An energy consumer coalition warned that escalating tensions between the United States and Iran could trigger electricity price spikes in the Philippines, exposing what it described as the country’s continued dependence on fossil fuels.
The Power for People Coalition (P4P) said the Strait of Hormuz is “the single most critical chokepoint for the global fossil fuel supply chain – and the impacts of its closure will be deeply felt by the pockets of Filipino consumers.”
The group said Philippine energy regulators and power firms should have anticipated recurring geopolitical disruptions in the Middle East and reduced the country’s vulnerability to imported fossil fuels.
“The Department of Energy (DOE), Energy Regulatory Commission (ERC), and power companies that insisted on continued reliance on fossil fuels can hide behind no excuse of this looming energy crisis being a scenario of force majeure,” the group said.
It said past geopolitical crises and long-intensifying frictions in the region should have been treated as “warning bells to wean away from dependence on fossil fuels,” adding that “This foresight is their duty to Filipinos and the country’s economy.”
With the country entering the summer months, when electricity demand and rates typically peak, the coalition urged immediate intervention.
“In the immediate future, the DOE and ERC must implement price control mechanisms to provide a reprieve to Filipino consumers,” it said.
“The country is already heading into the summer season, usually marked by the highest electricity rates every year. With a volatile geopolitical situation that could further escalate, price control mechanisms must be the bare minimum in shielding electric consumers from sharp price hikes.”
Beyond short-term relief, P4P pressed the government to accelerate the transition to domestic renewable energy.
“Even more critically, our government must stop dilly-dallying with the urgent transition to domestic renewable energy sources that would not be subject to global market volatilities,” the statement read.
“Coal and gas reliance – be it from imported or domestic sources – cannot be the way forward in the Philippines’ energy sector.”
The coalition also expressed solidarity with civilians affected by the conflict, saying it stands with “the people of the Middle East – the civilians, and the most vulnerable sectors in the region and the world that are both directly and indirectly affected, and whose interests are in no way served by this war.”
“As a start, the United Nations must urgently intervene to bring this injustice to a halt,” it added.
