Electric Power Industry Reform Act of 2001 (Philippines)

The Electric Power Industry Reform Act of 2001 (EPIRA) declares that it is policy of the State to ensure and accelerate total electrification of the country, ensure the quality, reliability, security and affordability of the supply of electric power, ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability, promote the utilization of indigenous, new and renewable energy resources in power generation in order to reduce dependence on imported energy, and encourage the efficient use of energy and other modalities of demand side management. The EPIRA provides for the privatization of the assets of the National Power Corporation. It mandates the establishment of a wholesale electricity spot market, and the determination of the mechanism for setting the price of electricity not covered by bilateral contracts. It also provides for Retail Competition and Open Access. The EPIRA creates the Energy Regulatory Commission, an independent, quasi-judicial regulatory body for the energy industry. The Act also provides for some prohibited acts and the corresponding fines and penalties.