In
2001, the Philippines electric power industry underwent full
privatisation through the Electric Power Industry Reform Act (EPIRA).
The law led to the division of the industry into 4 sectors (i.e.,
generation, transmission, distribution, and supply); the elimination of
cross-subsidies between and within the 3 island regions; the
establishment of the Energy Regulation Commission; and the
implementation of market-based pricing mechanisms for electricity.
Prior to the passage of EPIRA, the electric power industry was composed
of the generation and transmission-distribution sectors only, with the
state owning and operating the majority of the industry's components