The Energy Regulatory Commission (ERC) is moving to impose an added layer of scrutiny on power supply procurements by reviewing auction terms before bidding begins, Philstar Biz reported. The move comes amid concerns that some past auctions may have been rigged in favor of certain bidders.
Under the new policy, the ERC will pre-approve the terms of reference (TOR) for power supply agreements (PSAs) before distribution utilities can launch their bidding processes. This is intended to prevent anti-competitive provisions that could skew results toward preselected bidders.
Industry observers say the additional oversight could delay procurement timelines but may improve transparency and consumer protection. The ERC has yet to announce an implementation date for the new review requirement.