ERC chair resigns, Malacañang confirms
Malacañang on Monday announced the “irrevocable resignation” of Energy Regulatory Commission (ERC) Chair Monalisa Dimalanta, while newly appointed Energy Secretary Sharon Garin took her oath before President Marcos.
Palace press officer Claire Castro disclosed Dimalanta’s resignation in a message to reporters on Monday but provided no other details, including her reason for stepping down.
Dimalanta herself did not provide any confirmation when reached for comment but said “we should never preempt the appointing authority.”
Appointed in August 2022, Dimalanta is supposed to complete her seven-year term in 2029.
There is no update yet whether Mr. Marcos has accepted her resignation. The President may reinstate her—like he did last year—or order a revamp of the ERC.
Should Dimalanta’s resignation become final, the ERC board cannot constitute a quorum as only two of its five members remain—Commissioners Floresinda Baldo-Digal and Marko Romeo Lizada Fuentes, whose terms will expire in 2027.
Commissioners Alexis Lumbatan and Catherine Maceda retired on July 10 after completing their terms.
‘Vacuum’
The Philippine Chamber of Commerce and Industry (PCCI), in a statement, expressed “concern [over] the sudden resignation” of Dimalanta.
“This move effectively deprives the Commission of a quorum to perform its regulatory role. The leadership vacuum will also delay key decisions regarding power tariffs, consumer protection and energy policies that will unfairly weigh on industrial and domestic consumers,” PCCI said.
The group urged the government to immediately appoint “able and independent-thinking commissioners” to ensure continuity in the commission.
Jose Layug Jr., president of Developers of Renewable Energy for Advancement Inc., said, “A regulator like ERC operating without a quorum is effectively paralyzed and unable to carry out its statutory duties.”
“We all know the critical importance that ERC plays in setting electricity rates, enforcing industry standards and safeguarding consumer interests,” he said.
Cynthia Alabanza, spokesperson for the National Grid Corp. of the Philippines, said she was “so surprised when we heard the news” about her “good friend.”
“[Dimalanta] has definitely pursued her mandate of being a regulator,” she said. “Even though there will be vacancies, I am sure that the government and administration will ensure that the crucial work… and the continuous development of the energy industry as well as the interests [of the public] will go on unhampered.”
Sen. Sherwin Gatchalian in his statement said Dimalanta would be “a significant loss to the government.”
“Her unwavering commitment to integrity has been instrumental in steering the commission, and her dedication to consumer welfare and regulatory transparency set a high bar,” Gatchalian said.
Background
Dimalanta, former chief legal counsel and compliance officer of Aboitiz Power Corp., had also served the Puyat-Jacinto & Santos law firm, leading its Energy Practice Group.
She was the second appointee from Aboitiz Power after Environment Secretary Raphael Lotilla, who had served as an independent director in that company’s board. Lotilla was Mr. Marcos’ energy secretary before he was transferred to the Department of Environment and Natural Resources last May.
An alumna of the University of the Philippines, Dimalanta earned her Masters of Laws (international law and legal studies) at the University of Michigan Law School in 2001 and also attended the Lee Kuan Yew School of Public Policy as a senior fellow in 2020-2021.
She was chairperson of the National Renewable Energy Board from 2019 to 2021 before she was appointed to head the ERC.
On Aug. 20 last year, Dimalanta was suspended by the Ombudsman for neglect of duty, following a complaint filed by the National Association of Electricity Consumers for Reforms Inc.
The group had claimed that she allowed Meralco to purchase electricity from the Wholesale Electricity Spot Market and pass the charges to consumers without obtaining the necessary approval from the ERC, allegedly in violation of the Electric Power Industry Reform Act (Epira) of 2001 (Republic Act No. 9136).
But on Oct. 22, the Ombudsman lifted her six-month suspension, saying that “after a thorough evaluation of the present case records, this Office finds that the ground which justifies the continued imposition of preventive suspension no longer exists.” Executive Secretary Lucas Bersamin subsequently ordered her reinstatement.
Meanwhile, Garin on Monday said reforms begun by her predecessor, Lotilla, “will remain central to our work moving forward.”
“These include the acceleration of renewable energy development, the expansion of electrification efforts, the enhancement of energy resiliency, and the continued strengthening of our investment climate,” she said in a statement.
Garin, whose appointment was announced by the Palace on July 10, had served as undersecretary then officer in charge of the Department of Energy, following the courtesy resignation last May of Mr. Marcos’ top officials, including Lotilla. —WITH REPORTS FROM PNA AND INQUIRER RESEARCH
