Power industry given 2 weeks for inputs on EPIRA amendments
Friday, August 11, 2006
By MYRNA M. VELASCO
The technical working group (TWG) of the Lower House working on the proposed amendments to the Electric Power Industry Reform Act (EPIRA) has given stakeholders in the power industry to submit their inputs or positions papers in the next two weeks.
In a hearing called by the Joint Congressional Power Commission, House committee on energy chairman Alipio Cirilo V. Badelles bared that they have started review process for possible revisions in the power industry law given the snags that thumped the privatization of the National Power Corporation.
"We are presently reviewing EPIRA to study various measures on how it can be improved," he stressed; adding that most of the concerns raised to them by prospective investors are on the lack of access to market for future capacity and even for the privatized assets of NPC.
In two weeks time, Congress is eyeing to schedule TWG meetings and consultations that shall be attended by various stakeholders in the power industry.
Many in the power sector believe though that attempts of the legislative branch to pursue comprehensive amendments in the law may not prosper; as this will not gain enormous support from stakeholders.
If there is any preferred amendment in the law, industry sources noted that this shall be concentrated on the provision of bulk market for their generated electricity.
Failing to address this, it was opined that the prevailing scenario of lackluster appetite of investors will just persist until such time that the country is again pushed into suffering new round of power outages and the government will again be left with no choice but to grab expensive power contracts, to the disadvantage of the Filipino consumers.
Some players in the power industry are pushing for an accelerated open access by cutting down the 70 percent privatization requirement on NPC assets; and this has been proposed among the amendments in EPIRA.
The country’s economic managers have likewise put forward a proposal to ban cross ownership; but this is seen a contentious issue and may even thrive a deal-breaker; as most of the entrenched local players engaged both in generation and distribution subsectors are sure to fiercely oppose it.
The EPIRA sets policy reforms aimed at improving the operational structure and shape of the electricity sector; primarily by dismantling the monopoly of state-owned NPC and spur competition among wider base of players in the industry.
The end-goal would be to provide consumers with cheaper rates of power and better services; but even with the five years that already passed; these promised benefits are still far from being achieved.
Given that, government and industry stakeholders are now asking if it is indeed now time to push for modifications in the law to keep it more in sync with past and recent developments.
posted by philpower @ 8:14 AM,
