Republic of the Philippines


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ERC Clarifies Extension on the CSP Implementation

The Energy Regulatory Commission (ERC), during the hearing of the House Joint Committees on Good Government and Public Accountability and on Energy held on 04 July 2017 clarified that its collective decision to extend the effectivity of the Competitive Selection Process (CSP) was aimed to address issues and concerns submitted by numerous industry participants pertinent to the implementation of the CSP scheme.   

“The extension of the CSP implementation was not intended to benefit any electric power industry participant but to give time to those who have already completed their power supply agreements (PSAs) but failed to submit the same to the ERC prior to the effectivity of the CSP,” ERC OIC Alfredo J. Non said.

The ERC, soon after its promulgation of the CSP in November 2015 until April 2016, received letter-inquiries from distribution utilities (DUs) and generation companies (GenCos) assailing the legal implications of the CSP to PSAs that are currently existing, due for renewal, submitted to the ERC for approval, or otherwise already executed.  

The ERC was constrained to restate the effectivity of the CSP through a Resolution in March 2017 in order to allow for a transition period and avert any possible legal complexities between the parties as a result of the CSP implementation.

“The ERC developed and promulgated the CSP as an additional safety net to promote consumer interest, though it is not a mandatory requirement under the EPIRA (Electric Power Industry Reform Act).  It must be emphasized that the imposition of the CSP does not mean an abandonment of the thorough evaluation process of the ERC nor is it tantamount to the approval of the PSA,” OIC Non added.

The ERC also vowed to resolve the MERALCO PSA petitions within three (3) months, and will ensure that the cross-ownership limitations provided in the EPIRA shall not be breached.


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