Open access rules relaxed under amendments on Epira

11/21/2007

The House committee on energy approved yesterday the proposed amendments to the Electric Power Reform Industry Act (Epira) that seek to accelerate the implementation of the long-delayed government’s Open Access program for the power sector industry.

The energy committee, headed by Pampanga Rep. Juan Miguel “Mikey” Arroyo, unanimously affirmed via 23 to 2 votes the provisions on the Epira law that would pave way for a more vigorous involvement by private investors in power generation, transmission and distribution in Luzon and the Visayas.

The committee members agreed to amend section 31 of the Republic Act no. 9136 or the Epira law on the privatization of at least 70 percent of the total capacity of generating assets of National Power Corp. in Luzon and Visayas and the transfer of the management and control of at least 70 percent of the total energy output of power plants under contract with Napocor to the independent power producer (IPP) administrators.

Instead if 70 percent, however, the committee agreed to temporarily reduce to 50 percent which Camarines Sur Rep. Luis Villafuerte, Arroyo’s co-author on the proposed amendments, said as a way to attain the open access.

“So, instead of trying to achieve 70 percent, we reduced temporarily to 50 percent so that we can achieve the open access. But, it does not preclude the NPC from moving forward and privatize up to 70 percent because that is the goal,” Villafuerte said.

At present, Villafuerte said what Napocor achieved in terms of privatization is only 38 percent of its generating assets.

The other provisions which the committee also agreed to amend is Section 43 of the Epira law which will give broader powers to the Energy Regulatory Commission to ensure true competition, market transparency and reasonable rates charged by power industry players.

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