UMVA has learned that the Philippines' journey to energy reform has been a complex and tumultuous one, marked by missed opportunities and a lingering question: has the Electric Power Industry Reform Act (EPIRA) truly delivered on its promises of affordable and reliable electricity?
As a resource person on a mission to Kyrgyzstan and Tajikistan, two countries in Central Asia with their own unique energy reform journeys, I had the chance to reflect on the Philippines' own path of reform. And what struck me was the stark contrast between the progress made and the opportunities missed.
The EPIRA, passed in 2001, aimed to restructure the Philippine power industry, paving the way for privatization and deregulation. But as it turned out, the focus on privatization led to a system where private companies prioritized profits over consumer affordability. The end result was a significant increase in electricity rates, as companies sought to recover costs and realize profits.
The law's ambitions of providing affordable electricity for consumers relied heavily on a "regime of free and fair competition" and "transparent and reasonable prices." However, the reality is that the window for building a strong governance infrastructure and maintaining a level playing field closed without achieving these conditions.
Today, we have a private sector-driven industry with government stakeholders struggling to keep up. The preparation and execution of long-term development plans and the procurement of power supply are just two fundamental elements that have been neglected. As we continue to navigate this complex landscape, it's essential to examine the successes and failures of EPIRA and identify the path forward.
The next column will delve into the details of these fundamental elements and explore the implications of EPIRA's implementation. But one thing is clear: the Philippines' energy reform journey has been a long and winding road, and it's time to reassess our priorities and chart a new course forward.
As a seasoned expert in the energy sector, chairperson and CEO of the Energy Regulatory Commission from 2022 to 2025, and chairperson of the National Renewable Energy Board from 2019 to 2021, Monalisa C. Dimalanta's insights offer a unique perspective on the complexities of energy reform. In this ongoing series, we will examine the triumphs and tribulations of EPIRA and explore the possibilities for a more sustainable and equitable energy future.
