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 of June 2021. Said level corresponds to 24.57 million energized HHs out of 22.98 million identified and targeted HH population based from the 2015 Census of the Philippine Statistics Authority (PSA).
    
8. The DOE promulgated nine (9) policies pertaining to Adoption of Further Amendments to the WESM Rules and Market Manual on Protocol for Central Scheduling and Dispatch of Energy and Contracted Reserves for the Effective Implementation of Enhanced WESM Design and Operations, Adoption of Further Amendments to the WESM Rules, Retail Rules and Various Market Manuals for the lmplementation of Enhancements to WESM Design and Operations (Provisions to Promote Participation in the Retail Competition, Adoption of General Framework Governing the Test and Commissioning of New Generation Facilities for Ensuring Readiness to Deliver Energy to the Grid or Distribution Network, Declaration the Commercial Operations of Enhanced Wholesale Electricity Spot Market (WESM) Design and Providing Further Policies, Adoption of Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on Metering for the Implementation of Enhancements to WESM Design And Operations (Provisions for Metering Services Provider Performance, Metering Standards and Site-Specific Loss Adjustments, Adoption of Further Amendments to the Wholesale Electricity Spot Market (WESM) Market Manual on the Constraint Violation Coefficients and Pricing Re-runs), Adoption of Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules for the Operation of the Renewable Energy Market, Providing Policies for the Adoption of the Wholesale Electricity Spot Market (WESM) Penalty Manual for the Implementation of Enhancements to WESM Design and Operations, and Adopting Further Amendments to The Wholesale Electricity Spot Market (WESM) Rules and Its Market Manuals for the Implementation of Enhancements to WESM Design And Operations (Provisions for Market Surveillance, Enforcement and Compliance).

   Further to this, the DOE drafted one (1) policy on Adoption of Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Various Market Manuals on the Rationalization of Billing Timelines.

Click to view/download PDF file 39th Status Report on EPIRA Implementation

I. EXECUTIVE SUMMARY

The 38th Status Report on Republic Act No. 9136 titled “Electric Power Industry Reform Act (EPIRA) of 2001” covers the implementation period November 2020 to April 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 so 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) continued the activities for the privatization of the government’s remaining assets focusing for the report period on the preparations for the 3rd Round of the Negotiated Sale of the Malaya Thermal Power Plant (MTPP) and its underlying Land to be held on 23 April 2021. Similarly, a study through the assistance of the Asian Development Bank is being conducted to determine options in the privatization of Casecnan Multi-Purpose Project (CMP) and CBK Hydroelectric Power Plants (CBK).
2. Power demand in 2020 continued to be lower than the 2019 level as non-coincident peak demand was recorded at 15,282 MW, which is 299 MW or 1.9% lower than the previous year level. This decline in demand is attributed to the COVID-19 pandemic, which put the country under different levels of community quarantine beginning 15 March 2020. On the supply side, there was 662.7MW new power generation capacity for grid and off-grid areas that went on commercial operation during the report period, November 2020 to April 2021 (if there was no capacity that went on commercial operation, we can state that the limited and restricted movements of people and materials have affected the timely completion of the power projects despite the support provided by the DOE in the issuance of IATF IDs for local backliners and endorsements to concerned government agencies for the entry of foreign experts).
3. The “Advisory on the Moratorium of Endorsements for Greenfield Coal-fired Power Projects in line with Improving the Sustainability of the Philippines’ Electric Power Industry”, was published on 22 December 2020. This directive aims to support and effectively implement policies issued by the DOE with the aim of improving energy sustainability, reliability, and flexibility by: (1) Increasing the Renewable Energy (RE) share in the energy mix; (2) Promoting new technologies; (3) Increasing system flexibility; and (4) Adhering to higher environmental standards. With this moratorium, the DOE will not process applications for greenfield coal-fired power generation facility projects requesting for endorsements.
4. A minimal growth in the Wholesale Electricity Spot Market (WESM) registered capacity was observed in February 2021 compared to September 2020 despite the entry of new power plants. The decelerated growth by 3.29% was attributed by the decrease in capacities and cessation of registration of some power plants. The electricity demand was observed to have an unusual trend compared to previous years due to the implementation of community quarantine brought about by the COVID-19 pandemic. Further, the average system demand consistently decreased as the year progressed from September 2020 to January 2021. The lower demand was due to the cooler weather during the season, as well as the prevalence of holidays, which had a significant impact on power demand. This is on top of the several powerful tropical depressions, including Typhoon Quinta, Typhoon Rolly, and Typhoon Ulysses during the latter part of the year, that disrupted the country's power grid and resulted in a drop in demand. However, the average system demand increased after a previous 4-month decline in February 2021. Based on the yearly trend, the uptick in demand this month followed the increasing pattern going into February in previous years. With this, electricity demand plus reserve fell by 9% from an average of 11,278 MW in September 2020 to 10,233 MW in February 2021. The average effective supply also dropped by 3% from September 2020 to February 2021 as fewer capacities were available in the market due to an increase in outage capacity and capacities not offered by generators. As a result of the supply-demand mix, average supply margin increased by 35%. The level of supply margin during the community quarantine period was still at a remarkable high as compared to previous years of similar months.
5. 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;
6. In this report, the implementation of Retail Competition and Open Access (RCOA) covered a comprehensive analysis of the retail market performance and RCOA participation rate. As of February 2021, there was a recorded increase of 546% on the number of registered Contestable Customers (CCs) and a 172% on the registration of Suppliers as compared from June 2013 commencement of RCOA implementation. The average monthly metered quantities from October 2020 to February 2021 is recorded at 1,499 GWh of which 90% of the contracted energy was accounted through bilateral contracts and the remaining 10% was transacted through the spot market.
7. In terms of electricity pricing for the retail market as of December 2020, the country's average electricity rate was around PhP8.13/kWh, PhP0.07 centavos lower compared with September 2020 level national average systems rate.
8. For the report period, the household electrification level is around 94.36% based on the latest status of energization provided by the National Electrification Administration, Local Government Unit-Owned Utilities and Private Investor-Owned Utilities. Said level corresponds to 25.10 million energized households, surpassing the 22.98 million identified and targeted household population based from the 2015 Census of the Philippine Statistics Authority (PSA).
9. On March 16, 2021, the Congress’ Bicameral Conference Committee unanimously agreed and adopted the DOE’s proposed extension of the lifeline rate subsidy by another 30 years starting June 2021, upon expiration of the extension provided under Republic Act No. 10150. Said extension was manifested by the DOE during the deliberation of the Bicameral Conference on the disagreeing provisions of House Bill No. 8145 and Senate Bill No. 1877 where both bills proposed for the extension of the Lifeline Rate Subsidy for only 10 years or until 2031.
10. Lastly, in line with DOE’s mandate to ensure continued development and enhancement of policies and programs on the WESM, the DOE promulgated eight (8) policies pertaining to Adoption of Further Amendments to the WESM Rules (Provisions for the lmplementation of lndependent Market Operator), WESM Industry Code of Ethics, Adoption of Further Amendments to WESM Rules and Market Manual on Procedures for the Monitoring of Forecast Accuracy Standards for Must Dispatch Generating Units for the Implementation of Enhancements to WESM Design and Operations, Load Forecasting Methodology for the Implementation of Enhancements to WESM Design and Operations, Dispatch Protocol for the Implementation of Enhancements to WESM Design and Operations, Management of Net Settlement Surplus, Implementation of Policy and Framework Governing the Operations of Embedded Generators, and Adoption of a General Framework Governing the operationalization of the Reserve Market in the Wholesale Electricity Spot Market and Providing Further Policies to Supplement DC2019-12-0018. Further to this, the DOE drafted three (3) policies on Test and Commissioning of Generation Facilities, additional policies on Ancillary Services and Disconnection Policy, among others..

Click to view/download PDF file 38th Status Report on EPIRA Implementation

I. EXECUTIVE SUMMARY

The 37th Status Report on Republic Act No. 9136 titled “Electric Power Industry Reform Act (EPIRA) of 2001” covers the implementation period May 2020 to October 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.

As the country continues to battle the Corona Virus Disease (COVID-19) pandemic which started in the month of March 2020, the DOE and the Energy Regulatory Commission (ERC) continued to adopt and implement authorized COVID19 response and recovery intervention during the community quarantine period in line with the EPIRA and applicable laws and guidelines, to assist and give relief to the electricity consumers in the country.

Despite the pandemic, the power sector continued to accomplish significant developments and battle challenges thru the DOE, its attached agencies and the private sector as mandated under the EPIRA as follows:

1. With the declaration of failure of the third round of public bidding for the sale of the 650-megawatt Malaya Thermal Power Plant (MTPP) and its underlying land, the Power Sector Assets and Liabilities Management Corporation (PSALM) shall immediately pursue the negotiated process of privatization of the said assets.
2. There was a reduction in peak demand compared to 2019 level due to the pandemic that hit the three major grids, Luzon, Visayas and Mindanao of about 241 MW from peak demand of 11,344 MW, 23 MW from the recorded 2,224 MW, and 36 MW decline from peak demand of 2,013 MW, respectively.
3. The WESM continues to operate under normal conditions with electricity demand plus a reserve schedule to gradually regain normalcy and to increase in level since the country’s transition to General Community Quarantine (GCQ). The WESM registered capacity for the month of September 2020 is recorded at 20,207.47 MW, an increase of 15.5 MW compared from a total of 20,191.97 MW registered in April 2020. Of the said total capacity, only about 64% or an average of 12,973 MW were offered in the market. Average market price is at PhP2,621/MWh with the lowest rate of PhP2,040/MWh in May 2020 and highest rate of PhP3,657/MWh in September 2020.
4. Regarding market share limitations, 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 indicating a competitiveness power industry in the country;
5. In relation to the implementation of Retail Competition and Open Access (RCOA), even during the MECQ and GCQ periods, the retail market showed signs of recovery, as there was a recorded increase of 7% on the number of registered Contestable Customers (CCs) as compared from September 2019. 90% of the Contestable Customers (CCs) are located within Luzon and 76% of the total number of CCs are currently being served by Manila Electric Company (MERALCO). While, the National Grid Corporation of the Philippines (NGCP) served the 3% accounted for 33 Directly Connected CC. In retail market performance, MERALCO holds the most number of contestable customers and the largest share of energy sales. The average metered quantity from June 2020 to September 2020 is 1,483 GWh of which 95% of the contracted energy was accounted through bilateral contracts and the remaining 5% was transacted through the spot market.
6. In terms of electricity pricing as of June 2020, the country's average electricity rate was around PhP8.25/kwh, 22 centavos lower compared with March 2020 level national average system rate.
7. For the report period, the household electrification level is around 92.96% based on the latest status of energization provided by the National Electrification Administration, Local Government Unit-Owned Utilities and Private-Investor Owned Utilities. Said level corresponds to 23.23 million energized households, surpassing the 22.98 million identified and targeted household population based from the 2015 Census of the Philippine Statistics Authority (PSA).
8. Finally, in keeping with its mandates under EPIRA, the DOE promulgated three (3) policies regarding WESM Rules and Market Manual and utilization of ER 1-94 Funds which were also published in (3) newspapers for general circulation. Also, around 15 policy proposals are drafted mostly on further amendments to WESM Rules and Market Manual which shall be primarily subject to virtual consultation involving participation of the concerned electric power industry players in the country.

Click to view/download PDF file 37th Status Report on EPIRA Implementation

I. EXECUTIVE SUMMARY

The 34th Status Report on Electric Power Industry Reform Act (EPIRA) of 2001 implementation covers the period November 2018 to April 2019 which includes significant accomplishments, developments and continuing challenges undertaken by different government instrumentalities and the power sector as mandated under the EPIRA.

The Power Sector Assets and Liabilities Management Corporation (PSALM) continues with the privatization activities of the Malaya Thermal Power Plant and and 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 1st quarter of 2019, the remaining balance is down to PhP436.3 billion from the peak of PhP1.23 Trillion as of year 2003 or a decrease of PhP805 billion from the enactment of the EPIRA in 2001.

The Independent Electricity Market Operator of the Philippines (IEMOP) continuously performs its function as Market Operator to include acceptance and evaluation of registration requirements from the Wholesale Electricity Spot Market (WESM) Mindanao participants. Through the Philippine Electricity Market Corporation (PEMC), the DOE continues its mandate to monitor the governance of the WESM through its representation from the different technical committees which undertake regular meetings relative to WESM rules changes, operational audit, conduct of technical evaluation and studies, investigation of breach of the WESM Rules, and management of dispute resolution process. Also, the DOE issued the Department Order No. DO2019-03-0009 entitled “Creating a Special Task Force to Assess the Performance of the Wholesale Electricity Spot Market (WESM) under the Governance of PEMC and Operations of the IMO”, and DC2015- 10-0015 entitled “Providing Policies for Further Enhancement of the WESM Design and Operations” on November 2015 which instigated the move to develop WESM design and operations enhancements.

The DOE, despite the challenges restraining the full implementation of Retail Competition and Open Access (RCOA), continuously exerted efforts in strenghtening competition in the retail market and empower the contestable customers. Hence, despite the restraining orders issued by the Supreme Court on various issuances of the DOE and the Energy Regulatory Commission (ERC), the increase in voluntary participation by Contestable Customers was remarkable at 419% from 239 in June 2013 to 1,240 as of April 2019, comprising around 68% of the total Contestable Customers certified by the ERC.

In terms of the electricity pricing as of March 2019, the country’s average electricity rates as of March 2019 is around PhP8.52/kWh, PhP0.76 centavos higher compared with the December 2018 national average systems rate. Highest increase in rate was posted in the Visayas Grid from PhP6.75/kWh in December 2018 to PhP7.78/kWh in March 2019 or an increase of 76 centavos/kWh. Luzon and Mindanao grid increased by 45 centavos/kWh and 74 centavos/kWh, respectively. To further reflect transparency in electricity rates, the DOE issued Department Circular No. DC2018-09-0026, entitled’ “Adopting the Framework for the Uniform Monthly Electricity Bill Format” to ensure greater transparency in the billing and charges of Distribution Utilities for the utmost protection of public interest.

The country’s power supply-demand scenario in 2018 pose challenges as manifested by the declaration of yellow alerts in Luzon and along with red alerts in the Visayas. Mindanao has improved in terms of having lesser Red and Yellow alert notices in 2018, compared to the previous years due to the development of additional stable capacity from large coal-fired power plants in the grid. While Mindanao supply was relatively stable with the operation of new power plants, the grid was confronted by issues on non-compliance to demand and supply nomination procedures which affected the allocation of capacities in the grid and subsequently resulted to minimal power interruptions in some areas. The country’s 2018 peak demand was recorded at 14,782 MW, which is 993 MW or 7.2% higher than the 13,789 MW in 2017. The total power supply, in terms of installed capacity, grew by 4.8% from 21,730 MW in 2017 to 22,238.15 MW in 2018. Nine Hundred Ninety Three and 6/10 (933.6) MW new capacities were added to the country’s supply based in 2018 which include coal-fired (720 MW), oil-based (87.3 MW), geothermal (12 MW), hydropower (80.3 MW) and biomass (34 MW). 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.

The household electrification level as of April 2019 is around 96.12%. Said level corresponds to 22.1 million energized households out of 22.98 million identified and targeted household population based from the 2015 Census of the Philippine Statistics Authority. The DOE has become more aggressive in pursuing total electrification with the issuance of Department Order No. 2018-05- 0010 entitled “Creation of A Task Force To Ensure Access To Electricity For the Communities That Remain Unserved and Underserved By Distribution Utilities” in May 2018 which requires all Electric Cooperatives (ECs) to submit their Electrification Plan to include areas that are proposed for alternative service providers.

Click to view/download the 34th EPIRA Implementation Status Report

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 creating the “Task Force E- Power Mo” (TFEM) for the purpose of ensuring access to electricity for the communities that remain unserved and underserved by distribution utilities and electric cooperatives as mandated by their franchises.

For more effective implementation of the law, the DOE proposed for the amendment of the Implementing Rules ad Regulations (IRR) of the EPIRA thru a draft Department Circular entitled “Amending Certain provisions of the Rules and Regulation to Implement Republic Act 9136 entitled Electric Power Industry Reform Act of 2001” and conducted focus group discussions and public consultations in Luzon, Visayas, and Mindanao to solicit inputs among electric power industry participants and attached agencies. This is to identify provisions of the IRR that need to be amended and thereafter prepared the consolidated proposed amendments.

Click to view/download the 33rd EPIRA Implementation Status Report

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

(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

Executive Summary

The Department of Energy (DOE) continues to supervise the implementation of the Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA). Overseeing the power reform activities, the DOE submits the 32nd Status Report on EPIRA implementation as of April 2018 which includes accomplishments and various challenges that were pursued by the DOE in collaboration with the Energy Regulatory Commission (ERC) and the DOE’s Attached Agencies, namely, the National Electrification Administration (NEA), Power Sector Assets and Liabilities Management Corporation (PSALM), National Transmission Corporation (TransCo) and National Power Corporation (NPC), as well as other key private sector entities, among others, the National Grid Corporation of the Philippines (NGCP) and the Philippine Electricity Market Corporation. Correspondingly, the submission of this report to the Joint Congress Power Commission (JCPC) shall serve as concrete basis of the JCPC to formulate legislative recommendations to ensure that EPIRA objectives are being met.

On the privatization of the power sector assets of the government, PSALM continues to undertake activities for the eventual sale of all remaining assets thru the guidance of the PSALM Board and the DOE as to matters that may affect supply and demand for better services to electricity consumers. Relative thereto, PSALM issued a revised timeline for the completion by 2022 of the sale of its remaining assets. The bulk of the assets are targeted to be sold by 2019 which include the Malaya Thermal Power Plant, Casecnan and Kalayaan Hydro Power Plants, among others. Meanwhile, out of the proceeds from privatization, PSALM was able to reduce the country’s power sector foreign debts from the beginning balance in 2000 of PhP830.7 billion to PhP466.2 billion (or USD9.3 billion) as of 4th quarter of 2017 or a decrease of PhP774.5 billion.

For the Wholesale Electricity Spot Market (WESM) implementation, major highlights include the establishment of the Independent Market Operator wherein the DOE promulgated the Department Circular No. 2018-01-0002 entitled “Adopting Policies for the Effective and Efficient Transition to the Independent Market Operator (IMO) for the WESM”. Likewise, the DOE, in coordination with the Energy Regulatory Commission, the Market Operator, System Operator and other key stakeholders, remain steadfast in pursuing the implementation of the new WESM design and the WESM Mindanao.   

Initiatives to ensure consumer protection were likewise spearheaded by the DOE, among others, the promulgation of Department Circular No. DC2018-02-0003 entitled “Adopting and Prescribing the Policy for the Competitive Selection Process (CSP) in the Procurement by the Distribuition Utilities of Power Supply Agreement for the Captive Market”, on 01 February 2018. The said policy is to ensure compliance to Section 23 of the EPIRA, of all distribution utilities as they are mandated to supply the captive customers in the least cost manner. the DOE issued The said policy will be applicable for both on-grid and off-grid DUs and is envisioned to provide mechanism for fair and transparent procuirement process that will promote competition and greater private sector participation to attain adequate capacity to meet the demand in the captive market. Likewise, the DOE started consultation process for the policy on uniform billing and review of the implementing rules and regulation of the EPIRA.

With regard to the implementation of the retail competition and open access (RCOA), the Supreme Court is still to decide on the cases filed by various groups in relation to the policies promulgated by the DOE and the corresponding rules and regulations issued by the ERC. To provide relief, DOE promulgated two (2) separate policies as action in response to the Supreme Court Order thru Department Circular No 2017-12-0013 entitled, “Providing Policies on the Implementation of Retail Competition and Open Access (RCOA) for Contestable Customers in the Philippine Electric Power Industry” and Department Circular No. 2017-12-0013 entitled, “Providing Policies On The Implementation Of Retail Competition And Open Access (RCOA) For Retail Electricity Suppliers (RES) In The Philippine Electric Power Industry”.

In terms of the electricity pricing as of March 2018 compared to the December 2017 rates, there is a significant increase in country’s average electricity rates, electric cooperatives’ average systems rate, and national average systems rates of private distribution utilities average systems by PhP1.25 centavos/kWh, PhP0.98 centavos/kWh, and PhP1.25 centavos/kWh, respectively. While for Meralco, an increase in its average electricity rates is in the amount of PhP1.07 centavos/kWh.

Meanwhile, the power supply-demand situation/outlook include reports on the significant incidents in the power system, outages, and various initiatives of the DOE being undertaken in compliance with Section 71 of the EPIRA. Total dependable capacity for the national grid was at 20,515 MW while maximum available capacity was recorded at 16,228 MW. Coal power plants continue to provide the bulk of power generation at 50% followed by natural gas at 22%. The country’s peak demand for this period recorded at 13,789 in 2017 compared at 13,272 MW in 2016.

The household electrification level of the country is estimated at 90.7%. In terms of the government’s continuing effort to intensify rural electrification, the current implementation of the Nationwide Intensification of Household Electrification (NIHE) Program with the renewed targets for household electrification is currently in process to meet the target for the year 2017.

The DOE, as administrator of fund derived from the implementation of Energy Regulations No. 1-94, as amended has already established a total of 1,021 Trust Accounts for Electrification Fund (EF) Development and Livelihood Fund (DLF), Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF). The financial benefit from inception (Year 1995) to April 2018 has accrued to PhP11.3 Billion from which PhP7 Billion was obligated for the implementation of projects.  This leaves an available fund at around PhP4.3 Billion available for beneficiaries.

Click to view/download PDF file 32nd Status Report on EPIRA Implementation

EXECUTIVE SUMMARY

The 31st Status Report on EPIRA implementation provides updates on various reform programs embodied in Republic Act No. 9136 as of  October 2017. The EPIRA is now on its 17th year of implementation with various developments while challenges are continued to be addressed by the  DOE in collaboration with the Energy Regulatory Commission (ERC), the attached agencies and key stakeholders.

Among the major reforms implemented, the privatization of remaining National Power Corporation (NPC) generating assets and Independent Power Producer (IPP) contracts including other disposable assets continued to be undertaken by Power Sector Assets and Liabilities Management Corporation (PSALM) with indicative target to complete the disposal by 2019. However, the privatization design for Agus-Pulangui Hydro Power Complexes is being studied and thereafter will be discussed with Congress to determine whether the same will be privatized or not. Relatedly, with the PSALM’s mandate to dispose the government’s power related assets, it likewise achieved significant reduction in the country’s foreign debts from the beginning balance in 2000 of PhP830.7 billion to PhP490.7 billion (or USD9.72 billion) as of 2nd Quarter of 2017 or a decrease of PhP340 billion.

As regard to the Wholesale Electricity Spot Market (WESM) implementation, the market continued to be confronted by frequent outages of key capacities, however, market prices were relatively stable with load-weighted average prices recorded below PhP4/kWh on a monthly basis from May to October 2017. Among the significant development was the ongoing preparation by the DOE, Philippine Electricity Market Corporation (PEMC) and the National Grid Corporation of the Philippines (NGCP) of the implementation of the WESM in Mindanao and the change from 1-hour to 5-minute dispatch interval. Correspondingly, various amendments to the WESM Rules and Market Manuals were adopted to ensure the seamless transition to a new dispatch interval.

Challenges to the implementation of retail competition and open access (RCOA) were faced by the DOE and the ERC as various groups filed court cases against the implementation of various policies which were promulgated to improve the competitiveness and transparency in the retail market. Despite such, significant improvement in the exercise of choice of electricity end-users was noted with the increase in the registration of Contestable Customers from only 240 in June 2013 to 898 as of October 2017. 

With regard to the EPIRA vision of widening the ownership base of the power sector, the generation sector is seen as moderately concentrated in terms of ownership wherein around 10 companies are owning majority of the generating capacities. In so far as compliance to market share limitation, based on DOE data, no entity breached the grid and national caps at 30% and 25%, respectively. Relatedly, the ERC held in abeyance the issuance of the annual determination of compliance to market share limitation pending completion of its study on the existing guidelines setting the installed generating capacity and the market share limitation per grid and the national grid.

Meanwhile, the power supply situation during the 1st half of 2017 remained stable despite incidences of plant and transmission outages,  earthquake, and security concerns. Total dependable capacity for the national grid was at 13,109 MW while maximum available capacity was recorded at 12,394 MW MW. Coal power plants continued to provide the bulk of power generation at 50% followed by natural gas at 29%. The peak demand for this period recorded an all-time high of 10,054 MW in Luzon grid last 09 May 2017. 

Electricity prices for the period in review exhibited downward movement in all grids and in most distribution utilities. On the average, the country’s electricity rates were lower by 12 centavos in September 2017 at PhP7.74/kWh as compared to the June 2017 level of PhP7.86/kWh. The reduction was brought by lower generation and transmission costs during the comparative period.

The household electrification level as of October 2017 is around 90.7%. For the remaining unelectrified households, the DOE in collaboration with various entities, continues to implement existing programs and activities specified in the Household Electrification Development Plan (HEDP) towards the new target of full household electrification by 2022 covering both on-grid and off-grid areas.

In terms of benefits to host communities, the total financial benefits accrued to PhP11.3 billion as of April 2017. Out of this amount, PhP7.0 Billion was already obligated for the implementation of various projects, leaving an available balance of PhP4.3 Billion.

Click to view PDF File of 31st EPIRA Status Report

30th Electric Power Industry Reform Act (EPIRA) Implementation Status Report
(For the Report Period April 2017)

Prepared by the
Department of Energy

With Contributions from
Energy Regulatory Commission
Philippine Electricity Market Corporation
National Power Corporation
National Electrification Administration
Power Sector Assets and Liabilities Management Corporation
National Transmission Corporation

INTRODUCTION

The 30th Status Report on Electric Power Industry Reform Act (EPIRA) of 2001 implementation covers the period November 2016 to April 2017 with development highlights as follows:

Conducted messaging workshops, focus group discussions (FGDs) and public consultations on the issuance of Department Circular for the official launching of Wholesale Electricity Spot Market (WESM) in Mindanao. This is to further hasten the preparedness of the Region for the commercial operation of the WESM through proper coordination with industry stakeholders and concerned government agencies;

Continuing effort to improve WESM processes and operations arising from recommendations on audits, evaluation and incorporation of relevant policies to include among others, renewable energy market, battery energy storage (BES) and participation of the embedded generation in the market;

Supply and demand monitoring to ensure supply security and reliability including continuing assistance for the development of generation, transmission and distribution projects. A  record of 14 percent increase in the installed generating capacity was attained in 2016 which equated to 2,658 MW of additional capacity using various technology;

An N-1 capability was attained in the Visayas area upon the realization of Visayas Substation Reliability Project I which will improve reliability in the grid; 

Promulgation of the regulatory issuance amending the implementation of 1MW mandatory contestability set forth under Revised Rules for Contestability and other relevant policies setting new timelines on the implementation of Retail Competition and Open Access (RCOA);

Continuing privatization of the government’s remaining assets specifically 650 MW Malaya Thermal Power Plant, Sucat Thermal Power Plant (STPP) and other disposable assets of Power Sector Assets and Liabilities Management (PSALM) Corporation; and

Continuing efforts to intensify rural electrification with the renewed targets after attainment of 90.7 percent household electrification level in December 2016 through various programs and projects.

Click to view PDF File of 30th EPIRA Status Report

I. INTRODUCTION

The 29th Status Report on EPIRA implementation covers the period May 2016 to October 2016 with development highlights as follows:

•  Successful turn over for the closing of sale of 32 MW Power Barge 104 to its new owner, SPC Power Corporation (SPC) and continuing privatization of the government’s remaining assets to include the commencement of privatization of the 650 MW – Malaya Thermal Power Plant;
•  Promulgation of the regulatory issuance to revise the timeframe for mandatory contestability for end user with 1 MW peak demand consumption to enter with supply contracts with Retail Electricity Supplier (RES) until 26 February 2017 and other relevant policies on the implementation of Retail Competition and Open Access (RCOA);
• Continuing improvement in the WESM processes and operations arising from recommendations on audits, evaluation and incorporation of relevant policies to include among others, renewable energy and ancillary services;
• Supply and demand monitoring to ensure supply security and reliability including continuing assistance for the development of generation, transmission and distribution projects; and
• Continuing efforts to intensify rural electrification with the renewed targets for household electrification.

Click to view PDF File of 29th  EPIRA  Status Report 

I. INTRODUCTION 

The 28th Status Report on EPIRA implementation covers the period November 2015 to April 2016 with development highlights as follows:

• Continuing privatization of the government’s remaining assets and adoption of new timelines in light of directives to defer privatization of some assets specifically in Mindanao to address the supply shortage until the commercial operation of new power plants are realized; 
• Declaration of full contestability timelines and other relevant policies for the retailmarket and increasing participation of Contestable Customers (CC); 
• Continuing improvement in the WESM processes and operations arising from recommendations on audits, evaluation and incorporation of relevant policies to include among others, renewable energy and ancillary services; 
• Supply and demand monitoring to ensure supply security and reliability includingcontinuing assistance for the development of generation, transmission and distribution projects; and  
• Continuing efforts to intensify rural electrification with the renewed targets for household electrification. 

Click to view PDF File of 28th  EPIRA  Status Report 

27th EPIRA Implementation Status Report (Period Covering May 2015 to October 2015)

I. INTRODUCTION

The 27th Status Report on EPIRA implementation covers the period May 2015 to October 2015 with development highlights as follows:

• Continuing privatization of the government’s remaining assets and adoption of new timelines in light of directives to defer privatization of some assets specifically in Mindanao to address the supply shortage until the commercial operation of new power plants are realized;

• Declaration of full contestability timelines and other relevant policies for the retail market and increasing participation of Contestable Customers (CC);

• Continuing improvement in the WESM processes and operations arising from recommendations on audits, evaluation and incorporation of relevant policies to include among others, renewable energy and ancillary services;

• Compliance of generators to market share limitations provided under the EPIRA;

• Supply and demand monitoring to ensure supply security and reliability including continuing assistance for the development of generation, transmission and distribution projects

• Continuing efforts to intensify rural electrification with the renewed targets for household electrification.

Click to view PDF File of 27th  EPIRA  Status Report 

(Period Covering November 2014 TO APRIL 2015)

I. INTRODUCTION

The implementation to date of Republic Act No. 9136 otherwise known as Electric Power Industry Reform Act (EPIRA) of 2001 or EPIRA embodies significant achievements in the Government’s effort to ensuring adequacy, affordability, and reliability of electricity services to all electricity end-users in the Philipppines. During this report period, the Government faced major challenges in implementing measures to address the foreseen tight power supply during the Summer Months of 2015, covering the period 01 March to 31 July 2015. Specifically, the Department of Energy (DOE) recommended to the President of the Philippines to trigger Section 71 of EPIRA on Electric Power Crises Provision.

The 26th Status Report on the EPIRA implementation covering the period of November 2014 to April 2015 highlights the following:

• Updates on the privatization of the remaining assets in particular on Power Barges (PBs) 101-104 and transfer of contract to an Independent Power Producer Administrator (IPPA) of Unified Leyte Geothermal Power Plant (ULGPP) for the Bulk Energy;
• Continuing turn-over to qualified Distribution Utilities (DU) of the sub-transmission assets (STAs) of the TransCo which has signed one hundred twelve (112) sale contracts with eighty (80) distribution utilities(DUs)/ECs/consortia amounting to about PhP5.90 billion;
• Updates on electricity rates to include average electricity rates such as the summary of MERALCO residential unbundled power rates and list of Energy Regulatory Commission (ERC) Decisions on DU's Rate Applications, updates on universal charge, loan condonation, lifeline rates and mandatory rate reduction;
• Updates on wholesale electricity spot market (WESM) operations and governance to include operational higlights on price, supply demand, and governance aspects;
• Monitoring compliance to installed capacity limitation under Section 45 of the EPIRA highlighting the approval of the Energy Regulatory Commission (ERC) relative to the Installed Generating Capacity (IGC) per Grid and National Grid, and the Market Share Limitation (MSL) per Regional Grids and the National Grid applicable for the year 2015;
• Updates on the implementation of retail competition and open access (RCOA) which highlights the summary of RCOA registration and retail market transaction status;
• Power supply-demand situation/outlook including reports on the significant Incidents in the power system, outages for 2014, and various initiatives of the DOE pursuant to Section 71 of the EPIRA; and
• Electrification status to include the household electrification level of the country estimated at 79.9% which corresponds to 17.4 million energized households out of the estimated total household population of 21.8 million.

View Complete PDF Report: 26th EPIRA Status Report

(PERIOD COVERING MAY 2007 TO OCTOBER 2007)

I. INTRODUCTION

The energy sector continuously supports the restructuring and deregulation of the electric power industry consistent with the provisions of Republic Act No. 9136 otherwise known as EPIRA. At the forefront, the Department of Energy (DOE) earnestly performs its function of supervising and monitoring the implementation of the EPIRA to ensure that the objectives of the law will be realized albeit difficulties that are hurdling the sector today.

The 11th progress report, which covers the period May 2007 to October 2007, focused on six (6) major areas, to wit:

• Privatization
• Competition
• Electricity Rates
• Energy Supply Security and Reliability
• Total Electrification
• Strengthening the Reform Process

However, Chapter II already includes more recent updates on privatization of NPC generating assets and Transco concession.

The section on Strengthening the Reform Process included highlighting the current efforts to proactively implement the reforms as contained in the EPIRA either through administrative or legal means. Various bills were filed in the 14th Congress to amend the EPIRA with the end-view of increasing benefits to both consumers and investors.

View complete Report: 11TH EPIRA STATUS REPORT

(PERIOD COVERING NOVEMBER 2007 TO APRIL 2008)

I. INTRODUCTION

The 12th Status Report of EPIRA Implementation contains various developments in the energy sector's evolving transformation to the restructured electricity industry as of April 2008. In addition to the usual contents, this report includes current initiatives to lower electricity rates in line with the results of the Philippine Energy Summit conducted in February 2008.

The EPIRA Law involved substantive and concrete changes to the electric power industry. The EPIRA is anchored on two aspects - the restructuring of the power industry and the privatization of NPC will affect the balance of power within the electric power industry and the roles and responsibilities of the DOE, ERC, PSALM, TransCo and NPC.

View complete Report: 12TH EPIRA STATUS REPORT

(PERIOD COVERING MAY TO OCTOBER 2008)

I. INTRODUCTION

The 13th Status Report of EPIRA Implementation covers the period May 2008 to October 2008. The report contains recent developments in the reform implementation and as well the renewed vigor of the government in addressing key issues and its effort to implement responsive measures towards achieving the goals of the EPIRA.

One major achievement during this period is the near completion of the fourth precondition to Open Access and Retail Competition, i.e. seventy percent (70%) privatization of NPC generating assets in Luzon and Visayas, and the concluding activities towards the turnover to the Concessionaire of the operation of the country’s national transmission business. In terms of establishing a competitive electricity market, the Energy Family (DOE, PSALM, NPC, NEA and TransCo) headed by the DOE made bold steps in assessing the Wholesale Electricity Spot Market (WESM) Rules particularly on the governance and operational aspects of the electricity market operation as envisioned in the EPIRA.

Various activities towards ensuring that the goals set by the EPIRA will be met, the Energy Family likewise embarked on a multi-stakeholders consultative forum through the creation of a Technical Working Group to address issues relating to power sector.

View complete Report: 13th EPIRA Status Report

(PERIOD COVERING NOVEMBER 2008 TO APRIL 2009)

I. INTRODUCTION

The 14th Status Re port of Electric Power Industry Reform Act ( EPIRA ) Implementat ion covers the period November 2008 to April 2009. The report highlights continuing implementation of the reforms as set forth in Republic Act 9136 or EPIRA amidst the challenges posed by the gl obal financial crisis which affected several key reforms agenda particularly that of privatizing the remaining generating assets and the transfer of I ndependent P ower P roducer (IPP) contracts to independent administrators. The task ahea d for the energy sec tor is more complicated, howeve r, the Department of Energy (DOE) , it s attached agencies and the Energy Regulatory Commission (ERC) remained steadfast in carrying out their respective and collective mandate towards the fulfillment of EPIRA objectives.

Click to View Complete PDF File of 14th EPIRA status report 

(PERIOD COVERING MAY 2009 TO OCTOBER 2009)

I. INTRODUCTION

The 15th Status Report of Electric Power Industry Reform Act (EPIRA) Implementation covers the period May to October 2009, although updates for privatization for November 2009 was already included. It highlights continuing implementation of the reforms as set forth in Republic Act 9136 or through the sector’s efforts to hurdle the global financial crisis that affected major policy objectives particularly in terms oencouraging new investments in power generation. Fortunately, despite the challenges posed by the crisis, the government’s privatization efforts reaped considerable gains with the threshold in generating assets privatization reached at more than 80 percent and the success for the bidding of the first wave of NPP-IPP contracts privatization.

For the period May to October 2009, the government focused mainly in addressing issues relating to competition and has initiated activities towards harmonization of the EPIRA Law with the newly passed Renewable Energy (RE) Act.

Click to view Complete PDF File of 15th EPIRA Status Report 

(Period Covering November 2009 TO April 2010)

I. INTRODUCTION

The 16th Status Report of Electric Power Industry Reform Act (EPIRA) Implementation highlights major accomplishments for the period November 2009 to April 2010. On the privatization, however, the report included developments as of May 2010. The past six months saw successes in the compliance to the remaining EPIRA set pre-conditions for the implementation of open access and retail competition. Also during this period, major reforms were implemented to improve the governance and operations of the Wholesale Electricity Spot Market to include reconstitution of the Board of Directors governing the Philippine Electricity Market Corporation and the conduct of operational, technical, financial and legal audit to identify areas for improvement in the entire WESM operations and the preparation as well to the transfer to an Independent Market Operator. The period likewise marked near completion of the 100 percent barangay electrification target with only 99 barangays unenergized. On the regulatory aspect, the Energy Regulatory Commission (ERC) has promulgated new guidelines in the rate approval processes to address concerns on rate approvals.

Challenges in the reform implementation however remain particularly the threat to supply security experienced by the entire country in the light of the El Niño phenomenon that affected power production of hydroelectric plants, particularly in Mindanao and Luzon,coupled by some operational and technical problems in the three major grids. On positive developments, it is during the period when the private generating company, Cebu Energy Development Corporation, commissioned its first unit of the 3 x 82 MW coal-fired power plant in Toledo City, Cebu. The project is expected to augment the power supply problem in Visayas which has been experiencing rotating brown-outs since the last quarter of 2008.

Click to view complete PDF File 16th EPIRA Status Report 

(PERIOD COVERING MAY TO OCTOBER 2010)

I. INTRODUCTION

The 17th Status Report of Electric Power Industry Reform Act of 2001 (EPIRA) implementation covers developments for the period May to October 2010. This contains the changes in policy actions from the Arroyo regime to the Aquino Administration. The new Administration called for a review of EPIRA implementation particularly on the effectiveness of the privatization of the assets and contracts by the Power Sector Assets and Liabilities Management (PSALM) Corporation, with the end in view of being able to pay-off its debts, encourage greater private sector participation, promote competition and most importantly, ensure supply security. This requires taking a few steps backward to ensure that the objectives set forth in EPIRA remains on track. It is deemed necessary to take a closer look at the role of the government in an environment of greater private sector participation in a utility industry which for so long has been under the control of the government and largely dependent on public funding support. In the process, the government has to put on hold the privatization of the remaining assets and contracts of PSALM/NPC.

The security of power supply in the country remains a major concern due to the timeliness of the entry of additional generating capacity, when and where they are most needed. Private investments in the generation business are still faced with various commercial, institutional and regulatory challenges, aside from the impact of climate change to the supply availability and demand predictabilility. There were also technical constraints in the operation of the national transmission networks, power plant operations and distribution systems.

The barangay electrification marked near completion with only 55 barangays or less than one percent remained unelectrified out of the 41,975 barangays nationwide. The next paramount task is to complete the sitios and the households connections. The Department of Energy (DOE) continued to improve the governance and operations of the Wholesale Electricity Spot Market (WESM) based on the recommendations of the independent auditors that reviewed the performance of the market. During this period, there was a renewed call from the generators for the government to implement the WESM in the Visayas and appoint the Independent Market Operator (IMO).

The review of the EPIRA implementation and identification of appropriate course of actions are the priority thrusts of the new Administration in the energy sector.

Click to View Complete PDF File of 17th EPIRA Status Report

(PERIOD COVERING NOVEMBER 2010 TO APRIL 2011)

I. INTRODUCTION

This report, covering the month of November 2010 up to April 2011, serves as a summary update of particular developments in pursuit of the Government to restructure and privatize the power sector. Important milestones were noted in improving competition in the generation sector with the expansion of WESM in the Visayas and the implementation of an institutional change meant to shape up the operations of Electric Cooperatives.

Power supply situation improved with the entry of new capacities and robust implementation of appropriate actions plans to stabilize the system. Likewise, completion of the remaining precondition for the implementation of open access and retail competition were achieved. Further, efforts were focused in the amendments of the EPIRA particularly in extending the life of the Joint Congressional Power Commission (JCPC) and the implementation of Section 72 on the Lifeline Rates.

Click to view complete PDF File of 18TH EPIRA Status Report

(PERIOD COVERING APRIL 2011 TO OCTOBER 2011)

I. INTRODUCTION

This report provides the summary update of the developments on the restructuring of the power sector covering the months of April to October 2011. The preparation for the attainment of the retail electricity market has noted significant events such as the Energy Regulatory Commission (ERC) declaring the completion of the pre-requisite relative to the implementation of Retail Competition and Open Access (RCOA). Accordingly, the DOE took the necessary actions to ensure that participants are ready in the eventual implementation.

The report provides a glimpse of the continuing implementation of the Luzon-Visayas integrated electricity market while some updates on new market developments were tackled to include the study on the establishment of the Independent Market Operator.

Electricity supply-demand highlights the status for the period January to June 2011. On the other hand, monitoring of market share shows significant transition to private sector ownership of the installed capacity in particular to Luzon and Visayas grids. With respect to privatization of remaining NPC assets and contracts, no significant developments were noted though PSALM continued to work on the requirements to continue the privatization in accordance with its mandate.

Click to view complete PDF File 19TH EPIRA Status Report

(PERIOD COVERING NOVEMBER 2011 TO APRIL 2012)

I. INTRODUCTION

The 20th Status Report on EPIRA implementation covering the period November 2011 to April 2012 highlights the latest accomplishments and developments in the restructuring of the electric power industry as outlined in Republic Act No. 9136, otherwise known as Electric Power Industry Reform Act (EPIRA) of 2001. The present administration strives to address power issues by continuing the implementation of the remaining phase of the reforms particularly the implementation of Retail Competition and Open Access (RCOA).

The Philippine electricity market is now in the process of improving the mechanisms that are envisioned to stimulate competition. Preparations for RCOA are on-going simultaneous with the improvements being infused in the Wholesale Electricity Spot Market (WESM) governance and operations.

In the current power situation in Mindanao, the government called for the cooperation of stakeholders in achieving winnable solutions. These include the possible transfer of power barges, proper contracting of stakeholders for power supply from power utilities, and the rehabilitation of the Agus and Pulangui hydropower complex. Meanwhile, the government’s plan to resume privatization of the remaining assets necessitates review and assessment of the impact of the past privatization exercises – which is on-going, including the need to strengthen the participation and understanding of the relevant stakeholders in the privatization process.

Click to view complete PDF file of 20TH EPIRA STATUS REPORT

(PERIOD COVERING MAY 2012 TO OCTOBER 2012)

I. INTRODUCTION

The 21st Status Report on EPIRA implementation covering the period May 2012 to October 2012 embarks the current accomplishments and developments in the restructuring of the electric power industry as provisioned in Republic Act No. 9136, otherwise known as Electric Power Industry Reform Act (EPIRA) of 2001. 

The present administration strongly pursues the reforms embodied in the EPIRA and is now in preparation for the implementation of retail competition of open access which is viewed to improve competition in the generation and supply sector and ultimately competitive cost of electricity. Public consultations were conducted on the general policies and guidelines that will govern the operations of RCOA while timelines for the implementation have been defined. 

There was no significant development made on the privatization of generating assets and IPP contracts except for the lifting of the temporary restraining order issued by the court in view of a petition filed by non-government organizations. The schemes for the privatization of remaining assets are now being studied carefully to balance with other EPIRA set goals. Indicative timelines have been set for each plant and IPP contracts as indicated in this report. 

In terms of ensuring supply security and reliability, the efforts were more focused in addressing the situation in Mindanao while for Luzon and Visayas, the long-term vision is to put in place and enforce a robust reliability standards while continuing to assist the private sector in general. 

The operations of the Wholesale Electricity Spot Market’s (WESM) continuous improvement were effected through the conducts of rules review and changes as necessary, regular audits and regular monitoring of the behavior of market participants.

Click to view complete PDF file 21ST EPIRA Status Report

(Period Covering November 2013 TO April 2013)

I. INTRODUCTION

The 22nd Status Report on the Implementation of Electric Power Industry Reform Act of 2001 (EPIRA) covers the period November 2012 up to April 2013 and highlights the electric power sector’s continuing efforts to put in place and meet the objectives of the power industry reforms as embodied in EPIRA, which are summarized as follows:

• For privatization, in-progress transfer by the Power Sector Assets and Liabilities Management Corporation (PSALM) of the Angat Hydro Electric Power Plant (HEPP) to the winning bidder and continuous preparations for the bid of remaining power plants and energy contracts with Independent Power Producers (IPP);
• Monitoring by the National Transmission Corporation (TransCo) of the Concession Agreement with National Grid Corporation of the Philippines (NGCP), and the continuing sale of its sub-transmission assets;
• Highlighting the operations of the Wholesale Electricity Spot Market (WESM) and the continuous monitoring and improvement undertaken to achieve better competition in the generation and supply and transparency in the utilization of electricity and prices;
• Continuing preparations to implement Retail Competition and Open Access (RCOA);
• Monitoring of supply-demand situation including the actions taken by the Department of Energy and other relevant entities to mitigate power interruptions;
• Initiatives to Address the Mindanao Power Situation;
• Monitoring of generators’ compliance to capacity limitation under Section 45 of the EPIRA; and
• Developments on the continuous implementation of total electrification program.

The Department of Energy (DOE) continuous to supervise the restructuring of the electricity industry and formulate policies towards ensuring the sufficiency and applicability of existing rules, guidelines, infrastructures and other institutional requirements necessary to achieve the goals of EPIRA in coordination with key implementing agencies and electric power industry participants.

Discussed in the succeeding Sections are the details of the progress of the sector reforms’ implementation.

Click to view complete PDF file of 22ND EPIRA STATUS REPORT

(PERIOD COVERING MAY 2013 TO OCTOBER 2013)

I. INTRODUCTION

The 23rd Status Report on the Implementation of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA) of 2001 contains various developments in the energy sector’s evolving transformation to the restructured electricity industry covering the period May to October 2013.

The EPIRA mandated the Department of Energy (DOE) to supervise the restructuring of the electricity industry to ensure that the reform process will take place towards the ultimate vision of having a power industry characterized by higher efficiency,a level playing field, reasonably pricedelectricity rates and stable and secure supply of power. Following are the highlights of the latest developments:

• Privatization activities for Angat, Unified Leyte, Power Barges 101, 102, 103 and 104, Naga Power Plant Complex and Sucat Thermal Power Plant ;
• National Transmission Corporation (TransCo) and Power Sector Assets and Liabilities Management (PSALM) Corporation joint report on their monitoring of National Grid Corporation of the Philippines (NGCP) compliances to the Concession Agreement;
• Updates on the turn-over of sub-transmission assets (STAs) to qualified distribution utilities (DUs);
• Latest summary information on electricity prices;
• Updates on the operation and governance of the Wholesale Electricity Spot Market (WESM), Retail Competition and Open Access (RCOA), and the implementation of Interim Mindanao Electricity Market (IMEM);
• Power supply and demand situation for the report period; and
• Status of electrification.

Click to view complete PDF file of 23RD EPIRA STATUS REPORT

(Period Covering November 2013 TO April 2014)

I. INTRODUCTION

Republic Act No. 9136 otherwise known as Electric Power Industry Reform Act (EPIRA) of 2001 or EPIRA is nearing thirteen (13) years of implementation. Though there were significant achievements, several issues remain which can be largely attributed to differences in the interests of stakeholders.

The 24th Status Report on the EPIRA implementation covering the period of November 2013 to April 2014 highlights the following:

• Activities completed for the privatization of remaining National Power Corporation’s (NPC) generating assets and Independent Power Producers (NPC-IPP) contracts;
• Report on National Grid Corporation of the Philippines’ (NGCP) compliance to the Concession Agreement;
• Continuing turn-over to qualified Distribution Utilities (DU) of the sub-transmission assets (STAs) of the National Transmission Corporation (TransCo);
• Updates on electricity rates to include average electricity rates, updates on universal charge, loan condonation, lifeline rates and mandatory rate reduction;
• Updates on wholesale electricity spot market (WESM) operations and governance;
• Updates on Interim Mindanao Electricity Market (IMEM);
• Monitoring compliance to installed capacity limitation under Section 45 of the EPIRA;
• Updates on the implementation of retail competition and open access (RCOA);
• Power supply-demand situation;
• Electrification status; and,
• Summary report on EPIRA Review discussions.

Click to View PDF File of 24TH EPIRA Status Report