electricity in the philippines: concentration, not competition by maitet diokno-pascual presented at...
TRANSCRIPT
![Page 1: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/1.jpg)
Electricity in the Philippines:Concentration, not Competition
by Maitet Diokno-Pascual
Presented at the ACF-FES Conference on“ENERGY SECURITY: Reshaping Policy Options for the
Asian Region and the Philippines,”January 31, 2012, Subic Bay, Zambales, Philippines
![Page 2: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/2.jpg)
PH Electricity Sector vis-à-vis Asia
Production (in billion kWh)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
27 9 33
836 621
61 73 149
1,040
3,457
1990 2008
Consumption (kWh per capita)
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
376 98 162
6,486
511 588 799 591
8,071
2,455
1990 2008Source: Asian Development Bank
![Page 3: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/3.jpg)
PH Electricity Rates vis-à-vis Asia
South
Korea
Singap
oreChin
aInd
ia
Indon
esia
Vietnam
Thailan
d
Malaysi
a
Philipp
ines
Japa
n0
2
4
6
8
10
12
5.22
9.57
7.39 8.70
4.35 5.22
4.35 5.22
11.30 10.43
Electricity Rate (US cents / kWh)
Source: JETRO, March 2006, cited in http://www.doe.gov.ph/e%20summit/presentation/Energy%20Conservation%20-%20Nagayama.pdf
![Page 4: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/4.jpg)
View of Southeast Asia Night Sky
In 1992 … … and in 2009 (17 years later)
Not much progress for the Philippines. It’s classified as dark night light for a country with a large population density. Source: ADB
![Page 5: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/5.jpg)
Electricity not for AllHouseholds without access to electricity, 2002 and 2008
Percent of FamiliesNumber of Families
(‘000)
2002 2008 2002 2008
All Families 20.3 16.1 n.a. 2,908
Lowest 30% 49.5 36.2 n.a. 1,962
Highest 70% 8.8 7.5 n.a. 948
Source: National Statistics Office, Annual Poverty Indicators Survey, 2002 and 2008
![Page 6: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/6.jpg)
My Points Exactly
• Philippine electricity sector too small to subject to costly reforms
• Especially when access to electricity is not enjoyed by all, especially the poor and/or those in the rural areas
• Rather than bring the electricity sector forward in terms of more affordable and more reliable electricity, the EPIRA is making concentration the main driving force in the sector
![Page 7: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/7.jpg)
Concentration of DemandLuzon (Meralco franchise area)
rest of Luzon, Visayas & Mindanao
Source: Philippine Electricity Market Corporation (PEMC)
![Page 8: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/8.jpg)
Luzon Market Concentration
Source: Philippine Electricity Market Corporation
![Page 9: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/9.jpg)
Concentration of Cross-Ownership
• Big Three Players– Lopez: distribution (LV), generation (LVM)– Aboitiz: distribution (VM), generation (LVM)– San Miguel Group: generation (L), transmission
(LVM)• Emerging Players– Manny Pangilinan: distribution (Meralco)– Henry Sy Jr: transmission
• Suspected Silent Player: Mike ArroyoL – Luzon; V – Visayas; M – Mindanao
![Page 10: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/10.jpg)
Concentration of Generation, Luzon
Lopez Aboitiz San Miguel NPC
Privatized NPC/PNOC plants 262 1,275 655IPPs 1,596IPPA contracted capacity 700 2,545
TOTAL, in MW (10,931 in 2010) 1,858 1,975 3,200 1,863 % of total installed capacity in Luzon 16.99% 18.07% 29.28% 17.06%Share in 2004 (total cap 12,162MW) 16.47% 0.78% 0.00% 80.9%EPIRA prescribed limit within a grid 30%
Sources: UP National Engineering Center, “Philippine Electric Power Industry Market and Policy Assessment,” May 2011; Department of Energy, Power Statistics 2004
![Page 11: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/11.jpg)
Implications for RE Development
• RE development in the Philippines is following the same track as conventional electricity under the EPIRA framework
• This is unfortunate because RE development could be an opportunity to push for the development of– Sustainable energy utilities– Devolved, decentralized utilities– Greater community and consumer participation
• In short, democratization of the electricity sector
![Page 12: Electricity in the Philippines: Concentration, not Competition by Maitet Diokno-Pascual Presented at the ACF-FES Conference on “ENERGY SECURITY: Reshaping](https://reader036.vdocument.in/reader036/viewer/2022062314/56649e365503460f94b25b71/html5/thumbnails/12.jpg)
Maraming salamat po!