1. NAGKAISA! Laban sa EPIRA Wilson M. Fortaleza Training/Workshop September 24, 2012 ALU Mariners’ Court, Cebu City

2. IMAGINE LIFE WITHOUT LIGHT & power

3. Walang Kabuhay - buhay

4. Ang kuryente ay nagpapagaan ng buhay

5.  Pabigat sa industriya (26% cost of production)  Pabigat sa bulsa ng manggagawa (10% - 20% of income) Pero Sa pilipinas Ito ay pampabigat

6. Epira Ang problema! Maliwanag na paliwanag RA 9136

7. Ilang konsepto Power is a unique product. It cannot be stored It must be consumed as it is being produced Therefore the whole system must be efficient. Public utility Regulation Natural monopoly Captive market Economy of scaleSmall system

8. The power industry/system GENERATION TRANSMISSION DISTRIBUTION

9. ELECTRIC POWER PLANTS GENERATE ELECTRICITY ELECTRICITY IS THEN CARRIED OVER LONG DISTANCES BY TRANSMISSION CABLES THAT IS TAPPED INTO BY LOCAL DISTRIBUTION COMPANIES YOUR LOCAL DISTRI- BUTION UTILITY SETS UP THE POWER LINES IN YOUR COMMUNITY AND SERVICES YOUR NEEDS FOR ELECTRICITY Generation Charge Transmission Charge Distribution Charge Metering Charge Supply Charge PASS-THROUGH GENERATION CHARGES (60 - 70%) PBR (Transmission & Distribution) (30 – 40 %) From ERC presentation on Transco PBR Walang libreng kuryente, Wala ring gustong manlibre Government Taxes System loss Franchise tax VAT Environmental charge

10. Power industry noon at ngayon Source: Department of Energy

11.  Unbundling of rates  Separation of Generation from Transmission  Privatization of NPC  Establishment of Wholesale Electricity Spot Market (WESM)  Retail Competition and Open Access EPIRA regime

12. EPIRA’s main objectives  Create competition in the industry  Ensure efficiency, reliability and security of electricity supply  Bring down rates

13. The industry10 YEARS under EPIRA “Escalating rates, diminishing supply.” FDC Power 101 based on presentations made by Prof. Wally Del Mundo of UP National Engineering Center FDC First National Electricity Consumers Conference, January 2011

14. PHILIPPINE POWER RATES: ASIA’S HIGHEST PHILIPPINES -------US$0.2460/kWh Japan---------------US$0.243/kWh Singapore---------US$0.22/kWh Indonesia----------US$.092/kWh Thailand------------US$.086/kWh 14 From Louie presentation

15. International Energy Agency (Q1 2011) RESIDENTIAL (/kWh) Denmark ---US$0.3563 Germany --- US$0.3248 Italy --- US$0.2632 Austria --- US$0.2576 PHILIPPINES- US$0.2460 Ireland --- US$0.2326 Japan --- US$0.2322 Belgium --- US$0.2317 Netherlands --- US$0.2212 Sweden --- US$0.2180 WORLD’S HIGHEST POWER RATES 15 From Louie presentation

16. Escalating rates

18. ESCALATING RATES PRE-EPIRAAUGUST 2012 * P5.00/kWh P12.68/kWh * Meralco effective rate (residential)

19. 19 Philippine Power Development Plan (PDP) target 2013 -2030: 14,400 MW To be commissioned capacity 2013-15: 650 MW Committed capacity 1,172 MW On security of supply 19 th EPIRA Implementation Status Report April 2011 - October 2011, DoE

20. 20 “While the government is receiving expressions of interest to expand existing plant or put up new plants with a total capacity of 5,023 MW, these are still at the different stage of development. Thus, there is still a possibility that these could not proceed to development status. With these, the government may need to involve itself once again into power generation to avoid power shortages in the future and keep hold of the current momentum being enjoyed as an investment attractive economy.” On security of supply 19 th EPIRA Implementation Status Report April 2011 - October 2011, DoE

21. The shift to private power v v v v v v v

22. ENERGY SECRETARY Jose Rene Almendras (center) holds hands with Erramon Aboitiz (right), president of RP Energy, and Oscar Reyes (left), Meralco president and CEO, at the signing of a deal that transferred controlling stake in RP Energy to Meralco in July 2011. RP Energy is building a 600-megawatt coal-fired power plant in Subic Bay Freeport, which faces strong opposition. ROBERT GONZAGA/INQUIRER CENTRAL LUZON

23. PRIVATE power Luzon Source: Philippine Electric Power Industry Market and Policy Assessment and Analysis of International Markets, UP Engineering Center, May 2011

24. The market is highly concentrated as these three groups control more than 70% of the generating capacity in Luzon. The share of others including AES, DMCI and Quezon Power Phils. are less than 7% each. The total energy sales and consumption (including own use and system loss) in Luzon account for 74% of the total Philippines. Visayas and Mindanao has each 13% of the total energy consumption. MARKET CONCENTRATION

25. PRIVATE POWER visayas Source: Philippine Electric Power Industry Market and Policy Assessment and Analysis of International Markets, UP Engineering Center, May 2011

26. PRIVATE POWER mindanao

27. PRIVATE POWER (Distribution)

28. THE SUPPLY SECTOR RETAIL ELECTRICITY SUPPLIERS Aboitiz Energy Solutions, Inc. Trans-Asia Oil and Energy Development Corp. GNPower Mariveles Coal Plant Ltd. Co. First Gen. Energy Solutions, Inc. Cabanatuan Electric Corporation. Masinloc Power Partners Co. Ltd. Premier Energy Resources Corp. Team Philippines Energy Corp. SEM-Calaca RES Corp. SN Aboitiz Power RES San Miguel Electric Corporation Global Energy Supply Corporation Ferro Energy, Inc. Kratos RES, Inc. Ecozone Power Management, Inc. GNPower Ltd. Co. AdventEnergy Inc. PRISM Energy, Inc.