MANILA, Philippines – Senator Risa Hontiveros warned that Senate Bill No. 2793 or the Philippine Natural Gas Industry Development Act, could repeat past policy mistakes by weakening consumer protections and anti-monopoly safeguards in the energy sector.
“We must be vigilant in ensuring that our energy policies do not repeat mistakes of the past: of letting sister companies transact with each other as has happened in the choice of electricity suppliers by distribution utilities, and limiting the scope for Energy Regulatory Commission intervention in such cases,” she said.
“Affordable electricity must remain a priority, and we cannot afford to abandon safeguards that protect consumers and ensure a fair market.” Hontiveros added.
The Senate passed SB 2793 with a 14-3 vote.
Hontiveros expressed concern that prioritizing domestic natural gas, even when more expensive, and favoring negotiated contracts without competitive bidding could increase power costs for consumers.
She noted, “Competitive selection process allows consumers to get the best rates. Without it, we risk paying significantly more for electricity than necessary.”
Aside from prioritizing domestic natural gas over other energy sources, the bill also permits cross-ownership in both upstream and downstream sectors of the gas industry; sister companies will tend to get preferential access to pipes and gas transport facilities.
This setup could block the emergence of competitors and keep prices high. Hontiveros cautioned that this could hinder investment in renewables by diverting resources to fossil fuels, which are less sustainable for addressing the climate crisis.
“Huwag sana tayong madala sa panandaliang kinang ng NatGas kumpara sa pangmatagalang pakinabang sa pamumuhunan sa renewables. Mas matatamasa ng mga kababayan ang mas mababang presyo ng kuryente sa pangmatagalan,” she added.
(Let’s not be swayed by the short-term allure of natural gas compared to the long-term benefits of investing in renewables. Our people will enjoy lower electricity costs in the long run.)
Hontiveros said that allowing cross-ownership without enough limits could lead to poorly regulated monopolies, as seen with the National Grid Corporation of the Philippines.
Hontiveros proposed an amendment to allow the Energy Regulatory Commission to set cross-ownership limits, but it was rejected.
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