Saan Umabot ang Bente Mo: EPIRA 20 Years After

21.08.2024

Discover how two decades of power reform have shaped electricity costs in the Philippines and what lies ahead for the future of energy.

The assessment of the Electric Power Industry Reform Act (EPIRA) is both timely and crucial. The EPIRA, enacted to liberalize and reform the Philippine electricity sector, was designed with the lofty goal of enhancing efficiency, reducing costs, and improving service. However, after 20 years of EPIRA implementation, millions of Filipinos still suffer from high electricity rates and energy poverty. The findings are particularly relevant today as the country faces growing energy demands and a pressing need for equitable access to reliable and affordable power. It is essential to evaluate the gaps of this policy in navigating the complexities of the energy landscape today, and analyze its impact on the broader goals of affordable, reliable, and clean energy access.

The five studies in this book comprehensively and critically evaluate the EPIRA's outcomes and implications, addressing several key issues surrounding the different areas in the energy sector. This work is indispensable for policymakers seeking to understand the complexities of energy reform and its implications for national development. It also serves as a crucial resource for citizens who wish to be informed advocates for fairer energy policies. It not only provides a deep dive into the complex and often opaque workings of the Philippine energy market but also offers actionable insights into how these issues can be addressed. This work aims to inform policy decisions and contribute to the development of more effective strategies for energy reform, and offer actionable recommendations.

What are the focus areas of the 5 studies within this book?

Power and Profit: Accumulation in the Philippines' Privatized Power Sector
Author: James Matthew Miraflor
This study delves into the historical development of the Philippine power sector, focusing on how EPIRA facilitated the consolidation of power within a small group of conglomerates. It examines the transition from state-controlled to privatized power, analyzing the economic and political forces that shaped this shift. The study provides detailed data on ownership patterns, market share distribution, and the financial performance of key players, revealing the deep-seated issues of oligopoly and the implications for competition and consumer prices.

Historical Context and the Future of Power
Author: Maitet Diokno
This comprehensive study traces the historical evolution of the power sector in the Philippines, from its early development to the post-EPIRA landscape. It provides a detailed analysis of how ownership structures have evolved, the role of government and private entities, and the impact of these changes on national development. The study also presents a forward-looking perspective, outlining potential scenarios for the future of power in the Philippines. It emphasizes the need for rethinking ownership models, particularly in the context of public utilities and the potential for cooperative and community-based energy solutions.

Electricity Access
Author: Melba Tutor
This study provides an in-depth examination of electricity access across the Philippines, with a focus on rural and underserved communities. It presents data on electrification rates, the prevalence of energy poverty, and the socio-economic impacts of inadequate access to power. The study critiques the effectiveness of current policies and programs aimed at increasing electricity access, offering insights into the challenges faced by electric cooperatives and local governments. It concludes with recommendations for improving access and equity in the distribution of electricity.

Transmission Sector
Author: Ted Aldwin Ong
This analysis focuses on the transmission sector, particularly the privatization of the National Grid Corporation of the Philippines (NGCP). The study reviews the historical context leading to the privatization, the operational challenges faced by NGCP, and its impact on the overall reliability of the national grid. It presents data on grid performance, including frequency and duration of outages, and explores the implications of having foreign ownership in critical infrastructure. The study also discusses the regulatory environment and the need for reforms to ensure grid reliability and security.

EPIRA 20 Years After: Renewable Energy and its Challenges
Author: Wilson Fortaleza
This study examines the integration of renewable energy into the Philippine power grid and the challenges posed by EPIRA's existing framework. It provides a detailed analysis of the current state of renewable energy adoption, including data on installed capacities, growth trends, and policy support mechanisms. The study also identifies barriers to further expansion, such as regulatory hurdles, market conditions, and grid infrastructure limitations. The author offers recommendations for aligning energy policies with the country’s sustainability goals and ensuring a just transition to renewable energy.

Why does this assessment matter?

Who are the authors behind these studies?

James Matthew B. Miraﬂor previously worked as a statistician at the Asian Development Bank, the International Labour Organization, and the Philippine Statistics Authority, as well as a poverty policy consultant at the United Nations Development Programme and the National Anti-Poverty Commission. He completed his master's coursework in economics and computer science at UP. His research interests include economic complexity and wealth distribution.

Maitet Diokno has worked in various non-government organizations in the Philippines and in Asia. She holds a degree in economics from the University of the Philippines and two masteral degrees: in economics, from the University of London, and in social enterprise development, from the Ateneo de Manila University. For more than 10 years, she ran a company that processed ﬁber and peat from coconut husks. More recently she worked with farmers in Mindanao to produce chips from coconut husks, helping them develop this business into a viable and sustainable social enterprise. Maitet has also been an ardent student of the electricity sector in the Philippines through an organization she co-founded called the Center for Power Issues and Initiatives (CPII). She has most recently been researching energy poverty, particularly as this impacts on Filipino women. She and her colleagues at the CPII have been advocating for renewable energy as a means to address energy poverty and democratize the electricity sector in local communities. The CPII has worked with urban poor communities for the solarization of their housing, and is pushing for a law to support the ﬁnancing of solarized housing for the poor.

Melba V. Tutor is a monitoring and impact evaluation specialist who has worked on various projects with government and international organizations. She completed a Master in Development Economics at the University of the Philippines School of Economics and is currently taking her PhD in Development Studies at the University of the Philippines Los Banos. Her research interests are poverty, agrarian reform and rural transformation, human capital development, and rural electriﬁcation.

Ted Aldwin E. Ong is a freelance writer and activist based in Iloilo City, Philippines. He has served the Freedom from Debt Coalition (Iloilo Chapter) in various capacities and led its power sector campaigns and legal engagement from 2000 to 2020, marking a period of unprecedented victories for Ilonggo consumers. He became a fellow of the Center for Power Issues and Initiatives in 2013.

Wilson Fortaleza is holding leadership positions in Partido Manggagawa (PM) and Nagkaisa, the country’s biggest coalition of trade unions and labor organizations. He is also a fellow at the Center for Power Issues and Initiatives (CPII) and Board Member of the Center for Empowerment, Innovation and Training on Renewable Energy (CENTRE). He writes a regular column in a local newspaper in Romblon, and from time to time, contributes articles to national news outlets on various issues.

Produced in Partnership

Partners responsible for this EPIRA Analysis.

This book has been produced by the Friedrich-Ebert-Stiftung Philippines, 11.11.11, and The Center for Power Issues and Initiatives (CPII). The collaboration brings together experts from various fields to provide a critical, data-driven assessment of EPIRA and its long-term implications for energy access and affordability in the Philippines.

Friedrich-Ebert-Stiftung Philippines is a German foundation committed to the values of social democracy. Its focus is on the promotion of democracy and the strengthening of social and ecological dimensions of economic development through education, research, political dialogue, and international cooperation. The FES Philippine Office cooperates with national and local government institutions, trade unions, political and social movements, non-government organizations, media practitioners and groups, scientific institutions, individual experts, and other international organizations.
11.11.11 is a Coalition for International Solidarity of trade unions, non-governmental organizations, and volunteer committees in Belgium. It campaigns on the themes of socio-economic and ecological justice, alongside human rights and gender justice. 11.11.11 works with partners in Asia, Latin America, and Africa on these themes through movement building and policy advocacy.
The Center for Power Issues and Initiatives (CPII) is a non-government organization advocating for renewable energy as a means to address energy poverty and democratize the electricity sector. The CPII has worked with urban poor communities for the solarization of their housing, and is pushing for a law to support the financing of solarized housing for the poor. The CPII has also been working with rural electric cooperatives to help the member-consumer-owners in the cooperatives transform themselves into dynamic owners enjoying affordable electricity in their communities.

Together, these organizations are united in their mission to promote a more equitable, sustainable, and accessible energy future for the Philippines, ensuring that all Filipinos benefit from affordable and reliable power.

Friedrich-Ebert-Stiftung
Philippines

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+ 63-28-6346919
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