Where is Philippines energy sector headed?

From leadership saga to boardroom drama

MANILA, Philippines — This year, 2025, has proven to be one the Philippine energy sector won’t forget. From sudden exits and new appointments to landmark reforms and high-stakes power deals, the industry delivered drama and shocks worthy of a movie script.

Behind the headlines, however, lies the real story and a still lingering question: What does this mean for millions of Filipinos still grappling with high electricity prices in an already weak economy?

Emma Ponio, a housewife in Pampanga, shared that despite her family of four’s efforts to cut back on electricity use, their power bill remains painfully high, soaring to around P5,500 to P6,500 every month.

“Sometimes our budget for groceries gets reduced because of our bills. It is even bigger than our food budget, and what makes things even harder is that the prices of goods have also gone up,” Emma told The STAR.

Her experience echoes that of Jessa May Evangelista, a company employee, whose family of six sees its monthly electricity bill surge to as much as P8,000, depending on the month and season.

Although her household has managed to budget for these expenses, Jessa May hopes the government will step in to provide relief for families who are already struggling to make ends meet.

“Like providing subsidies to households… and improving the energy infrastructure so that the additional costs from system losses are not passed on entirely to consumers,” she said.

The struggles of Emma and Jessa May are far from unique. They mirror the challenges faced by millions of Filipinos, whose daily lives are shaped by leadership moves, policy shifts and big power plays in the energy sector.

One clear example this year was the changing of the guard at both the Department of Energy (DOE) and the Energy Regulatory Commission (ERC), a shift that could impact millions of consumers.

Garin, Juan take the helm

As part of a Marcos Cabinet revamp earlier this year, Sharon Garin took over as head of the DOE, while former energy chief Raphael Lotilla moved to the Department of Environment and Natural Resources.

Garin, who previously served as DOE undersecretary overseeing the country’s nuclear energy program, has vowed to champion and strengthen key policies and reforms to drive more investments in the sector.

“Programs such as GEA (Green Energy Auction), the steady growth in renewable energy capacity and the increasing investor confidence in our energy transition framework underscore our collective progress in advancing the President’s policy agenda,” Garin said.

At the ERC, lawyer Francis Saturnino Juan was named the new chairperson and CEO following the irrevocable resignation of Monalisa Dimalanta, a long-time ally of Lotilla.

Insisting that President Marcos’ sweeping government reorganization did not cover her, Dimalanta said she stepped down to “protect the agency by not setting any precedent on courtesy resignations.”

Taking the helm, Juan immediately outlined his priorities, vowing to speed up regulatory processes to deliver timely decisions and actions for the energy sector.

“For us consumers, an overhaul approach sounds radical, but if it means significantly lowering electricity rates, why not?” consumer welfare group Kuryente.org said.

Key reforms, legislation

Recent leadership shakeups paved the way for bold reforms and policy shifts in the energy sector. A standout initiative is the push to lower the eligibility threshold in the retail electricity market, empowering more consumers to choose their preferred energy supplier.

In a landmark move, the ERC has reduced the minimum threshold under the retail competition and open access (RCOA) program to 100 kilowatts from the current 500 kW.

The reform, set to take effect in June 2026, will also apply to the retail aggregation program, a scheme that allows multiple power end-users to pool their electricity demand and directly contract their supplier.

This new threshold aligns with the current level implemented under the Green Energy Option Program, which enables consumers to source renewable energy directly from eligible providers.

Apart from lowering the RCOA eligibility, the ERC is also moving to raise the lifeline consumption threshold to expand free electricity access for more low-income families.

Under a draft proposal, all qualified marginalized households consuming 50 kW-hours or less would get a 100 percent discount on their electricity bills.

Similarly, qualified beneficiaries of the government’s Pantawid Pamilyang Pilipino Program (4Ps) with accounts in their distribution utilities will automatically be enrolled in the lifeline subsidy program and receive a full discount.

The lifeline rate is a subsidized rate given to qualified low-income electricity consumers who have difficulty paying their power bills at full cost.

Under the existing rules, only 4P beneficiaries and households classified as living below the poverty threshold set by the Philippine Statistics Authority may avail themselves of the subsidy.

Nuclear power, anyone?

Beyond subsidies and consumer choice programs, the country has also taken a significant step toward unlocking the potential of nuclear energy with the passage of a measure establishing the country’s first independent nuclear regulatory body.

Republic Act 12305, also known as the Philippine National Nuclear Energy Safety Act, provides the legal and institutional framework for the safe and peaceful use of nuclear power.

The new law establishes the Philippine Atomic Energy Regulatory Authority (PhilAtom), which is tasked with assuming all regulatory responsibilities currently managed by the Philippine Nuclear Research Institute.

According to PNRI director Carlo Arcilla, the implementing rules and regulations for the PhilAtom law are expected to be released early next year.

This bodes well for the Philippines’ ambitious target of harnessing at least 1,200 megawatts of nuclear power into the energy mix by 2032 and scaling this up to 4,800 MW by 2040.

Clean energy investments

In terms of investments, the Philippine energy sector remains a hotspot, especially in the renewable power space.

This is evident in the successful completion of this year’s third and fourth GEA rounds, which attracted a combined capacity of around 16.8 gigawatts (GW).

GEA-3 consisted of impounding hydro, pumped storage hydro and geothermal contracts, while GEA-4 marked the first auction round to integrate energy storage systems.

The first GEA round, held in June 2022, attracted nearly two GW of renewable energy projects, while GEA-2 generated over 3.4 GW of new capacity.

If all GEA projects come online, the DOE expects them to bring about a significant reduction in the country’s electricity prices.

GEA aims to support the government’s goal of expanding the share of renewables in the energy pie to 35 percent by 2030 and 50 percent by 2040.

Currently, renewables account for only 22 percent of the energy mix, with coal still making up the largest share at 63 percent, according to DOE data.

And to facilitate a shift toward cleaner energy sources, the government is positioning natural gas as a “transition fuel.”

This has spurred billionaires and major energy players to move quickly and capitalize on the growth opportunities in the natural gas sector.

Billionaire showdown

In January, tycoons Manuel V. Pangilinan, Ramon Ang and Sabin Aboitiz sealed a $3.3-billion power venture to launch the country’s first and largest integrated liquefied natural gas (LNG) facility.

The deal, first reported by The STAR, involves Pangilinan’s Meralco PowerGen Corp. (MGEN) and Aboitiz-owned Therma Natgas Power Inc. (TNPI) jointly investing in gas-fired facilities under Ang-led San Miguel Global Power Holdings Corp.

MGEN and TNPI acquired the assets through their joint venture, Chromite Gas Holdings Inc.

As part of the deal, the power giants also completed the buyout of Linseed Field Corp., the owner and operator of an import and regasification LNG terminal in Batangas.

But a billionaire showdown quickly took shape after ports and casino magnate Enrique Razon Jr. joined forces with the Lopez Group on a P50-billion gas deal of their own.

Through the deal, Razon’s Prime Infrastructure Capital Inc. acquired a 60-percent stake in Lopez-led First Gen Corp.’s gas business.

The deal covered First Gen’s existing gas-fired facilities totaling over 2,000 MW, along with the proposed 1,200-MW Santa Maria plant and an interim offshore LNG terminal in Batangas.

The Malampaya field has supplied the gas assets, an indigenous gas resource in the offshore area of Palawan, operated by Razon’s Prime Energy Resources Development B.V.

“This will be a major competitor to the LNG partnership of Aboitiz, Meralco and San Miguel,” according to an analyst.

Against this backdrop of mega deals, new leadership and bold policy shifts, the question on every Filipino’s mind remains clear: Will this finally bring down their electricity bills?