ERC eyes tighter bidding rules for power supply deals

The Energy Regulatory Commission (ERC) is proposing stricter rules governing the procurement of power supply, requiring the prior review of bidding terms to curb anti-competitive practices and ensure consumers benefit from least-cost electricity.

Under the proposed regulatory framework, distribution utilities (DUs) and the system operator must first submit the terms of reference (TOR) for competitive selection processes (CSP) to the ERC before publishing any invitation to bid.

The proposal introduces a two-level review process focused on completeness, competition and least-cost screening.

The ERC said this would help ensure procurement parameters do not exclude legitimate bidders or favor certain suppliers, while strengthening regulatory oversight and consumer protection.

ERC chair and CEO Francis Saturnino Juan said the proposal forms part of the agency’s efforts to modernize regulation by adopting a more proactive approach to overseeing the power sector.

“We are setting the rules of the game earlier in the process to ensure that competition is genuine and not merely procedural,” Juan said. “By reviewing the TOR upfront, we help prevent anticompetitive design and ensure that procurement outcomes truly reflect the least-cost for consumers.”

Under the proposed rules, neither any DU nor the system operator may proceed with bid publication unless it has secured a TOR Certificate of Compliance from the ERC or obtained deemed approval after the prescribed review period lapses.

The ERC will accept public comments on the proposed rules until July 24. A virtual public consultation is scheduled on July 31.