Answer the following questions

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

R.A. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA) enacted
in June 8, 2001 aims to restructure and privatize the electricity industry to enhance competition,
improve service quality, and reduce electricity prices for consumers. EPIRA aims to achieve
these goals by unbundling the functions of generation, transmission, and distribution, thereby
promoting efficiency and transparency in the industry. It also encourages the participation of
private sector investment in power generation and promotes the development of renewable
energy sources.

2. What are the four sectors of the electric power industry under the EPIRA Law? Discuss the role
of each sector.
As discussed in the video, under the EPIRA Law, the electric power industry is divided
into five distinct sectors, each fulfilling specific roles in the generation, transmission,
distribution, and consumption of electricity.
The generation sector is responsible for producing electricity from various energy
sources, including renewable (such as wind, solar, ocean, biomass, geothermal, and
hydroelectric) and conventional sources (like coal, diesel, and natural gas). Following generation,
the transmission sector facilitates the transport of electricity through a high-voltage backbone
system from generators to distribution utilities. This system, owned by the government through
the National Transmission Corporation (TransCo), is operated, maintained, and expanded by the
National Grid Corporation of the Philippines (NGCP), which also serves as the system operator.
The distribution sector then delivers electricity from either the transmission system or
generators to end-users, encompassing both private distribution utilities (such as Meralco and
Davao Light) and electric cooperatives. End-users, ranging from residential, commercial, and
industrial consumers to entities like government facilities, irrigation systems, and streetlights,
constitute the end-user sector, requiring electricity for their own use.
Lastly, the supply sector allows high-energy demand end-users, known as contestable
customers, to select their electricity suppliers. These suppliers, authorized by the Energy
Regulatory Commission (ERC), have the mandate to sell, broker, market, or aggregate electricity
to end-users, thereby promoting competition and efficiency within the industry.

3. Discuss the major restructuring made by the EPIRA Law in the power industry using the
illustration below/information provided in the video.
 The Electric Power Industry Reform Act (EPIRA) brought substantial changes to the Philippine
power sector, transitioning it from a vertically integrated model to a more competitive and market-
oriented structure. Prior to EPIRA, the Philippine power industry followed a centralized and
vertically integrated model. Power generation was predominantly controlled by the government
through state-owned entities, with power plants owned and operated by agencies like the National
Power Corporation (NPC). Transmission and systems operations were also under government
control, with the transmission grid owned and managed by state agencies. Distribution utilities,
although partially privatized, operated as monopolies within their designated service areas. This
structure limited competition and consumer choice, leading to inefficiencies and challenges in
service delivery.

Recognizing the need for infrastructure investment amidst growing demand, the government
faced fiscal constraints and sought greater private sector involvement. EPIRA addressed these
challenges by privatizing NPC's assets and liabilities, establishing the Energy Regulatory Commission
(ERC) to promote competition and transparency in tariff regulation, and creating the Wholesale
Electricity Spot Market (WESM) to foster competition in the generation sector. Unbundling
electricity rates and charges enhanced transparency, empowering customers to make informed
choices under retail competition and open access provisions. While challenges persist, EPIRA has laid
the groundwork for a more dynamic and consumer-empowered 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?
Established in 1974, the National Water Resources Board (NWRB) serves as the authoritative
national organization tasked with coordinating and integrating all activities related to water
resources development and management. Its primary aim is to achieve the scientific and orderly
development and management of all water resources in the Philippines, in accordance with
principles of optimal usage, conservation, and protection to meet both present and future needs.

The following agencies are involved in water supply and distribution:

  the Metropolitan Waterworks and Sewerage Services (MWSS) and its two concessionaires
(after it was privatized in 1997) for Metro Manila, servicing 62.68 percent of its total
population;
 the Local Water Utilities Administration (LWUA) and its water district offices for other cities
and municipalities, servicing 58 percent of the total urban population within its area of
responsibility; 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.
 Republic Act No. 3846, An act providing for the regulation of radio stations and radio
communications in the Philippine Islands, and for other purposes.
 Republic Act No. 6849, also known as the “Municipal Telephone Act of 1989.” An act
providing for the installation, operation and maintenance of public telephones in each and
every municipality in the Philippines, appropriating funds therefor and for other purposes.
Also known as the
 Republic Act No. 7925, 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.
 Republic Act No. 10844, An act creating the Department of Information and
Communications Technology (DICT), defining its powers and functions appropriating funds
thereof, and for other purposes.