Lower electricity costs could give Philippine manufacturers and exporters a stronger push to expand as the government seeks to make investment and industry bigger drivers of economic growth.

The Department of Economy, Planning and Development (DepDev) is backing amendments to the Electric Power Industry Reform Act to address what Socioeconomic Planning Secretary Arsenio M. Balisacan described as one of the country’s biggest obstacles to growth.

“One of the most binding constraints to growth and industrialization, as pointed out by many investors, is the high cost of electricity,” Balisacan said during a Development Budget Coordination Committee briefing.

He said reforms should give the Energy Regulatory Commission greater authority while improving its coordination with the Philippine Competition Commission to curb possible market abuse.

“One is about the need to strengthen ERC. The second is to strengthen the coordination between the ERC and the Philippine Competition Commission so that it is more effective in going after market abuse or abuse of market power by any participant in the electricity market,” Balisacan said.

The proposed changes are part of the Marcos administration’s legislative priorities on energy security and sustainability. The government has opted to tackle amendments in phases because of the complexity of overhauling the law.

Among the proposed measures are extending the life of the Power Sector Assets and Liabilities Management Corp. to 2036, strengthening the ERC, and reinforcing competition oversight.

Balisacan said cheaper power would help manufacturers compete and create better-paying jobs, particularly in export-oriented industries.

“If the investment is able to reduce that cost, then the multiplier effects are going to be much better,” he added.

DepDev is also pushing renewable power expansion, grid modernization and faster permitting as part of efforts to broaden growth beyond household consumption and services.