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Answer the following questions

1. What is EPIRA LAW and what is its main objective?


The Electric Power Industry Reform Act (EPIRA) of 2001 is an act ordaining reforms in the electric
power industry, amending for the purpose certain laws and for other purposes. EPIRA was established
with the intention of ensuring affordable and reliable electricity to all power consumers in the
Philippines. Specifically, it offers a framework for the reorganization of the electric power sector,
including the privatization of National Public Company (NPC) assets, the transition to the desired
competitive structure, and the definition of the responsibilities of the various government agencies and
private entities. In particular, the Act sets out the reform agenda for the energy sector to be based on
three principles. First is to ensure and accelerate the total electrification of the country. Second, to
ensure the quality, reliability, security and affordability of the supply of electric power. Third, to ensure
transparent and reasonable prices of electricity in a regime of free and fair competition and full public
accountability to achieve greater operational and economic efficiency and enhance the competitiveness
of Philippine products in the global market (Asia Pacific Energy Portal, n.d).

2. What are the four sectors of the electric power industry under the EPIRA Law? Discuss the role
of each sector.
The four sectors under the electric power industry in EPIRA Law are generation, transmission,
distribution, and supply. The Power Generation Sector involves the production of electricity. Power
generation companies are responsible for building, owning, operating, and maintaining power plants
that produce electricity. These power plants utilize various energy sources to generate electricity. This
sector is promulgated by the Energy Regulatory Commission (ERC) who issue certificates of compliance
to the standards set by EPIRA Law. On the other hand, the Power Transmission Sector plays a critical role
in the efficient and reliable transport of electricity from power generation facilities to distribution
networks and end-users. Power transmission is also a common carrier business. Companies under this
sector are tasked with planning, expanding, and maintaining the transmission infrastructure to
accommodate growing electricity demand, integrate new generation facilities, and enhance grid
reliability. While businesses under the Power Distribution Sector are responsible for delivering electricity
from the transmission grid to end-users, including residential, commercial, and industrial customers.
Distribution utilities are companies or entities responsible for operating and maintaining the distribution
infrastructure within their respective service territories. And lastly, Supply Sector or the Retail Sector
involves the sale and marketing of electricity to end-users. Retail electricity suppliers (RES) or retail
electricity providers (REP) purchase electricity from various sources, including generation companies,
and sell it to end-users. They compete in the market to offer different pricing plans, services, and energy
solutions to consumers. The supply sector's role is to provide consumers with options and ensure
competitive pricing in the retail electricity market.

3. Discuss the major restructuring made by the EPIRA Law in the power industry using the
illustration below/information provided in the video.
Based on the illustration provided above, there is significant change in the industry from the
power plants to the end users. First, the power plants from partly state-owned, became privatized. EPIRA
mandated the privatization of government-owned power plants, including those of the NPC. By
privatizing power plants, the government is able to introduce competition and efficiency into the electric
power industry. This competition was expected to drive down prices and improve service quality as
companies competed for customers. Second is the establishment of the Wholesale Electricity Spot
Market (WESM). The WESM serves as a platform for electricity trading among power generators and
distribution utilities. Through the WESM, market participants can buy and sell electricity in a transparent
and competitive environment based on prevailing market prices. This facilitates greater efficiency in
electricity generation and encourages generators to operate more competitively. Next one is the
separation of the functions of generation, transmission, and distribution to promote efficiency and
competition. And the last one is that the consumers were able to choose their electricity suppliers as
there is a competition between the electricity providers. With that, it also promotes protection to
consumers from abuses such as anti-competitive behavior and unjust pricing.
With all the changes given above, it can be concluded that the primary reason why the EPIRA
Law is enacted is that the government wants to address the inefficiencies and limitations of the previous
centralized, government-controlled system. Prior to EPIRA, the Philippine electric power industry was
characterized by a lack of competition, inefficiency, and financial burden on the government. So by
having this law, it creates a more efficient, competitive, and financially sustainable electric power
industry in the Philippines.

4. What is NWRB and its purpose? What are the following agencies involved in water supply and
distribution in the Philippines?
The National Water Resources Board (NWRB) coordinates and regulates all water resources
development and management of the country. It is responsible for achieving a scientific and orderly
development of all water resources consistent with the principles of optimum utilization, conservation,
and protection to meet present and future needs. NWRB ensures that water resources are used
appropriately by enforcing strict licensing and permitting procedures that balance the demands of
competing users with environmental protection.
The agencies involved in water supply and distribution are Metropolitan Waterworks and
Sewerage Services (MWSS) and its two concessionaires, the Local Water Utilities Administration (LWUA)
and its water district offices for other cities and municipalities, and the departments of Interior and Local
Government (DILG) and Public Works and Highway (DPWH) and local governments which manage
community water systems.

5. What are the regulatory frameworks relative to the telecommunications industry in the
Philippines? Kindly give the title and brief purpose of each Republic Act.

There are various regulatory frameworks that govern the telecommunications industry and this
include Republic Act No. 3846, RA 6849, RA 7925, and RA 10844. RA 3846, is an act establishing rules for
radio stations and radio exchanges inside the Philippine, and for other purposes. Its goal is to manage
the radio frequency spectrum effectively and prevent any interference in radio communications. On the
other hand, RA 6849 which is also known as the Broadcasting Act of 1992, is an act providing for the
installation, operation and maintenance of public telephones in each and every municipality in the
Philippines, appropriating funds therefore and for other purposes. While, RA 7925 which is also known
as the Public Telecommunications Policy Act of the Philippines, an act to promote and govern the
development of Philippine telecommunications and the delivery of public telecommunications services.
This act aims to promote the availability of a wide range of affordable, reliable, high-quality
telecommunications services by facilitating the entry of new service providers in the telecommunications
market and encouraging fair competition among them. And lastly, RA 10844, Department of Information
And Communications Technology (DICT) Act of 2015, establishes the DICT as the primary policy,
planning, coordinating, implementing, and administrative entity of the executive branch of the
government that will plan, develop, and promote the national ICT development agenda.

REFERENCES:

Asia Pacific Energy Portal (n.d.). Retrieved from https://policy.asiapacificenergy.org/node/907

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