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Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
Power failure: Ten (10) Years of EPIRA jun 2011
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Power failure: Ten (10) Years of EPIRA jun 2011

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  • 1. Power failure: 10 years of EPIRA<br />A people’s review on the impact of the Electric Power Industry Reform Act of 2001<br />
  • 2. Key findings<br />Rates have more than doubled<br />Only three groups now dominate the industry<br />NAPOCOR remained heavily indebted<br />Energy security remained precarious <br />
  • 3. 1. Rates have more than doubled<br />
  • 4. Factors behind the doubling of rates<br />EPIRA did not cancel the notorious PPA<br />EPIRA introduced new items that jacked up the rates, &amp; it also removed the subsidies<br />EPIRA deregulated power rates thru the AGRA (automatic adjustment of generation rates and systems loss rates)<br />EPIRA introduced investor-biased method to adjust rates – Performance-Based Regulation (PBR)<br />
  • 5. 2. Only 3groups dominate the industry<br />3 biggest distribution utilities in the Phils.<br />
  • 6. Due to cross-ownership in distribution &amp; generation…<br />Unbundling of rates has become meaningless<br />Spot market does not foster real competition<br />venue for speculation<br />
  • 7. 3. NAPOCOR remained heavily indebted<br />FROM 2001 TO 2010, NAPOCOR SHELLED OUT $18 BILLION TO PAY FOR ITS FINANCIAL OBLIGATIONS<br />
  • 8. Reasons for NAPOCOR’s continuing financial woes<br />EPIRA legitimized the onerous supply contracts with the IPPs, consequently:<br />Privatization proceeds failed to cover NAPOCOR’s financial obligations<br />while delays in privatization forced NAPOCOR to continue operating the plants &amp; managing the IPP contracts<br />aggravating its need to seek more debts<br />
  • 9. 4. Energy security remained precarious<br />Rotating brownouts<br />In Luzon, despite excess capacity, due to uncoordinated shutdowns by privately-controlled power plants<br />In Mindanao, due to power supply shortage resulting from lack of additional capacity in the past decade<br />
  • 10. Causes of energy insecurity<br />Under EPIRA, government turned over its strategic role in planning, developing, and implementing power infrastructure to profit-oriented private sector<br />Small PH energy market is not very attractive to investors unless guarantees and sweetheart deals are offered<br />
  • 11. Thank you!<br />

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