Power NGO backs stronger regulation instead of gov’t re-entering industry

THE GOVERNMENT needs to focus on strengthening its regulatory capacity rather than re-entering the power generation and distribution industry, a non-government organization (NGO) said.

The government’s re-entry into the power sector could result in higher electric consumer charges, according to Nic Satur, Jr., Partners for Affordable and Reliable Energy chief advocate officer, revering to the situation before the Electric Power Industry Reform Act (EPIRA) of 2001 was signed.

“The focus should remain on enforcing existing regulations, enhancing the energy sector’s efficiency, and ensuring reliable and affordable energy for consumers, rather than on expanding the government’s role within the energy sector,” Mr. Satur told BusinessWorld via chat.

The government is currently looking into amending EPIRA, which privatized the electric industry, citing its alleged failure to lower power costs for consumers.

“The idea of the government getting involved in electricity production again is instilling fear among consumers, especially because it might mean higher (electricity) costs,” Mr. Satur said.

House Bill (HB) No. 2153, written by energy Party-list Representatives Presley C. de Jesus and Sergio C. Dagooc, was filed to address the gaps left by the private sector in electricity generation.

The legislators said private electric generation companies should create additional power generation facilities to meet public demand and lower consumer costs.

“The government needs to provide the necessary generating assets so that the consumers would not suffer either from high prices of electricity or no electricity at all,” according to the introductory note of HB No. 2153.

Asked to comment, Terry L. Ridon, convenor of think-tank InfraWatch PH, said the government’s return to power generation would be a win for consumers if it leads to the reduction of power costs.

“(The) government’s re-entry into the power sector can only be successful if its power generation firms can provide the lowest power rates to consumers,” Mr. Ridon told BusinessWorld in a Viber message.

However, Mr. Satur said the government should instead prioritize enhancing collaboration between energy regulators to reduce the cost to consumers.

“What is urgently needed now is not government competition, in an area where it lacks both the technical and financial competitiveness, but rather a collaboration among our energy regulators,” he said.

The Department of Energy, the Energy Regulatory Commission, and the National Electrification Agency should work together to reduce power generation and distribution costs. “They must collaborate closely with power generators, the National Grid Corp. of the Philippines (NGCP), and distribution utilities and consumers to foster a progressive energy sector,” he said.

Amendments to the EPIRA Act are among the priority bills laid out by President Ferdinand R. Marcos, Jr. before the 19th Congress.

House bills seeking to amend the EPIRA Act remain pending at the House Energy Committee level. — Kenneth Christiane L. Basilio