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Monday, March 24, 2025

The EPIRA Myth: Debunking the Misinformation on Energy Prices and Oligarchy in the Philippines


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Sad that only few knows the effects of EPIRA in our lives. Oligarko, pulitiko, sabtawan, kitaang ng todo-todo... pagsasapribado, deregulation... lahat yan nagpapahirap sa mamamayang Pilipino.


The height of ABS CBN is the Gloria era when Noli and Loren ran as Vice presidents.

Gloria sold Napocor and broadband to China. 

This allowed the Lopez group to thrive in the energy industry and why the PH has among the highest energy prices in ASEAN.

Could those bloggers double your electric bill by passing Epira?

No they cannot.

Only the Lopezes could help push for Epira and feed off the people.



Misinformation and political bias have long fueled narratives about the Electric Power Industry Reform Act (EPIRA) and its supposed role in benefiting oligarchs while burdening ordinary Filipinos. One such claim, circulating online, suggests that the Lopez family—owners of ABS-CBN—used EPIRA to their advantage, leading to the Philippines having some of the highest electricity prices in ASEAN. It also alleges that former President Gloria Macapagal-Arroyo’s privatization moves were solely responsible for this scenario.

However, a closer look at the facts reveals a much more complex picture—one that invalidates these misleading assertions.


Did EPIRA Cause High Electricity Prices?

One of the most persistent myths is that EPIRA is the primary reason for high electricity costs in the Philippines. In reality, EPIRA was enacted in 2001 under Republic Act 9136 to address the power sector’s deep-seated inefficiencies caused by government mismanagement. Before its passage, the National Power Corporation (Napocor) was drowning in debt, heavily subsidizing electricity rates at the expense of taxpayers. Its financial instability led to rolling blackouts in the 1990s, prompting the need for drastic reform.


EPIRA’s objectives were clear:

Privatization of power generation to improve efficiency and reduce the government’s financial burden.

Open access and retail competition to allow consumers to choose their electricity providers.

Stronger regulation through the Energy Regulatory Commission (ERC) to prevent monopolistic abuses.

While it is true that the Philippines has among the highest electricity rates in ASEAN, this is not simply because of EPIRA. Instead, multiple factors contribute to high power costs, including:

Heavy reliance on imported fuel – Unlike Indonesia and Malaysia, which have abundant oil and natural gas, the Philippines imports much of its energy sources.

Geographical challenges – Being an archipelago, the country faces higher transmission and distribution costs.

Taxes and subsidies – Unlike other ASEAN countries, the Philippines does not heavily subsidize electricity, making costs appear higher than in nations that do.

Blaming EPIRA alone ignores these fundamental economic realities.


Did the Lopezes Manipulate EPIRA for Their Gain?

Another claim suggests that the Lopez family, through ABS-CBN and its influence, somehow manipulated the passage of EPIRA to benefit their energy business. However, facts contradict this notion.

While the Lopezes once controlled Manila Electric Company (Meralco), they lost their majority stake in 2009 when they sold their shares to the Pangilinan-led Metro Pacific Investments Corporation. By then, EPIRA had already been law for eight years. Moreover, Lopez-owned First Gen operates in power generation, not distribution, meaning it does not control electricity pricing as Meralco does.

If the Lopezes were truly the masterminds behind EPIRA to monopolize the energy sector, why did they eventually lose control over Meralco? The claim simply does not hold up under scrutiny.


Did Gloria Macapagal-Arroyo’s Administration “Sell” the Power Sector to China?

The claim that Arroyo "sold Napocor and broadband to China" is also misleading. Napocor was not sold to China; it was privatized to various local and international investors under EPIRA’s provisions. This was done not as a political favor but to pay off Napocor’s $16 billion debt and stabilize the country’s energy supply.

As for the National Broadband Network (NBN) project, its deal with China’s ZTE Corporation was canceled due to corruption controversies. No functional broadband infrastructure was ever transferred to Chinese control.


Could Bloggers “Double” Your Electricity Bill? A definite NO!

The claim that "bloggers could double your electric bill by passing EPIRA" is outright absurd. Legislation is crafted and passed by lawmakers, not online commentators. EPIRA was the result of years of legislative deliberation and was signed into law in 2001—long before the rise of political bloggers as a significant force in discourse.

If electricity bills have increased, it is due to inflation, global energy market trends, and regulatory factors, not because of bloggers or an orchestrated oligarchic plot.


The Real Path Forward

Instead of perpetuating unfounded claims, the discussion should focus on real solutions to energy pricing:

Diversifying the energy mix – Investing in renewables like solar and wind can reduce dependence on costly imported fuels.

Improving infrastructure – Modernizing transmission lines and distribution networks can cut down inefficiencies.

Enhancing competition – Strengthening the Wholesale Electricity Spot Market (WESM) can encourage fair pricing and reduce monopolistic tendencies.

EPIRA was not a perfect solution, but it was necessary to prevent a complete collapse of the power sector. The real issue lies in continuous regulatory enforcement, energy diversification, and infrastructure investment—not in conspiracy theories about media moguls and political elites.

Misinformation distorts public understanding and distracts from genuine policy discussions. It is crucial to approach these topics with critical thinking and a commitment to factual discourse.

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