CEBU CITY—Power consumers in the Visayas have been advised to prepare for possible rotational brownouts because the energy supply may be lower than what is needed by the six Visayan islands interconnected in the grid. Inquirer file photo / NESTLE SEMILLA
MANILA, Philippines — Energy producers on Tuesday expressed concerns about proposed revisions to the Electric Power Industry Reform Act of 2001 (Epira), mainly citing that it may discourage investors due to the proposed restrictions.
Representatives aim to modify the 22-year-old law due to high electricity costs, with the Department of Energy (DOE) drafting its own set of amendments backed by lawmakers.
“If the government is competing in the generation sector, it might discourage investments,” said Private Electric Power Operators Association (Pepoa) President Ranulfo Ocampo during a House hearing.
Meralco First Vice President and Head of Regulatory Management Jose Valles echoed Ocampo’s sentiments, adding that the move could result in higher electrical costs.
“This discourages investments in generation and may lead to higher prices of electricity, as competition is deterred by fewer players in the generation sector,” said Valles.
Some of the proposed amendments to the Epira include limiting an entity’s voting shares of stocks to 15 percent from 25 percent. Other amendments also include House Bill 3430’s proposal to limit cross-ownership, adding that “relatives within the sixth civil degree of consanguinity or affinity” will not be allowed to hold interest in National Transmission Corporation or its concessionaires.
However, Albay Rep. Joey Salceda questioned why private companies had taken more than 20 years to make electricity cheaper.
“Sana ayusin natin yung [electrical charge], and let’s use the law to essentially provide an orderly and systematic disposition of the financial liabilities,” said Salceda.
(Let’s fix the electrical charge and use the law to essentially provide an orderly and systematic disposition of the financial liabilities.)
Meanwhile, DoE undersecretary Sharon Garin, who helped draft a bill with the amended provisions to the EPIRA, said, “as it is, we can address the problems. We can catch up,” she said.
RELATED STORIES:
DOE wants EPIRA to ban foreign power distributors
ACT solon: Amending Epira shouldn’t be about president’s emergency powers