Plot hole: Piper is initially skeptical at Phoebe's theory that the Evil Enchantress could be Paige in a past life, because Paige lacks the Enchantress' ability to summon the elements. However, Piper knows that in Phoebe's past life she had a pyrokinetic power, which she does not have in the present.
Suggested correction: This is not a correction, more of an observation that goes with this plot hole. In season 2 episode 14 'Pardon My Past' Leo explains to the sisters that Phoebe had her active powers taken away, because her past self had used them for evil, but yet the Enchantress does the same with her powers, and Paige still has active powers. It took two years for Phoebe fighting as a good witch to actually gain an active power again, and then it was only levitating. Becoming an empath took seven years. So that doesn't really make sense that Phoebe would be punished for her past self actions and Paige was not.
Possibly Paige had past lives in between the one we saw and the present one. So she could have already atoned for the evil past life in another past life.
Also Paige's active power comes from her Whitelighter side not her witch side, she doesn't have any active witch powers.
Paige's active power comes from her whitelighter heritage, so like Chris and Wyatt, she doesn't have an active witch power, so this active power has nothing to do with her Wiccan heritage and past life as the enchantress.
Plot hole: According to Paige's "fairy tale" the witch ends up with the prince. If this is really a past life, the sorceress ended up with the prince in the Middle Ages. So why do they have to fix it? Everything was just going the way it did according to her fairy tale, and good magic was obviously still present in the world.
Plot hole: Paige is able to use the enchantress' powers, but in "Pardon My Past", Phoebe can't use her past life's fire throwing power and Leo tells her it's because her past life misused it so she lost it. The enchantress misused her powers so Paige should not be able to use them.