Senator Sherwin Gatchalian called for a review of market share limitation in the power industry, as around 60 percent of the installed energy capacity is reportedly controlled by only three companies.
“A perusal of the existing electricity industry shows the presence of dominant players and high retail rates,” Gatchalian told participants of the Executive Seminar on Fostering Dynamic Competition in the Philippine Electricity Industry.
Gatchalian said the matrix which was used to determine market share limitation under the Electric Power Industry Reform Act should also be reviewed as the law specifies installed generating capacity as the measure in computing market share.
Gatchalian, however, said this was not reflective of the true market power of a company as the installed capacity is different from the power generated and injected to the grid.
The EPIRA states that market share limitations prohibit generation firms from owning more than 30 percent of a grid and more than 25 percent of the installed capacity of the national grid.
