PRESS RELEASE
30 April 2026

PCC, ERC align regulatory strategies to foster competition in renewable energy sector

Policy dialogue between the PCC and ERC, held on March 17, 2026.

On March 17, the Philippine Competition Commission (PCC) held a strategic policy dialogue with the Energy Regulatory Commission (ERC) to discuss the results of a competition impact assessment (CIA) of the Green Energy Auction Program (GEAP). This follows a January 19 consultation with the Department of Energy on the same CIA, which evaluates how current auction structures for renewable energy impact market efficiency and electricity costs.

The dialogue centered on how green energy auction reserve (GEAR) prices were determined, addressing concerns that the selection of representative plants must accurately reflect evolving market conditions to encourage participation. The ERC clarified that, while they utilize a discounted cash flow model with over 40 parameters, the methodology is designed to be transparent and reflects maturing technology costs to prevent over-recovery and protect consumers from inefficiencies. ERC Chairperson Francis Saturnino Juan noted that success in these auctions is primarily measured by both price outcomes and the ability of GEAR prices to yield reasonable rates for end-users while also ensuring that any subscribed projects successfully materialize.

The discussions also tackled the existing per-grid auction framework, which may limit bidder participation due to geographic segmentation. Chairperson Juan explained that such segmentation is needed in order for power development planning to prevent grid instability and avoid excessive transmission of capital expenditures that would arise if projects were concentrated in a single region.

Furthermore, the dialogue also addressed auction transparency, specifically the trade-offs associated with publishing price caps and the format of pre-bid conferences. While the PCC’s assessment explored the potential for undisclosed caps in order to reduce collusion risks, the ERC underscored the legal and judicial requirement for public participation in rate-setting processes in order to remain compliant with administrative due process.

This collaborative review of the GEAP, which supports the national goal of a 35 percent renewable energy share by 2030, and 50 percent by 2040, ensures that institutional safeguards are in place to foster a fair market.

As part of its mandate to advocate for pro-competition policies, the PCC Economics Office conducts CIAs to support government agencies in evaluating the pro-competitiveness of their policies and regulations. Through strategic policy dialogues, the Commission validates the initial findings of CIAs or market studies and solicits comments from relevant agency partners before they are released for wider publication. These initiatives support the implementation of the National Competition Policy; a whole-of-government approach that encourages agencies to align their policies with competition law principles.

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REFERENCE:  
publicaffairs@phcc.gov.ph  
Public Affairs and Research Division
Communications and Knowledge Management Office
Philippine Competition Commission