Jonathan Frederic De Santos

A solar plant and wind farm operated by Energy Development Corp in Burgos, Ilocos Norte. Handout photo

Article (news)

Agatha Gregorio

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/175395282079520181219-solar.jpg" style="width:960px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left">A solar plant and wind farm operated by Energy Development Corp in Burgos, Ilocos Norte. <em>Handout photo </em></span></span></span></div><p>MANILA — Experts called out President Ferdinand Marcos Jr.’s fourth State of the Nation Address (SONA) for acknowledging high electricity costs and the need for clean energy, but not saying what the government will do about these.</p><p>Discussing this would mean confronting alleged “long-standing inefficiencies” in the energy sector such as lack of competition, according to Leonardo Lanzona, an economics analyst and a professor at the Ateneo de Manila University.</p><p>Lanzona added during the Pandesal Forum on Thursday, July 31, there was no mention in the SONA of “open access to give consumers real choice” or on making power supply agreements fairer to generators.</p><p>&quot;High power rates not only burden the households. They erode industrial competitiveness and discourage green investment. The president&#x27;s speech acknowledged the what and the why the need for clean and affordable and resilient energy, but it avoided the how,&quot; Lanzona said.</p><div><a href="https://www.abs-cbn.com/lifestyle/2024/5/22/renewable-energy-transforms-communities-1429" rel="noopener noreferrer" target="_blank"><strong>Renewable energy transforms communities<br/></strong></a></div><p>Center for Energy, Ecology, and Development (CEED) Executive Director Gerry Arances meanwhile alleged that there is as much corruption in the Energy Regulatory Commission as in the flood-control projects that Marcos Jr. called out in his address to a joint session of Congress.</p><p>“Sobrang dami na Ombudsman cases na na-file. Sobrang dami na pronouncement of gaming, of manipulation and everything, and even announced by the President and the Department of Energy,&quot; he said.</p><p>(So many cases have been filed at the Ombudsman. There have been so many pronouncements of gaming, of manipulation of everything, and even announced by the President and the Department of Energy)</p><p>But, he said, investigations have led nowhere and any fines imposed by the ERC are just crumbs compared to what corporations make &quot;in the manipulation that they do.&quot;</p><p>It can be recalled that <a href="https://www.abs-cbn.com/news/2024/9/5/ombudsman-suspends-erc-chief-dimalanta-1544">the Office of the Ombudsman suspended then ERC Chairperson Monalisa Dimalanta in 2024 </a>due to a complaint filed on supposed inaction and “failure to resolve” petitions filed by the National Association of Electricity Consumers for Reforms Inc (NASECORE).</p><p><a href="https://www.abs-cbn.com/news/business/2025/7/14/erc-chair-dimalanta-resigns-1145">She has since resigned</a>.</p><div><br/></div><div><strong>OVERHAUL OF POWER SUPPLY SECTOR NEEDED</strong></div><p>For Lanzona, there needs to be a full structural overhaul of the power supply sector for transparency, competition, and consumer empowerment.</p><p>&quot;Floods are not just natural events. They are symptoms of infrastructure and governance failure. While distributed solar systems designed to control flooding can help our evacuation centers and flood-prone communities, their full potential will remain unrealized… if fossil fuel continues to dominate generation contracts,&quot; he also said.</p><p>For Lanzona, there is a need to consider reviewing laws associated with the problem of generation cost.</p><p>Lanzona also called on Marcos to implement the Renewable Energy Act of 2008 along with the so-called good aspects of Electric Power Industry Reform Act of 2001 (EPIRA), which Arances earlier said helped create oligopolies — where a few players control the market — in the sector.</p><div><a href="https://www.abs-cbn.com/business/11/13/23/most-pinoys-say-important-to-use-more-renewable-energy" rel="noopener noreferrer" target="_blank"><strong>Most Pinoys say increasing use of renewable energy is important<br/></strong></a></div><p>“The EPIRA, it has some good qualities as well, in terms of making things more competitive and allowing for greater consumer participation. Apparently, these are not being implemented currently.”</p><div><br/></div><div><strong>FOSSIL FUEL COST BEING PASSED ON TO CONSUMERS<br/></strong></div><p>Arances, meanwhile, appealed to the president to address the “pass on” or pass through fossil fuel cost, referring to the costs being by companies passed to consumers due to use of fossil fuels, which are largely imported.</p><p>According to Arances, this pass through cost is the “main culprit” in high electricity prices in the country.</p><p>&quot;In effect, tayo na sa-subsidize ng industry mismo, &#x27;yung risk, lahat ng risk, wala silang risk. Pasa man sa ating lahat ‘yun eh,” Arances said.</p><p>(In effect, consumers subsidize the industry itself. We subsidize the risk, they don&#x27;t have any risk. That is all passed on to us)</p><p>He said shifting to renewable energy would help lower those costs.</p><p>&quot;Renewable versus coal, that&#x27;s around P5 per kWh. Sobrang laki na noon. Renewable, and I&#x27;m pertaining to solar– solar versus LNG (Liquified Natural Gas), that&#x27;s more or less P7 per kWh in the average,&quot; Arances added.</p><p>(Renewable versus coal, that&#x27;s a difference of around P5 per kWh. That is huge. Solar versus LNG, that&#x27;s more or less P7 per kWh on average)</p>

<p>Experts called out President Ferdinand Marcos Jr.’s fourth State of the Nation Address (SONA) for acknowledging high electricity costs and the need for clean energy, but not saying what the government will do about these.</p>

Experts called out President Ferdinand Marcos Jr.’s fourth State of the Nation Address (SONA) for acknowledging high electricity costs and the need for clean energy, but not saying what the government will do about these.

Experts: Marcos Jr.’s SONA lacked details on clean energy, lowering power costs

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Experts: Marcos Jr.’s SONA lacked details on clean energy, lowering power costs

Agatha Gregorio,

ABS-CBN News

Published Jul 31, 2025 05:15 PM PHT

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Energy

Power Sector

Center for Energy Ecology and Development

Energy Regulatory Commission

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