Senator Win Gatchalian is calling for an inquiry into the competitive landscape of the Philippine power industry as part of efforts to ensure a reliable electricity supply and bring down costs.
“Despite the mandate of the Electric Power Industry Reform Act of 2001 (EPIRA) and the Philippine Competition Act (PCA) to promote competition among industries, the power sector remains essentially controlled by major business groups and the cost of electricity in the country remains high,” Gatchalian said as he filed Senate Resolution 1353.
“Kung iilan lang ang kumokontrol sa industriya, paano natin masisiguro ang pinakamurang kuryente?” the veteran legislator added.
“The current market share distribution and cross-ownership between generation companies, retail electricity suppliers, and distribution utilities could undermine consumer welfare.”
The vice chairperson of the Senate Energy Committee pointed out that the current market share distribution and cross-ownership between generation companies, retail electricity suppliers, and distribution utilities could undermine consumer welfare as economic concentration is likely to stifle competition or manipulate the disciplines of free markets.
The seasoned lawmaker said the Philippines has the second highest residential rate among member economies in the Association of Southeast Asian Nations at P11.32 per kilowatt-hour, or 40.4% higher than the ASEAN average of P6.75 per kWh.
