EPIRA
EPIRA
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.)
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