A SENATOR on Wednesday called for an inquiry into the competitiveness of the country’s energy sector, as local competition laws have failed to lower energy costs.
“Despite the mandate of the Electric Power Industry Reform Act of 2001 (EPIRA) and the Philippine Competition Act (PCA) to promote competition among industries, the power sector remains essentially controlled by major business groups and the cost of electricity in the country remains high,” Senator Sherwin T. Gatchalian said in a statement.
He claimed that the current market share distribution and cross-ownership between generation companies, retail electricity suppliers, and distribution utilities could undermine consumer welfare, as this could suppress competition or tamper with the open market.
“If only a few controls the industry, how can we ensure cheap electricity?” Mr. Gatchalian asked.
He said the Philippines has among the highest energy rates in Southeast Asia with P11.32 per kilowatt-hour (kWh) compared to the P6.75 per kWh average in the region. – Adrian H. Halili
