DOE and ERC

FY 2027 energy budgets and security priorities: The FY 2027 DOE NEP allocated PHP 5.58 billion, while ERC had PHP 944.065 million against its PHP 1.7 billion request. Undersecretary Giovanni Carlo J. Bacordo said DOE's response to the Middle East energy emergency combined fuel-supply measures, staggered price adjustments, subsidies, anti-hoarding enforcement, efficiency measures and support for transport and agriculture; he reported an average 50-day fuel supply. He said DOE, NEA and ERC restored round-the-clock service in Siquijor and worked with NPC, NEA and FISELCO on Catanduanas outages. DOE reported household electrification at 94.93% as of December 2025—about 28.75 million of 30.28 million potential households—and renewable energy at 25.04% of the 2025 generation mix. It said the Green Energy Auction Program had awarded 20.7 GW of renewable capacity, with another 25 GW planned for auction from 2027 to 2035; 187 renewable projects endorsed through the Green Lane program since 2023 were said to amount to PHP 5.46 trillion.

Power capacity, storage and upstream energy claims: DOE said installed capacity had risen by 5,461 MW (21.1%) and dependable capacity by 5,400 MW (23.5%) since the start of the Marcos Jr. administration. It said Task Force 200 monitored 200 committed projects and that 48 had become commercially operational, adding 1,846.63 MW. The presentation separately cited 12 battery-energy-storage projects with 229.37 MW of combined capacity. For upstream energy, it said 14 petroleum service contracts would generate USD 324 million in potential investment; it also said Camago 3 and Malampaya East 1 under Service Contract 38 yielded estimated reserves of 222 billion cubic feet of gas, extending operations to 2034 and supplying enough fuel for 13.11 million households for one year.

DOE FY 2027 budget and revenue outlook: Bacordo said DOE projected PHP 6.06 billion in 2026 revenue collections and PHP 23 billion in 2027, attributing the latter chiefly to Malampaya Phase IV while saying renewable-energy collections would keep increasing. DOE said its FY 2027 NEP was 25.74% above the FY 2026 GAA of PHP 4.43 billion. The presentation said 36.4% would be new appropriations and 63.6% automatic appropriations from the Special Account in the General Fund. It reported a 49% obligation rate as of August 31, 2026, expecting 68.31% after procurement of the mobile energy system and automation project, and at least 95.8% utilization for the year.

DOE capital projects and planned use of funds: DOE identified three main drivers of its increased request: a national geophysical and seismic survey project, mobile energy systems under total electrification, and an information-systems strategic plan including DOE automation. It said the survey would cover 120,000 square kilometers and could support up to 120 exploration service contracts; the 12 recently awarded exploration contracts were said to represent about PHP 16.8 billion in potential private investment. DOE proposed PHP 600 million for at least 60 additional mobile energy-system units in 2027 and PHP 950 million for the information-systems plan, including PHP 491 million for automation and PHP 458 million for other ICT requirements. The automation project was described as unifying fragmented systems to improve efficiency, transparency, accountability and compliance.

DOE forward energy and governance agenda: DOE listed further resource-development work: the geophysical survey, a geothermal de-risking facility, green-energy auctions for waste-to-energy, offshore wind, agro-solar, solar installations and off-grid areas, as well as a mid-merit natural-gas capacity auction targeted for December 2026. It also listed mobile energy systems, a state-owned strategic petroleum reserve, regional energy master plans, generator-accountability and system-loss policy work, electric-vehicle adoption and charging stations. Governance projects included full DOE digitalization and AI transformation, a Center for Energy Excellence, manpower strengthening, modernization of the command center and facility upgrades aimed at net-zero energy consumption.

ERC mandate and reported regulatory results: ERC Chairperson and CEO Francis Saturnino C. Juan described the commission as an independent quasi-judicial regulator for the electricity value chain, centered on consumer protection, competition and prudent cost recovery. He said the sector it regulates was valued at about PHP 4.19 trillion and that ERC's PHP 944 million proposed budget must support that work. For January 2025 through June 2026, he reported 4,611 decisions and orders, PHP 157 million in fines, and about PHP 71.3 billion in directed refunds, including PHP 70 billion connected to Meralco's actual weighted-average-tariff filing. He reported 292 approved power-supply agreements, 184 with final authority; expanded lifeline coverage up 85.33% to about 620,000 qualified marginalized end users; and estimated PHP 19.87 billion in savings for customers using retail competition after the contestability threshold was lowered to 100 kW.

ERC 2027 regulatory priorities: Juan said ERC had issued off-grid transmission-wheeling rules, restarted private-distribution-utility rate resets, addressed CAPEX and point-to-point transmission filings, set reserve prices for offshore wind and pioneer waste-to-energy projects, and updated advanced-metering rules and selected generation and off-grid charges. For 2027 it identified fair evidence-based rate setting, faster case resolution, competition oversight and a stable regulatory environment as priorities. ERC said it would finalize a gas-auction regulatory framework, more strictly enforce distribution utilities' least-cost supply obligations under revised 2026 CSP guidelines, conduct more timely audits of pass-through charges, and complete distribution-utility and electric-cooperative rate resets. It said a Group A private-utility final determination had been approved, that Group B was targeted within the year and Groups C and D in 2027, and that new cooperative rates were targeted to begin in January. ERC also said it had approved a revised Magna Carta for electricity consumers and would conduct a nationwide information campaign.

ERC FY 2027 request and revenue case: Juan said ERC's FY 2027 NEP was 44.67% below its proposal, with the gap concentrated in MOOE and capital outlay. He said the MOOE request included consultancy services for rate resets of private distribution utilities, electric cooperatives and NGCP. ERC reported that its utilization rate had risen from 28.08% in 2021 to 46.81% in June 2026, and that full-year utilization was 84.20% in the preceding year, up from 62%. It said that with a PHP 931 million budget in 2025 it collected PHP 2.354 billion in revenues from supervision and permit fees and fines, 121% above projection, and characterized the commission as a net revenue generator; Juan said it expected the same revenue level in 2027.

DOE family and ERC 2027 proposals: DOE Undersecretary Giovanni Carlo J. Bacordo said the department's FY 2027 NEP was 25.74% above the FY 2026 GAA, with 36.4% new appropriations and 63.6% automatic special-account appropriations. Presiding Rep. Arnie B. Fuentebella separately cited a PHP 56.1 billion combined Energy Family proposal; the hearing gave no separate original DOE submission to DBM. ERC Chairperson and CEO Francis Saturnino C. Juan said its smaller NEP would constrain rate-reset consultants and other regulatory work. NEA separately described a PHP 5 billion NEP allocation. Rep. Rufus B. Rodriguez cited PHP 11.2 billion requested versus PHP 2.9 billion allotted for sitio electrification. These are different agency and program scopes.

ERC funding and NEA electrification gap: DOE Secretary Sharon S. Garin asked the committee to strengthen ERC rather than add to DOE and put forward PHP 200 million more for ERC. ERC said it needed rate-reset consultants; Committee Chair Rep. Mikaela Angela B. Suansing requested a detailed narrative for BARC before considering the amount. Rep. Rufus B. Rodriguez cited NEA sitio electrification at PHP 11.2 billion requested versus PHP 2.9 billion in the proposal and sought reconsideration; the chair noted the exchange; the spoken PHP 8.2 billion gap does not match the two stated endpoints. Neither increase was approved at the hearing.

Special provisions and committee follow-up: Rep. Sergio C. Dagooc asked to restore a prior pole-relocation transfer provision, which DOE Secretary Sharon S. Garin said she would first verify with DPWH. NEA asked to treat its 3% executive and administrative cost as general income for engineers and other technical staff; Committee Chair Rep. Mikaela Angela B. Suansing deferred the legal question for DBM. DOE also discussed a PNOC corporate-fund provision and said it was already present. The committee requested prioritized submissions and wording for BARC; no requested restoration or new appropriation was adopted.

Emergency funds and sitio technology flexibility: Rep. Sergio C. Dagooc said the PHP 200 million ISERP allocation would cover too little typhoon response and urged an increase without specifying the increment. He also proposed a special provision allowing solar panels and batteries instead of line extension where technically and economically preferable. Presiding Rep. Arnie B. Fuentebella voiced agreement; neither change was approved.

DOE budget increase and the three stated investment priorities: Rep. Percival "Perci" Cendaña noted that DOE's proposed budget increased by a little over 25 percent across personnel services, MOOE and capital outlay, and asked why. Secretary Sharon S. Garin said the increase focused on three areas: a gradiometry study, a mobile energy system (MES), and DOE automation. She said the study would generate oil, gas and other resource data to support exploration and investor interest; she put its cost at about P2 billion and described it as a continuing project, funded in 2026 with another allocation for 2027. Garin described MES units as deployable containerized systems with solar panels, batteries and potentially other generation technology for emergencies and unconnected islands, citing deployments in areas including Masbate, Bicol and Pag-asa. She said the third priority was the DOE information-systems plan, intended to replace manual contract and policy-data processes with end-to-end automation for faster, more transparent work.

Whether DOE's larger plan can lower electricity prices: Cendaña asked whether DOE's larger plan and proposed priorities would lower electricity prices. Garin first qualified the headline increase as 25 percent of a P2.5-billion base, then said lower rates were the intended outcome but depended on multiple conditions. She cited more indigenous oil and gas, more renewable energy, and better coordination between policy and regulation; she said DOE's current policies were ultimately intended to bring rates down. Cendaña thanked her for that assurance to households awaiting their electric bills.

Electric-cooperative collective bargaining and NEA Memorandum No. 2023-52: Cendaña said NEA had said at the prior year's budget hearing that Memorandum No. 2023-52 would be rescinded, but that it remained suspended. Calling the memorandum illegal, he asked why it had not been rescinded and said it could deny electric-cooperative linemen collective-bargaining agreements despite their work restoring power after disasters. NEA Administrator Antonio Mariano C. Almeda said NEA had met with the Labor Secretary and relevant groups and was preparing a manual for an Electric Cooperative Industry Tripartite Council involving DOLE, the National Mediation Board, NEA and labor groups. He said the memorandum was suspended because electric cooperatives had industry-specific considerations, and said the council had already convened with its next meeting set for September 10. When pressed, Almeda said the memorandum would eventually be rescinded if the council produced resolutions, not merely remain suspended. He also said many CBAs had been resolved, with outstanding matters involving agreements that could affect cooperative operations. Cendaña said this was substantially the answer received a year earlier, asked that the issue be resolved before the next budget hearing, and said his office would forward a comprehensive list of concerns from Power Centro.

Iligan electricity rates and firm-power allocation: Rep. Celso G. Regencia raised Iligan City's rising electricity costs and supply stability. He said the charge rose from P13.60/kWh in July 2026 to P15.13/kWh in August, an increase of P1.52 or 11.19 percent; he compared reported rates of P14.96/kWh for BICO or Visayas Electric Cooperative, P14.78 for Meralco, and P12.31 for Cipalco. Noting that Iligan hosts Agus 5, 6 and 7, which he put at about 279 MW dependable capacity, he asked why the firm allocation serving Iligan had fallen to 8.75 MW and whether PSALM could add 16.25 MW to restore a 25-MW allocation as an interim measure.

PSALM review of capacity allocations: PSALM President and CEO Dennis Edward de la Serna said PSALM had undertaken a 2026 re-evaluation and that allocations to cooperatives and distribution utilities depend on the actual capacity of power plants. He attributed the reductions to lower dependable capacity at Agus and Pulangi and said PSALM and its trading team would evaluate the request for Iligan, seeking to increase either firm or, if that was not possible, non-firm allocation. Regencia said he understood PSALM's limited capacity and policies, was not seeking special treatment, and wanted a fair practical solution for consumers that could also guide similarly situated communities.

Solar Philippines recovery and blacklisting: Rep. Jose Manuel Tadeo "Chel" I. Diokno asked DOE about the reported P24 billion to be returned to government in connection with Solar Philippines, how much had been recovered, and whether the company could be blacklisted. DOE Secretary Sharon S. Garin said the P24 billion comprised different items; she identified P80 million as paid for a training and development fee, while DOJ and the Office of the Solicitor General were handling criminal and civil cases, including recovery of P14 billion in expired bonds. She said DOE had recently issued guidelines on generation-company accountability that provide three strikes before blacklisting, and the chair directed DOE to submit those guidelines.

System-loss charges, VAT and phased reduction: Diokno raised consumer "bill shock" and asked ERC about removing the 12% VAT on system loss and eventually eliminating system-loss charges. ERC Chairperson and CEO Francis Saturnino C. Juan said ERC was working with BIR; Resolution 26, Series of 2026 classified system-loss charges as government-mandated charges, with a BIR revenue memorandum circular intended to keep them out of the VAT base. Juan said the charges remain subject to ERC caps, which could be revised under existing law, while complete removal would require a legal change. DOE Secretary Sharon S. Garin said the reduction must be phased: non-technical losses require anti-pilferage enforcement, billing, metering and cooperative-efficiency work, while technical losses require system evaluation and upgrades. She said electric cooperatives would need about six months to make plans before ERC set limitations, with the technical-loss report expected in the first half of the following year. Juan later said the VAT change depended on BIR action and distribution-utility billing-system changes, projecting October or November and, at the earliest, November implementation.

WESM line-rental refunds and market controls: Diokno asked ERC about reports that a flaw in wholesale electricity spot market pricing had overcharged consumers, especially in the Visayas, and that refunds had gone to power companies rather than consumers. Juan said ERC found no overcharging in the locational marginal prices; instead, congestion at interconnections can raise line-rental charges and create a net settlement surplus that should return to contributors. He said ERC's August 13, 2026 order provided an interim collection approach, while the market operator IMOP was to develop a longer-term system using actual line-loss and congestion-cost data and have past potentially unfair surplus allocations audited by a third party. He said the audit would identify distribution utilities, particularly in the Visayas, that paid more line rental than they received back so the amounts could be returned. Diokno requested a further report and prompt action.

Electric-cooperative franchises and the distribution market: Rep. Nelson S. Legacion said many electric-cooperative franchises would expire in 2028 or 2029 and asked whether a congressional franchise was indispensable. NEA Administrator Antonio Mariano C. Almeda agreed, while saying renewal might not be warranted in extreme cases; for functioning cooperatives, he said Congress's support for renewal was important. In the ensuing policy discussion, Almeda described generation as intended to be competitive under EPIRA, transmission as having a sole franchise operator, and distribution through franchises in defined areas. DOE Undersecretary Mario Marasigan said DOE's Electric Power Industry Management Bureau monitors distribution utilities through their distribution-development plans and power-supply procurement programmes. Secretary Sharon S. Garin said Congress grants franchises and reviews supporting documents, while a franchised public utility has responsibility to provide the required service, including infrastructure where necessary.

Casureco III recovery, debt and franchise continuity: Legacion said Casureco III had been an ailing cooperative from 2013 to 2016, prompting NEA's Task Force Rinconada intervention, but had subsequently received an AAA rating for five consecutive years from 2021 through 2025. He described its debt as formerly P1.2 billion; Almeda corrected the current amount to P120 million and said restructured debt that is being paid is treated as current under NEA's categorization rules. Fuentebella added that three substations had been installed to address brownouts. Almeda said the cooperative still needed fresh capital to improve reliability and did not have sustainable capital expenditure funding, but affirmed its improvement. In a hypothetical franchise-renewal discussion, Almeda said he would grant the franchise and warned that failure to do so could risk a breakdown of operations and power service for member-consumers.

New private franchise applicants and capital adequacy: Legacion asked whether it would be fair to permit a new, unproven private distribution company with P5 million paid-up capital to enter the franchise area of a AAA-performing cooperative. Almeda said NEA would defer to Congress's judgment on whether to grant a new franchise. Fuentebella later asked whether DOE assesses whether new applicants are fit to run a distribution utility. Garin said the franchise committee normally asks DOE for its opinion. When pressed on a P5-million paid-up-capital example, she said an electric cooperative in Iloilo had assets of about P1.5 billion and characterized P5 million as very modest. Legacion closed by saying the discussion should apply not only to Casureco III but to other electric cooperatives.

PD 910 earmark and DOE access to Malampaya revenue: Rep. Roberto Nazal asked why the 2027 proposal would expressly state DOE's authority to use 20% of the outstanding PD 910 Special Fund balance when, he said, Section 21 of Republic Act No. 7638 already provided for DOE expenses. He contrasted P896 million in the 2025 GAA and P1.3 billion in the 2026 GAA with the proposed 20% language. DOE Secretary Sharon S. Garin said DOE was not the only recipient of the 20%, which also included GOCCs; using Malampaya as an illustration, she said P10 billion would yield P2 billion at 20%, while DOE had been receiving about P1 billion. She projected Malampaya collections alone could reach P27 billion in 2027, equivalent to P5.4 billion at 20%. Garin cited possible uses including regional-office facilities, automation, grid-management work with ERC, and energy research and development. Nazal supported the provision if it enabled access to legally earmarked funds, but asked DOE to identify the programs funded so Congress could ensure spending remained within legal purposes.

Total electrification funding gap: Nazal asked whether better access to earmarked funds could accelerate total electrification and sought the number of still-unelectrified sitios and households and the cost to connect them. DOE Undersecretary Rowena Cristina L. Guevara said DOE's Total Electrification Program budget was P500 million annually and that more than 2 million households remained without electricity. She said completing electrification would require P100 billion; NEA would need P10 billion annually but had received only P2 billion to P3 billion annually since 2022. Guevara said the former 2028 target would move to 2038 or 2043 unless electrification funding increased, and said P8 billion to P10 billion annually from 2022 would have been needed to meet the target. Nazal urged that the budget be increased and that DOE gain access to its earmarked funds.

Forward-looking rate setting and capital expenditure recovery: Nazal asked ERC why consumers were charged rates based on projected capital investments before projects were complete. ERC Chairperson and CEO Francis Saturnino C. Juan said Section 43 of EPIRA allows internationally accepted performance-based rate-setting methodologies. He described performance-based regulation as forward-looking, in contrast with the historical-cost RORB approach: revenue requirements take account of efficient operating expenses, the regulatory asset base, and capital expenditure over the regulatory period, normally four years and five years for NGCP. Juan said recovery was not of the entire CAPEX value at once; returns depended on the approved weighted average cost of capital and depreciation was recoverable over the asset's life. He identified the United Kingdom, Australia and New Zealand as jurisdictions he understood to use the approach, while saying he did not have an exact count.

Rate-reset accountability for delayed or unbuilt projects: Nazal asked what happens when a project used in rate-setting is delayed or not done. Juan said the rate reset at the end of each four- or five-year regulatory period checks whether the utility completed its CAPEX; delayed or uncompleted CAPEX is flowed back by reducing the next revenue requirement, with penalties and interest. He said this accountability mechanism had not operated for more than a decade because ERC had not reset tariffs for private distribution utilities, but that ERC had resumed the exercise that year. Juan said private utilities had meanwhile made individual CAPEX filings and, where projects were approved and implemented, had spent without a rate adjustment; the current resets were intended to correct the accumulated inaction. On Nazal's final question, Juan said a flowback would be deducted from the following period's revenue requirement. Nazal maintained that consumers should pay only a fair return on investments actually made and useful to them and called for an independent, transparent verification mechanism.

Catanduanes electricity costs and request for temporary relief: Rep. Eulogio "Leo" R. Rodriguez said electricity remained costly in Catanduanes and other off-grid islands, citing a July residential rate transcribed as “19.30 kilowatts” against “14 kilowatts” in Metro Manila; the unit is clear that the figures’ units are malformed. He linked the burden to diesel-dependent emergency supply while a longer-term competitive supply arrangement was pending, and asked DOE to identify a temporary generation-cost subsidy and the funding and regulatory mechanism needed to lower consumer bills.

DOE and NAPOCOR response on short-term affordability: DOE Secretary Sharon S. Garin said DOE could not commit to the requested subsidy because it was not authorized to do so. She said DOE would organize a task force, including an assessment of the electric cooperative and the island's supply options with NAPOCOR; she attributed the current rate pressure to the Middle East oil crisis and said the longer-term lesson was to reduce diesel dependence. NAPOCOR President and CEO Jericho Jonas B. Nograles said NAPOCOR was working with FISELCO on its upcoming application for a subsidized rate and that, under DOE directives, it appeared qualified but still had to complete the required process.

Catanduanes grid interconnection and long-term reliability: Rodriguez asked whether the Camarines–Catanduanes interconnection, linking the island to the Luzon grid by submarine cable, was in the Transmission Development Plan and what preparatory regulatory, engineering and right-of-way work could proceed. Garin called connection the best long-term solution. National Transmission Corporation President and CEO Atty. Joseph Omar A. Castillo confirmed that the Katanduanes connection was in NGCP's plan and said Transco was examining how to prioritize it; he also said Transco would implement system operations on the island and hoped to improve reliability and reduce costs. Fuentebella raised a Caramoan bridge alignment as a possible alternative to a more expensive submarine cable; Castillo said Transco would examine it. Garin added that DOE had issued a circular allowing third-party construction, subject to coordination with NGCP, DOE and relevant approvals.

Lineman recognition and renewable-generation accountability: Rep. Presley C. De Jesus welcomed the scheduled Senate discussion of Lineman Workers Appreciation Day and said TESDA had been approached to sustain lineman training. Garin said linemen deserved recognition every day because they build infrastructure and are first responders after disasters. De Jesus then asked whether generation companies should be regulated to help lower electricity rates. Garin said she did not favor broad regulation, but called for safeguards and accountability: DOE was developing policies so generators with permits or certificates of compliance would meet EPIRA, ERC and contract requirements, including securing replacement power when unavailable. On undelivered renewable-energy service contracts, she said 33 contracts, most under GAYA, represented about 1.3 gigawatts; DOE's simulation indicated that delivery could have reduced generation rates by at least P1. She said DOE was reviewing contracts and had cancelled about 100 to 200 renewable-energy service contracts, while proposing a warning-and-strike system that could lead to cancellation of a certificate or blacklisting.

Visayas outages and line-rental suspension: De Jesus asked ERC about recurring yellow and red alerts and plants that were out of service. ERC Chairperson and CEO Francis Saturnino C. Juan identified Therma Visayas and PEDC among Visayas outages, said TVI had announced a September 15 resumption and that Unit 2 had been restored on August 31, and said each TVI unit was 176 megawatts, making the lost capacity material to Visayas alerts. Asked about the August 16 line-rental suspension, Juan said ERC asked IMOP to suspend the calculation and collection of line rental during congestion in the Visayas and Mindanao, while collecting necessary amounts to pay generators. He said ERC also sought corrections to CRSS inputs and a third-party audit and recalculation of NSS allocations since 2021 to determine whether some distribution utilities should receive refunds.

Energy-resource host-community benefits: De Jesus asked about ER 1-94 funds and whether DOE still held the money. Garin said the benefits were directly remitted to host communities rather than held by DOE. Undersecretary Mario Marasigan said DOE audited the releases; as of June 20, 2026, he reported P1.8 billion in Northern Luzon benefits, including P762 million for electrification, P524 million for a development fund and P526 million for watershed and rural health, and P8 million total benefits in the National Capital Region. He committed to submit the audit record to the committee. Marasigan added that revised host-community-benefit guidelines included urban cities, not only NCR.

TransCo right-of-way claims, PSALM assets and UCME support: De Jesus asked TransCo about unpaid right-of-way claims. National Transmission Corporation President and CEO Atty. Joseph Omar A. Castillo estimated about 160,000 claims remained; he said concession fees largely funded right-of-way payments, while settlement was difficult because of compensation demands and court processes. Castillo said TransCo planned nationwide outsourcing of settlements, targeting clearance by 2034 before the NGCP concession ends and a 50,000-claim reduction in two years. He put the estimated cost at P220 billion using 2016 zonal valuation and said TransCo would move to court processes rather than negotiated or out-of-court settlements to avoid abuses. PSALM President and CEO Dennis Edward de la Serna said PSALM's funding came from borrowings and direct revenue and included funding TransCo's transmission requirements; he listed Agus Pulangi, Mindanao Coal and Bakun Hydro as three remaining assets, and said Agus Pulangi was not for sale. On UCME subsidies, NAPOCOR President and CEO Jericho Jonas B. Nograles said there were no pending applications, but allocations depended on collected funds; with no UCME-rate increase since the prior year and higher generation costs, the revolving fund had expanded from two to six months to keep operations continuous.

Solar-project flooding concerns in Bugallon and Aguilar: Rep. Mark O. Cojuangco asked DOE about extensive hillside solar development in Bugallon and Aguilar, saying intense rains had washed mud into creeks and rivers and contributed to unprecedented flooding in Bugallon. He asked whether DOE or DENR would address the damage and who would carry out remedial clearing. DOE Secretary Sharon S. Garin said the environmental issue was beyond DOE's core mandate but DOE could investigate permit violations and act against a generating company. DOE Undersecretary Rowena Cristina L. Guevara said DOE would examine hydrological studies and ask the generator whether construction diverted water and caused flooding; she committed to contact it the following week and report back. On remedial work, Guevara said that if the generator or developer was at fault it should answer for it, with coordination among the LGU and DPWH.

TransCo–NGCP concession and arbitration questions: Cojuangco asked about an asserted DOE decision to take back an NGCP right and the dispute between TransCo and NGCP. The chair noted that NGCP was not present. National Transmission Corporation President and CEO Atty. Joseph Omar A. Castillo said TransCo continued to respect the concession agreement and had not taken away NGCP obligations or rights. He said that, if Cojuangco meant the arbitral case, it was decided in February 2025 and confirmed positions of both NGCP and TransCo/government on some matters; TransCo said it was implementing that ruling. Cojuangco asked DOE and TransCo for a written explanation to the committee, copied to him, and DOE committed to comply.

PNPP Unit 1 feasibility study and committee access: Cojuangco questioned why DOE had not provided the KHNP feasibility study on PNPP Unit 1 to the House Committee on Nuclear Energy while it was considering House Bill 08567 and broader nuclear-policy decisions. He said the Nuclear Energy Committee had voted for a subpoena, though the Speaker had intervened so it would not be served while DOE promised production. DOE Undersecretary Rowena Cristina L. Guevara said KHNP issued only controlled hard copies and that one for the committee was expected Friday or Monday; the source later records DOE acknowledging it had a copy but saying its agreement with KHNP prevented photocopying or transmitting it. DOE Secretary Sharon S. Garin said the study was a KHNP grant. After Cojuangco objected that a later Korean copy might differ from DOE's copy, Garin said DOE could compare the incoming copy against the copy it held and certify it. The chair accepted the Monday commitment.

NEA intervention in electric-cooperative collective bargaining agreements: Rep. Sergio C. Dagooc asked why NEA intervened in collective-bargaining agreements of some electric cooperatives under NEA Memorandum 2014-003. NEA Administrator Antonio Mariano C. Almeda said NEA had found union demands it considered incompatible with cooperatives' cash operating budgets and working-capital needs. He cited, among other examples, grocery allowances up to PHP 6,000 monthly, laundry allowances of PHP 500–600 monthly, water and utility allowances, and electricity-consumption discounts; he said granting such demands could threaten a cooperative's viability and cited Tarelco 1 as an example then in Supreme Court litigation. Almeda said NEA was acting under its mandate to protect cooperative funds while working with DOLE and union officials on negotiation training. Dagooc proposed a uniform CBA template developed with cooperatives, DOLE and NEA; Almeda said a tripartite council was being formed to manualize CBA negotiations.

Using ER 1-94 funds for systems-loss reduction: Dagooc asked whether ER 1-94 funds could be directed to reduce technical and non-technical system losses rather than left to other uses. DOE Secretary Sharon S. Garin said DOE had issued new rules that increased the available amount from one to three centavos and allowed communities to choose uses, including consumer subsidies or cooperative infrastructure; she said the revised rules simplified prior requirements. Dagooc argued that the money should be dedicated to systems-loss reduction because permanent loss reductions would lower electricity charges, rather than provide only short-lived subsidies. He pointed to long secondary lines and the need for transformers to reduce voltage drop. Garin said DOE would propose a circular revision and consult stakeholders.

Mindanao generation and the Agus-Pulangi concern: Dagooc placed the Agus-Pulangi issue on the record, saying Mindanao electric cooperatives and legislators were alarmed about the ongoing activity because the complex was understood as central to keeping Mindanao power costs down. He said Mindanao stakeholders would invite PSALM President and CEO Dennis Edward de la Serna for a separate discussion. The source records no substantive PSALM response to that concern in this unit because Dagooc said he had already discussed it with the president.

Lifeline-subsidy reimbursement and cooperative cash flow: Dagooc said some electric cooperatives faced working-capital pressure because lifeline reimbursements took too long even after complete submissions. PSALM President and CEO Dennis Edward de la Serna said ERC rules set a three-day minimum and 15-day maximum processing time and reported a 10.7-day average, adding that PSALM had answered a Philreca letter with supporting statistics. Dagooc replied that Siargao's experience differed and warned that financially fragile cooperatives could face payroll problems when they prioritized generation costs; he reserved further questions for a second round.

Pole-relocation provisions and energy-agency budget requests: Dagooc asked that a 2026 GAA special provision allowing pole-relocation funding transfers from DPWH and NIA be restored because it was absent from the 2027 NEP. He also urged the committee to help address ERC and NEA budget reductions, saying delays in power-supply approvals could translate into electricity prices of PHP 19–20 per kWh. He referred to a pending measure that would retain 50% of certain fees and charges for ERC while it awaited Senate action. Fuentebella said he was committed to advocating for the DOE family, including ERC, but stressed that budget requests had to pass the budget-amendment review process, executive committee, Appropriations Committee and plenary, within tight fiscal space and based on agency-originated requests.

CSP siting preferences and ancillary-service accountability: Dagooc appealed for amendment of the competitive-selection-process rules to address high nodal prices, raising a right of first refusal and preference for the nearest generating plant. He then asked whether ancillary services were regulated and said Mindanao had experienced manual load dropping despite ancillary charges. ERC Chairperson and CEO Francis Saturnino C. Juan said ASPA contracts were regulated, while reserve-market price determination followed WESM rules. Dagooc requested that NGCP, as system operator, account for which plants were under ASPA, their locations, whether they were deployed during outages, and whether capacity could be sold repeatedly across bilateral, ancillary and reserve arrangements. He cited an ancillary-charge increase of 22% from the prior billing period and more than 30% in the August billing period while alerts and manual load dropping persisted.

Alternative technology for sitio electrification: Dagooc said rural electric-cooperative technical-loss standards should be considered when deciding whether to extend lines to remote sitios. He proposed a special provision allowing NEA to choose new technology after technical and economic evaluation—such as solar panels and battery storage sized to a sitio or town's need, together with local operator training—instead of line extension. He said this could preserve sitio-electrification goals while avoiding costly extensions, particularly in typhoon-prone areas, and argued that the stated PHP 200 million allocation was too small. Fuentebella called the solar-and-storage approach practical and agreed with the proposed option.

DOE budget utilization and fuel-emergency funds: Rep. Jan "Atty. JP" Padiernos questioned how Congress could assess DOE performance without a consolidated accounting of regular, automatic, continuing, emergency and Malampaya-funded resources. He cited a P5.575-billion proposed DOE budget and a separate P29.86-billion emergency allotment, and asked what lasting improvements in prices, reliability and energy security justified additional funding. DOE Secretary Sharon S. Garin said utilization was 49% as of August 31, below a hoped-for 70%, because DOE had to rebid procurement for mobile energy systems and automation. She projected 68.31% after that procurement, around September or early October, and 95.89% by the end of 2026 under a catch-up plan. Garin said roughly P29 billion had been passed through DOE to PNOC for the fuel emergency to buy LPG and other reserves; the reserves remained held while the crisis continued and would be separately liquidated once the emergency was lifted.

DOE priorities, island electrification and large-load planning: Padiernos questioned whether about P2.91 billion for DOE resource surveys, mobile energy systems and automation was the right priority while he said 1.53 million households remained without electricity. Garin said the mobile-energy-system allocation was P500 million for islands not yet connected to the grid, while NEA was the principal electrification agency. On the industrial project rendered in the source as "packed silica," Padiernos asked whether a 3- to 5-GW requirement had been factored into national supply planning and whether it would raise retail rates or need procurement beyond the green-energy auction roadmap. DOE Undersecretary Rowena Cristina L. Guevara said DOE was discussing its location and timing with the project group and BCDA, and that awarded renewable-energy service contracts exceeded 100 GW against current national capacity of 32 GW. She said a 3-GW demand could be supplied if the project guaranteed offtake, would not compete with the general plan, and that DOE's study with IMAP indicated higher renewable shares lower market prices. Garin said DOE would provide its data-center guidebook and expects such large loads to develop self-generation plans so as not to destabilize the grid.

Coal moratorium and renewable-cost comparison: Padiernos asked whether the coal moratorium and a possible coal phase-out should be reconsidered to lower electricity costs. Guevara said the Philippines had no coal phase-out, only a moratorium on new coal plants, with about 3 to 5 GW of capacity outside the moratorium still under construction. She said capacity would replace very old or inefficient plants if they were retired. On price, she said solar was already cheaper than coal and, with batteries, nearly at parity; DOE's capacity simulations therefore showed solar contributing to lower electricity prices. Padiernos requested DOE's comparative analysis of coal and other green energy.

Fuel-marking data and illicit-fuel detection: Padiernos asked how DOE measures the effectiveness of fuel marking against smuggling and tax leakage, citing reported volumes and enforcement seizures, and asked for an estimate of illicit fuel still entering the market and the share of petroleum that is legitimate tax-paid fuel. Garin said enforcement of smuggling primarily belonged to DOF, Customs and BIR, while fuel marking monitored tax payment rather than DOE permits. She said DOE could compare import and sales data but did not have the requested calculation at the hearing and would provide data. DOE Undersecretary Alessandro O. Sales said DOE had data-sharing arrangements with Customs and BIR and would combine those sources with oil-company declarations through automation and AI to identify anomalies and gaps.

Government petroleum stocks and PNOC tank farm: Padiernos asked how much of reported national diesel and gasoline inventory was actually government-owned and where PNOC would store a reserve. Sales said the government had bought fuel only during the emergency: five days of diesel and less than a day of gasoline, with storage rented from private companies because government had no facility. He said Congress was considering a strategic petroleum reserve and that government must define its role without unduly intruding into private enterprise. PNOC President and CEO Franz Josef George E. Alvarez said PNOC's priority for the following year was a Bataan tank farm, beginning with a one-million-barrel first phase and ultimately reaching 15 million barrels. He said the first phase would be PNOC-owned, while later phases could involve private partners, joint ventures or investment.

Eastern Samar service concerns and the 69-kV subtransmission project: Rep. Christopher Sheen P. Gonzales thanked NAPOCOR and NEA for interventions in Eastern Samar, where he said communities faced low voltage and recurring brownouts. He asked about the 69-kV subtransmission-line project in the 2026 GAA. NEA Administrator Antonio Mariano C. Almeda said the project would serve the municipality of Guiuan, a load-end area, and that NEA had completed technical and financial feasibility studies for ISAMELCO. He said Congress had placed the project in the GAA, but NEA had not yet received the fund download; DBM had told NEA that release was subject to Office of the President approval. Almeda said he understood an assurance had been given that approvals would be acted on as soon as possible.

Coverage, voltage constraints and northern-line upgrades: Gonzales said the 69-kV upgrade would benefit six or seven municipalities and cover much of southern Eastern Samar. Almeda said the area still included people without electricity and that the limited line capacity constrained the amount of power that could be provided without increasing system loss. Gonzales also raised the northern area's 128-kV upgrade. Almeda said ISAMELCO had prioritized it and used its Reinvestment Fund for Sustainable CapEx to add the upgrade, while Secretary Sharon S. Garin said she would ask TransCo to study the transmission lines.

Line-loss congestion charges in Eastern Samar: Gonzales asked ERC to explain why ISAMELCO still faced line-loss congestion charges after a suspension was issued following an August 5 discussion, citing an August 25 letter from the Independent Electricity Market Operator. ERC Chairperson and CEO Francis Saturnino C. Juan said the August 13 order suspended line-rental imposition only when congestion existed in the major Visayas-Mindanao interconnection; charges could still arise in other trading intervals. Juan said ERC would examine ISAMELCO's case with IMOP and consider measures so any high amount would not have to be paid in a single installment. Gonzales said electricity in Eastern Samar remained too expensive despite a reported 150 reduction and asked ERC to treat the matter seriously.

Solar siting, agricultural land and food security: Rep. Salvador A. Pleyto asked how DOE would meet its 2027 National Renewable Energy Program capacity targets if Department of Agriculture geo-fencing restricted substantial ground-mounted solar development on agricultural land, particularly rice-producing areas. DOE Undersecretary Rowena Cristina L. Guevara said solar developers must show possessory rights and cannot build on areas with water or irrigation; she said irrigated rice fields were therefore not included and DOE had not been told that DA's planned agri-fencing would affect a developer. Secretary Sharon S. Garin added that DOE was working with LGUs, which could issue ordinances to protect local food production because projects still need LGU permits. Garin also said DOE was discussing new green-energy auctions with DA that could combine solar farms with vegetable or other farming beneath panels, or use NIA canals and fishponds, so energy and food production would not compete.

Renewable-electricity access for agricultural users: Pleyto asked what part of DOE's 2027 allocation would directly connect renewable-energy suppliers with agricultural users through the Green Energy Option Program in order to lower electricity costs for irrigation, cold storage and post-harvest facilities. Guevara said ERC had lowered the Retail Competition and Open Access threshold to 100 kW on June 26, while DOE had lowered the Green Energy Option threshold to 50 kW. She said agricultural users within one franchise could aggregate demand to meet the relevant threshold and choose a renewable-energy supplier, which she said could lower their electricity price because renewable energy was cheaper than coal. Pleyto then expressed support for DOE's proposed 2027 budget and possible additional funding.

Solar access for remote unserved barangays: Rep. Stephen James T. Tan followed up on a proposed solar installation intended to reach about 16 remaining unelectrified barangays that were too distant for normal distribution lines. He said the technical design had been approved but funding was still pending, and asked whether it could be included in the 2027 budget. DOE Secretary Sharon S. Garin referred the matter to NEA. NEA Administrator Antonio Mariano C. Almeda said he would check whether the site had already been evaluated for photovoltaic mainstreaming and solar-home systems for unserved and viable areas; he identified Total Electrification Project funding. Garin said DOE would obtain more details from Tan and follow through on funding.

Island fuel allocation and service-hours review: Tan raised an island in his district with generators capable of round-the-clock supply but insufficient fuel allocation, and said he would submit the island's name in a letter. Garin said NAPOCOR could check whether it was a SPAG area and that redesigning supply to reduce diesel dependence might help. When the chair returned to the issue, NAPOCOR President and CEO Jericho Jonas B. Nograles said the island had sufficient generators but was then operating only eight hours a day, with a peak demand of 108 kW. He committed to study the economics and, if NAPOCOR's MOOE could support it, to expand the service.

Road widening, pole relocation and resilient island connection: Tan said road widening in Samalcoan required relocation of poles estimated at PHP 50 million; he said the cooperative had advanced about PHP 13 million and had not been reimbursed since 2023. Almeda said NEA and DOE would meet with Secretary Vince Dizon, that DPWH had wider pole-relocation obligations, and that NEA had requested at least PHP 300 million to cover electric-cooperative advances, compared with an estimated PHP 50 million DPWH allocation in 2026. He said the DPWH arrangement contemplated reimbursement under a memorandum of agreement. Tan also asked whether a typhoon-prone barangay about 1.5 kilometers from the mainland could replace repeatedly damaged poles with a submarine connection. Almeda said it was possible subject to cost-benefit analysis and an assessment of appropriate technology.

Solar-plant charges and Visayas transmission resilience: Tan said a European Union-donated solar project in Samalcoan, described as roughly PHP 60 million, helped lower local per-kWh rates but that charges of about PHP 100,000 monthly were still being paid; he asked whether the fees could be waived. Garin said NEA would check the cooperative's status, while Almeda said any collections should likely cover operation and maintenance and promised to examine the request. Tan then asked whether the Luzon–Visayas transmission upgrade, which he understood was planned for 2032, could be accelerated to lessen power shedding and high line-rental charges in Regions 8 and 6. Garin said DOE was developing a Visayas master plan around more self-sufficient island energy systems rather than continual reliance on Luzon–Visayas and Visayas–Mindanao connections; she said DOE would present the completed analysis in about a month and submit it to the committee around October.

Poverty targeting for sitio energization: Rep. Jan Franz Norbert Joselito A. Chan asked how NEA would apply the 2027 special provision prioritizing sitios with high poverty incidence and absolute numbers, noting the recorded 2023 count of 1,735,690 poor people and 279,220 poor families in Bicol. Secretary Sharon S. Garin said NEA was also directed to prioritize Mindanao. NEA Administrator Antonio Mariano C. Almeda said most SEP funding had been dedicated to Mindanao's geographically isolated and disadvantaged areas because its electrification level was 75 percent when he took office; he said Region 5 allocations also covered Casureco 1–4 and ALECO, while NEA was using its planning process to select areas of greatest need.

Host-community benefits and competitive power procurement: Chan asked how communities hosting geothermal and hydropower plants could receive greater benefits when local electricity remained costly. Garin said the DOE had increased the host-community benefit from one centavo to three centavos per kilowatt, loosened rules on use of the money, and revised CSP guidelines so the cooperative where a plant is located would have a right of first refusal. She said the competitive-selection process would also give preference to plants closest to the load center, and DOE had encouraged LGUs to set conditions on employment, local sourcing and community service. In a chair follow-up on negotiated contracts, Almeda said NEA had aggregated Luzon and Visayas electric cooperatives' baseload requirements to obtain economies of scale.

Offshore-wind target and green-energy auction: Chan cited a Philippine Energy Plan expectation of 21 gigawatts of offshore wind by 2040, supplying about 21 percent of national electricity, and asked whether it remained the working target. Garin said she could not confirm the percentage but said DOE was pursuing offshore wind and was running a new simulation, with an updated energy mix expected by year-end. Undersecretary Rowena Cristina L. Guevara said the ongoing offshore-wind green-energy auction covered 3,300 megawatts. She said offshore wind's capacity factor was more than twice solar's and that DOE was modeling the mix to keep prices affordable; the source records her expectation that greater deployment would similarly reduce offshore-wind costs.

Ports and grid preparation for offshore wind: Chan asked what budget support was needed for interagency port works and grid preparation, mentioning Jose Panganiban and Mercedes and warning against losing offshore-wind priority. Garin said projects needed to start under the current administration for continuity. Undersecretary Giovanni Carlo J. Bacordo said ports were critical because existing facilities could handle roughly six to eight tons per square meter while offshore-wind ports required about 30. He described a greenfield port in Pambuhan with bids opened in February and a stated completion target recorded as the fourth quarter of 2027 or first quarter of 2027; a Santa Clara, Batangas port undergoing a Philippine Ports Authority feasibility study and anticipated PPP bidding; and Curimao as designed for floating offshore wind, not then being contracted for the fixed-bottom projects in Green Energy Auction 5.

System-loss removal, timelines and funding: Rep. Antonio L. Tinio asked why the announced directive to remove system loss had not yet been implemented. DOE Secretary Sharon S. Garin distinguished non-technical losses, including pilferage, from technical losses. She said DOE planned four phases removing 25% each for non-technical losses, supported by pilferage reporting with DICT, consumer education, an anti-pilferage enforcement arrangement with DILG, PNP and NEA, and improvements to electric-cooperative billing and collection. She described the four-phase non-technical-loss effort as taking up to a year, while technical losses required each cooperative to prepare an optimal distribution-development plan, including line, transformer and meter upgrades, with about six months for the plans. Tinio noted that the Anti-Pilferage Act had already directed the phasing out of pilferage losses in 1994 and questioned the delay. Garin said the P7.5-billion figure shown in the presentation was for non-technical loss, but that DOE was still studying case-by-case funding options through cooperatives' own resources or facilitated loans so consumers would not be charged back; she said 130 cooperatives and private distribution utilities needed assessment.

Visayas and Mindanao reliability response: Tinio asked about repeated yellow and red alerts in the Visayas and Mindanao, the affected generating plants, and possible penalties. DOE Undersecretary Mario Marasigan attributed the Visayas shortfall to planned maintenance at biomass and hydropower facilities during reduced water availability and the biomass off-milling season, alongside sequential failures of two coal units from the same company caused by a turbine-rotor manufacturing defect. He said imports to the Visayas had been pushed to 450 MW and another 250 MW source was assisting, while maintenance and outages in Mindanao constrained transfers and produced red and yellow alerts. Marasigan said DOE was monitoring generator compliance under a performance circular and would endorse penalties to ERC, not impose them itself. He identified up to 250 MW of battery energy storage for Visayas, with about 150 MW already in place and under test, as well as a longer-term Visayas master plan for distributed island generation. Garin said new plants would arrive no earlier than 2028; in the short term DOE was pursuing roughly 200 to 300 MW of batteries, and in the medium term barges or more diesel/liquid fuel, while renewables would need batteries or gas-fired support for intermittency.

Biomass, battery charging and emergency fuel stocks: Tinio followed up on biomass availability, biofuel imports and battery charging. Marasigan said biomass generation depended on bagasse from local sugar-cane agriculture, while Garin distinguished that from biofuel imports and said imports were not allowed unless domestic supply was used up. Marasigan said battery ancillary services could be charged by excess solar generation or from the grid. Tinio then asked what had happened to fuel procured during the energy crisis. PNOC President and CEO Franz Josef George E. Alvarez said the purchase was about 300,000 barrels, providing roughly five days of nationwide diesel supply; some had been sold to Napocor and PNOC retained some stocks in private storage because the situation remained uncertain. He said a legislative proposal for a national strategic petroleum reserve was being advanced. Tinio requested a written status report on the remaining five-day supply or barrel volume, and Fuentebella directed submission to the committee.

PNOC diesel sale for missionary electrification: Tinio asked for a status report on DOE's direct diesel purchase during the energy crisis and its transfer to NAPOCOR. Garin said DOE authorized PNOC to sell diesel to NAPOCOR at a preferential, loss-making rate to avoid higher island electricity prices; she gave an approximate comparison of P60 rather than P80. NAPOCOR President Jericho Jonas B. Nograles said the PNOC supply was cheaper than its current suppliers, reducing pressure on UCME. He reported a 27-million-liter drawdown used for diesel power plants in missionary-electrification islands, mostly small generators below 500 kilowatts.

Nuclear roadmap, safety regulator and investment choices: Tinio asked for the status of nuclear energy after citing U.S.-announced Luzon Economic Corridor activities. Garin said nuclear work predated the corridor, with some studies undertaken by private entities, and said DOE had a roadmap and continued simulator and trade-mission activities. She said the original small-modular-reactor pathway now had limited options and conventional nuclear might be considered, subject to further study; DOE still targeted nuclear in the next decade. She said the Philippines was completing international safety, security, safeguards, training, supply-chain, legal and cooperation requirements, but that the safety regulator under PhilAtom still needed organization and implementing rules. She gave ballpark costs of US$10 billion for conventional and US$4 billion for SMR, said private investment would largely determine the choice, and said DOE was exploring technologies with Korea, China, Japan, Canada, the United States and France.

Energy Secure Philippines and emergency systems: Tinio asked whether DOE participated in the reported US$24-million Energy Secure Philippines programme. Garin described the activities primarily as technical assistance. Guevara said it came through an office that had been USAID and was then under the U.S. Department of State, with consultants and other government agencies including DENR and DOST involved. She said the simulator consumed a substantial share of the funding, and described emergency mobile-energy systems sent after typhoons or to unelectrified areas as container-like units with solar panels and batteries, supplying 10 kilowatts or more. Tinio requested written clarification because Garin and Guevara said many U.S.-announced items were studies rather than infrastructure or capital outlay.

Strategic fuel storage and foreign commercial facilities: Tinio raised the ownership and strategic-reserve implications of commercial fuel storage, including a Subic facility he said was owned by I Squared Capital and held 20 percent of national fuel storage. Garin said it had been bought by an American company. Asked about a reported Davao Gulf one-million-barrel facility, Garin said DOE had not been officially informed, although any energy or fuel project would require DOE permitting. In response to Tinio's call for a Philippine strategic reserve, Garin said PNOC was building its own storage infrastructure, beginning with one million barrels, scaling up, and using about P8 billion in corporate funds; she gave a hoped-for construction completion of about a year and a half. She said several countries, not only the United States, were exploring storage or refinery activity. Tinio renewed his request for written reports.

Rooftop solar exports, system losses and interconnection safeguards: Rep. Julius Cesar "Jay" V. Vergara asked how ERC would assess rooftop-solar backfeed and technical system losses, and prevent costs from being shifted to non-solar consumers. ERC Chairperson and CEO Francis Saturnino C. Juan said ERC recognized the issue as rooftop deployment grew. He said ERC was considering distributed energy resources that pair solar with batteries to ease exported solar's impact, studying distribution-utility needs, and planned to revisit the Philippine Distribution Code after the 2026 Grid Code to establish interconnection standards for larger installations. Juan said initial discussions indicated local consumption of exported energy should make the impact on existing lines minimal, but distribution utilities would conduct distribution-impact studies and could require metering or other connection investments; ERC also contemplated refusing connections above the net-metering threshold absent needed investments.

Changing rate design for distributed generation: Juan said the power system was moving from centralized generation toward embedded facilities and consumers who generate, sell and export electricity, requiring continued regulatory work. He said more distributed generation could reduce distribution-utility kWh sales and create stranded assets under revenue models tied to those sales, so ERC was reviewing rate design, technical standards, interconnection rules and a battery framework. On pricing, he said the current net-metering export payment was equivalent to a distribution utility's average generation charge. He said a solar installation larger than a customer's own load might not be economic under current pricing, but rising generation charges and falling solar costs could change incentives. ERC was therefore examining the possibility of stranded utility supply contracts and whether exports could be aggregated or purchased by other end users or retail suppliers instead of being taken only by the distribution utility.

Explaining system-loss charges on electricity bills: Vergara said the public struggled to understand the many line items on electricity bills and asked whether generation costs also carried system loss. Juan said generators supplying from transmission-connected plants incur transmission losses, whose cost is embedded in the price charged to distribution utilities; distribution-level losses also have a cost, recovered through the system-loss charge. He said that before unbundling the charge had been included in the power purchase adjustment. Vergara asked DOE and ERC for clearer public communication and fewer confusing bill charges. DOE Secretary Sharon S. Garin said DOE would work with ERC to reformat bills so they would be easier to understand.

Consumer complaints, ERC capacity and Meralco refunds: Rep. Sarah Jane I. Elago cited 5,380 ERC consumer complaints by mid-August 2026, including more than 4,000 related to Meralco, and asked about their status and penalties. ERC Chairperson Francis Saturnino C. Juan distinguished informal complaints, which ERC mediates with utilities, from verified formal complaints under summary procedure. He reported 3,657 ongoing informal Meralco complaints, 629 closed letter complaints and 51 ongoing formal cases across distribution utilities, and committed to submit the data. Garin said ERC's workload had expanded while its budget request was cut, affecting personnel capacity; Elago requested ERC's original personnel-services proposal. On refunds, Juan said pass-through refunds appear as separate bill items, utilities submit implementation reports, and Meralco must report completion of the ordered refund.

Foreign-owned renewable projects and data-center supply options: Elago asked how many renewable-energy contracts had been entered since the 2022 circular allowing foreign citizens and foreign-owned corporations to participate. Undersecretary Rowena Cristina L. Guevara said more than 1,000 contracts had been entered since 2022 and fewer than 100 were 100-percent foreign-owned; Elago requested the list. She also asked about guidelines for data-center energization and the possible power demand of Pax Silica. Garin said the draft focused on data centers, which Pax Silica disputed it was, and could be finished by month-end after additions for PEZA. Garin described options for a large load such as 2 gigawatts: self-generation, a plant built by another party, energy and distribution through an economic-zone authority, or supply through a retailer. She said these options should avoid risking ordinary consumers, and that the listed Central Luzon projects were for the normal national energy mix rather than Pax Silica.

EPIRA after 25 years and electricity-cost relief: Elago asked for DOE and ERC's assessment of EPIRA after 25 years. Guevara said EPIRA created a framework that addressed the blackouts of the 1990s, but said the next 25 years must address energy transition. She said DOE was targeting renewable capacity of 35 percent by 2030 and 50 percent by 2040 and considered plans on track, while acknowledging remaining problems. Elago said high electricity bills and the volume of consumer complaints showed the need for relief, and urged consideration of removing VAT on electricity and measures addressing windfall profits. Fuentebella agreed EPIRA required amendment, including higher penalties, and Garin said DOE would work with Chairman Alvarez.

Malangas mine decommissioning and property-title agreement: Rep. Marlo C. Bancoro asked for an update on closure of the Malangas PNOC Exploration Corporation operation. Philippine National Oil Company Exploration Corporation President Adrian Ferdinand Sugay said decommissioning of the mine in Zamboanga Sibugay covered by COC 41 was ongoing and on track for completion in about another year. He said the old COC expires in 2030 and, after decommissioning, PNOCEC would relinquish it to DOE and turn over the facilities. Bancoro then asked DOE Secretary Sharon S. Garin to prioritize a proposed agreement with the agency rendered in the source as "DNR" to release other properties for titling; he said the other secretary and six mayors were prepared to sign in the last week of September and that thousands of individual titles could result. Garin said DOE was ready to sign and would work out the schedule, including signing ahead of the public event if desired.

ERC access to Mindanao consumer proceedings: Bancoro questioned whether Mindanao consumer complaints and hearings had to be brought to Davao, saying a 10-hour land journey could deter complaints, and urged regional hearings or Cagayan de Oro as a more central venue. ERC Chairperson and CEO Francis Saturnino C. Juan said ERC had historically held hearings in affected localities for rate applications but that its field offices were in Cebu and Davao. He said online video-conference hearings had become the default for both commission proceedings and formal consumer complaints after the pandemic, unless an in-person hearing was requested, and that the rule was being written into ERC's 2026 Rules of Practice and Procedure. Juan said ERC already held consultations and continuing regulatory education seminars in other major cities and would welcome Cagayan de Oro as a venue. He said that when in-person hearings were necessary in Mindanao, ERC would prioritize Cagayan de Oro, though travel and accommodation funding would need to be studied because it was not in the program budget.

Bancoro's demand for a firm regional-hearing commitment: Bancoro pressed ERC not to qualify its commitment on budget grounds, arguing that distance undermined consumers' ability to seek relief. ERC Chairperson and CEO Francis Saturnino C. Juan said the proposed budget had been reduced at the NEP stage and that ERC would study how to fund staff travel from Davao to Cagayan de Oro. Bancoro maintained that budget could not be the reason service was unavailable. Juan replied that ERC would travel if able. Rep. Julius Cesar "Jay" V. Vergara then asked Bancoro to wind up and closed the round.

Renewable-energy incentives and communities affected by projects: Rep. Renee Louise M. Co asked whether DOE would support tighter rules for certificates of endorsement and Renewable Energy Act tax incentives so that indigenous communities, farmers and other residents affected or displaced by renewable-energy projects would receive tangible benefits. She cited the Act's incentives, including a seven-year income-tax holiday, 10 years of duty-free imports and seven years of net-operating-loss carryover. DOE Undersecretary Rowena Cristina L. Guevara said that before a developer obtains a service contract it must meet requirements including agreements and NCIP documentation, and cannot construct or claim incentives until it completes the service-contract, pre-development and construction stages. Co said the issue was broader than procedural FPIC compliance and asked for a framework-level benefit for displaced people. Guevara said DOE would study and consider the proposal.

Waste-to-energy approvals, feedstock and DOE information: Co asked whether waste-to-energy (WTE) was being opened under DOE's renewable-energy framework and how DOE guided private developers. Guevara said a special WTE auction was under way. She said DOE agreements were with LGUs because a private developer needed a feedstock agreement with the LGU; she also described technology review against world standards and the Clean Air Act, and permissions from DENR before construction. When Co asked how many feedstock agreements existed, DOE said sourcing feedstock was the developer's responsibility and that it had been a continuing obstacle to WTE projects; DOE said feedstock was nevertheless a project requirement. Co then asked whether DOE tracked existing modular WTE projects. Secretary Sharon S. Garin said DOE did not have that information and would seek it through LGUs or DENR.

Waste-to-energy classification and emissions concerns: Co cited a 2023 PLOS Climate study that she said found U.S. WTE incinerators emitted 1,707 grams of carbon dioxide per kWh and asked how WTE could remain classified as renewable energy, as well as DOE's plans to reduce WTE greenhouse-gas emissions. Garin said WTE was included in the Renewable Energy Act and therefore classified as such; she said DOE would not allow technology that failed Philippine requirements and described available alternatives from other countries, while asserting Philippine emissions standards were stringent. Co asked DOE to reconsider WTE's renewable classification in light of documented health and environmental concerns and said she could provide further studies. Garin said DOE lacked authority to reclassify WTE, but would join discussion and study if Co proposed a legislative change.

Fuel-security response and support for energy agencies: Rep. Rufus B. Rodriguez said the February 28 Iran-war crisis had raised fears about diesel and fuel supply, prices and transport-sector support, but commended DOE for maintaining supply and containing price increases. He said he supported not only DOE's proposed budget but a larger allocation. Garin said DOE could manage its own request but stressed that ERC needed a stronger budget as regulator.

ERC rate resets and electric-cooperative system losses: ERC Chairperson Francis Saturnino C. Juan said ERC had asked for reinstatement of more than P700 million from its proposed 2027 budget, with at least P200 million-plus for consulting services and related MOOE. He said ERC had begun deciding distribution-utility rate-reset applications after more than 12 years without resets and aimed to finish all applications in 2027; without support, that timetable and work related to reducing system losses would be at risk. NEA Administrator Antonio Mariano C. Almeda said NEA had sought P10 billion to cushion electric cooperatives from eliminating non-technical system loss, while explaining that line extension to unserved and unviable sitios also raises their system losses. He said the energy family had a plan to contain and eventually eliminate non-technical losses.

Mindanao energization and sitio-electrification funding: Garin said DOE was scheduling a Mindanao green-energy auction combining solar and batteries and that investor interest in Mindanao renewables was strong. She said the key need was improved electrification and energization, and that she had asked NEA to prioritize Mindanao, with TransCo helping on transmission. Rodriguez asked about sitio-electrification funding. Almeda said the NEP gave NEA P5 billion, including photovoltaic mainstreaming. Rodriguez stated that NEA's P11.2-billion proposal received P2.9 billion for sitio electrification, leaving P8.2 billion for reconsideration; the source records confirmation.

Agency requests, storage and the Basilan connection: Rodriguez asked the remaining energy agencies about budget needs. NAPOCOR said it was satisfied with the submitted GAA and deferred to ERC's need for support. PNOC said it had no additional request and that funding for a storage facility was approved for the next year; PNOC Exploration said it used its own funds; PSALM and TransCo said their funding was internally supported or sourced from the concession. Garin said TransCo was scheduled to connect Basilan to Zamboanga. Rodriguez again credited DOE for supply and price stability; Garin said DOE's team had managed the oil supply and pricing response and avoided an anticipated P12 increase.

System-loss directive, implementation scope and funding: Rep. Edgar R. Erice asked whether DOE had provided input for the President's SONA statement on eliminating system loss and whether the President had been informed of the costs and consequences. DOE Secretary Sharon S. Garin said DOE had submitted several suggestions, including VAT on system loss, but the SONA was ultimately the Office of the President's assessment and instruction rather than DOE's script. Garin said DOE would work to eliminate both technical and non-technical loss if possible, beginning with six months for each cooperative to prepare an optimal distribution plan and quantify funding and timing. She said the immediate confidence was in removing non-technical loss; private utilities had not yet been covered by finalized guidelines because DOE had begun with electric cooperatives. Erice questioned whether removing technical loss could require government assistance that would disproportionately benefit high-consumption users. Garin said DOE was proceeding carefully, did not yet have a final private-utility plan, and would seek ways to fund cooperative improvements without an additional budget. When Erice asked whether the presidential promise would be met that year, Garin said only partially, with a target before the next summer.

Government-controlled fuel reserves and strategic storage: Erice commended DOE for avoiding a diesel shortage during the Middle East crisis but asked what diesel reserve was actually available if the crisis returned. Garin said DOE had formulated a fuel-transition plan to cut dependence on imported fuel by 50% by 2040 through measures including electric vehicles, exploration and electrification, and said the country also needed reserves. She said reported 50-day inventories were held in private facilities and that PNOC was working toward a government-owned storage facility, with the source giving conflicting phrasing around a one-million-barrel initial capacity. DOE then estimated total country storage at 47 days or about 2.7 billion liters, but Sales clarified that all current storage was private and the figures covered the entire country, not necessarily regional availability. Erice urged a government-controlled reserve even if privately stored; Sales said regional distribution and the fuel mix were part of strategic-petroleum-reserve planning. Sales said the only government-controlled stock then was the five days of fuel PNOC had bought, stored in private storage.

Solar adoption and stranded distribution-utility contracts: Rep. Arthur C. Yap welcomed DOE's solar agenda and the circular he described as covering zero-export renewable solar systems, but asked how consumer-cost benefits would be preserved if distribution utilities were left with contracted capacity as demand fell. ERC Chairperson and CEO Francis Saturnino C. Juan said ERC had advised distribution utilities to include carve-out provisions in power-supply agreements, as under ARCOA. For excess capacity without such provisions, he said utilities could seek to renegotiate or unload volumes, transfer them to an affiliated retail electricity supplier, or sell them through WESM. Yap warned that if suppliers refused, stranded costs could be passed to remaining consumers who could not afford solar systems; he urged a public-welfare approach to non-impairment. Juan said ERC would look into contracts not covered by the newer carve-out template and ways to help utilities offload them without harming captive customers.

Sitio electrification and technical system-loss trade-offs: Yap said non-technical-loss reductions could be offset if continuing sitio electrification required long line extensions that raised technical losses. He asked DOE and NEA whether that policy could be suspended or redesigned, arguing that the benefits of one policy could otherwise be undone by another. NEA Administrator Antonio Mariano C. Almeda agreed that serving unserved and unviable areas only through line extension might not be worthwhile if it increased technical losses. He said NEA would review pending programs and simulate whether solar-home systems or photovoltaic mainstreaming should substitute for line extensions in appropriate areas.

Ancillary-service pricing and reserve-market cap: Yap questioned ancillary charges, saying they represented about 60% of transmission charges and asking why they could not be brought closer to 10–15%. Juan said NGCP procured ancillary services either under an ancillary-services procurement agreement, which used competitive selection and ERC approval, or through the reserve market. He said contracted volumes had stable prices but reserve-market pricing was market-based and subject to a PHP 25 per kWh offer cap. Juan said ERC had a pending proposal to reduce that cap to PHP 9 per kWh and was reviewing public-consultation comments; he said a lower cap could temper reserve-market prices and encourage providers to offer capacity under the contractual market instead.

Transmission reliability and Negros renewable integration: Rep. Javier Miguel Lopez Benitez commended DOE and NEA on electrification and emergency capacity, then asked about the May 13 failure involving Tower 17's corroded insulators and whether incomplete repairs breached NGCP's concession obligations. DOE Secretary Sharon S. Garin said regulation and stakeholder discipline were ERC matters; a participant said the incident would be reviewed for effects on NGCP reliability performance and acted on accordingly. Lopez Benitez then raised the 90-MW transmission limit on Negros-Panay despite the completed Cebu-Negros-Panay backbone, delayed Line 2 and the Amlan-Dumaguete line, and the risk that roughly 1,300 MW of Negros projects could be curtailed. Garin said generation was moving faster than transmission. National Transmission Corporation President and CEO Atty. Joseph Omar A. Castillo said the Granada 230-kV line was a department priority and TransCo was working with NGCP to fast-track it; he said the CNP line was set for 2027 and DOE would review NGCP's transmission-development plan and report back. Garin said DOE was also pursuing 50 MW of batteries in Negros to store daytime excess renewable energy for evening use.

NGCP performance oversight and congressional review: Lopez Benitez asked whether NGCP's profits, dividends and franchise structure could support faster upgrades. Garin said she could not state exact profits but referred to research reporting average annual dividends of P20 billion. She said ERC regulated performance and DOE could issue relevant policies, while Congress, the franchise committee and the Joint Committee on Energy could review NGCP's franchise performance. Lopez Benitez requested a root-cause analysis of the May 13 500-kV incident, a year-by-year table comparing NGCP dividends with construction spending, and the status of Line 2 and CNP approvals. Fuentebella directed that the requested materials be delivered within the week.

DOE AI, digital front door and integrated energy data: Lopez Benitez asked about DOE's AI and technology program. DBM Undersecretary Maria Francesca M. Del Rosario said DOE was building a digital front door for stakeholders, investors and companies interacting with the department; consolidating data so DOE could analyze patterns and anomalies; and integrating data sharing with NEA, ERC and other attached agencies. She said the 2026 allocation was P350 million, including P250 million for infrastructure to centralize the system, and that the 2027 proposal would scale it up under a two-year completion deadline. She said DOE was gathering user stories and using AI to make submissions more seamless.

Net metering for agricultural and post-harvest facilities: Rep. Felimon M. Espares asked why some electric cooperatives and distribution utilities were unable or unwilling to install net metering for solar-powered rice mills, cold storage and other post-harvest facilities. He said unused daytime solar generation could otherwise reduce bills and asked for a list of operators that were not capable. DOE Secretary Sharon S. Garin said DOE would report if it could compile the information and reinforce the information campaign and capacity building for electric cooperatives. She said most distribution utilities and cooperatives could accommodate net metering and that DOE would report a capable operator's refusal to NEA for action. NEA Administrator Antonio Mariano C. Almeda said net metering was national policy and would check the sites Espares mentioned; Espares identified Oriental Mindoro. Garin said NEA and ERC could reprimand or penalize noncompliance. Espares asked for the written report, and Fuentebella directed submission.

Tinio request for DOE clarification of foreign-government statements: After Espares's round, Rep. Antonio L. Tinio asked DOE to issue public clarifications when foreign-government statements about energy projects did not accurately reflect Philippine arrangements. He referred to public statements concerning Pax Silica and a proposed hub, as well as nuclear power and the Subic-Clark pipeline, and said the Philippine government should set the record straight as needed. Garin agreed that DOE would assess the matters and make clarifications if warranted.

Recto Bank service contract and exploration moratorium: Tinio then asked about Recto Bank, saying Malampaya's remaining life could increase dependence on imported LNG and asking why there was no movement on possible joint development in the West Philippine Sea. DOE Undersecretary Alessandro O. Sales said DOE referred to the area as offshore northwest Palawan and said Recto Bank, or Reed Bank, had an existing service contract. He said any oil-and-gas exploration required a government service contract and any joint activity had to fall under that system. When Tinio asked why a nonperforming service contract was not cancelled as DOE could do for renewable projects, Sales said the law and policy differed and that a moratorium was in place for the area because of broader geopolitical conditions.

DOE’s budget priorities and proposed special provisions: Rep. Mikaela Angela B. Suansing commended the DOE and ERC, including DOE’s disaster response and its response to the Middle East crisis, and said the House supported their funding requirements. She opened the floor for unfunded programs, projects and special provisions for consideration by the Budget Amendments Review Subcommittee. DOE Secretary Sharon S. Garin proposed a general provision to encourage government procurement of electric vehicles; described a requested provision concerning the use of 5% for faster project implementation; and said PNOC sought authority to reserve PHP 8 billion of corporate funds for a fuel-stockpiling facility. Garin said DOE would first clarify with DPWH the status of relocation funding before seeking restoration. She also supported an increase in ERC’s budget, noting DOE’s PHP 6 billion Malampaya collection that year and an estimated PHP 27 billion for the next year after a new well is connected, and asked that PHP 200 million of the resulting increase support a stronger regulator.

NEA request to use administrative cost for technical staffing: NEA asked for a special provision that would treat its 3% executive and administrative cost as general income so it could hire additional engineers and other personnel. Its representative said the staffing was needed to inspect and certify photovoltaic and last-mile projects in remote areas, where field deployments could keep engineers away for a week or more; without it, NEA was struggling to implement those projects on time. Suansing said comparable requests had faced legal-basis objections from DBM in prior years and said the committee would confer with DBM before deciding the NEA provision.

ERC revenue performance and case for additional consultancy funding: Suansing noted ERC’s collections and said it had exceeded its 2025 revenue target and was already near its 2026 target by June. ERC Chairperson and CEO Francis Saturnino C. Juan said supervision and regulatory fees expected by the end of September would likely allow ERC to reach or exceed the PHP 2.3 billion earned in 2025. On the proposed PHP 200 million increase, Juan said ERC primarily needed consultants to complete the rate reset for all distribution utilities within compressed timelines, an exercise he said had not occurred for more than a decade. He said consultant work would free organic staff for other tasks, including work on system-loss caps. Suansing requested a detailed narrative so the Budget Amendments Review Subcommittee could assess the actual amount required.

Follow-up submissions before plenary deliberations: With the relevant DBM director unavailable because of another meeting, Suansing said the committee would discuss the legally complex special provision separately with DBM rather than wait. She requested a prioritized DOE and ERC list, including proposed wording and special provisions, by the following day so it could be considered by the Budget Amendments Review Subcommittee before plenary. Fuentebella agreed that one document should be submitted and asked that ERC’s details be included; Garin said an assistant secretary would work with DBM and NEA on the wording. Suansing closed by pledging to work within limited fiscal space to augment or restore priority items for DOE and ERC in the 2027 budget.