Policy Brief

I. Introduction The Electric Power Industry Reform Act (EPIRA) was enacted in 2001 with the intention of ensuring affordable and reliable electricity to all power consumers in the Philippines. The EPIRA seeks to achieve this through the introduction of sweeping reforms including the restructuring and deregulation of the entire power industry and the privatization of most state‐owned power generation and transmission assets. Such reforms were intended to introduce more competition and choices for consumers while leveling the playing field in the power industry in order to encourage greater private sector participation. Unfortunately, for the most part, the pace of reforms in the power sector has been slower than most people have hoped for. Almost seven years since the EPIRA was passed into law, several of its provisions have yet to be fully implemented and the promise of consumer choice and lower power rates has yet to be realized. II. Power Sector Situation In terms of access to electricity, the Philippines performs quite adequately. At the end of last year, 96.63 percent of all 41,980 barangays in the country are already electrified. The vast majority of the remaining 1,413 unelectrified barangays are located in the franchise areas of electric cooperatives. The Autonomous Region of Muslim Mindanao (ARMM) has the lowest electrification level among all regions in the country with a mere 83 percent, followed by Regions XII and V with 94.39% and 94.47% electrification levels, respectively.