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17th Status Report on EPIRA Implementation

Published on Friday, 5 June 2015

(PERIOD COVERING MAY TO OCTOBER 2010)

I. INTRODUCTION

The 17th Status Report of Electric Power Industry Reform Act of 2001 (EPIRA) implementation covers developments for the period May to October 2010. This contains the changes in policy actions from the Arroyo regime to the Aquino Administration. The new Administration called for a review of EPIRA implementation particularly on the effectiveness of the privatization of the assets and contracts by the Power Sector Assets and Liabilities Management (PSALM) Corporation, with the end in view of being able to pay-off its debts, encourage greater private sector participation, promote competition and most importantly, ensure supply security. This requires taking a few steps backward to ensure that the objectives set forth in EPIRA remains on track. It is deemed necessary to take a closer look at the role of the government in an environment of greater private sector participation in a utility industry which for so long has been under the control of the government and largely dependent on public funding support. In the process, the government has to put on hold the privatization of the remaining assets and contracts of PSALM/NPC.

The security of power supply in the country remains a major concern due to the timeliness of the entry of additional generating capacity, when and where they are most needed. Private investments in the generation business are still faced with various commercial, institutional and regulatory challenges, aside from the impact of climate change to the supply availability and demand predictabilility. There were also technical constraints in the operation of the national transmission networks, power plant operations and distribution systems.

The barangay electrification marked near completion with only 55 barangays or less than one percent remained unelectrified out of the 41,975 barangays nationwide. The next paramount task is to complete the sitios and the households connections. The Department of Energy (DOE) continued to improve the governance and operations of the Wholesale Electricity Spot Market (WESM) based on the recommendations of the independent auditors that reviewed the performance of the market. During this period, there was a renewed call from the generators for the government to implement the WESM in the Visayas and appoint the Independent Market Operator (IMO).

The review of the EPIRA implementation and identification of appropriate course of actions are the priority thrusts of the new Administration in the energy sector.

 

Click to View Complete PDF File of 17th EPIRA Status Report

 

18th Status Report on EPIRA Implementation

Published on Friday, 5 June 2015

(PERIOD COVERING NOVEMBER 2010 TO APRIL 2011)

I. INTRODUCTION

This report, covering the month of November 2010 up to April 2011, serves as a summary update of particular developments in pursuit of the Government to restructure and privatize the power sector. Important milestones were noted in improving competition in the generation sector with the expansion of WESM in the Visayas and the implementation of an institutional change meant to shape up the operations of Electric Cooperatives.

Power supply situation improved with the entry of new capacities and robust implementation of appropriate actions plans to stabilize the system. Likewise, completion of the remaining precondition for the implementation of open access and retail competition were achieved. Further, efforts were focused in the amendments of the EPIRA particularly in extending the life of the Joint Congressional Power Commission (JCPC) and the implementation of Section 72 on the Lifeline Rates.

Click to view complete PDF File of 18TH EPIRA Status Report

19th Status Report on EPIRA Implementation

Published on Friday, 5 June 2015

(PERIOD COVERING APRIL 2011 TO OCTOBER 2011)

I. INTRODUCTION

This report provides the summary update of the developments on the restructuring of the power sector covering the months of April to October 2011. The preparation for the attainment of the retail electricity market has noted significant events such as the Energy Regulatory Commission (ERC) declaring the completion of the pre-requisite relative to the implementation of Retail Competition and Open Access (RCOA). Accordingly, the DOE took the necessary actions to ensure that participants are ready in the eventual implementation.

The report provides a glimpse of the continuing implementation of the Luzon-Visayas integrated electricity market while some updates on new market developments were tackled to include the study on the establishment of the Independent Market Operator.

Electricity supply-demand highlights the status for the period January to June 2011. On the other hand, monitoring of market share shows significant transition to private sector ownership of the installed capacity in particular to Luzon and Visayas grids. With respect to privatization of remaining NPC assets and contracts, no significant developments were noted though PSALM continued to work on the requirements to continue the privatization in accordance with its mandate.

Click to view complete PDF File 19TH EPIRA Status Report

 

20th Status Report on EPIRA Implementation

Published on Friday, 5 June 2015

(PERIOD COVERING NOVEMBER 2011 TO APRIL 2012)

I. INTRODUCTION

The 20th Status Report on EPIRA implementation covering the period November 2011 to April 2012 highlights the latest accomplishments and developments in the restructuring of the electric power industry as outlined in Republic Act No. 9136, otherwise known as Electric Power Industry Reform Act (EPIRA) of 2001. The present administration strives to address power issues by continuing the implementation of the remaining phase of the reforms particularly the implementation of Retail Competition and Open Access (RCOA).

The Philippine electricity market is now in the process of improving the mechanisms that are envisioned to stimulate competition. Preparations for RCOA are on-going simultaneous with the improvements being infused in the Wholesale Electricity Spot Market (WESM) governance and operations.

In the current power situation in Mindanao, the government called for the cooperation of stakeholders in achieving winnable solutions. These include the possible transfer of power barges, proper contracting of stakeholders for power supply from power utilities, and the rehabilitation of the Agus and Pulangui hydropower complex. Meanwhile, the government’s plan to resume privatization of the remaining assets necessitates review and assessment of the impact of the past privatization exercises – which is on-going, including the need to strengthen the participation and understanding of the relevant stakeholders in the privatization process.

Click to view complete PDF file of 20TH EPIRA STATUS REPORT

 

21st Status Report on EPIRA Implementation

Published on Friday, 5 June 2015

(PERIOD COVERING MAY 2012 TO OCTOBER 2012)

I. INTRODUCTION

The 21st Status Report on EPIRA implementation covering the period May 2012 to October 2012 embarks the current accomplishments and developments in the restructuring of the electric power industry as provisioned in Republic Act No. 9136, otherwise known as Electric Power Industry Reform Act (EPIRA) of 2001. 

The present administration strongly pursues the reforms embodied in the EPIRA and is now in preparation for the implementation of retail competition of open access which is viewed to improve competition in the generation and supply sector and ultimately competitive cost of electricity. Public consultations were conducted on the general policies and guidelines that will govern the operations of RCOA while timelines for the implementation have been defined. 

There was no significant development made on the privatization of generating assets and IPP contracts except for the lifting of the temporary restraining order issued by the court in view of a petition filed by non-government organizations. The schemes for the privatization of remaining assets are now being studied carefully to balance with other EPIRA set goals. Indicative timelines have been set for each plant and IPP contracts as indicated in this report. 

In terms of ensuring supply security and reliability, the efforts were more focused in addressing the situation in Mindanao while for Luzon and Visayas, the long-term vision is to put in place and enforce a robust reliability standards while continuing to assist the private sector in general. 

The operations of the Wholesale Electricity Spot Market’s (WESM) continuous improvement were effected through the conducts of rules review and changes as necessary, regular audits and regular monitoring of the behavior of market participants.

Click to view complete PDF file 21ST EPIRA Status Report

 

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