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By Maricel V. Cruz, Reporter
Calls by Rep. Juan Miguel
“Mikey” Arroyo of Pampanga to review and amend the Electric
Power Industry Reform Act (Epira) received a boost from the
party-list group representing electric cooperatives.
Party-list Rep. Edgar Valdez of
the Association of Philippine Electric Cooperatives said in a
statement Sunday that changes to the Epira law are needed to lower
consumers’ electric bills and make the Philippines’ energy
sector more attractive to foreign investors.
Many supervening events have
happened since the passage of Epira in 2001, and those changes
justify a revisit of some provisions, the statement said.
“For one, we have to review the
provisions of Epira requiring 70 percent privatization of generating
assets of the National Power Corp. before open access can be
implemented,” Valdez said in the statement.
He explained that under the
open-access scheme, a large-volume consumer using at least one
megawatt a month is allowed to buy electricity from any power
distributor, choosing the one that offers the lowest rate. So in
theory, production cost should have been cheaper as a result. Plus,
the increased competition was to stimulate business growth in that
sector, improving the investment attractiveness of that sector.
That’s not what happened,
however.
“Obviously, the law has failed
to achieve its original purpose for more private sector entries into
power generation and distribution to lower power rates and boost
needed investments,” Valdez said.
He is now supporting House Bill
1889, or the Epira amendment bill, filed by Representative Arroyo,
who was recently appointed chairman of the House Committee on
Energy. He is also son of President Arroyo.
Referring to Representative
Arroyo’s initiative, Valdez said the bill coincides with the real
intent of the Epira law, which is to lower electricity rates,
provide better investment climate and more incentives for foreign
investors to come, create more job opportunities and stabilize the
economy.
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