all power system owns by the government, meaning the generation, construction of transmission and distribution are

managed by the government. Since all are owned by the government the prices are fixed because of no competition in
the industry and there is no means that can generate cheaper price.

Therefore, the Electric Power Industry Reform Act of 2001 which call us EPIRA was launch where in this act:

1. Restructure the electric power industry to transition into a competitive structure and with this principle where
the power plant owned by the government shift it to privatization.
2. Establish the Wholesale Electricity Spot Market (WESM).
3. Unbundle of Electricity rates for transmission and distribution for Transparency.
4. Open Access of Transmission and Distribution Lines for Competitive Consumers.

With this law, Philippines has new structure which are unbonded and liberalized Power Sector

Where Energy Companies are now available to compete each other to drive down the generating cost. The marketing
operator and Transmission System Operator are independent to each other gathering all the data to tabulate the
expenses for more transparency. Then distribution and retail supplier are the power distributing to the consumer where
in the sector of distribution are still not fully transition since consumer does not have any option to choose since Meralco
and electric cooperatives operate the distribution and hoping in future to have a fully energy transition as it is the
purpose of the EPIRA Law.

We also have Renewable Energy Act of 2008 where the objective of this law is to accelerate the renewable energy in the
Philippines and at the time of 2008 the renewable energy share is 35% and now decrease to 21% with the span of
several years even, we have a law of renewable energy act. Due to the decreasing of share the attribution are the rapidly
development of the coal where the Philippines invest marginally.

PROGRAMS

 Green Energy Option Program (GEOP) is a Renewable Energy (RE) policy mechanism which shall provide
end-user the option to choose RE resources as their source of energy.

 Net Metering Program (NMP) is a scheme that allows Electricity End-users to build an RE facility to
generate electricity primarily for own-use and when there is unused electricity generated, to sell to the
grid.

 Renewable Energy Market (REM) is the venue for the trading of RE Certificates equivalent to an amount
of power generated from RE resources and is intended as a facility for Mandated Participants to comply
with their Renewable Portfolio Standards (RPS) obligations.

 Green Energy Auction Program (GEAP) aims to promote RE as one of the country's primary sources of
energy through the competitive selection of RE facilities.

 Renewable Portfolio Standard (RPS) refers to a market-based policy that mandates electricity suppliers to
source an agreed portion of their energy supply from eligible RE resources contributing to the growth of
the RE industry in the country.

Those programs are the support to achieve the goals in terms of share renewable energy.