Energy Regulatory Commission (ERC) chairperson and CEO Monalisa Dimalanta has filed her “irrevocable resignation,” Malacañang confirmed Monday, leaving behind a regulatory body in flux and a mixed legacy of reform, controversy, and calls for deeper change.

“If you will indulge me, let us wait for Malacañang to make announcements as to the reason and acceptance of resignation, once made,” Dimalanta said in a message to the DAILY TRIBUNE.

Appointed by President Ferdinand Marcos Jr. in July 2022, Dimalanta was expected to serve a full seven-year term until 2029. Her sudden exit comes less than a year after she returned from a supposed six-month preventive suspension, which stemmed from a complaint by the National Association of Electricity Consumers for Reforms Inc. accusing her of failing to act on Meralco’s distribution rate recalculation.

The Office of the Ombudsman later lifted the suspension early, saying the grounds for it “no longer exist.”

Swift reactions

Dimalanta’s resignation, though devoid of a public explanation, has sparked swift reactions across the energy and business sectors — some praising her leadership, others pushing for a full overhaul of the Commission.

Senator Sherwin Gatchalian called her departure “a significant loss to the government,” citing her “unwavering commitment to integrity” and her role in advancing consumer welfare and transparency.

“I hope that her successor will possess the same dedication to fair and effective governance of the energy sector, ensuring the welfare of consumers and the stability and development of the entire industry,” Gatchalian added. “We wish Chair Mona all the very best in her future endeavors.”

Regulatory paralysis warning

Business groups, however, warned of regulatory paralysis in her absence. The Philippine Chamber of Commerce and Industry (PCCI) voiced concern not only over her resignation but also the concurrent end of term of two ERC commissioners, which, it said, “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,” the PCCI said.

It urged the administration to act “with deliberate speed in appointing able and independent-thinking commissioners so as to ensure continuity in the ERC mandate.”

For consumer group Power for People Coalition (P4P), Dimalanta’s exit is both a moment for recognition and a call to reset. “The Power for People Coalition (P4P) thanks ERC Chairperson Monalisa C. Dimalanta for her service,” said Convenor Gerry Arances. “We recognize that despite difficult circumstances, she has managed to put reforms forward that served consumer interests. We wish her the best of luck in future endeavors.”

Power rates rise during her watch

Still, P4P noted that “electricity rates continued to rise on her watch,” citing a P2 per kilowatt-hour increase in the Meralco franchise area alone. The group called on the two remaining commissioners — Floresinda Baldo-Digal and Marko Romeo Fuentes — to submit courtesy resignations as well, saying it would give the President a “free hand to reorganize the commission and start from a clean slate.”

“The record of the two other commissioners does not give us hope that even if a pro-consumer chairperson is selected, he or she will be able to implement all the necessary reforms to suit consumers,” Arances said. “Nevertheless, the appointment of one will be a strong signal from the President of where his priorities lie.”

Dimalanta’s tenure at ERC was marked by a drive to modernize the regulatory process and streamline approvals.

Under her leadership, the Commission approved a P28.29-billion transmission rate hike for the National Grid Corp. of the Philippines and launched a digital Power Supply Procurement Toolkit to enhance transparency in power deals. She also led the signing of a data-sharing agreement with the Department of Energy to improve coordination on market oversight and policy development.

Power projects approvals

Her push for faster permitting resulted in a near doubling of power project approvals in just one quarter, clearing over 6,000 megawatts between March and June 2024 alone — part of a broader effort to boost energy security, encourage renewables, and enforce compliance.

Whether her resignation brings a pause to that momentum — or a deeper reckoning for the agency she led —now rests on how the administration responds to the growing calls for reform.