THE PROPOSED Philippine Natural Gas Industry Development Act will uphold existing market pricing provisions and consumer protection measures, according to its proponent.
“There are strict provisions on market pricing in the service contracts that the DoE (Department of Energy) and ERC (Energy Regulatory Commission) are duty-bound to uphold. They are in place… This bill (Senate Bill [SB] 2793) essentially maintains the status quo,” Sen. Pilar Juliana “Pia” S. Cayetano said in a statement on Wednesday.
The Senate on Tuesday approved on second reading SB No. 2793, which seeks to promote the production of indigenous natural gas and liquified natural gas.
Under the proposed measure, the DoE will oversee strategies to develop the downstream natural gas industry.
The ERC, on the other hand, will keep track of the government’s share and other revenues related to the production of indigenous natural gas sold to power plants.
Ms. Cayetano said that the DoE and ERC, along with the Philippines Competition Commission, would “ensure transparent negotiations and dealings.”
She said that prioritizing the indigenous natural gas industry means “standing by it with established checks and balances,” including those set the Consumer Welfare Act.
“We encourage the shift to natural gas, whether imported or local, but prioritize indigenous sources for enhanced energy security and price stability,” Ms. Cayetano said.
“We have the potential to explore, to discover and to develop our indigenous natural gas. Why are they (investors) not coming in? Because since the ’70s, we neglected investing and encouraging promotion of indigenous natural gas. After Malampaya was discovered, wala na (nothing followed). Pinabayaan na natin (We neglected it),” she added. — Sheldeen Joy Talavera
