Consumer Group Urges Major Overhaul of Power Procurement System, Calls CSP a ‘Policy Failure’

The National Association of Electricity Consumers for Reforms (Nasecore) is calling for a complete overhaul of the Philippines’ competitive selection process (CSP) for electricity procurement, branding the current framework as a “policy failure.”

In a letter sent to Department of Energy (DOE) officer-in-charge Secretary Sharon Garin on June 3, Nasecore urged the agency to publicly acknowledge that the CSP mechanism has failed to ensure transparent, competitive, and cost-effective power procurement.

The CSP mandates distribution utilities like Meralco to acquire power through competitive bidding to secure the lowest rates for consumers. However, Nasecore argued the system has not achieved its intended goals.

Instead of fostering healthy competition, the group said the CSP has preserved the market dominance of incumbent and affiliated power suppliers, particularly in Meralco’s franchise area. It noted that in the past decade, no significant new independent suppliers have entered Meralco’s power mix.

Nasecore is urging the DOE to:

• Conduct a multi-stakeholder review and initiate a comprehensive CSP policy overhaul.

• Perform a full audit of Meralco’s Power Supply Agreements (PSAs) from 2019 to 2024.

• Ensure full transparency by publicly disclosing CSP-related documents, including bid criteria and awarded contracts.

In response, Meralco emphasized its strict compliance with DOE and Energy Regulatory Commission (ERC) regulations. The utility said all PSAs are subject to ERC review, including public hearings, to guarantee fairness and transparency.

Nasecore has also shared its appeal with President Ferdinand Marcos Jr., top Cabinet officials, and congressional leaders.