NAGKAISA!
Laban sa EPIRA
Wilson M. Fortaleza
Training/Workshop
September 24, 2012
ALU Mariners’ Court, Cebu City
IMAGINE
LIFE
WITHOUT
LIGHT & power
Walang
Kabuhay - buhay
Ang kuryente
ay nagpapagaan
ng buhay
Pero Sa pilipinas
Ito ay pampabigat
 Pabigat sa industriya
(26% cost of production)
 Pabigat sa bulsa ng manggagawa
(10% - 20% of income)
Maliwanag na
paliwanag
RA 9136
Epira
Ang problema!
Ilang konsepto
• Power is a unique product. It cannot be
stored
It must be consumed as it is being
produced
Therefore the whole system
must be efficient.
• Public utility
Regulation
• Natural monopoly
Captive market
• Economy of scale
Small system
The power industry/system
TRANSMISSION
GENERATION
DISTRIBUTION
Walang libreng kuryente, Wala
ring gustong manlibre
System loss
Franchise tax
ELECTRIC POWER
PLANTS
GENERATE
ELECTRICITY
ELECTRICITY IS THEN
CARRIED OVER LONG
DISTANCES BY
TRANSMISSION CABLES
THAT IS TAPPED INTO
BY LOCAL DISTRIBUTION
COMPANIES
YOUR LOCAL DISTRIBUTION UTILITY SETS UP
THE POWER LINES IN
YOUR COMMUNITY AND
SERVICES YOUR NEEDS
FOR ELECTRICITY
VAT
Environmental
charge
Metering
PBR
PASS-THROUGH
Charge
Transmission
Generation
Distribution Supply
GENERATION
CHARGES (Transmission
& Distribution)
Charge
Charge
Charge Charge
(60 - 70%)
(30 – 40 %)
From ERC presentation on Transco PBR
Government
Taxes
Power industry noon at ngayon
Source: Department of Energy
EPIRA regime

Unbundling of rates

Separation of Generation from
Transmission

Privatization of NPC

Establishment of Wholesale Electricity
Spot Market (WESM)

Retail Competition and Open Access
EPIRA’s mAIn objEctIvEs
 Create competition
in the industry
 Ensure efficiency,
reliability and security
of electricity supply
 Bring down rates
The industry10 YEARS
under EPIRA
“Escalating rates, diminishing
supply.”
FDC Power 101 based on presentations made by Prof.
Wally Del Mundo of UP National Engineering Center
FDC First National Electricity Consumers Conference,
January 2011
PHILIPPINE POWER RATES:
AsIA’s HIGHEst
 PHILIPPINES -------US$0.2460/kWh
 Japan---------------US$0.243/kWh
 Singapore---------US$0.22/kWh
 Indonesia----------US$.092/kWh
 Thailand------------US$.086/kWh
From Louie presentation
14
WoRLD’s HIGHEst PoWER RAtEs
International Energy Agency (Q1 2011)
RESIDENTIAL (/kWh)
 Denmark ---US$0.3563
 Germany --- US$0.3248
 Italy --- US$0.2632
 Austria --- US$0.2576
 PHILIPPINES- US$0.2460
 Ireland --- US$0.2326
 Japan --- US$0.2322
 Belgium --- US$0.2317
 Netherlands --- US$0.2212
 Sweden --- US$0.2180
From Louie presentation
15
Escalating rates
Escalating rates
ESCALATING RATES
14
Price/kWh
P12.68/kWh
12
10
P5.00/kWh
8
6
4
2
0
2001
PRE-EPIRA
* Meralco effective rate (residential)
2012
AUGUST 2012 *
On security of supply
Philippine Power Development Plan (PDP) target
2013 -2030:
14,400 MW
To be commissioned capacity 2013-15:
650 MW
Committed capacity
1,172 MW
19th EPIRA Implementation Status Report
19 2011 - October 2011, DoE
April
On security of supply
“While the government is receiving expressions of
interest to expand existing plant or put up new
plants with a total capacity of 5,023 MW, these are
still at the different stage of development. Thus,
there is still a possibility that these could not
proceed to development status. With these, the
government may need to involve itself once again
into power generation to avoid power shortages in
the future and keep hold of the current momentum
being enjoyed as an investment attractive
economy.”
19th EPIRA Implementation Status Report
April 2011 - October 2011, DoE
20
The shift to private power
v
v
v
v
v
v
v
ENERGY SECRETARY Jose Rene Almendras (center) holds hands with Erramon Aboitiz (right),
president of RP Energy, and Oscar Reyes (left), Meralco president and CEO, at the signing of a
deal that transferred controlling stake in RP Energy to Meralco in July 2011. RP Energy is building
a 600-megawatt coal-fired power plant in Subic Bay Freeport, which faces strong opposition.
ROBERT GONZAGA/INQUIRER CENTRAL LUZON
PRIVATE power Luzon
Source: Philippine Electric Power Industry Market and Policy Assessment and
Analysis of International Markets , UP Engineering Center, May 2011
MARKET CONCENTRATION
The market is highly concentrated as these
three groups control more than 70% of the
generating capacity in Luzon. The share of
others including AES, DMCI and Quezon Power
Phils. are less than 7% each.
The total energy sales and consumption
(including own use and system loss) in Luzon
account for 74% of the total Philippines.
Visayas and Mindanao has each 13% of the
total energy consumption.
PRIVATE POWER visayas
Source: Philippine Electric Power Industry Market and Policy Assessment and
Analysis of International Markets , UP Engineering Center, May 2011
PRIVATE POWER mindanao
PRIVATE POWER (Distribution)
30,000
25,000
Lopez DUs (Meralco)
20,000
15,000
Aboitiz (7 DUs)
10,000
119 Electric Cooperatives &
1 LGU-owned
5,000
0
gWh Sales (2007)
THE SUPPLY SECTOR
RETAIL ELECTRICITY SUPPLIERS
Aboitiz Energy Solutions, Inc.
Trans-Asia Oil and Energy Development Corp.
GNPower Mariveles Coal Plant Ltd. Co.
First Gen. Energy Solutions, Inc.
Cabanatuan Electric Corporation.
Masinloc Power Partners Co. Ltd.
Premier Energy Resources Corp.
Team Philippines Energy Corp.
SEM-Calaca RES Corp.
SN Aboitiz Power RES
San Miguel Electric Corporation
Global Energy Supply Corporation
Ferro Energy, Inc.
Kratos RES, Inc.
Ecozone Power Management, Inc.
GNPower Ltd. Co.
AdventEnergy Inc.
PRISM Energy, Inc.