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Electricity in the Philippines: Concentration, not Competition

Electricity in the Philippines: Concentration, not Competition. by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping Policy Options for the Asian Region and the Philippines,” January 31, 2012, Subic Bay, Zambales , Philippines.

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Electricity in the Philippines: Concentration, not Competition

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  1. Electricity in the Philippines:Concentration, not Competition by MaitetDiokno-Pascual Presented at the ACF-FES Conference on“ENERGY SECURITY: Reshaping Policy Options for the Asian Region and the Philippines,” January 31, 2012, Subic Bay, Zambales, Philippines

  2. PH Electricity Sector vis-à-vis Asia Production (in billion kWh) Consumption (kWh per capita) Source: Asian Development Bank

  3. PH Electricity Rates vis-à-vis Asia Source: JETRO, March 2006, cited in http://www.doe.gov.ph/e%20summit/presentation/Energy%20Conservation%20-%20Nagayama.pdf

  4. View of Southeast Asia Night Sky In 1992 … … and in 2009 (17 years later) Not much progress for the Philippines. It’s classified as dark night light for a country with a large population density. Source: ADB

  5. Electricity not for All

  6. My Points Exactly • Philippine electricity sector too small to subject to costly reforms • Especially when access to electricity is not enjoyed by all, especially the poor and/or those in the rural areas • Rather than bring the electricity sector forward in terms of more affordable and more reliable electricity, the EPIRA is making concentration the main driving force in the sector

  7. Concentration of Demand Luzon (Meralco franchise area) rest of Luzon, Visayas & Mindanao Source: Philippine Electricity Market Corporation (PEMC)

  8. Luzon Market Concentration Source: Philippine Electricity Market Corporation

  9. Concentration of Cross-Ownership • Big Three Players • Lopez: distribution (LV), generation (LVM) • Aboitiz: distribution (VM), generation (LVM) • San Miguel Group: generation (L), transmission (LVM) • Emerging Players • Manny Pangilinan: distribution (Meralco) • Henry Sy Jr: transmission • Suspected Silent Player: Mike Arroyo L – Luzon; V – Visayas; M – Mindanao

  10. Concentration of Generation, Luzon Sources: UP National Engineering Center, “Philippine Electric Power Industry Market and Policy Assessment,” May 2011; Department of Energy, Power Statistics 2004

  11. Implications for RE Development • RE development in the Philippines is following the same track as conventional electricity under the EPIRA framework • This is unfortunate because RE development could be an opportunity to push for the development of • Sustainable energy utilities • Devolved, decentralized utilities • Greater community and consumer participation • In short, democratization of the electricity sector

  12. Maramingsalamatpo!

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