ENERGY stakeholders called for changes in the Electric Power Industry Reform Act of 2001 (Epira) to better reflect the existing global and local energy landscape as the line between generation, transmission and distribution companies continue to blur.
The stakeholders shared their views during The Manila Times Energy Forum on Friday.
Manila Electric Co. (Meralco) Executive Vice President and COO Ronnie Aperocho said that from the perspective of the distribution sector, Epira is still relevant, but there are areas that need to be upgraded.
“There is need for some changes, as twenty-five years ago, the distribution utility was just a plain wires and metering business,” Aperocho said.
“Today, the distribution grid has evolved into a complex and a very dynamic platform, where distributed energy resources, such as rooftop solar, batteries, electric vehicles, smart devices and other energy innovations have converged,” he said.
Primelectric Holdings Inc. Corporate COO Richard Nethercott said that in the past, the law was consistent, predictable and was applied equally to all the players in the electricity industry.
He said flexibility is needed to address changing circumstances in the industry and to spur more energy investments.
Epira “must further empower, enable and strengthen the Energy Regulatory Commission, and... address the current limitations of generation companies wanting to build more power plants,” Nethercott said.
Alternergy Holdings Corp. President Gerry Magbanua agreed on the need for flexibility as the energy landscape continues to change and the country moves toward renewables.
“Are our policies moving quickly enough? Are our regulatory processes enabling investment needs? Are we building the right infrastructure and systems required for a modern energy society? Action is needed in order to ensure that the transition remains affordable and inclusive,” Magbanua said.
Philippine Electricity Market Corp. President Elvin Hayes Nidea said some changes are definitely needed because the electricity market has dramatically changed in 25 years, and roles need to be more defined.
“We must also consider how we can further strengthen the governance framework of the electricity market, to create stability, transparency and confidence for investors, consumers and industry participants,” Nidra said.
Janeene Depay-Colingan, Philippine Rural Electric Cooperatives Association executive director and general manager, said the Epira must be improved to bring about better coordination between the government and electric cooperatives.
“Overall, we hope that the Epira reform will give greater accountability, faster, more predictable regulation and better access to financing, stronger consumer participation, and close coordination among government and state,” Depay-Colingan said.
Energy Regulatory Commission Chairman and CEO Saturnino Juan and other stakeholders also agreed that because of the sudden energy developments locally and around the world, changes are due, and that all stakeholders should work together toward those changes.
“This is something that we should all work together as a whole in order to identify what changes are necessary in order for us to have a clearer road map,” Juan said in an interview during the event.
“The retail electricity industry cannot solve lower electricity costs and figure out the changes to Epira alone. The goal of Epira is to lower electricity costs and provide reliable supply for everyone, and this sector needs to be defined for the role it will play in the future,” Mabuhay Energy Corp. President and CEO Jacqueline Castillo said.
“Epira has been reviewed, studied and debated across various Congress and four presidential administrations. To fulfill its promise, we need to have a holistic approach from consumers to energy leaders, regulators and our policy leaders,” Partners for Affordable and Reliable Energy Chief Advocate Officer Nick Satur Jr. said.
