A Study of Government Regulations in the Philippines: Power Generation and Distribution

The electric-power generation and distribution (EPGD), which is a traditional instrument of economic growth and is tapped to serve regional development, social equity and other objectives, has felt most the effects of liberalization. For it to contribute to economic adjustment, the government should examine existing policies that obstruct the efficient service in power supply. This paper examines the existing regulatory framework governing the EPGD and its broad macro and micro implications, including transmission mechanisms. It also identifies certain issues and areas where deregulation, through increased reliance on market forces strengthen the linkage and identify the propagation mechanisms between EPGD and industry.