Twenty-five years after the Electric Power Industry Reform Act (EPIRA) was enacted, the law has failed to make electricity affordable for Filipinos, said research group IBON. Instead, it has created possibly the region’s most expensive power system while enriching a handful of energy conglomerates.
Speaking at the “Multi-Sectoral Caucus on the Energy Crisis” organized by the Integrated Bar of the Philippines (IBP) together with consumer groups, farmers, indigenous peoples, environmental and legal advocates, IBON executive director Sonny Africa said the law’s promise of “quality, reliable, secure and affordable” electricity remains largely unfulfilled.
“The power sector may have expanded, but that doesn’t mean privatization was a success or even that it was necessary,” Africa said. “Many countries achieved universal electrification and reliable electricity with sustained and strong state involvement rather than surrendering their power systems to private interests. This is why Filipinos are paying the highest electricity prices in Asia.”
The Philippines has the highest residential electricity rates among ASEAN countries and the second-highest commercial and industrial rates in the region. Filipino households spent a total of Php372.8 billion on electricity in 2023, up from just Php59.7 billion in 2000—a 524% increase since EPIRA took effect. Electricity’s share in household spending has risen from 3% to 4.7%, even as the real value of workers’ wages has declined.
While consumers struggle with soaring electricity bills, the country’s biggest power companies continue to post enormous profits. In 2024 alone, Manuel Pangilinan-led electricity generation and distribution firms under Meralco earned around Php42.4 billion in net income, AboitizPower Php26.4 billion, and Ramon Ang-led SMC Global Power Holdings Corp. (SMGP) Php18.5 billion. Eight oligarchs in generation and distribution account for 95% of the total net income of the Top 1,000 power corporations. Meanwhile just five firms account for 65% of national grid capacity, namely AboitizPower, SMGP, First Gen, Ayala Corp., and Meralco Gen.
According to IBON, EPIRA shifted the power sector further away from public service toward ensuring huge profits for private generators, distributors and traders. Rather than treating electricity as a basic service essential for households, agriculture and industry, the law turned it into a commodity governed by self-serving market interests.
“Electricity is too important to leave to profit-driven corporations,” stressed Africa. “Affordable and reliable power is the foundation of industrialization, food production and decent living standards. After 25 years of EPIRA, it’s time to put public welfare—not corporate profits—at the center of Philippine energy policy.”
IBON called for short- and long- term interventions – from stronger regulation, transparency, and democracy to public-owned and state-directed power sector. A comprehensive review of EPIRA and deeper reforms that restore a stronger public role in planning, investment and operation of the power sector is urgent to ensure affordable electricity, genuine energy security and a just transition to renewable energy.
