EPIRA and It’s Issues

PRESENTED BY: CARLO JAY MAMACLAY

MSEE-PSE

PROFESSOR: DR. ARJUN ANSAY

 Engr. Carlo Jay Mamaclay
REE License No.: 0048914
REE Licensure Examination April 2012
IIEE-Member

Educational Background
B.S. Electrical Engineering (2007-2011)
Technological University of the Philippines – Taguig Campus
Work Experience
2011 - 2012
Company: International Elevator and Equipment Inc.
Position: Project Engineer (2011-2012)
Job Nature: Construction
Specialization: Supervision of Mitsubishi Elevator and
Escalator Installation works
Completed Projects: BGC East Superblock, The Mind
Museum, Globe Headquarters
Work Experience
2012 - Present
Company: Chiyoda Philippines Corporation
Position: Electrical Engineer 3
Job Nature: Oil & Gas/Industrial Design and Engineering
Specialization: Construction Detail Design, Engineering,
Estimation and Project Proposals

Completed Projects: Itchys LNG Project – Australia, Yamal

LNG Project – Russia, Golden Pass LNG Export Project –
USA, RGX6 CO2 Export Project – Qatar, IGL-CCPP Project -
Australia
Travel Abroad
Yokohama, Japan (2015 – 2016)
Company: Chiyoda Global Headquarters
Front-End Engineering Design, Budgetary Estimation and
Proposal Works, Electrical Heat Tracing Design, Electrical
and Mechanical Vendor Print Review

ISO 27001 - Information Security Management System

Overall - PIC

Dream Job: Academe

EPIRA and It’s Issues
IMPLENTATION OF EPIRA: SUMMARY OF DESIRED OUTCOME

reliable, secure and affordable electric power

transparent and reasonable electricity price
free and fair competition
independent regulation
consumer protection
IMPLEMENTATION OF EPIRA: Major Competition-Related Policies

Unbundling a vertically integrated industry and

introducing competition in the generation
sector
Creating a retail supply sector and introducing
competition in the end-user sector
HOW?

Privatization of the government generation assets and power grid

operation and
maintenance
Creation of a spot market for wholesale electricity trading
Enabling open access to wires
Establishment of a quasi-judicial regulator
Setting market share limits
Prohibiting cross-ownership between transmission and
generation/distribution and setting cross-ownership limit between
generation and distribution
Entry regulation through licensing and registration and price
regulation in specific areas
PHILIPPINE POWER INDUSTRY: A BRIEF HISTORY

1890 – 1960’s
Private sector-led electric power industry

1969 - 1986
From Private to Public: during the Martial Law, MERALCO was seized by the
Government

1986 - 2001
Public to Private: BNPP was closed; Power Shortage; Bankruptcy of NPC

2001 - Present
Implementation of EPIRA Law
INDUSTRY STRUCTURE: PRE-EPIRA
FROM MONOPOLY TO OPEN COMPETITION
INDUSTRY STRUCTURE: POST-EPIRA
GOVERNMENT REGULATION
RETAIL COMPETITION AND OPEN ACCESS
RETAIL COMPETITION AND OPEN ACCESS

Consumption rate of
1 MW
 TRADING OF GENERATED POWER

1. bilateral contracting between generating firms and DUs

and big end-users

2. through the wholesale electricity spot market (WESM)

 NO CROSS-OWNERSHIP

Section 7 of the EPIRA law prohibits cross-ownership between

NGCP and other electric power industry players in the
generation, distribution, and retail supply.
WHOLESALE ELECTRICITY SPOT MARKET
WHOLESALE ELECTRICITY SPOT MARKET
 DISTRIBUTION

The distribution sector is composed of electric cooperatives

(ECs), private distribution utilities (DUs), local government unit
(LGU)-owned utilities, and other duly authorized entities
regulated by the ERC

The EPIRA has also brought about the unbundling of rates.

 DISTRIBUTION

Contestable Customer

Directly Connected Customer

Retail Electricity Supplier

Local Retail Electricity Supplier

 POSSIBLE ISSUES REGARDING EPIRA

1. What will be the impact of RCOA in Electric Cooperatives?

2. How will the Electric Cooperatives can cope up with the

advancement of facilities of private distribution company?

3. What will be the impact in operational perspective (smart grid,

automation, etc) if there is technological imbalance between
private Dus and EC.
 POSSIBLE ISSUES REGARDING EPIRA

4. What will happen with the power surplus in case of big supply but
less demand?

5. How accurate is the load forecasting and electricity pricing done

by WESM?

6. How efficient is the coordination system (business and technical

operation) in EPIRA set up?
 RECOMMENDATION

For the GRID Advancement in Philippine power industry, it is very

important that all the participants have the capability to cope up with
ever growing demand in terms of technological advancement, as well
as their capacity and willingness to comply with the law and standards.

In the regulatory side, strict implementation of the law is a must.

For the government and private sector, continues cooperation is

substantial for reliable, sufficient and affordable electricity. EC’s should
catch up with the private sectors.
REFERENCES:

Philippine Institute for Development Studies : Post-EPIRA Impacts of Electric Power Industry
Competition Policies by Adoracion M. Navarro, Keith C. Detros and Kirsten J. dela Cruz

Energy Regulatory Commission’s Regulatory Framework by Gloria Victoria C. Yap-Taruc

EPIRA 101
Electric Power Industry Structure, Market & Regulation
Opportunities and Challenges for Electric Cooperatives
By Prof. Rowaldo del Mundo
THANK YOU