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The House committee on energy has decided to drop proposed
amendments to the country’s power sector restructuring and reform
program amid growing protests from industry players.
Rep. Juan Miguel Arroyo, committee chairman,
said the body is set to call off moves to amend the Electric Power
Industry Reform Act of 2001 (Epira) in light of the recent
developments in the sector.
“We believe that our proposed amendments
to the Epira to expedite open access has been overtaken by events so
it’s not a wise move that we continue debating,” he said.
Lawmakers have wanted to amend the Epira,
specifically its provision calling for the privatization of at least
70 percent of National Power Corp.’s (Napocor) generating and
contracted capacities, to lower its privatization threshold to 50
percent and fast track the implementation of open access in the
sector.
Open access would allow end-users to choose
their power suppliers. The ensuing competition among power
generators is expected to make the industry more competitive and
bring about lower rates.
However, industry players, hesitant to
enter an open access environment with state-owned Napocor retaining
a large share of the market, have filed a petition for the
implementation of an interim open access before the Energy
Regulatory Commission.
This would allow privatized Napocor power
plants to implement the scheme without the need for the government
to meet the 70 percent privatization threshold. Napocor, however,
will be barred from participating.
A manifesto has already been signed by
members of the lower house’s energy panel saying that the proposed
revisions to the Epira have already been rendered “moot and
academic” with the said proposal.
“This initiative would provide an expeditious
and proper means to attain reasonableness or affordability of
electricity, thereby enhancing the competitiveness of our
exports,” the manifesto read.
Arroyo said that deliberations on amending the
Epira went through a very tedious process, and proved even more
difficult when investors raised concerns about instability in the
business environment.
Instead of amending the Epira outright, the
House energy body is instead pushing for solutions to controversial
issues still hounding the sector such as those on system losses and
expanding lifeline rate coverage.
-- Euan Paulo C. Añonuevo
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