Philippine Standard time

Some Issues Regarding the Restructuring of the National Electricity Industry and Privatization of National Corporation


Electricity rates in the Philippines have been described as 2nd highest in Asia. This undermines the competitiveness of any manufacturing sector in the global market. This has been traced to lack of competition in the electricity supply markets, debt reliance and lack of incentives for efficiencies. Proposals to break-up NPC into several competing gencos and privatizing the same, mandating open access to the wires of the franchised utilities, establishing a market for the trading of electricity as a commodity, removal of price distortions and enhancement of the regulatory framework are all geared towards allowing market forces to set the pace for competitive electricity prices.

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