I. EXECUTIVE SUMMARY

The 39th Status Report on Republic Act No. 9136 titled “Electric Power Industry Reform Act (EPIRA) of 2001” covers the implementation period May 2021 to October 2021. This highlights significant accomplishments, strategies and policies undertaken by the Department of Energy (DOE), the Energy Regulatory Commission (ERC), the DOE Attached Agencies as well as other private sector instrumentalities mandated by the EPIRA.

Following are the significant accomplishments and developments in the power sector through the DOE, its attached agencies and the private sector, as mandated under the EPIRA:

1. The Power Sector Assets & Liabilities Management Corporation (PSALM) marked two (2) milestones in the implementation of Republic Act No. 9136. These were the successful conduct of the completion of the turnover of the Malaya Thermal Power Plant and its underlying land to the winning bidder, Belgrove Power Corporation and the negotiated sale of the Paco-Manila Property with the winning bidder, Manila Electric Company (MERALCO).
    
2. On 26 June 2021, DC2021-06-0015 was issued, declaring the Commercial Operation of the Enhanced WESM Design Operations (EWDO) and WESM in Mindanao. Alongside this DC is an Advisory dated 21 May 2021 providing that the WESM Central Scheduling shall be implemented from the period 26 to 25 July 2021. During the said period, energy transactions in Mindanao shall be settled by the trading participants with their counterparties in accordance with their Power Supply Agreements. Thereafter, actual commercial operations shall take place and the posting of Prudential Requirements for three (3) months and compliance to Dispatch Conformance Standards shall be observed. However, due to low level of registration of intended Mindanao market participants, which is 28 out of 91 as of 23 July 2021, the target commercial operation on 26 July 2021 was deferred. The DOE issued an Advisory dated 24 July 2021 for the Extension of Central Scheduling on 25 July 2021, upon evaluation of the report submitted by Independent Electricity Market Operator of the Philippines (IEMOP) with a recommendation for the deferment of the commercial operation.
    
3. In the first three quarters of 2021, the Philippines' total non-coincident peak demand reached 15,942 MW, which is 299 MW or 4.3% higher than the peak demand in 2019. This increase in demand can be greatly attributed to the gradual opening of the industry through the continuous effort on vaccination to prevent the spreading of COVID-19.
    
4. In terms of the market share limitations as provided in Section 45 of the EPIRA, it remained that no power generation entity has exceeded the installed generating capacity and market share limitation of 30% per grid and 25% for the national grid. The country's electricity market reflected a moderately concentrated market, as measured by Herfindahl Hirschman Index, indicating the level of competitiveness of the power industry in the country;In terms of the market share limitations as provided in Section 45 of the EPIRA, it remained that no power generation entity has exceeded the installed generating capacity and market share limitation of 30% per grid and 25% for the national grid. The country's electricity market reflected a moderately concentrated market, as measured by Herfindahl Hirschman Index, indicating the level of competitiveness of the power industry in the country.
    
5. For the report period, there was a recorded increase of 40% on the number of registered Contestable Customers (CCs) as compared from September of 2020. Ninety percent (90%) of the Contestable customers are located within Luzon and 76% of the total number of CCs are currently being served by MERALCO as Distribution Utility. While NGCP served the two (2%) percent accounting for 34 Directly Connected CC. In retail market performance, MERALCO holds the greatest number of CCs and the largest share of energy sales. The average metered quantity from March 2021 to June 2021 is 1,573 GWh of which 102% of the contracted energy (bilateral contract). Spot market contracts obtained negative contract quantity with an average of -27 GWh from March 2021 to June 2021.
    
6. In terms of electricity pricing for the retail market as of March 2021, the country's average electricity rate was around PhP8.12/kWh, PhP0.06 centavos lower compared with December 2020 national average systems rate.
    
7. For the report period, the household electrification level of the country is estimated at 94.94% based on the latest status of energization provided by the National Electrification Administration (NEA) for the ELECTRIC Cooperatives (ECs), LGUOUs and PIOUs as... Read more

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