The Epira Law

Published by the Visayan Daily Star Publications, Inc.

NINFA R. LEONARDIA Editor-in-Chief & President

CARLA P. GOMEZ Editor GUILLERMO TEJIDA III Desk Editor NANETTE L. GUADALQUIVER Busines Editor NIDA A. BUENAFE Sports Editor RENE GENOVE Bureau Chief, Dumaguete MAJA P. DELY Advertising Coordinator

CARLOS ANTONIO L. LEONARDIA Administrative Officer

Power companies are public utilities. They have franchises. The government should not squeeze them too much because they should be able to provide electricity to the people as cheaply as possible.

The Electric Power Industry Reform Act aims to push for the restructuring of the power sector and the privatizations of Napocor's assets.

Under the law, the transmission power of the NPC has been transferred from the NPC to the National Transmission Corp. The same law aims for Transco's privatization.

Under the EPIRA, a total of 49 generation facilities, as well 26 IPP contracts producing more than 11,800 megawatts are supposed to be sold.

The vision of EPIRA was to free government from continuing to fund power projects and giving guarantees to these private companies, which is bad for the country's financial condition.

The acquisition of the Palinpinon-Tongonan geothermal power plants by the Energy Development Corporation-Green Core Geothermal Inc. fully integrates the value chain of EDC's geothermal business from steam production to power generation.

In Negros Oriental, the three district representatives are set on filing a bill to amend the Epira Law which has cut down the royalty share received by local government units hosting energy generation.

The three solons will join forces with lawmakers from other provinces hosting renewable energy generation to file a bill that will seek to amend a provision in the Epira law removing the royalty share of LGUs in the country hosting geothermal plants.

The most important amendment is the lifting of Value Added Tax on power generation, transmission and distribution. However, some host municipalities of geothermal plants whose royalty shares were drastically reduced, will fight back.

We believe that once the amendments to the Epira law are approved by Congress, electricity rates should go down and every province, city and municipality in the country will surely benefit from it.*