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ATTEMPTS by lawmakers to amend the Electric Power Industry Reform
Act of 2001 (Epira) may deter much-needed investments that are
already trickling in the power sector, a former energy secretary
warned.
Vincent S. Perez, one-time member of President
Arroyo’s Cabinet, said that “while Epira is imperfect, it has
served its purpose in terms of attracting investors.”
“Existing and new industry players are already
familiar with its provisions that changing some of these now may
rattle the market and upset [the] privatization momentum,” he
added.
Legislators led by presidential son and Rep.
Mikey Arroyo have been pushing for a bill that would trim some of
the targets set under the law that serve as preconditions to
introducing an open-access regime. An open-access regime would mean
that electricity consumers may chose their own suppliers and thus
bring down their power costs, which are one of the highest in Asia.
Unmet provisions of the Epira include
privatization of at least 70 percent of the generating capacity of
state-owned National Power Corp. (Napocor), and the transfer of at
least 70 percent of the management contracts over third-party power
plants to the private sector.
The presidential son’s bill is calling for a
reduction in the threshold to 50 percent.
“By allowing open access, large industrial
consumers can avail of competitive rates,” he said.
But Perez, who now chairs energy consultancy
firm Merritt Partners, said that amending the Epira to hasten the
implementation of competition in the power sector may be
counterproductive as the promulgation of implementing rules and
regulations and rulings relevant to its implementation is tedious.
“Time factor alone to do all of these will not
accelerate open access, while new amendments to Epira could
potentially delay investment decisions especially for large power
projects,” he said.
Instead of amending the law altogether, he
proposed that an “interim” period for open access be implemented
with recently privatized power plants and other privately-owned
generating assets as participants. Such a plan however cannot push
through without the support of distribution utilities across the
country whose large customers may be allowed to choose their
suppliers.
Among the groups that had called on the
government to allow the Epira to run its course are the Joint
Foreign Chambers in the Philippines, the Semiconductor and
Electronics Industries in the Philippines Inc. and the Philippine
Independent Power Producers Association.
-- Euan Paulo C. Añonuevo
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