Senator Win Gatchalian is urging the Energy Regulatory Commission (ERC) to swiftly approve power supply agreements (PSAs) between distribution utilities (DUs) and generation firms to maintain a consistent and affordable electricity supply for consumers.
Gatchalian’s call comes after the ERC’s recent issuance of guidelines for the competitive selection process (CSP), referring to the method for DUs to procure supply from generation companies through competitive bidding as mandated by the Department of Energy (DOE).
He expressed hope that the strict adherence to these bidding guidelines would prompt timely ERC approval of PSAs, aiding DUs in sourcing supply at the lowest cost for consumer benefit.
Gatchalian noted that between 2003 and 2023, there were a total of 527 pending PSAs before the ERC. This year, the number stands at 16, a slight decrease from the 18 reported last year.
“We need better accountability in the implementation of the PSAs, which means it is more difficult for generation companies to just walk away from the PSAs. This would help stabilize energy supply and eliminate surprises in terms of pricing,” he added.
Moreover, consumer groups should be encouraged to actively participate in the bidding process through vigilant monitoring. This move would enhance transparency in CSP implementation and foster accountability in every PSA.