EPIRA presently imposes several pre-requisites before open access can be granted in the deregulated power industry. Foremost of these is the privatization of at least 70 percent of the generation assets of the National Power Corp. (Napocor) in Luzon and Visayas and the ceding of management and control of at least 70 percent of the total energy output of power plants under contract with Napocor to the independent power producers. These measures are intended to ensure that no single player in the market is big enough to influence it.

The summit drew more than a hundred participants. All key personalities from the various sectors were represented. It provided crucial inputs on how to deal with the problems in the energy sector that are expected to grow worse given the rising costs of fuel prices everywhere.

High on the list of priorities is how to make the country’s energy sector more competitive and ensuring a steady supply of the juice that we need everyday to power not just our homes but our industries as well. All told, a botched reform program in the industry could lead to massive power outages by 2012 on top of higher power rates.

Yongping Zhai, energy specialist of the Asian Development Bank, came up with some interesting assertions about open access and retail competition. These included urging the Power Sector Assets and Liabilities Management Corp. (PSALM) to "continue to implement its privation program to sell as early as possible" the minimum 70 percent of the government’s generating capacity as enshrined by EPIRA notwithstanding whatever happens to legislative attempts to amend the EPIRA and lower the threshold.

To my mind, of course, lowering the privatization threshold is highly questionable. In effect, if you have to lower the limit because the government cannot meet it is simply rewarding incompetence. Obviously, one cannot make the market competitive by a simple act of legislation. If that were the case, why not simply pass a law declaring any power outages and high power rates illegal?

The experts in attendance also identified different strategies to help cope up with the skyrocketing power rates. One such strategy proposed the creation of a performance-based Industry Competitiveness Fund jointly by the DOE and Department of Finance aimed at helping local industries become more globally-competitive. There was also a groundswell to implement better ways and means to improve power consumption and management.

Still another was to improve subsidies given to the poor that includes removing or exempting small island grids and other missionary areas in electrification from the imposition of universal charges amounting to P0.40 per kilowatt-hour (kwh). Such a measure, for example, would bring some measure of relief to places like Catanduanes where, believe it or not, electricity already costs almost P10 per kwh. That is almost twice as much as what the Manila Electric Co. charges its consumers.

Other suggestions include the promotion of renewable and alternative energy that includes the passage of the Renewable Energy Bill, better financing schemes for renewable and alternative energy projects, promotion of energy efficiency and accelerating investments in oil and gas exploration to cut down our dependence on imported fuels.

This administration and its legislators should listen to the opinions of experts. There are a lot of other things that can be done to mitigate rising power rates instead of ensuring Napocor’s continued dominance of the power generation market.