There is power in transparency

As co-convenor of CitizenWatch, we look forward to our observation of and participation in the upcoming October 1 bidding to be conducted by power distributor Manila Electric Company (Meralco) among power generators.

CitizenWatch is just one of several consumer representative groups invited to witness the competitive selection process (CSP) of Meralco.

The actual bidding process is a hybrid procedure (a mix of in-person and online) that is live streamed, enhancing public access.

The public, including third-party observers, is given access to critical information such as selection criteria and the rationale behind the choice of a supplier in real-time. It ensures that energy contracts are awarded based on merit and nothing else. 

In the end, it is us, the customers who will benefit from such decisions because these will guarantee affordable and reliable power. 

This is not the first time CitizenWatch has been in attendance. In the past, we have already witnessed the submission of bid documents, the opening of bid documents, and the announcement of pre-qualified bidders. 

In any bidding process, transparency is crucial. We must make sure that everything is above board, that there are no backchannel deals, and that the consumers’ welfare is the ultimate objective of all the participants. This is why there are laws governing procurement in the public sphere.

Transparency is equally important in the private sector, and it is crucial in the matter of energy.

The Philippines’ power requirements are massive. They are important to our economic life especially since we aspire to be a middle-income economy in the foreseeable future.

We need reliable and affordable power so that we can attract more investments into our country. Currently, the Philippines has one of the highest costs of power in Southeast Asia and this is one major factor that keeps investors at bay. 

Our industries need a stable supply of energy so they can continuously provide their customers with their products and services. The government needs uninterrupted power to serve its constituents. Communities, households, and families all need power so we can proceed with our day-to-day functions.

With a clearly demonstrated need for stable power, the issue of transparency and fairness takes central importance. 

It is commendable that the primary distributor of power in Metro Manila and adjacent areas, prioritizes these principles in its CSP. These guarantee that consumers will continue to benefit from the most competitive rates available. 

CSP was a concept initially envisioned and eventually implemented through the passage of the Electric Power Industry Reform Act of 2001 (EPIRA).

Today, this is a mechanism mandated by the Department of Energy and the Energy Regulatory Commission. In the context of energy bidding, transparency ensures that every step – from initial request for bids to the final awarding of contracts – is visible to the public.

Meanwhile, fairness guarantees that all players in the market are treated equally, without favoritism or undue influence. 

Transparency and fairness in the process foster trust. The CSP demonstrates how accountability works, not just in words but in actual practice, because it requires strict adherence to rules that ensure integrity of the selection. 

The CSP of electric power distributors is a clear example of how embedding transparency and fairness at the core of procurement decisions ultimately benefits consumers. When these values guide the process, the outcome is one where consumers come first, enjoying reliable energy and lower prices.

Such concepts are significant to advocacy groups like CitizenWatch. Processes like the CSP ensure energy security for Filipino consumers – exactly the kind of cause that CitizenWatch Philippines advocates.

The fair and transparent process enables healthy competition by compelling providers to deliver terms favorable to consumers, such as providing the lowest possible electricity rate. What the process highlights and prioritizes are initiatives geared toward reducing costs, protecting consumers from price fluctuations, and improving services. 

For the Filipino public, whose energy needs are growing along with the country’s economy, this approach provides a guarantee that one of their fundamental rights—access to affordable and reliable energy—is upheld.

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For the October 1 CSP, six power generation companies have formally expressed their interest in Meralco’s 400-MW supply requirement. These companies are First Gas Power Corp., First Natgas Power Corp., FDC Misamis Power Corp., GNPower Dinginin Ltd. Co., Masinloc Power Co. Ltd., and Sual Power Inc.

The bidding is expected to conclude in a 15-year power supply agreement, or agreements. The mid-merit requirement is targeted to start on Aug. 26, 2025. The bidding results and the agreement will undergo the review and approval process of the Energy Regulatory Commission prior to implementation. 

Power and energy are issues that are technical and economic in nature. They involve the identification of sources, and the balancing of current needs with considerations for a sustainable future.

Given the challenge posed by climate change, we also need to be in step with longer-term plans of gradually shifting our energy mix so that we could rely more on clean and renewable energy in the future. And then, we must weigh these decisions in terms of actual costs and opportunity costs to our industries and economy. 

But power and energy are also issues of governance. Precisely because they carry huge implications on our way of life. Indeed, there is power in transparency because it allows the people to benefit from the most informed, most empirical, most enlightened decisions.
 

Kit Belmonte is a co-convenor at CitizenWatch Philippines.