Regulating the Regulators: Economic Assessment of Philippine Electricity Regulation

Abstract

This paper seeks to analyze the regulatory framework of energy economics in the Philippines. It looks at the historical legal background of these regulations, seeking to understand how different factors contribute to the performance of the energy industry in the Philippines today. The first part provides the recent state of electricity in the Philippines, in contrast to other countries in comparatively the same circumstantial environments but with vastly different payment rates for electricity. The second part delves deeper and discusses its history, tracing the creation of landmark private industries, community cooperatives, and regulatory bodies throughout the century, up to the present day and how the current energy regulatory framework operates. It seeks to isolate the extent of influence on this particular variable that regulatory frameworks exert. Lastly, the final part dissects the Philippine regulatory framework, applying standards and concepts for efficiency in regulation and identifying areas for improvement. It concludes by providing five key recommendations: adopting data-driven regulation; integrating AI analytics; promoting a principle-based regulatory system; improving incentives against corruption and patronage politics, and; increasing consumer education. These steps can provide the backbone of reform that the Philippine regulatory system needs in order to push forward an efficient, human rights-responsive social energy framework for its citizens.