Analysis of RA 9136, the Electric Power Industry Reform Act, for my Policy Analysis I course in Carnegie Mellon circa Apr-May 2010. VECO – Visayan Electric CompanyERC rules on generation capacity and market share limits coupled with ownership structure of companies prevent any corrective action.
Executive Summary ?? Electricity rates in the Philippines is 3rd highest in Asia1 ?? The Electric Power Industry Reform Act of 2001 (EPIRA) aims to bring down power rates and improve delivery of supply through greater competition and efficiency in the industry.
WESM, Open Access and Retail Competition•? WESM – trading place between electricity buyers and sellers via auctions that match bids for demand and supply•? Must be established within 1 year from effectivity of EPIRA (Sec.
Gaming the WESM •? Mechanism is prone to gaming, in theory1 and in practice2 •? Electricity sourced through WESM was more expensive3 •? Distributors obtain electricity largely through bilateral4 contracts, EPIRA allows them to source up to 90% bilaterally and up to 50% from their affiliates (Sec.


Clipping is a handy way to collect and organize the most important slides from a presentation. A key element to the reforms are a contract for difference incentive, which will offer low carbon energy producers a guaranteed price for their electricity, along with an emissions performance standard for new power plants and a carbon price floor. Dr Neil Bentley, CBI deputy director-general, said Parliament has to get the bill right as a matter of urgency. 30)•? Launched in June 2006 and only for Luzon1Figure from ERC1 Why WESM Won’t Work, People Against Immoral Debt Vol.
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Even when capacity is twice the amount of electricity needed, suppliers managed to raise price to monopoly levelsPractice: hourly spot market auctions in US fostered tacit collusion among participating generators. Pivotal supplier problem (firm has enough capacity and withholding it can cause blackout) – single firm or group of firms colluding explicitly or implicitly.



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