IT took a little over a decade to reform the electric power industry to avert the same crisis of insufficient electrical generating capacity in 1990 – when Metro Manila and the 33 provinces in Luzon power grid went through rotating brownouts up to four hours per day.
By virtue of Republic Act No. 9136, the Electric Power Industry Reform Act of 2001 otherwise known as Epira Law, declared the policy of the State to ensure and accelerate the total electrification of the country; to ensure the quality, reliability, security and affordability of the supply of electric power; to ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability to achieve greater operational and economic efficiency; and enhance the competitiveness of Philippine products in the global market.
Other components of the policy include enhancement of the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors; to ensure fair and non-discriminatory treatment of public and private sector entities in the process of restructuring the electric power industry; to protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power; to assure socially and environmentally compatible energy sources and infrastructure; and to promote the utilization of indigenous and new and renewable energy resources in power generation in order to reduce dependence on imported energy.