MANILA, Philippines — A Visayan lawmaker has filed a bill amending the Electric Power Industry Reform Act (EPIRA) to prohibit cross-ownership between generation companies and distribution utilities.

Eastern Samar Rep. Ben Evardone lamented that since Republic Act 9136 or EPIRA was implemented, power rates have doubled, with Manila Electric Company (Meralco) increasing its rates by more than 112 percent and National Power Corp. (Napocor) by more than 95 percent in the past 10 years.

Evardone also expressed concern about the Philippines being among the Asian countries having the highest electricity rates in the region, citing a study conducted by the Australia-based International Energy Consultants.

In filing House Bill 5678, Evardone pushed for the amendment of the Section 45 of RA 9136, which provides that “no participant in the electricity industry or any other person may engage in any anti-competitive behavior including, but not limited to, cross-subsidization, price or market manipulation, or other unfair trade practices detrimental to the encouragement and protection of contestable market.”

In Evardone’s proposal, no distribution utility, or its respective subsidiary or affiliate or stockholders or official or director or any of their relatives within the fourth civil degree of consanguinity or affinity, can hold any interest, directly or indirectly, in any generation company.

The same restriction applies to generation companies.

Evardone cited that more than half of the total generation capacity, the entire transmission system and a large part of the distribution, are now controlled by a few large companies. He said after privatization, only three groups control 52 percent of generation capacity – San Miguel Corporation (SMC), Aboitiz and Lopez.

Under HB 5678, a generation company may be permitted to hold interest, directly or indirectly, in another generation company provided, that the extent of such interest shall be less than the amount of shares needed to vote one member of the board of directors.

“Through these amendments, it is anticipated that genuine competition would take place with the possible emergence of small players who will have a fighting chance to survive a de-monopolized industry, avoid a few companies to dictate prices of electricity and for more importantly, to avoid soaring electricity prices in the future,” Evardone said.