By: Karl Ocampo
Our conversation came at a critical moment: the convergence of a global oil crisis and the annual summer spike in electricity rates, which prompted President Ferdinand Marcos Jr. to place the country under a national energy emergency.
That the Philippines became the first nation to declare such an emergency following the outbreak of war speaks volumes about our longstanding lack of preparedness.
Reform and reality
Although our discussion highlighted several bottlenecks, it also offered reasons for optimism, especially for consumers.
Camacho, a principal architect of the EPIRA law, pointed to a looming milestone: the collection of stranded debts and contract costs—the heaviest burdens of the universal charge—is entering a phase-out period under newly enacted reforms.
This long-awaited outcome of industry deregulation should provide meaningful relief for households.
However, fiscal policy is only half the battle. As Nocos noted, a primary hurdle for power developers today is not merely bureaucratic red tape—though it remains an issue—but the grid’s physical inability to accommodate new power loads.
High-potential energy projects are essentially waiting in line for transmission infrastructure to catch up. Still, Nocos believes that improvements in rate-setting and the regulatory framework could help the NGCP fast-track the expansion of its transmission facilities.
From plant to plug
To understand how energy reaches your home, it helps to imagine a continuous relay beginning with a massive foundation known as baseload power.
These are the primary energy sources that provide a constant, heavy-duty electricity supply to ensure that a minimum level of power is always available to the public. From these plants, energy is fed into a vast network called the grid, which acts as a highway for electricity.
This energy travels through transmission lines until it reaches smaller cables—either the familiar wooden poles lining our streets or sophisticated underground systems—that connect directly to our homes.
This infrastructure serves as the physical bridge for power delivery. Without it, certain areas remain off the map and cannot access electricity, regardless of how much power generating plants produce.
Finally, the rates reflected in your electricity bill are determined by several logistical factors, including the cost of maintaining this infrastructure and transportation costs, both of which are heavily influenced by fluctuating fuel prices.
This is why providing power requires enormous capital investment, and why, following deregulation, an oligopoly came to dominate much of the energy sector.
However, that long-standing oligopoly is gradually dissolving as a more diverse energy mix becomes increasingly competitive. We are seeing renewable sources become more affordable and accessible to more people.
Powering the future
This shift is evident in the rise of residential solar installations, the growing adoption of electric vehicles, and the emergence of decentralized microgrids in remote areas powered by solar panels, wind turbines, generators, and similar technologies.
Regarding traditional fuel sources like coal, both experts agreed that lifting the current moratorium would do little to lower prices, as renewable alternatives have become the more cost-effective option.
Much has been said about LNG and whether the Philippines should consider nuclear power, but I do not want to spoil the entire conversation. Readers can watch the full discussion in the upcoming second season of NAC’s podcast, Breaking Ground, available this July.
Energy access remains a profound social challenge, with nearly 10 percent of the country still off the grid. Yet the current crisis also presents a strategic opportunity.
It is a moment for industry players to advocate for stronger government support and invest in previously marginalized areas. What was once considered unfeasible is now becoming both profitable for developers and valuable for Filipino consumers.
We have come a long way, and many laws have been enacted to liberalize the sector. But, as with most regulations in the Philippines, the real problem lies in implementation.
For now, however, it seems power costs are among the least of our lawmakers’ concerns. Perhaps the horizon will become greener once we are able to put more competent people in power.
Karl Ocampo is a former business journalist for the Philippine Daily Inquirer and now serves as the media and communications manager at Nickel Asia Corp.
