Senate Deputy Minority Floor Leader Risa Hontiveros is urging lawmakers to ensure competitive bidding and prevent monopolies in the energy sector as Congress advances a bill to develop the country’s natural gas industry.
In a report by Business World, Hontiveros said competitive selection would aid consumers in securing the top rates, as lacking this measure could lead to unnecessarily inflated electricity expenses.
The Senate approved Senate Bill No. 2793 on Monday, officially designating the Department of Energy (DOE) to oversee initiatives to grow the downstream natural gas industry under the Philippine Natural Gas Industry Development Act.
The House of Representatives, after approving its version in August last year, moved to adopt the Senate’s version this Wednesday.
With the Malampaya gas reserves dwindling, Manila is urged to pursue alternative energy solutions. Malampaya supplies plants generating one-fifth of the Philippines’ electricity and is projected to run out of gas by 2027.
Additionally, the bill would mandate the Energy Regulatory Commission (ERC) to monitor the government’s revenue share from natural gas sold to power plants.
Under the bill, projects certified by the DOE under the downstream natural gas industry will be eligible for a value-added tax exemption on the sale and purchase of indigenous gas, as approved by the ERC.
Senators Sherwin T. Gatchalian, Aquilino L. Pimentel III, and Risa Hontiveros voiced objections to this, highlighting concerns over insufficient safeguards to prevent potential increases in electricity prices for consumers.
In April, President Ferdinand R. Marcos, Jr. announced that his administration is exploring gas reserves in non-disputed areas of the South China Sea to enhance energy security.
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