggering electricity rate increases so they would not coincide with higher fuel prices and transportation costs. He said the ERC must carefully scrutinize pass-through charges to prevent power companies from transferring excessive or unjustified expenses to consumers.
Senior Deputy Majority Leader JV Ejercito, meanwhile, said privatization and competition proceeded under EPIRA, but the promised decline in electricity prices did not materialize. 'Higit 20 years na ang EPIRA. Natuloy ang privatization. Natuloy ang competition. Pero ang hindi natuloy ang pagbaba ng presyo ng kuryente (EPIRA has been in place for more than 20 years. Privatization and competition happened, but lower electricity prices did not),' Ejercito said.
He said steep power costs leave families with less money for food, healthcare and education, while businesses pass higher operating expenses on to consumers. Ejercito also warned that costly electricity weakens the country's competitiveness against its Southeast Asian neighbors, particularly when combined with inadequate infrastructure. He asked energy officials to break down the reasons consumers continue to pay high rates despite persistent outages and inadequate electricity access in some communities. 'I-unbundle natin ang mga dahilan kung bakit sa kabila ng mataas na singil sa kuryente, madalas pa ring nararanasan ang brownout at hindi maayos na serbisyo (Let us unbundle the reasons why brownouts and poor service persist despite high electricity charges),' Ejercito said.
The Senate review will also examine possible EPIRA amendments, regulatory powers of the ERC and measures intended to improve power reliability and affordability.
