Senate Deputy Minority Leader Risa Hontiveros warned on Thursday that Senate Bill No. 2793, or the Philippine Natural Gas Industry Development Act, could weaken 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 (ERC) intervention in such cases,” she said.
Hontiveros emphasized the importance of maintaining affordable electricity and ensuring a fair market.
The bill, passed with a 14-3 vote in the third and final reading, prioritizes domestic natural gas over other energy sources and permits cross-ownership in both upstream and downstream sectors of the gas industry.
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.
The senator 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 ERC to set cross-ownership limits, but it was rejected.
