EPIRA amendments should result in lower electricity prices — Gatchalian

Senator Sherwin Gatchalian at Senate hearing, July 26, 2023. Bibo Nueva España / Senate PRIB

Any amendment in the Arroyo-era Electric Power Industry Reform Act (EPIRA) should result in lower electricity prices for the benefit of consumers who continue to endure high electricity prices, Senator Sherwin Gatchalian said Saturday.

"We need to be able to provide not just a steady and sufficient supply but also affordable energy for our consumers. Any amendment in the EPIRA law should be geared towards reducing the price of electricity," said Gatchalian.

The senator issued the statement after President Ferdinand "Bongbong" Marcos Jr., in his third State of the Nation Address (SONA), urged lawmakers to review EPIRA to determine if there is a need to amend the law.

Gatchalian said he supports the President's call to amend EPIRA so that issues hounding the energy sector, including high prices, may be addressed.

The senator added that EPIRA should be amended to give the Energy Regulatory Commission (ERC) more teeth in enforcing accountability among industry players who fail to deliver their mandate.

"ERC plays a critical role in the industry and we want strong provisions in EPIRA that would empower ERC to regulate industry players effectively," Gatchalian said.

The lawmaker said that the ERC should have enough power to enforce its mandate of protecting the interest of consumers and its charter should foster independence, transparency, and accountability.

"Dapat maging malinaw ang accountability ng mga industry players at magkaroon ng penalty na mararamdaman talaga ng mga violators," he said.

(The accountability of industry players must be clear. Corresponding penalties should be felt by violators.)

In his third SONA last July 22, Marcos said the government was studying whether or not the EPIRA still caters to the needs of consumers when it comes to having cheaper power rates.

Enacted in 2001, EPIRA, a landmark pro-market reform, aims to ensure reliable and competitively priced electricity in the country. Among its salient features is the division of the electric power industry into four sub-sectors—generation, transmission, distribution, and supply—to ensure a level-playing field among players in the energy sector.

At the start of his presidency, Marcos said some provisions of the law were already "outdated." — VDV, GMA Integrated News

This article EPIRA amendments should result in lower electricity prices — Gatchalian was originally published in GMA News Online.