ERC chief affirms commitment to fair power market regulation

By Francis Allan L. Angelo

Energy Regulatory Commission (ERC) Chairperson Atty. Francis Saturnino C. Juan has reaffirmed the agency’s primary mandate to protect consumers by upholding the integrity of the competitive power market.

Juan issued the statement in response to criticisms that the ERC was prioritizing power companies over ordinary consumers.

“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,” Juan said.

He emphasized that these measures are not procedural changes but a “compelling call to re-embrace the competitive principles that are fundamental to the Electric Power Industry Reform Act (EPIRA).”

Juan stressed that the ERC’s role is to serve as “the guardian of the competitive process and the guarantor of its integrity.”

He explained that the CSP is designed to let distribution utilities secure least-cost power supply through transparent and competitive bidding, ensuring consumers benefit from market-driven prices.

“When a CSP has been conducted properly—transparently, fairly, and with robust competition—the resulting price is the market’s definitive answer to the question, ‘What is the least-cost power available today?’” he said.

He cautioned that second-guessing competitively derived prices risks creating regulatory uncertainty, discouraging investment, and threatening supply reliability and affordability.

At the same time, Juan clarified that the ERC would not rubber-stamp all power supply agreements, noting its duty to ensure contracts are prudent, reasonable, and free from anti-competitive behavior.

“Upholding a competitively derived price is the highest form of consumer protection—it protects consumers from the hidden costs of uncertainty, underinvestment, and the return of negotiated monopolistic rates,” Juan added.

He called on stakeholders to “compete fiercely, innovate constantly, and invest confidently” while assuring consumers that “the greatest shield against high prices is not the discretionary power of a regulator, but the relentless pressure of a competitive market.”

Juan said the ERC will remain a “steadfast guardian of the competitive process” to secure affordable, reliable, and sustainable power for all Filipinos.

The ERC is an independent government agency created under the Electric Power Industry Reform Act of 2001 to regulate the country’s electric power industry, with responsibilities that include approving rates, issuing licenses, resolving consumer complaints, and ensuring that electricity supply contracts comply with competition and transparency rules.