FORMER Energy Secretary Raphael P.M. Lotilla has urged greater scrutiny of private-sector players in the energy industry, saying they must be held accountable for both the sector’s progress and shortcomings.
“Since the private sector is the one that is running and directing our energy sector from upstream to downstream, then they should take more responsibility for both failures and for advances in the sector,” he said during a briefing on Friday.
“Whenever there is a problem with power supply, our business sector and our consumers should not only look at DoE (Department of Energy) and the government for answers,” he added.
Mr. Lotilla said consumers are best positioned to assess his performance during his three-year term as head of the Energy department.
“I think I would leave that to be answered by you and by the public. What I’m just asking you is, are you better off now in terms of energy security and energy supply than before, than three years ago? So, you are the best judge for that,” he said.
Mr. Lotilla was appointed in 2022 under the administration of President Ferdinand R. Marcos, Jr., marking his second term as Energy secretary. He previously held the post from 2005 to 2007 under the Arroyo administration.
He has served in various government roles for over two decades, including as undersecretary at the National Economic and Development Authority and president of the Power Sector Assets and Liabilities Management Corp.
In the private sector, Mr. Lotilla was an independent director of publicly listed companies with interests in energy and financial services.
“My previous term [under the Arroyo administration] was under different circumstances. At the time, the government was a major player in the power sector. Now, it is no longer in control of the generation assets, the transmission assets. So, it has been different,” he said.
Mr. Lotilla said regulatory oversight remains necessary to address market failures and to ensure that private-sector entities fulfill their responsibilities under existing energy policies.
“So, my observation is that in the past, there were those who thought that privatization would be the cure. But what we have seen is also market failure,” he said.
“Therefore, the government is trying to make sure that we can intervene effectively. And that’s what regulation is for. Not to make life difficult for the private sector, but where the private sector is involved, and then to make sure that the private sector performs its responsibilities to our people,” he added.
On Monday, Mr. Lotilla formally assumed leadership of the Department of Environment and Natural Resources. He is expected to continue initiatives on environmental protection, climate resilience, and resource conservation.
Meanwhile, Energy Officer-in-Charge Sharon S. Garin said the DoE will continue to implement the policy reforms initiated under Mr. Lotilla’s term, including measures supporting renewable energy development.
“You don’t reap today the benefits of what the Secretary has done. Hintay-hintay lang. Hindi naman kasi immediate ’yan na we would declare: ‘O, mag-lower na kayo ng electricity.’ We have transmission, generation, and distribution that we have to get everything in place,” she said.
Ms. Garin said the department expects the benefits of these reforms to materialize over time. — Sheldeen Joy Talavera
