Lotilla might return to head Department of Energy; Palace checking
MANILA, Philippines (Update 2, 8:39 p.m.) — Possibly returning to the post he held when Gloria Macapagal Arroyo was president, Raphael Perpetuo Lotilla has again been tapped to lead the Department of Energy, although the Palace said they will have to check if he is qualified.
Press Secretary Trixie Cruz-Angeles confirmed on Monday that President Ferdinand Marcos Jr. picked Lotilla for energy secretary, a position he also held from 2005 to 2007.
In a clarification hours later, Cruz-Angeles said that while Lotilla is the president's "personal choice" to head the DOE, the possible appointment is "right now a nomination, pending clarification of his employment status."
The press secretary said that Lotilla is an independent director of Aboitiz Power Corp. and of oil and gas exploration and production firm ACE Enexor.
Under the Department of Energy Act, this could disqualify him from heading the department. Under the law, "[n]o officer, external auditor, accountant, or legal counsel of any private company or enterprise primarily engaged in the energy industry shall be eligible for appointment as secretary within two years from his retirement, resignation, or separation."
Lotilla has also been president of the Power Sector Assets and Liabilities Management Corp. and was deputy director general of the National Economic Development Authority.
According to the Palace statement, Lotilla is also a law professor at the University of the Philippines, where he received his Bachelor of Laws degree. He also has a Masters of Laws degree from the University of Michigan Law School.
Lotilla will have to address the high prices of petroleum products caused by developments in the global market, and ensure energy security- or the uninterrupted availability of energy sources at an affordable cost.
READ: Luzon grid goes on red alert — DOE
Lotilla will be replacing Alfonso Cusi, who veered away from the agency's "technology neutral" stance in favor of flexible power generation.
In 2020, Cusi announced a ban on the endorsement of new coal-fired power plants in a bid to transition to a "more flexible" power supply mix. This signalled a shift away from coal, which is considered as an inflexible power plant.
Coal historically makes up a huge chunk of the country's power generation mix. In 2020, coal-run plants accounted for 57% of the Philippines' power generation output, while gas plants contributed 19.2%.
Meanwhile, green groups, including local think-tank Center for Energy, Ecology and Development (CEED), have been pushing for the Philippine government to generate 100% of the country's power requirements from renewable energy sources, which they describe as clean. As of end-2020, solar, wind and biomass- various forms of renewable energy- contributed only 3.6% to the power generation output.
The department said earlier that it will be asking the incoming administration to pursue a national nuclear energy program and the establishment of strategic petroleum reserves (SPR). An SPR, which is to be led by the state-run Philippine National Oil Co. (PNOC), aims to reduce prices and supply shocks from oil imports. — Angelica Y. Yang with Kaycee Valmonte
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