OPINION
Bas Umali
Amendments Consumers Would Want To See On The EPIRA
FILE
When the Electric Power Industry Reform Act of 2021 (EPIRA Law) was enacted more than two decades ago, it promised affordable and secure electricity for all. But 22 years later, we are very far from that. Electricity price remains high, while supply in seasons when it’s needed the most is still erratic and undependable. In fact, electricity rates in our country remain consistently among the highest, and that is true for both residential and industrial rates.
While other problems mire the electricity sector, the issue of electricity price is the sore, bleeding point for consumers - everyday Filipinos who toil to pay for monthly Meralco bills. President Bongbong Marcos has mentioned this in his State of the Nation - one once, but twice - acknowledging the seriousness of the problem, and has rightfully called for amendments to EPIRA.
There are several bills filed in the Congress in relation to amending the EPIRA. Last September 10, the Committee on Energy of the House of Representatives conducted another hearing to discuss the proposed amendments. The committee discussed the restructuring of the Energy Regulatory Commission, including revamping its core functions, and creating mechanisms for consumer participation.
But Senator Win Gatchalian rightfully asserted that any amendment to the EPIRA should result in lowering electricity prices in the country.
The EPIRA amendment is an opportunity that we must take full advantage of. One of the issues that we need to address is the heavy taxation of the power sector and how these taxes find its way to our monthly bills. This is one of the reasons why consumers spend a lot for electricity.
Feed In Tariff Allowance (Fit-All) is one of the items in our electric bill that subsidizes selected renewable energy power producers. While nobody questions the reduce carbon, we are not implementing it justly. The FIT-All adds an average of P20 for households consuming 200 kWh. The government’s push to increase renewable energy in our energy mix is good and needed, but it should not pass the cost to consumers.
Another issue is the lack of investment in the power sector, which results in low energy production. And with the law of supply and demand, low energy production contributes to low supply for a country that has high demand, directly affecting the price of electricity. Amendments to the EPIRA should explore ways to reduce the generation cost that represents the highest charge in our bill.
The current EPIRA also mandates a universal charge due to distribution utilities, which adds an additional P21.00 to the total bill of typical households where power consumption averages 200kWh monthly. Universal charges go to missionary electrification and environmental charges, which are used for the electrification of the remote areas throughout the Philippines. The intention is noble, but the responsibility should not be passed on to ordinary consumers who already shoulder multiple charges.
The two-decades old law has also failed to adapt to the times and provides limited relief to the vulnerable sectors. One example is the insufficient discounts given to senior citizens. The 5% discount is only for customers with less 100 kwh monthly consumption. With extreme heat brought about by climate change, one may find that air conditioning is not anymore a luxury but a necessity for many of our kababayans - especially for our children, the sick and the elderly. We think it’s not excessive that the amendment can impose a 25% discount for customers with less than 300 kwh consumption monthly. We also suggest providing discounts to single parents under the same scheme.
The proposals mentioned above are directly connected to the growing clamor to institutionalize consumer participation in formulating energy plans and implementing policies. Undersecretary Sharon Garin of the Department of Energy mentioned that the power sector needs more technical persons like engineers; and we support such a proposal. But we need to increase the level of transparency in our energy sector and consumer participation is a vital step for us to achieve that. Participatory process is a tested mechanism and facilitates free flow of information useful in planning and policy formulation.
The question is no longer whether EPIRA should be reformed—it’s how swiftly and boldly we can make it happen. For over two decades, Filipino consumers have borne the brunt of high electricity prices and an unreliable power supply. If we are to meet the demands of modern society and protect the most vulnerable among us, we must seize this opportunity to overhaul the system.
While other problems mire the electricity sector, the issue of electricity price is the sore, bleeding point for consumers - everyday Filipinos who toil to pay for monthly Meralco bills. President Bongbong Marcos has mentioned this in his State of the Nation - one once, but twice - acknowledging the seriousness of the problem, and has rightfully called for amendments to EPIRA.
There are several bills filed in the Congress in relation to amending the EPIRA. Last September 10, the Committee on Energy of the House of Representatives conducted another hearing to discuss the proposed amendments. The committee discussed the restructuring of the Energy Regulatory Commission, including revamping its core functions, and creating mechanisms for consumer participation.
But Senator Win Gatchalian rightfully asserted that any amendment to the EPIRA should result in lowering electricity prices in the country.
The EPIRA amendment is an opportunity that we must take full advantage of. One of the issues that we need to address is the heavy taxation of the power sector and how these taxes find its way to our monthly bills. This is one of the reasons why consumers spend a lot for electricity.
Feed In Tariff Allowance (Fit-All) is one of the items in our electric bill that subsidizes selected renewable energy power producers. While nobody questions the reduce carbon, we are not implementing it justly. The FIT-All adds an average of P20 for households consuming 200 kWh. The government’s push to increase renewable energy in our energy mix is good and needed, but it should not pass the cost to consumers.
Another issue is the lack of investment in the power sector, which results in low energy production. And with the law of supply and demand, low energy production contributes to low supply for a country that has high demand, directly affecting the price of electricity. Amendments to the EPIRA should explore ways to reduce the generation cost that represents the highest charge in our bill.
The current EPIRA also mandates a universal charge due to distribution utilities, which adds an additional P21.00 to the total bill of typical households where power consumption averages 200kWh monthly. Universal charges go to missionary electrification and environmental charges, which are used for the electrification of the remote areas throughout the Philippines. The intention is noble, but the responsibility should not be passed on to ordinary consumers who already shoulder multiple charges.
The two-decades old law has also failed to adapt to the times and provides limited relief to the vulnerable sectors. One example is the insufficient discounts given to senior citizens. The 5% discount is only for customers with less 100 kwh monthly consumption. With extreme heat brought about by climate change, one may find that air conditioning is not anymore a luxury but a necessity for many of our kababayans - especially for our children, the sick and the elderly. We think it’s not excessive that the amendment can impose a 25% discount for customers with less than 300 kwh consumption monthly. We also suggest providing discounts to single parents under the same scheme.
The proposals mentioned above are directly connected to the growing clamor to institutionalize consumer participation in formulating energy plans and implementing policies. Undersecretary Sharon Garin of the Department of Energy mentioned that the power sector needs more technical persons like engineers; and we support such a proposal. But we need to increase the level of transparency in our energy sector and consumer participation is a vital step for us to achieve that. Participatory process is a tested mechanism and facilitates free flow of information useful in planning and policy formulation.
The question is no longer whether EPIRA should be reformed—it’s how swiftly and boldly we can make it happen. For over two decades, Filipino consumers have borne the brunt of high electricity prices and an unreliable power supply. If we are to meet the demands of modern society and protect the most vulnerable among us, we must seize this opportunity to overhaul the system.
Oct 15, 2024
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