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BACKGROUND
The passage of the Electric Power Industry Reform Act (EPIRA) in 2001 ushered in a new era of hope for the Philippine electric power industry. It calls for a number of drastic but necessary reforms to foster competition in generation and supply leading to a more efficient power industry with reasonable electricity costs. Accordingly, USAID supports the Government of the Republic of the Philippines (GRP) in pursuing its Sustainable Energy Development Project and in overcoming anticipated challenges faced by the power sector as it goes through the difficult reform process.
IMPLEMENTATION OF THE ELECTRIC POWER INDUSTRY REFORM ACT OF 2001
To support the implementation of the EPIRA, USAID provides technical assistance for the Energy Regulatory Commission (ERC) to become a strong and independent regulator that promulgates fair, predictable and consistent policies and prevents abuse in a competitive power market. USAID's assistance includes areas of capacity building in rate making, rule making, and outreach efforts with 140 electric utilities and cooperatives as well as the general public.
USAID experts mentor and coach ERC staff on the evaluation of unbundled rate cases, formulation of policy guidelines and procedures that allow for fair and just recovery of costs in utility operation, promote competition, create an enabling environment for private investments and protect the interest of the consumers. Experts in power sector restructuring from the United States share their technical knowledge and experiences with the ERC. These experts conduct participative types of workshops and trainings to enhance not only the technical skills of the staff but also develop critical analysis on determining electricity rates. These trainings and workshops encourage an active exchange of concepts and opinions that nurture competence, self esteem and confidence among the staff.
USAID also supports ERC to have informed and empowered consumer groups and the public in general through public symposia, information campaigns, and collaborative conferences focused on understanding the objectives and benefits of such reforms.
Furthermore, USAID assistance supports the Philippine Department of Energy (PDOE) in developing strategic planning framework and energy security evaluation/planning and strengthening information management, data collation and data warehousing. Assistance is also focused on the development and exploration of natural gas and renewable energy such as wind and solar energy sources. The GRP is likewise looking at the growing hydrogen economy as an alternative option in the future.
USAID also hosts conferences and workshops conducted by US government resource persons coming from various fields of expertise. The Minerals Management Services (MMS) will assist the PDOE in natural resource evaluation, economic valuation techniques and formulation of safety and security measures. The Energy Information Administration (EIA) will share their technical knowledge in data warehousing, effective data collection and processing and the establishment of an impressive database that would be shared by all players in the energy industry. The National Renewable Energy (NREL) will assist in validating wind energy sources for potential commercial use. The USDOE's Office of Energy Efficiency and Renewable Energy will assist the PDOE in exploring the hydrogen technology as a promising new energy source.
MORE INFO
Cooperator:
U.S. Department of Energy
Divina Chingcuanco, Country Director
Room 1004, Gabriel III, San Miguel Avenue,
Ortigas Center Pasig City
Tel. (632) 631-2796; 631-3208
Mechanism:
Participating Agency Partnership Agreement
Period Covered:
1999 to 2006
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