Senate Advances Natural Gas Bill to Shield Consumers from Rate Hikes, Bolster Energy Security

MANILA, Philippines — Senate Bill 2793, the proposed Philippine Natural Gas Industry Development Act, has advanced in the Senate, with energy committee chair Sen. Pia Cayetano championing its potential to protect consumers from power rate increases while strengthening the country’s energy security. The bill, which has passed second reading, emphasizes prioritizing indigenous natural gas sources, like Malampaya, over imports.

Sen. Cayetano highlighted the stability and affordability of local natural gas, contrasting it with the rising and often volatile prices of imported fuels. “We have the potential to explore, discover, and develop our indigenous natural gas,” she stated, urging for investment incentives to attract industry players. “After Malampaya was discovered, we neglected promoting indigenous natural gas,” she added.

An amendment proposing competitive bidding for natural gas supply agreements was defeated 15-4 on the Senate floor. Cayetano argued that such a requirement could deter investors and counteract the bill’s purpose of fostering a favorable investment climate for the local gas industry.

The bill mandates oversight by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to protect consumers from high electricity prices through strict market pricing provisions. The Philippine Competition Commission (PCC) will also monitor transparency and fair competition.

Cayetano stressed that promoting indigenous natural gas is vital as the Philippines transitions toward renewable energy, offering a cleaner, more affordable transition fuel. “This is a unique opportunity to support indigenous natural gas for better price stability and energy security,” she said, emphasizing the Consumer Welfare Act’s role in ensuring consumer protection.