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

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