The Energy Regulatory Commission (ERC) has reaffirmed its mandate to uphold the integrity of the Competitive Selection Process (CSP) amid criticisms from consumer groups, saying that protecting competition is the most effective safeguard against high electricity prices.

“We are entering a new era, characterized by two pivotal developments in the regulatory framework: the Department of Energy’s Competitive Selection Process (CSP) Policy and the Supreme Court’s landmark decision in Alyansa ng Bagong Pilipinas vs. ERC,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said in response to the Power for People (P4P) Coalition’s September 19 statement. “These are not merely procedural changes; rather, they represent a significant transformation, a compelling call to re-embrace the competitive principles that are fundamental to the Electric Power Industry Reform Act (EPIRA).”

The P4P Coalition criticized ERC leadership, saying Juan’s “first order of business as new ERC chief is to cede ground to power players, enabling them to raise prices as they please at the expense of ordinary Filipinos.”

Juan countered that competition, not regulatory discretion, is the true protection for consumers. 

“The greatest shield against high prices is not the discretionary power of a regulator to cut a single contract, but the relentless, ongoing pressure of a competitive market where suppliers must constantly offer their best price to win a supply contract,” he said.

He emphasized that the ERC’s role is to validate the integrity of the CSP auction process, ensure prudence and compliance in Power Supply Agreements (PSAs), and uphold the results once found competitive and fair. 

“This is not to say the ERC should rubber-stamp every PSA. Its mandate remains crucial. The Commission must vigorously ensure that the CSP process itself was truly competitive and compliant,” Juan said.

According to Juan, enforcing competition not only ensures the least-cost supply for consumers but also allows investors to recover just and prudent costs—securing long-term reliability of the grid. 

“Let the ERC be the steadfast guardian of the competitive process. Let it validate the integrity of the auction, and then let it uphold the results. In doing so, we will secure a future of affordable, reliable, and sustainable power for all Filipinos,” he said.

The ERC chief also urged industry players to “compete fiercely, innovate constantly, and invest confidently in the knowledge that a fair process will yield a fair and enforceable outcome.”

The Commission’s statement comes as debates intensify over the balance between consumer protection and market-driven pricing, with stakeholders watching closely how new regulatory approaches will impact electricity costs and supply stability.

What’s your take? Should ERC rely on competition to keep prices fair, or exercise stronger intervention in power supply deals? Join the discussion and share your insights. 

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