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The distribution and regulation sides of the Philippine power sector have expressed their backing of the economic Charter Change (Cha-cha) that's being pushed by the House of Representatives.

In particular, resource persons from the Manila Electric Company (Meralco) and the Department of Energy (DOE) who took part in the Committee of the Whole discussions on Resolution of Both Houses (RBH) No.7 attested to the wisdom in adding the phrase “unless otherwise provided by law” in relevant economic provisions of the 1987 Constitution.

Meralco Senior Vice President Jose Ronald Valles said the move to amend Articles XII of the Constitution holds significant potential to attract substantial investments in the country's power sector and spark greater competition.

This would lead to improved service quality and lower prices, and address supply shortages and preparedness for future energy demands, said the official from the power distribution giant.

Ar₮ticle XII, Section 11 of the Constitution governs the ownership of public utilities.

The phrase "unless otherwise provided by law" is meant to be a catch-all provision that would allow Congress to pass laws that would specifically govern a particular kind of public utility in the future.

Meanwhile, the DOE also backed the proposed lifting of the economic restrictions in the 1987 Constitution.

To justify this position, DOE Undersecretary Sharon Garin says the agency is protecting 1.5 million job openings as a result of the government's decision to allow 100-percent foreign ownership in the renewable energy (RE) sector since 2022.

Garin noted that 357,459 individuals were employed in the RE sector that year. Using this figure, she said it is anticipated that there will be 10 direct jobs and 30 indirect jobs generated per megawatt (MW).

“[The] estimated direct and indirect job generation for 2023 new contracts based on potential capacity is at least 1.5 million positions,” said the former congresswoman.

The energy official noted that additional jobs would stem from foreign investments in ports, mining—specifically in Vanadium, a critical component of steel alloys employed in space vehicles, nuclear reactors, aircraft carriers, and various other applications—and transmission lines.

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"Other than investments in the development of [RE], other components that will come in because of the trillions of investment from foreign investors is port development. We will need at least 10 new ports in order to cater to offshore wind projects,” Garin said.

“In mining, the battery components include rare earth metals from our indigenous resources, including Vanadium and Scandium (an aluminium-scandium alloy used in Russian MIG fighter planes, high-end bicycle frames, and baseball bats). The additional transmission lines, including a newly proposed smart green grid, will require more copper,” she explained.

Valles and Garin both attended the third day of the Committee of the Whole's deliberations on RBH No.7 last Wednesday, Feb. 28.