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Published on Monday, 21 September 2020

I. EXECUTIVE SUMMARY

The 33rd Status Report on Electric Power Industry Reform Act (EPIRA) of 2001 implementation covers the period May 2018 to October 2018 which includes significant accomplishments, developments and continuing challenges undertaken by the attached agencies as provisioned under EPIRA.

Pursuant to EPIRA under the privatization mandate of the Power Sector Assests and Liabilities Management Corporation (PSALM), the DOE sets a new directive to PSALM to remove the requirement for the Malaya Thermal Power Plant (MTPP) to run as a Must Run Unit (MRU) for the next three (3) years upon the turn over of the plant to the winning bidder considering its technical and physical condition. Further, PSALM continues other privatization activities for other remaining plants and National Power Corporation-Independent Power Producer (NPC-IPP) contracts, and the disposal of other disposable assets to include real estate and unserviceable assets, waste and junk materials. With regard to the reduction in PSALM’s foreign debts, as of 4th quarter of 2018, the remaining balance is down to PhP466.4 billion from the peak of PhP1.23 Trillion as of year 2003 or a decrease of PhP774.5 billion.

The DOE commenced initiatives to fulfill the requirement of Section 30 of the EPIRA to put in place an Independent Market Operator (IMO) with the issuance of Department Circular No. 2018-01- 0002 entitled “Adopting Policies for the Effective and Efficient Transition to the Independent Market Operator (IMO) for the WESM”, which provided the basic principles to be adopted for the transition to the IMO

In terms of the electricity pricing as of June 2018 compared to the March 2018 national average systems rates, there is a significant increase of PhP0.32 centavos/kWh in country’s average electricity rates or equivalent to PhP8.57/kWh. In the Visayas grid, rate increased from PhP7.43/kWh to PhP7.81/kWh or an increase of 38 centavos/kWh. Luzon and Mindanao grid increased by 31 centavos/kWh and 34 centavos/kWh, respectively.

To attain further transparency in the billing and charges of the distribution utilities (DUs) to the electricity end-users for the greater protection of public interest, the DOE issued Department Cicrcular No. DC 2018-09-0026 entitled “Adopting Framework for Uniform Monthly Electricity Bill Format” signed by Secretary Alfonso G. Cusi on 24 August 2018. This policy aims for further unbundling of charges, adopt electronic billing, and reflect description of each charge to provide information among the electricity consumers.

Meanwhile, for the power supply-demand situation, the country’s total peak demand in 2018 was recorded at 14,782 MW, which is 993 MW or 7.2% higher than the 13, 789 MW in 2017 wherein 10,876 MW or 74% of the total demand comes from the Luzon grid while Visayas and Mindanao has a share of 14% (2,053 MW) and 13% (1,853 MW), respectively. Among the three grids, Luzon grid showed significant increase in peak demand since it grew by 822 MW or 8.2% from its last year’s peak demand of 10,054 MW. The total power supply, in terms of installed capacity, grew by 4.8% from 21,730 MW in 2017 to 22,23,815 MW in 2018. A total of 933.6 MW new capacities were added to the country’s supply base which include coal-fired (720 MW), oil-based (87.3 MW), geothermal (12 MW), hydropower (80.3 MW) and biomass (34 MW). In terms of share by grid, Luzon contributed additional capacity by 659.5 MW or 71% and Mindanao at 274.1 MW or 29% while Visayas has not developed any additional capacity for 2018.

Changes in the procedures for the provision of financial benefits to Host Communities were made with the promulgation of the DOE of Department Circular No. DC2018-08-0021 entitled “Providing For The Amendments To Rule 29 Part (A) of the Implementing Rules and Regulations of Republic Act No. 9136” which provides the rules and guidelines for the effective administration, management, utilization, and implementation of the Financial Benefits to the Host Communities. The circular, among others, will enable the transfer of all existing funds being administered by the DOE to the concerned DUs, Host LGUs, Regions, and Indigenous Cultural Communities/ Indigenous People.

To further accelerate the electrification program of the government as directed by the President, the DOE included in the Power Development Plan (PDP) 2016-2040 the Electrification Roadmap toward total Energy Access in 2040 with specific target of country’s 100% household electrification level by 2022 based on 2015 Census.This aims to accelerate total electrification by 2020, address ailing ECs, and ensure greater private sector participation.

Further, the DOE issued a Department Order No. DO2018-05-0010... Read more

Published on Thursday, 17 September 2020

I. EXECUTIVE SUMMARY  

The 35th Status Report on Electric Power Industry Reform Act (EPIRA) of 2001 implementation covers the period May to October 2019 which includes significant accomplishments, developments and continuing challenges undertaken by the attached agencies as mandated under the EPIRA.

The Power Sector Assests and Liabilities Management Corporation (PSALM) will commence the second round of bidding tentatively in November 2019 held for the privatization of the Malaya Thermal Power Plant and continue to privatization activities other remaining plants and National Power Corporation-Independent Power Producer (NPC-IPP) contracts, and the disposal of other disposable assets to include real estate and unserviceable assets, and waste and junk materials. With regard to the reduction in PSALM’s foreign debts, as of September 2019, the remaining balance is down to PhP425 billion from the peak of PhP1.23 Trillion as of year 2003 or a decrease of PhP816 billion from the enactment of the EPIRA in 2001.

The Independent Electricity Market Operator of the Philippines (IEMOP) continuously accepts registration requirements from Wholesale Electricity Spot Market (WESM) Mindanao participants. Further, all Mindanao Stakeholders, PEMC, IEMOP (as Market Operator), NGCP (as System Operator and Metering Service Provider), Generation Companies, Private Distribution Utilities, Electric Cooperatives, and Directly Connected Customers are being assessed for their respective readiness to implement WESM in Mindanao.

With regard to the implementation of the Retail Competition and Open Access, the DOE promulgated further adopted policies thru Department Circular No. DC2019-07-0011, entitled “Amending Various Issuances on the implementation of RCOA” which provides for the voluntary registration of the CCs in the WESM as Trading Participants and designating the IMO as the Central Registration Body.

In terms of the electricity pricing as of June 2019, the country’s average electricity rates is around PhP8.71/kWh, PhP0.14 centavos higher compared with the March 2019 national average systems rate. For Luzon grid, as of June 2019, the rate was around PhP9.28/kWh compared in March 2019 at PhP8.66/kWh. For Visayas, it increased by 6 centavos/kwh while in Mindanao grid, there was a decrease by 43 centavos/kWh.

The country’s total peak demand in the first half of 2019 was recorded at 15,713 MW, which is 931 MW or 6.3% higher than the 14,782 MW in 2018. The Luzon grid contributed 11,476 MW or 73.0% of the total demand with an increase of 600 MW or 5.5% from the 2018 peak demand of 10,876 MW, while Visayas and Mindanao contributed a share of 14.2% (2,224 MW) and 12.8% (2,013 MW), respectively.

The household electrification level as of September 2019 is around 98.33%. Said level corresponds to 22.60 million energized HHs out of 22.98 million identified and targeted HH population based from the 2015 Census of the Philippine Statistics Authority (PSA).

Click to view/download the 35th EPIRA Implementation Status Report

 

Published on Tuesday, 15 September 2020

(For the Report Period April 2020)

I. EXECUTIVE SUMMARY

The 36th Status Report on Republic Act No. 9136 titled “Electric Power Industry Reform Act (EPIRA) of 2001” covers the implementation period November 2019 to April 2020. 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 so mandated by the EPIRA.

During the report period, several events occurred that deeply affected the power industry including the devastation left by Typhoon Ursula which ravaged the Northeastern Mindanao, Bicol Region, Central Visayas, CALABARZON, MIMAROPA and Western Visayas, the eruption of Taal Volcano in January 2020 which temporarily displaced about 846,000 resident of Laguna, Cavite and Batangas and the recent pandemic Corona Virus Disease (COVID-19) which put the economic activities of the country at almost stand still. Also in this report, it highlighted the response that the power sector has implemented in order to ensure the uninterrupted supply of electricity and support the government’s effort to prevent the spread and mitigate the impact of the pandemic.

Amid the mobility limitation brought by implementation of Enhanced Community Quarantine (ECQ) and work from home (WFH) arrangements, the sector strived to operate normally while adhering to the norms implemented with the issuance of various regulations in line with Republic Act No. 11469 titled Bayanihan to Heal as One Act, also known as the Bayanihan Act, which was enacted in 25 March 2020 granting the President additional authority to combat the COVID-19 pandemic in the Philippines.

The Department of Energy has implemented emergency measures against the COVID-19 to ensure a continuous supply of energy within the country. These include the issuance of identification cards (IDs) to facilitate movement of workers in the delivery of energy services and fuels, close coordination with other concerned government agencies and corporations including local government officials and the Philippine National Police (PNP) for the unimpeded movement of energy products and services needed for the daily operations and establishment of a 24/7 Bayanihan Energy Service hotline to assist industry players.

Click to view/download the 36th EPIRA Implementation Status Report

Published on Wednesday, 2 September 2020

Published on Wednesday, 2 September 2020

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