Even as Malacañang insists no Cabinet shake-up is imminent, backroom whispers are growing louder that the administration may “recycle” 2025 midterm election losers into key posts once the appointment ban lifts this May.

Just last week, industry and political circles were abuzz with rumors that a former lawmaker is reportedly in the running for the Energy Secretary post. This individual was a central figure in the Congressional investigations into extra-judicial killings (EJKs)—probes that significantly bolstered the case against former President Rodrigo Duterte before the International Criminal Court (ICC) in The Hague.

Beyond the EJK inquiries, the former solon—who ran for local office in May 2025—also co-chaired the POGO investigations that led to the jailing of several key players. He similarly played a major role in exposing alleged irregularities in Vice President Sara Duterte’s confidential funds, a controversy that culminated in her impeachment by the House of Representatives in February 2025.

Given his extensive role in investigations that fueled the administration’s campaign against the Dutertes, critics are questioning the optics: Is this a merit-based bid for the Department of Energy (DOE), or a reward for taking down political giants?

Aside from these high-profile fact-finding missions, this political figure is a well-known “thorn” in the side of the power sector. He has relentlessly targeted industry titans, primarily grilling the National Grid Corporation of the Philippines (NGCP) over its partnership with the State Grid of China and opposing Manila Electric Co. (Meralco) during its franchise renewal.

He has also waded into the technical weeds of electricity rate-setting, sticking his nose into the weighted average cost of capital (WACC) debate by challenging the formula that determines the “fair return” utilities can earn on their investments.

As this story unfolds, it remains to be seen if the mystery will have a “Mara Clara diary twist”—hidden for now, but destined for a dramatic reveal.

While the political saga plays out, the energy industry is on edge over talk of another reshuffle—especially since the incumbent, Secretary Sharon Garin, hasn’t even hit her first year in office.

For many stakeholders, they would rather stick with a familiar challenge than see the industry thrown into the fire or drowned in the deep blue sea.

When President Marcos appointed Raphael “Popo” Lotilla in 2022, the sector breathed a sigh of relief, finally having a leader who understood the industry’s complexities. When he was replaced last year, stakeholders met the shift with cautious optimism, as stewardship passed to a leader capable of maintaining policy momentum.

Secretary Garin has been decisively delivering the stability the industry craves. She has pushed for targeted investments in renewable energy (RE) and storage—including offshore wind and waste-to-energy—while advancing nuclear, hydrogen, and a broader gas roadmap. Simultaneously, she has taken on the “circus” of energy politics, including the DOE’s ongoing purge of non-performing RE investors.

DOE sources indicate this cleanup may extend far beyond the 17 gigawatts (GW) of already canceled RE contracts. Other dormant service contracts held by “sketchy” investors are reportedly in the crosshairs.

Insiders further reveal that the department has uncovered consultants and legal professionals who hoarded contracts only to leave projects dead in the water. They could be next on the chopping block.

The industry is also watching to see if Secretary Garin will “clear the decks” at a DOE-attached power entity currently riddled with corruption allegations, where even mid-level officials are reportedly flaunting luxury watches like Patek Philippe and Rolex.

Top energy officials have hinted that Congressman Leandro Leviste has lodged a counter-offer against the DOE-imposed penalties on his terminated contracts. The offer is reportedly a “token” ₱80 million.

Since the case is now with the Department of Justice (DOJ), sources say Leviste’s “concession” was forwarded there first to determine if it constitutes a legitimate route for settlement.

The DOE recently slapped Solar Philippines Power Project Holdings Inc., founded by Leviste, with roughly ₱24 billion in penalties after the firm failed to deliver nearly 12 GW of promised RE capacity.

The department clarified that these fines cover performance funds, contractual failure costs, and financial obligations like training fees and forfeited bonds under the first Green Energy Auction (GEA-1), where Leviste’s firms won the lion’s share of 20-year power supply agreements.

The penalties were triggered following the cancellation of approximately 33 service contracts because the sponsor-firms missed deadlines and ignored show-cause orders. While Leviste has challenged the fines, arguing the wrong legal entities were notified, the DOE maintains the penalties are anchored squarely on breached contractual obligations.

The outcome of the Leviste case will likely serve as the industry benchmark, reshaping how the DOE handles future contract terminations and penalties.

Industry teaser: The sector is buzzing with news that a legal luminary from one of the country’s largest RE firms is being tapped as a DOE Undersecretary. Her nomination is reportedly already under review by the Office of the President.