📷Former Bayan Muna Representative Neri Colmenares
Former Bayan Muna Representative Neri Colmenares has strongly criticized the Department of Energy’s (DOE) proposal to amend the Energy Regulatory Commission (ERC) charter, which seeks to allow power price increases without regulatory approval if they fall within predetermined benchmarks. Colmenares argues that this move would empower profit-seeking firms at the expense of Filipino consumers, particularly affecting lower-income households and small businesses.
“As IBON Foundation pointed out, this proposal is a step backward, away from protecting consumers and regulating profit-driven firms that provide essential electricity services and may result to unlimited power rate hikes,” Colmenares stated. “The electricity sector is a natural monopoly that requires stringent regulatory oversight because it affects every aspect of economic and domestic life.”
The proposed changes are part of the amendments to the 23-year-old Electric Power Industry Reform Act (EPIRA), which are among President Marcos Jr.’s priority measures. The DOE claims that the current ERC process is time-consuming, but Colmenares insists that regulatory checks are necessary to ensure that price changes align with actual cost increases and service improvements.
“The Philippines’ experience under EPIRA is already a cautionary tale of the hazards of power privatization,” Colmenares added. “Streamlining processes and removing regulatory checks only empower power firms to adjust prices according to their profit motives. It is absurd for the ERC to abdicate its responsibility to ensure fair pricing.”
Colmenares also highlighted the potential conflict of interest within the current energy officials, noting their previous associations with the country’s largest power generator, Aboitiz Equity Ventures. “It is concerning that key energy officials have close ties with Aboitiz Equity Ventures, which holds significant power over the national grid,” he said.
He concluded by calling for the active involvement of various stakeholders, including consumer groups, in the decision-making process. “Regulatory bodies like the ERC must serve as counterweights to market forces, ensuring that the electricity sector operates transparently, equitably, and for the broader public welfare,” Colmenares emphasized. #
