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EPIRA

The document summarizes the impact of the Electric Power Industry Reform Act (EPIRA) passed in the Philippines in 2001. It overhauled the country's electricity sector by privatizing the state-owned National Power Corporation and introducing competition. This led to improved power supply reliability, lower consumer prices due to increased efficiency, and reduced government subsidies over time. The law achieved its goal of reforming the electricity industry structure and performance for the benefit of the economy.

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0% found this document useful (0 votes)
19 views7 pages

EPIRA

The document summarizes the impact of the Electric Power Industry Reform Act (EPIRA) passed in the Philippines in 2001. It overhauled the country's electricity sector by privatizing the state-owned National Power Corporation and introducing competition. This led to improved power supply reliability, lower consumer prices due to increased efficiency, and reduced government subsidies over time. The law achieved its goal of reforming the electricity industry structure and performance for the benefit of the economy.

Uploaded by

Joshua
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© © All Rights Reserved
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The Philippines passed the Electric Power Industry Reform Act (EPIRA) in 2001 to reform the

nation's energy sector. The law was designed to increase efficiency, encourage competition in the
market, and give customers access to more inexpensive, consistent power supply. The privatization of
the National Power Company (NPC), which was initially the primary source of power for the country,
was one of the significant changes brought about by the EPIRA law.

Previously, the majority of the Philippines' power plants were owned and run by the NPC before
the passage of the EPIRA law. These power generation facilities used geothermal, hydroelectric, and
thermal energy. The whole nation's electricity was produced and distributed by the NPC, which
frequently led to rotating power blackouts, high electricity prices, and inefficiencies in the sector. To
keep power prices at a reasonable level, the government provided much needed financial support and
assistance to the NPC but doing so put a large financial strain on it making it ultimately unsustainable in
the long run. The government then moved on to starting the process of privatizing the power plants
owned by the NPC with the passage of the EPIRA law. The intention was to boost efficiency, attract more
private investment, and bring competition to the market. The process of privatization started in 2003
and was accomplished by the year 2007. As a result, numerous private businesses both domestic and
international bought the NPC's former ownership of the power plants. Significant improvements were
made in the sector with the privatization of the previously owned NPC power plants. Due to increasing
competition brought about by the entry of private businesses, operations were more effective, and
consumer power prices decreased. A significant amount of money was spent by the private sector in the
power plants to enhance their performance and boost their capacity, which led to a more dependable
supply of electricity. Also, the government was able to lower the amount of money it gave the sector in
subsidies, which saved the government a lot of money. Despite the privatization of numerous power
generating facilities of the NPC, the said government corporation still owns oversees Small Power
Utilities Group (SPUGs) around the country, these SPUGs have the aim of providing electricity to even
the most far flung areas of the Philippines otherwise known as “Missionary Electrification” and as such
are usually of a smaller capacity. Examples of these small-scale power generating facilities include the
following shown in the table 1.1 below which are also usually off grid.

In conclusion, the Philippine electricity sector went under major transformations as a result of
the EPIRA law. The power generating facilities of the NPC were privatized, which boosted competition,
improved operations, and reduced consumer electricity costs. The electricity supply became more
consistent and reliable as a consequence of the private sector's investments in the power plants, which
benefited the economy as a whole. The EPIRA law was a crucial step in reorganizing the electricity sector
and improving its efficiency and competitiveness, and it has been effective in doing so.

Table 1.1 Post EPIRA SPUG Assets of the NPC (SPUG Plants, n.d.)

Marinduque/Quezon/North Luzon Area: Kabugao DPP, Apayao


Casiguran DPP, Aurora
Basco DPP, Batanes
Itbayat DPP, Batanes
Sabtang DPP, Batanes
Balatubat DPP, Cagayan
Calayan DPP, Cagayan
Minabel Mini Grid, Cagayan
Maconacon Mini Grid, Isabela
Palanan DPP, Isabela
Boac DPP, Marinduque
Mongpong DPP, Marinduque
Power Barge 120, Marinduqe
Torrijos DPP, Marinduqe
Jomalig DPP, Quezon
Patnanungan DPP, Quezon
Bicol Area Batan DPP, Albay
Rapu Rapu DPP, Albay
Calguas DPP, Camarines Norte
Balongbong Mini Hydro Power Plant,
Catanduanes
Marinawa DPP, Catanduanes
Palumbanes DPP, Catanduanes
Viga DPP, Catanduanes
Chico DPP, Masbate
Dancalan DPP, Masbate
Gilotongan DPP, Masbate
Guinawayan DPP, Masbate
Mababangbaybay DPP, Masbate
Malaking Ilog DPP, Masbate
Nabuctot DPP, Masbate
Naro DPP, Masbate
Osmeña DPP, Masbate
Peña DPP, Masbate
Peñafrancia DPP, Masbate
Quezon DPP, Masbate
San Pascual DPP, Masbate
Ticao DPP, Masbate
Mindoro/Romblon Area Cabra DPP, Occidental Mindoro
Lubang DPP, Occidental Mindoro
Tingloy DPP, Occidental Mindoro
Banton DPP, Romblon
Concepcion DPP, Romblon
Corcuera DPP, Romblon
Power Barge 106, Romblon
Romblon DPP, Romblon
San Jose DPP, Romblon
Palawan Area Agutaya DPP, Palawan
Araceli DPP, Palawan
Balabac DPP, Palawan
Bancalan 1 DPP, Palawan
Bancalan 2 DPP, Palawan
Bisucay DPP, Palawan
Biton DPP, Palawan
Cagayancillo DPP, Palawan
Calandagan DPP, Palawan
Casian DPP, Palawan
Concepcion Agutaya DPP, Palawan
Culion DPP, Palawan
Cuyo DPP, Palawan
El Nido DPP, Palawan
Kalayaan DPP, Palawan
Linapacan DPP, Palawan
Mangsee DPP, Palawan
Nangalao DPP, Palawan
Paly DPP, Palawan
Panlaitan DPP, Palawan
Rizal DPP, Palawan
San Vicente DPP, Palawan
Tara DPP, Palawan
Taytay DPP, Palawan
Western Visayas Area Batbatan DPP, Antique
Caluya DPP, Antique
Bagongbanwa DPP, Bohol
Balicasag DPP, Bohol
Batasan DPP, Bohol
Bilangbilangan DPP, Bohol
Cabul-an DPP, Bohol
Cuaming DPP, Bohol
Hambongan DPP, Bohol
Mantatao DPP, Bohol
Mocaboc DPP, Bohol
Pamilacan DPP, Bohol
Pangapasan DPP, Bohol
Ubay DPP, Bohol
Guintarcan DPP, Cebu
Hilotongan DPP, Cebu
Power Barge 114, Cebu
Guiwanon DPP, Guimaras
Gigantes DPP, Iloilo
Eastern Visayas Area Maripipi DPP, Biliran
Batag DPP, Nothern Samar
Biri DPP, Nothern Samar
Capul DPP, Nothern Samar
San Antonio DPP, Nothern Samar
San Vicente DPP, Nothern Samar
Tarnate DPP, Nothern Samar
Almagro DPP, Western Samar
Bagongon DPP, Western Samar
Biasong DPP, Western Samar
Buluan DPP, Western Samar
Cabunga-an DPP, Western Samar
Camandag DPP, Western Samar
Cinco Rama DPP, Western Samar
Costa Rica DPP, Western Samar
Ilijan DPP, Western Samar
Kirikite DPP, Western Samar
Libucan DPP, Western Samar
Lunang DPP, Western Samar
PB109, Western Samar
PB113, Western Samar
Sto. Nino DPP, Western Samar
Tagapul-an DPP, Western Samar
Takut DPP, Western Samar
Zumarraga DPP, Western Samar
Cagusuan DPP, Eastern Samar
Casuguran DPP, Eastern Samar
Habag DPP, Eastern Samar
Hilabaan DPP, Eastern Samar
Inapulungan DPP, Eastern Samar
Sta. Monica DPP, Eastern Samar
Suluan DPP, Eastern Samar
Tikling DPP, Eastern Samar
Limasawa DPP, Southern Leyte
Western Mindanao Area Basilan DPP, Basilan
Pilas DPP, Basilan
Power Barge 119, Basilan
Jolo DPP, Sulu
Pandami DPP, Sulu
Pangutaran DPP, Sulu
Siasi DPP, Sulu
Balimbing DPP, Tawi-Tawi
Languyan DPP, Tawi-Tawi
Manuk Mangkaw DPP, Tawi-Tawi
Mapun DPP, Tawi-Tawi
Power Barge 108, Tawi-Tawi
Sibutu DPP, Tawi-Tawi
Sitangkai DPP, Tawi-Tawi
Tandubanak DPP, Tawi-Tawi
Tandubas DPP, Tawi-Tawi
West Simunul DPP, Tawi-Tawi
Pangapuyan DPP, Zamboanga del Sur
Sacol DPP, Zamboanga del Sur
Eastern Mindanao Area Balut DPP, Davao Occidental
Dinagat DPP, Dinagat Island
Gibusong DPP, Dinagat Province
Loreto DPP, Dinagat Province
Kalamansig DPP, Sultan Kudarat
Palimbang DPP, Sultan Kudarat
Sen. Ninoy Aquino DPP, Sultan Kudarat
Hikdop DPP, Surigao del Norte
References:
Republic act no. 9136 - napocor.gov.ph. (n.d.). Retrieved March 1, 2023, from
https://www.napocor.gov.ph/images/about_us/EPIRA_RA9136.pdf

The Philippine electric power industry under EPIRA. PIDS. (n.d.). Retrieved March 1, 2023, from
https://pids.gov.ph/publication/policy-notes/the-philippine-electric-power-industry-under-epira

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