Senator Risa Hontiveros on Thursday, November 14 cautioned that the passage into law of the proposed Philippine Natural Gas Industry Development Act may replicate policy mistakes that happened in the past especially in the energy sector.
Senate Bill No. 2793, which hurdled third and final reading last Monday with a 14-3 vote, could further weaken consumer protection policies and anti-monopoly safeguards if passed into law, the deputy minority leader warned.
Hontiveros said it is imperative for the government to be vigilant in ensuring that the country’s energy’s policies do not repeat the mistake of letting sister-companies transact with each other as what occurred in the choice of electricity suppliers by distribution utilities and limiting the scope for Energy Regulatory Commission (ERC) intervention in such cases.
“Affordable electricity must remain a priority, and we cannot afford to abandon safeguards that protect consumers and ensure a fair market,” Hontiveros stressed.
Hontiveros said prioritizing domestic natural gas, even when more expensive, and favoring negotiated contracts without competitive bidding, as stipulated in the bill, could increase power costs for consumers.
“Competitive selection process allows consumers to get the best rates. Without it, we risk paying significantly more for electricity than necessary,” she pointed out.
Aside from prioritizing domestic natural gas over other energy sources, the lawmaker warned that the bill also permits cross-ownership in both upstream and downstream sectors of the gas industry.
Under the measure, sister companies will tend to get preferential access to pipes and gas transport facilities which, in effect, could block the emergence of competitors and keep prices high.
She also warned that this could hinder investment in renewables by diverting resources to fossil fuels, which are less sustainable for addressing the climate crisis.
Citing the National Grid Corporation of the Philippines as an example, Hontiveros said allowing cross-ownership without enough limits could lead to poorly regulated monopolies.
The senator had proposed an amendment to allow the ERC to set cross-ownership limits, but it was rejected.
“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 (Let's not get carried away by the short-term brilliance of NatGas compared to the long-term benefits of investing in renewables. Citizens will enjoy lower electricity prices in the long run),” she stressed.
Hontiveros, Sen. Sherwin Gatchalian and Senate Minority Leader Aquilino "Koko" Pimentel III were the three senators who voted against the measure.