DOE, PCC review auction rules to boost energy competition

QUEZON CITY — The Department of Energy (DOE) and the Philippine Competition Commission (PCC) are reexamining the design of the Green Energy Auction Program (GEAP) after regulators flagged potential competition concerns that could be limiting bidder participation and raising energy prices.

During a policy dialogue held on January 19, 2026, the DOE and PCC discussed findings from the PCC Economics Office’s competition impact assessment (CIA), which reviewed past GEAP auction rounds.

The CIA identified key design features that may have inadvertently discouraged competition and increased risks of collusion.

Among the issues raised were the geographic segmentation of auctions by island group, the use of “representative plants” in setting Green Energy Auction Reserve (GEAR) prices, and the disclosure of price caps and pre-bid conference practices.

According to the CIA, these elements could have reduced the number of bidders and made auctions vulnerable to coordinated bidding.

The CIA urged that “careful evaluation of future auction designs” is necessary to ensure that the GEAP delivers “the most competitive energy tariffs” while increasing the renewable share in the country’s power generation mix.

The DOE welcomed the assessment and emphasized its commitment to ongoing improvements to auction structures.

The agency acknowledged that while the national grid is interconnected, future auctions may still be held by island group to address “local supply needs and reduce service delivery concerns.”

It also clarified that GEAR prices are determined by the Energy Regulatory Commission (ERC) through technical studies and public consultations.

The DOE said it recognizes the importance of keeping pricing mechanisms “transparent and responsive to evolving technologies.”

“Refinements in auction design have also been introduced to safeguard competition,” the DOE said, noting that the program remains central to achieving the Philippines’ target of a 35 percent renewable energy share in the power generation mix, rising to 50 percent by 2040.

PCC Undersecretary for the Revenue Operations Group Rolando Ligon stressed the importance of aligning regulatory frameworks with global standards to ensure fair competition.

“Through these renegotiations, we seek to align our Convention with contemporary international standards, promote certainty and fairness for taxpayers, and reinforce our shared commitment to combating tax evasion and avoidance,” he said.

The dialogue also highlighted the PCC’s mandate to conduct CIAs across government agencies. These assessments evaluate whether policies and regulations promote or hinder market competition.

They also support the National Competition Policy, which directs all government bodies to embed competition principles into their policymaking.

By proactively engaging with regulators, the PCC aims to foster a business environment that encourages fair play, enhances economic efficiency, and ultimately delivers better outcomes for consumers.