Manila: The Energy Regulatory Commission (ERC) is examining potential gaps in the competitive selection process (CSP) for power supply agreements, emphasizing the necessity to safeguard end consumers.

According to Philippines News Agency, ERC Chair and Chief Executive Officer Francis Saturnino Juan has stressed that distribution utilities must base their power supply agreements (PSAs) on procurement plans approved by the Department of Energy (DOE). Juan highlighted the significance of scrutinizing the terms of reference to understand what utilities are bidding for, including capacity, requirements, duration, and eligibility criteria.

Juan expressed concerns that without proper oversight, there could be elements within the CSP that restrict competition. He stated that such restrictions could negatively impact the competitive nature of the process. To address this, ERC is contemplating stricter CSP regulations to ensure that distribution utilities secure the least-cost and most competitive power supply rates, ultimately benefiting end consumers.

Under the proposed rules, distribution utilities and system operators would need to submit the terms of reference (TOR) for ERC evaluation before issuing any public bidding invitations. Juan noted the importance of examining factors that determine the eligibility of bid participants, as these factors could impact the quality and competitiveness of the process.

Juan explained that the ERC has shifted its focus in PSA reviews to prioritize both the outcome and the process through which the outcome is achieved, emphasizing the importance of competition during the CSP. He reiterated the need for strict compliance with the process to ensure genuine competition is taking place.