Sunday, September 21, 2025

INDUSTRY REACTION TO NEW ERC LEADERSHIP: Hope for power sector stability, lower rates

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The Philippine energy sector is buzzing with renewed optimism following President Ferdinand Marcos Jr.’s swift appointments to the Energy Regulatory Commission (ERC).

Seasoned lawyer Francis Saturnino Juan, a former ERC executive director and president of the Independent Electricity Market Operator of the Philippines (IEMOP), was named chairman, effective August 8.

He will be joined by new commissioners Amante Liberato and Paris Real, completing the five-member board.

Stakeholders quickly voiced their expectations, underscoring the ERC’s pivotal role in shaping the nation’s power landscape.

Gerry Arances, convenor of the consumer advocacy group Power for People Coalition (P4P), expressed hope that the appointments signal the administration’s acknowledgment of “the problem that has been staring him (Marcos) at his face since the start of his term: that consumers are unjustly paying for expensive electricity.”

P4P stressed that the new leadership must prioritize “accountability of power players and protection of consumer rights,” with an ultimate goal of bringing down electricity costs.

Industry players, on the other hand, focused on stability and efficiency.

The Philippine Independent Power Producers Association Inc. (PIPPA) expressed confidence that Chairman Juan “will continue to pave the way for energy modernization, promoting regulation that is best for all sectors to ensure energy security, reliability, and efficiency.”

Likewise, the Philippine Rural Electric Cooperatives Association Inc. (PHILRECA) highlighted Juan’s “invaluable institutional knowledge,” emphasizing that ERC decisions “directly impact the affordability and reliability of electricity” for millions of consumers.

Both power generation firms ACEN and Meralco PowerGen Corp. echoed the sentiment.

ACEN President Eric Francia called it a “positive development,” noting Juan’s “vast and relevant experience … should help address the many challenges and backlog that the commission and industry face.”

Meralco PowerGen President Emmanuel Rubio added that Juan’s expertise redounds to “valuable assets in strengthening regulatory frameworks, ensuring market transparency and advancing consumer protection.”

Theresa Cruz-Capellan, chair of the Philippine Solar and Storage Energy Alliance, lauded the government’s ”swift action” in ensuring ”minimum disruption on the critical work pending before the Commission.”

She praised Juan as a “qualified replacement who has broad knowledge and deep understanding of the job,” citing his past resolve and commitment to consumer protection and fair returns for producers.

The ERC, a quasi-judicial body, is responsible for ruling on applications and cases that directly affect power rates across the country.

The new leadership, alongside incumbent commissioners Floresinda Baldo-Digal and Marko Romeo Lizada Fuentes, faces the immediate challenge of addressing critical areas such as expediting the resolution of over or under recoveries and tackling pending petitions that influence consumer bills.

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