Lotilla seen as right man for the job

MANILA, Philippines — President Marcos’ pick as energy chief, Raphael Lotilla, is seen as the right man for the job amid various challenges facing the power sector, top officials of two listed companies where he sits as an independent director said.

AC Energy Corp. CEO Eric Francia told The STAR that Lotilla’s extensive experience in the energy sector would be valuable in helping steer the country amid the challenging energy landscape.

“The energy sector needs to deal with the global energy crisis in the short term, and the energy transition imperative in the medium to long term,” Francia said.

Aboitiz Power Corp. president and CEO Emmanuel Rubio, for his part, said Lotilla’s reputation and track record as a faithful public servant are hallmarks of his success throughout his career.

“We are faced with many challenges in the energy sector and I believe President Marcos appointed the right person for role,” Rubio told The STAR.

“We support his appointment and look forward to working with the rest of the energy sector on building upon the accomplishments of the Department of Energy toward a transition to a decarbonized future,” he said.

Lotilla, who served as energy secretary from 2005 to 2007 during the presidency of Gloria Macapagal Arroyo, was elected independent director of ACE Enexor in 2019, and as lead independent director of AboitizPower in 2021.

His nomination as DOE secretary has yet to be confirmed given his role as an independent director of both companies.

Press Secretary Trixie Cruz-Angeles earlier said Lotilla’s nomination is being reviewed to determine whether an independent director is considered an officer of the company.

She said Section 8 of Republic Act 7638, the law that created the Department of Energy, states that “no officer, external auditor, accountant, or legal counsel of any private company or enterprise primarily engaged in the energy industry shall be eligible for appointment as secretary within two years from his retirement, resignation, or separation therefrom.”

Energy advocacy group Power for People Coalition (P4P), meanwhile, expressed some concerns over Lotilla’s potential return as energy chief.

“We are aware of the expertise of Mr. Lotilla, having held the post before. But we are concerned that given his ties to the power sector, he may not be coming in as an honest broker and is instead a Trojan horse for corporate interests,” said Gerry Arances, convenor of P4P.

Arances said the next DOE secretary must be pro-consumer.

“With the final appointment still up in the air, the challenge is clear and pressing for anyone who takes this post: bring down electricity rates in the shortest period of time possible,” he said.

“Once appointed, Lotilla or any other nominee will deal with astronomically high power rates for consumers due to our reliance on fossil fuels such as coal and gas, especially now that we see the country being transformed into a natural gas hub that locks us with high power rates for decades to come.

He can reverse this by picking renewable energy, and we hope he would not be like Cusi who flagrantly flouted Duterte’s policy statements on renewables,” Arances said.