INTRODUCTION

After emerging from the crippling power crisis that occurred in the early 1990s, the Philippine government embarked on an industry privatization and restructuring program envisioned to ensure the adequate supply of electricity to energize its developing economy. This restructuring scheme is embodied in Republic Act No. 9136, the Electric Power Reform Act (EPIRA).

Enacted on June 8, 2001, the EPIRA seeks to ensure quality, reliable, secure and affordable electric power supply; encourage free and fair competition; enhance the inflow of private capital; and broaden the ownership base of power generation, transmission and distribution.

With the EPIRA in force, the Energy Regulatory Commission (ERC) was created to act as the governing body for a restructured power industry. The new law also called for the separation of the industry into the generation, transmission, distribution and supply sectors. All electrical transmission functions of the National Power Corporation, on the other hand, were transferred to a new company, the National Transmission Corporation (TransCo), which acts as the operator of the nationwide transmission and sub-transmission system. Meanwhile, National Power continues to operate and maintain the power plants.