The proposed amendments to the Electric Power Industry Reform Act of 2001 aim to lower the cost of electricity in the Philippines and to widen and increase power supply in the country.

EPIRA Amendments Legislative Status as of November 29, 2024

The amendments include reform initiatives that aim to address challenges in the energy sector, including:

  • the impending exhaustion of Malampaya natural gas
  • issues with market power and cross-ownership
  • red tape and bureaucratic inefficiencies
  • tax and subsidy concerns
  • inadequate transmission infrastructure
  • transitioning to renewable energy
  • weak governance in the power sector.

The following are key provisions of the bill filed:

  • inclusion and classification of Energy Storage Systems based on primary purpose;
  • zero-rating VAT on power sales to lower end-user electricity rates;
  • state involvement in the generation sector restructuring;
  • aligning transmission sector with Public Service Act provisions;
  • strengthening and expanding TRANSCO and ERC powers and responsibilities;
  • clarifying ERC and Philippine Competition Commission roles on competition issues;
  • increasing fines and penalties for violations and non-compliance;
  • encouraging NPC to adopt cost-effective technologies;
  • grant the President authority to declare an electric power crisis and take action.

Source: Senate Bill No. 2348, 19th Congress

Read statements released by the Joint Foreign Chambers of the Philippines on EPIRA Amendments here:

Read Arangkada’s Power Policy Brief here:

Achieving reliable and affordable electricity has been a constant challenge for the Philippines. While the country no longer experiences the extremely low levels in the power supply that marked the early 90s, much still has to be done in order to address the rising electricity demands of a fast-growing economy. The World Economic Fund’s Global Competitiveness Report 2019 shows the rise in the country’s ranking in terms of the quality of power supply, overtaking Vietnam and Indonesia. Despite this, the country experienced yellow and red alerts in the summer of 2019.

Read other references here:

Continuing Reform in the Power Sector: Addressing Energy Insecurity and High Prices

from the Congressional Policy and Budget Research Department