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Saturday, December 21, 2024

EPIRA at 20: Promises, Realities, and the Future of the Philippine Power Sector


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In 2001, the Philippine government passed the Electric Power Industry Reform Act (EPIRA) with grand promises: affordable electricity, improved efficiency, and a competitive power sector. Over two decades later, the reality is far more complex. While some improvements have been made, the overarching goal of providing affordable and equitable electricity remains elusive. In "Saan Umabot ang Bente Mo: EPIRA 20 Years After", the analysis uncovers the intricate web of politics, corporate dominance, and unfulfilled promises that continue to define the Philippine power sector.


The High Cost of Privatization

At the heart of EPIRA was the idea that privatizing state-owned assets would bring competition, lower costs, and improve service. However, the outcome has been starkly different. The Philippines now has one of the highest electricity rates in Southeast Asia, second only to Singapore​

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Privatization has shifted control of power generation, transmission, and distribution into the hands of a few influential conglomerates, reinforcing an oligopolistic structure. Despite promises of competitive pricing, power remains a costly burden, particularly for low-income households.


Power and Profit: Who Really Benefits?

The book dives into how the power sector has become a cash cow for the elite few. It traces ownership transitions from state control under the Marcos regime to private oligarchies under Aquino, Ramos, and Arroyo administrations.


Key Players: Prominent families such as Lopez, Aboitiz, Sy, Consunji, and Pangilinan now dominate the industry.

Onerous Contracts: During President Ramos' term, Independent Power Producers (IPPs) were given "take-or-pay" contracts that guaranteed payments regardless of actual electricity consumption. This resulted in massive debts for the National Power Corporation (NPC).

The EPIRA law, instead of breaking monopolies, has facilitated the rise of power giants who prioritize profits over public welfare.


The Transmission Monopoly: NGCP

The privatization of the National Grid Corporation of the Philippines (NGCP) is another critical chapter in EPIRA's legacy. The grid, considered the "crown jewel" of the power sector, was handed to a consortium led by Chinese state-owned State Grid Corporation of China and local conglomerates led by Enrique Razon and Robert Coyiuto.


While privatization was supposed to improve infrastructure, it has raised significant concerns about transparency, national security, and accountability.


Energy Injustice: Who Bears the Brunt?

The analysis paints a stark picture of energy poverty, where millions of Filipinos still lack reliable electricity access. Rural and far-flung communities remain underserved, and subsidies intended to address these gaps often fall short.


In Barangay Pamilacan, Bohol, solar installations have transformed lives by creating jobs and raising incomes.

However, such success stories remain isolated, and systemic issues continue to block widespread change.

The report highlights that energy injustice perpetuates economic inequality, with the bottom 40% of Filipinos holding as much income share as the top 1%.


Regulatory Capture and Governance Failures

EPIRA created institutions like the Energy Regulatory Commission (ERC) and the Power Sector Assets and Liabilities Management Corporation (PSALM) to oversee the power sector. However, these agencies have often been plagued by inefficiency, corruption, and regulatory capture.


The debts inherited by PSALM from NPC continue to be a heavy financial burden.

The ERC has been criticized for its lack of transparency and for favoring corporate interests over consumer welfare.


The Just Energy Transition: A Way Forward

Amidst the failures, the call for a Just Energy Transition resonates strongly. The transition to renewable energy is not just about sustainability but also about equity and inclusivity.


Renewable energy projects like solar farms and microgrids have shown promise.

Decentralizing power production and empowering electric cooperatives are seen as crucial steps.

The book emphasizes that the energy transition must prioritize people's needs over corporate profits.


Conclusion: The Road Ahead

The findings in "Saan Umabot ang Bente Mo: EPIRA 20 Years After" are a wake-up call for policymakers, industry leaders, and citizens. EPIRA, while founded on noble intentions, has largely failed in its mission to deliver affordable, reliable electricity to all Filipinos.


Moving forward, the country must:


Strengthen Regulatory Oversight: Ensure that agencies like ERC and PSALM operate transparently and independently.

Empower Local Communities: Invest in decentralized renewable energy systems.

Hold Industry Players Accountable: Demand fairness and accountability from corporate giants.

The promise of a just, equitable, and sustainable energy future is still achievable — but only if decisive, collective action is taken.


"Sunshine is the best disinfectant," the book reminds us. As Filipinos face rising electricity bills and persistent energy poverty, transparency, accountability, and public participation will be key in driving the change the country desperately needs.


The time for reform is now. The power is in our hands.


The Philippines' Green Transition: Promise vs. Reality


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In a country highly vulnerable to climate change despite being one of the world's lowest carbon emitters, the Philippines faces a critical challenge: how to transition to a greener economy while ensuring no one gets left behind. The nation's commitment to reduce greenhouse gas emissions by 70% by 2030 is ambitious, but the path to achieving this goal reveals significant gaps between policy and implementation.


The Framework for Change

The Philippines made history by becoming one of three countries selected to pilot the International Labor Organization's (ILO) Just Transition framework, alongside Ghana and Uruguay. This framework, enshrined in the landmark Green Jobs Act of 2016, aims to create a roadmap for transitioning to an environmentally sustainable economy while protecting workers and communities.


The Green Jobs Act coordinates 21 government agencies to prepare both industry and workforce for this transition. It defines green jobs as employment that contributes to environmental preservation while ensuring decent work conditions - a dual focus that sets it apart from previous environmental legislation.


Challenges in Key Sectors

Power Industry

The power sector, accounting for 41.8% of the country's greenhouse gas emissions, presents a stark example of the challenges facing the transition. Despite the Philippines' rich renewable energy resources and comprehensive renewable energy law, fossil fuels - particularly coal - continue to dominate. Currently, 43 coal-fired power plants operate in the country, with more in the pipeline.


The reality for workers is complex. About 4,500 of the 9,500 power generation sector workers are employed in coal power plants. While they face no immediate displacement due to the absence of decommissioning plans, they continue to work in hazardous conditions with limited union representation and varying levels of compensation.


Transportation Sector

The transport sector, contributing 35% of emissions, faces its own set of challenges. The government's Public Utility Vehicle (PUV) modernization program has become a flashpoint for the complexities of implementing green transitions. Small operators and drivers struggle with the financial burden of upgrading to more environmentally friendly vehicles, with costs ranging from ₱1-2 million per unit.


Recent transport strikes highlight the unresolved issues: drivers fear losing their individual franchises if they fail to form cooperatives, while facing daunting loan payments of approximately ₱20,000 per month over seven years.



Implementation Gaps

The pilot program's implementation has revealed several critical shortcomings:


Slow Decision-Making: Inter-agency coordination has been hampered by representatives lacking decision-making powers.

Insufficient Social Dialogue: While consultations have occurred, meaningful negotiations with key stakeholders remain limited.

Funding Constraints: The 2020 budget contained no new funding for PUV modernization, compromising the program's completion timeline.

Business-as-Usual Approach: Despite green initiatives, the Department of Energy maintains a "technology neutrality" policy that effectively favors coal power.


Signs of Hope

Despite these challenges, some success stories emerge. Electric cooperatives like BENECO, ANTECO, and ROMELCO have demonstrated effective transitions to renewable energy. Smaller community projects in off-grid islands, schools, churches, and social housing sectors show promise, though they require stronger government support for scaling up.


The Path Forward

For the Philippines to achieve its green transition goals while protecting vulnerable workers and communities, several key elements are necessary:


Strong governmental support with clear policy direction

Dedicated and sustainable funding streams

Strong and diverse coalitions among stakeholders

Economic diversification strategies


The Philippines' experience shows that while having ambitious policies is commendable, the real challenge lies in implementation. As climate change continues to threaten the nation with increasing intensity, the urgency of achieving a just and effective transition becomes ever more critical.


The success of this transition will ultimately depend on whether the government can mobilize resources, both human and capital, while ensuring that the burden of change doesn't fall disproportionately on those least able to bear it. The stakes are high, but as local success stories show, a just and green transition is possible with the right combination of political will, community engagement, and strategic planning.


Exploring the Amazon: 27 New Species Discovered, Including a “Blob-Headed” Fish and a Semi-Aquatic Mouse


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In the heart of the Peruvian Amazon, within the remote and biodiverse Alto Mayo forest, scientists have unveiled an extraordinary discovery—27 previously unknown species. Among these are a peculiar “blob-headed” fish, an elusive semi-aquatic mouse, a dwarf squirrel, a salamander, and a short-tailed fruit bat. This expedition not only highlights the Amazon's unmatched ecological diversity but also emphasizes the urgent need for its protection.


A Window into Hidden Biodiversity

The expedition, led by Trond Larsen, head of the Conservation International Rapid Assessment Program, brought together 13 scientists, local technicians, and members of the Awajun indigenous group. Their combined expertise uncovered a dazzling array of life forms across Alto Mayo’s dense forests, swamp regions, and unique white sand ecosystems.


Among the most remarkable finds is the “blob-headed” armored catfish, characterized by its oversized, bulbous head. While its unusual appearance sparks curiosity, scientists are still uncertain about the evolutionary purpose of this feature.


Equally fascinating is the discovery of a semi-aquatic mouse, one of the rarest types of rodents in the world. Found in a swamp forest, this species may be endemic to Alto Mayo, existing nowhere else on Earth.


Other Astonishing Discoveries

In addition to the fish and mouse, the team identified:


A dwarf squirrel: Measuring just 5.5 inches, this chestnut-brown squirrel is small enough to fit in the palm of a hand and thrives in treetops.

A tree-climbing salamander: Predominantly found in low-lying vegetation, this species was abundant in a unique white sand forest ecosystem.

A short-tailed fruit bat: Contributing to the vital pollination and seed dispersal processes of the forest.

Eight species of fish, ten species of butterflies, and two dung beetles: Each playing crucial roles in maintaining ecological balance.


The Role of Indigenous Knowledge

The Awajun people played a key role in the expedition's success, sharing generations of wisdom about the forest’s flora and fauna. Their deep understanding of the ecosystem provided invaluable insights, helping researchers navigate the dense terrain and locate species that might otherwise have remained hidden.


More Discoveries Await

Beyond the confirmed 27 new species, scientists identified 48 more species potentially new to science, pending further analysis. Over the 38-day expedition, the team documented an astounding 2,046 species, including 49 classified as threatened, such as the yellow-tailed woolly monkey.


A Call for Conservation

Trond Larsen emphasized that these discoveries are not just scientific milestones—they are a call to action. The Amazon rainforest, often described as the "lungs of the Earth," faces increasing threats from deforestation, illegal mining, and climate change. Protecting these habitats is not only crucial for preserving biodiversity but also for maintaining global ecological stability.


A Shared Responsibility

These findings remind us of the incredible mysteries still hidden in the world’s rainforests and the urgent need to act as stewards of these fragile ecosystems. The Alto Mayo expedition is a testament to what can be achieved when science, traditional knowledge, and conservation efforts align.


The discoveries in the Amazon are not just about new species—they're about preserving the natural wonders of our planet for generations to come.

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