Learning from Power Sector Reform : The Case of The Philippines
The Philippines power sector underwent a substantial and largely complete reform process. Following a severe shortage of supply in the late 1980s and the Asian Financial crisis of 1997, which made the dollar-denominated debt of the National Power C...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/385061557771818564/Learning-from-Power-Sector-Reform-The-Case-of-The-Philippines http://hdl.handle.net/10986/31711 |
| Summary: | The Philippines power sector underwent a
substantial and largely complete reform process. Following a
severe shortage of supply in the late 1980s and the Asian
Financial crisis of 1997, which made the dollar-denominated
debt of the National Power Corporation extremely burdensome,
the Electric Power Industry Reform Act was passed in 2001.
This was intended to improve the quality of service and
reduce power tariffs via the introduction of private
participation and competition at the wholesale and retail
levels. Although the implementation of the full reform
program took longer than originally expected, the unwavering
support given to the reform agenda by successive presidents
of the country ensured that the planned steps had all been
completed by 2013. At that time, retail competition and open
access for consumers in Luzon and Visayas of more than one
megawatt were introduced. The reform process was not impeded
by complications that would have arisen if consumer
subsidies had been endemic, but retail prices are even
higher than might have been expected in the absence of
subsidies, due to domestic taxation and the presence of some
inefficiencies that have not yet been eliminated by the
onset of competition. |
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