1. Electric Power Industry Reform Act (EPIRA)
Republic Act No. 9136
Electric Power Industry Reform Act (EPIRA)
Signed: 8 June 2001
Effectivity: 26 June 2001
Implementing Rules & Regulations
Signed: 27 February 2002

2. ACCESS & RETAIL COMPETITION The BLUEPRINT of the electricity industry.
Objective of EPIRA
OPEN
ACCESS & RETAIL COMPETITION
RESTRUCTURING
R.A (EPIRA)
The BLUEPRINT of the electricity industry.
PRIVATIZATION

3. RESTRUCTURING Before the reforms… DISTRIBUTION TRANSMISSION POWER
PLANTS
& IPPs
END
USERS
SYSTEMS
OPERATIONS
NATIONAL POWER CORPORATION
18 PRIVATE
UTILITIES
2 LOCAL
GOVERNMENT
UNITS
120 ELECTRIC
COOPERATIVES
OTHER IPPs

4. RESTRUCTURING After the reforms… GENERATION DISTRIBUTION TRANSMISSION
POWER
PLANTS
& IPPs
END
USERS
SYSTEMS
OPERATIONS
NATIONAL
CORPORATION
18 PRIVATE
UTILITIES
2 LOCAL
GOVERNMENT
UNITS
120 ELECTRIC
COOPERATIVES
OTHER IPPs
MARKET
OPERATOR
SUPPLY
GENERATION

5. Competition at the wholesale & retail level
RESTRUCTURING
Performance
Based
Regulation
Benchmarking
Competition at the wholesale & retail level

6.  RESTRUCTURING Existing contractual arrangements Generators TRANSCO
Distribution Utility
End-users 

7.   RESTRUCTURING Transaction flow under Open Access Regime WESM RES
Generators 
TRANSCO
Distribution Utility
End-users

8. Our MANDATE Sec. 38 of EPIRA “There is hereby created an
independent, quasi-judicial regulatory
body to be named the Energy Regulatory Commission (ERC).”

9. Our MAJOR FUNCTIONS Promote competition Monitor the Market
Encourage market development
Ensure customer choice
Penalize abuse of market power

10. Our MAJOR FUNCTIONS Generation Transmission Distribution Supply
Tariffs of TRANSCO
Philippine Grid Code
CAPEX plans
Ancillary services
Certificate of Compliance
Generation tariffs (prior to
WESM and full NPC
privatization)
SPUG (Missionary Electrification)
WESM monitoring
Competition Rules
Distribution
Supply
Tariffs of distribution utilities
Philippine Distribution Code
Lifeline rate
Franchise for consortium of sub- transmission assets
Stranded contract cost
Systems loss
CPCN
Spot inspections/ audits
Bilateral power supply contracts
CAPEX plans
Magna Carta and
DSOAR enforcement
Suppliers’ licenses
Issuance of needed rules
for retail competition
Declaration of open access
and retail competition
Competitive
Natural Monopolies

11. Chief Executive Officer Administrative Service Regulatory Operations
Our ORGANIZATION
COMMISSION
Chair
Commissioner
General Counsel
& Secretariat of
the Commission
Chief Executive Officer
(Chair)
Internal Audit
Unit
Investigation &
Enforcement
Division
Executive Director
Field Offices
Financial and
Administrative Service
Legal Service
Planning and
Information Service
Regulatory Operations
Service
Market Operations
Service
Consumer Affairs
Service

12. Open Access and Retail Competition Transfer of NPC-IPP Contracts
The Journey
Open Access and Retail Competition
Transfer of NPC-IPP Contracts
Privatization of NPC
Establishment of WESM
Cross Subsidy Removal
Unbundling of Rates
Title of Presentation

13. Retail Competition Timeline
LUZON GRID
750 kW – 999 kW
Aggregation within contiguous area allowed
1 MW & above
Household level
Year 1 2
Year 3
Year 10