Electric Power Industry Reform Act of 2001 (EPIRA)
Definition
The Electric Power Industry Reform Act of 2001, officially Republic Act No. 9136 and commonly abbreviated EPIRA, is the Philippine law that restructured the electric power industry. It separated the industry into generation, transmission, distribution, and supply sectors; mandated privatization of most government power assets; and introduced competition in wholesale and retail electricity markets.
Identities (Wikipedia/Wikidata/DBpedia)
- Wikipedia: https://en.wikipedia.org/wiki/Electric_Power_Industry_Reform_Act_of_2001
- Wikidata: https://www.wikidata.org/wiki/Q141304142
- DBpedia: N/A
Also Known As
EPIRA; Republic Act No. 9136; the power-industry reform law.
Examples and Analogies
EPIRA unbundled the electricity business much as other countries deregulated power monopolies: generation and supply became competitive segments, while transmission and distribution remained regulated natural monopolies. Its wholesale market, the Wholesale Electricity Spot Market (WESM), works like a stock exchange for electricity, and the transmission grid was later placed under a private concessionaire, the National Grid Corporation of the Philippines.
Usage Scenarios
Investors acquire generation assets through PSALM privatization auctions; traders bid in WESM; large end-users procure power under retail competition and open access; and missionary electrification in unelectrified areas is funded through a universal charge on electricity bills.
Strategies
The law’s strategy rests on competitive generation, regulated transmission and distribution pricing under the Energy Regulatory Commission, orderly disposal of National Power Corporation assets via PSALM, and market discipline through WESM.
Security and Safety Measures
Grid-reliability standards and dispatch rules protect system security; the ERC polices rates and anti-competitive behavior; cross-ownership restrictions between sectors guard against market abuse; and the universal charge finances missionary electrification and watershed rehabilitation.
Historical Context
Signed into law on June 8, 2001, EPIRA responded to the power shortages of the early 1990s and the crushing debts of the National Power Corporation. Implementation stretched over two decades, with WESM beginning operations in Luzon in 2006 and expanding to the Visayas and Mindanao in the 2010s.
Challenges and Controversies
Critics blame EPIRA for persistently high retail electricity rates, the slow pace of asset privatization, and periodic supply shortfalls. Consumer groups and legislators have repeatedly pressed for amendments or review of the law and for stronger ERC accountability.
Related Topic
Department of Energy (Philippines)