The two-decade-old Electric Power Industry Reform Act (EPIRA) will be up for a Senate review and a possible overhaul as it failed to deliver its promise of lower electricity rates despite opening the power sector to competition and the privatization of state-owned power plants.

“More than 20 years have passed since the EPIRA was enacted. Privatization pushed through. Competition materialized. But what never came to pass was the promised reduction in electricity prices,” Ejercito said during a Senate committee on energy hearing.

Ejercito made the call after the Department of Energy announced that the Philippines now has the highest electricity rates in Southeast Asia.

“The Philippines now has the highest electricity prices in all of Southeast Asia. That is not something we should be proud of,” he said.

Painful monthly bills

Ejercito said soaring electricity costs leave Filipino families with less money for food, education, healthcare, and other basic needs. At the same time, businesses are forced to shoulder higher operating expenses that are eventually passed on to consumers.

He said this also weakens the economy and continues to put the country at a disadvantage against its Southeast Asian neighbors.

“Just last week, we were in another hearing on the Master Plan for Infrastructure and National Development. We are trailing behind our Southeast Asian neighbors in terms of economic development because of these two factors — poor infrastructure and high electricity costs,”

“What are other countries doing that we are not doing?” Ejercito asked officials of the Department of Energy.

He noted that many parts of the country still experience power interruptions and rotating brownouts. Some communities even lack adequate access to electricity.

Ejercito also warned that the Middle East conflict and the looming depletion of the Malampaya gas field could put further pressure on the country’s electricity supply.

“Let us unpack the reasons why, despite paying high electricity rates, consumers continue to experience frequent power outages and poor service,” Ejercito said.