NAGKAISA! Laban sa EPIRA
Wilson M. FortalezaTraining/WorkshopSeptember 24, 2012
ALU Mariners’ Court, Cebu City
IMAGINE LIFE
WITHOUT LIGHT & power
Walang
Kabuhay - buhay
Ang kuryente ay nagpapagaan ng buhay
Pabigat sa industriya
(26% cost of production)
Pabigat sa bulsa ng manggagawa
(10% - 20% of income)
Pero Sa pilipinas Ito ay pampabigat
Epira Ang problema!
Maliwanag na paliwanag
RA 9136
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 scale Small system
The power industry/system
GENERATION
TRANSMISSION
DISTRIBUTION
ELECTRIC POWERPLANTS GENERATEELECTRICITY
ELECTRICITY IS THENCARRIED OVER LONGDISTANCES BYTRANSMISSION CABLESTHAT IS TAPPED INTOBY LOCAL DISTRIBUTIONCOMPANIES
YOUR LOCAL DISTRI-BUTION UTILITY SETS UPTHE POWER LINES INYOUR COMMUNITY ANDSERVICES YOUR NEEDSFOR ELECTRICITY
GenerationCharge
TransmissionCharge
DistributionCharge
MeteringChargeSupplyCharge
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
Environmentalcharge
Power industry noon at ngayon
Source: Department of Energy
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
EPIRA’s main objectives
Create competition in the industry Ensure efficiency, reliability and security of electricity supply Bring down rates
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 CenterFDC First National Electricity Consumers Conference, January 2011
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
International Energy Agency (Q1 2011)
RESIDENTIAL (/kWh)Denmark ---US$0.3563Germany --- US$0.3248Italy --- US$0.2632Austria --- US$0.2576PHILIPPINES-
US$0.2460Ireland --- US$0.2326Japan --- US$0.2322Belgium --- US$0.2317Netherlands ---
US$0.2212Sweden --- US$0.2180
WORLD’S HIGHEST POWER RATES
15From Louie presentation
Escalating rates
Escalating rates
ESCALATING RATES
0
2
4
6
8
10
12
14
2001 2012
Price/kWh
PRE-EPIRA AUGUST 2012 *
P5.
00/k
Wh
P12
.68/
kWh
* Meralco effective rate (residential)
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
19th EPIRA Implementation Status ReportApril 2011 - October 2011, DoE
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
19th EPIRA Implementation Status ReportApril 2011 - October 2011, DoE
The shift to private power
v
v
v
v
v
v
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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
PRIVATE power Luzon
Source: Philippine Electric Power Industry Market and Policy Assessment and Analysis of International Markets , UP Engineering Center, May 2011
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
PRIVATE POWER visayas
Source: Philippine Electric Power Industry Market and Policy Assessment and Analysis of International Markets , UP Engineering Center, May 2011
PRIVATE POWER mindanao
PRIVATE POWER (Distribution)
0
5,000
10,000
15,000
20,000
25,000
30,000
gWh Sales (2007)
Lopez DUs (Meralco)
Aboitiz (7 DUs)
119 Electric Cooperatives &1 LGU-owned
THE SUPPLY SECTOR RETAIL ELECTRICITY SUPPLIERSAboitiz 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 RESSan Miguel Electric CorporationGlobal Energy Supply CorporationFerro Energy, Inc.Kratos RES, Inc.Ecozone Power Management, Inc.GNPower Ltd. Co.AdventEnergy Inc. PRISM Energy, Inc.