DOE chief cites consumer power under new act

Electric power consumers will have the power of choice in a modernized industry that will generate, supply and distribute electricity more efficiently.

This was stated by energy Secretary Vincent Perez who said Republic Act 9136 or the Electric Power Industry Reform Act of 2001 (EIRA) would lead to the creation of an empowered consumer group.

Perez said the EIRA mandates the restructuring of the present power industry which, in turn, will allow more private sector participation and encourage competition in the power generation and supply sectors.

The wholesale and retail supply of electric power has now technically been opened to competition, Perez said. This will benefit consumers in two ways, because the competition will lead to consumer-friendly pricing structure and better service, he added.

Perez said the deregulated power supply sector will enable household consumers to form cooperative-type associations to leverage their number and buy electric power at "more reasonable costs and from the supplier of their choice."

This is a major innovation introduced in the EIRA and will definitely revolutionize the way consumers buy electric power, Perez said.

Perez is optimistic that the empowerment of the electric power market "will follow the way the telecommunications market developed in the country."

It should be recalled that the previous monopoly set-up in the local telecom industry placed the consumers at a position of disadvantage vis-à-vis the dominant player, he pointed out. The recent subsequent deregulation of the telecom industry gave consumers the power to choose which technology and which carrier they want to use, he explained.

The telecom revolution in the country made the Philippines one of the most lucrative telecom markets in the world, Perez added. He said the country expects a boom in the local electric power market following the full deregulation of the generation and supply sectors of the industry under the EIRA.