Bill seeks power rate cap during emergencies filed in Senate

MANILA, Philippines — A bill seeking to allow the president to impose a “price cap” on power rates during energy emergencies was filed in the Senate by Sen. Risa Hontiveros. Senate Bill No. 2361, filed on July 29, seeks to “provide immediate, effective, and structural protection to electricity consumers, especially during periods of rising energy costs." Hontiveros said the measure seeks to shield consumers from the volatility of electricity prices, which have been on the rise, thereby exacerbating the financial burden on Filipino households. “This bill is a vital measure to protect our consumers from the impact of escalating power rates. We need to ensure that electricity remains affordable and accessible, especially for those who can least afford it,” Hontiveros stated. The proposed legislation would grant the president the authority, upon the recommendation of the Energy Regulatory Commission (ERC) and the Department of Energy (DOE), to impose a price cap on electricity rates. This cap would be in effect during declared energy emergencies, such as those caused by supply shortages, disruptions in fuel imports, or significant price hikes in the global energy market. According to the bill’s explanatory note, the Philippines’ energy sector is susceptible to global price fluctuations and supply chain disruptions. The country’s reliance on imported fuels, particularly for power generation, makes it vulnerable to external shocks. The rising cost of electricity has been a persistent concern for Filipino consumers, impacting their monthly budgets and overall cost of living. Hontiveros highlighted that the bill aims to provide a mechanism for immediate government intervention to prevent exorbitant price increases that could disproportionately affect low-income households. “In times of crisis, the government must step in to ensure that essential services like electricity are not used to exploit consumers. This bill provides that necessary tool,” she added. The bill also mandates the DOE and the ERC to conduct regular assessments of the energy market and to recommend appropriate actions to the president in case of potential emergencies. The filing of this bill comes at a time when inflation, driven partly by high energy prices, continues to be a challenge for the Philippine economy. Consumers have been calling for measures to alleviate the burden of rising utility costs. If passed, the law would empower the executive branch to act decisively during critical periods, ensuring that the cost of electricity does not become an insurmountable burden for the average Filipino family.