EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S.B. No. 
^ 6 2
J. , i
ol l:)f '^1 ■ ' ■ " T
•19 JUL 11 PI :22
HLLLl'. : J 1 
r r r :
Intro d u ce d  by SEN. W IN  GATCHALIAN
AN ACT
IN STITUTIO NALIZING  REFORMS IN  THE PROCUREMENT OF SUPPLY 
BY DISTRIBUTION UTILITIES FOR THE CAPTIVE MARKET BY MANDATING 
A COMPETITIVE SELECTION PROCESS FOR POWER SUPPLY AGREEMENTS
EXPLANATORY NOTE
Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act 
of 2001, declares it the policy of the State to ensure the quality, reliability, security, 
and affordability of supply of electric power, to ensure transparent and reasonable 
prices of electricity in the regime of free and fair competition and full public 
accountability, and to protect the public interest as it is effected by the rates and 
services of electric utilities and other providers of electric power.
The use of a competitive process to cultivate private sector participation in the 
generation sector has long been recognized by the Department of Energy (DOE). In 
2004, the first Competitive Selection Process (CSP) was mandated in National Power 
Corporation — Small Power Utilities Group (NPC-SPUG) areas.1 In 2015, the scope of 
the CSP was extended to all distribution utilities in procuring their respective power 
supply agreements (PSAs).2 
From 2015 until 2018, the DOE, Energy Regulatory 
Commission (ERC), and National Electrification Administraion have released various 
policy issuances mandating a CSP. However, these issuances have led to confusion
1 DOE Circular DC2004-01-001 entitled "Prescribing the Rules and Procedures for Private Sector Participation in Existing NPC- 
SPUG Areas Pursuant to Rule 13 of the Implementing Rules and Regulabons o f the Electric Power Industry Reform Act of 
2001." 26 January 2004.
2 DOE Circular DC20 15-06-008 entitled "Mandating All Distribution Utilities to Undergo Competitive Selection Process (CSP) 
Securing Power Supply Agreements (PSA)." 11 June 2015.


in the industry specifically on what CSP procedure should be followed and what the 
exemptions to the CSP are, if any. 
This confusion has led to a number of court 
cases, and a recent Supreme Court decision which requires CSP on all PSA 
applications submitted on or before 30 June 2015.3 
Hence, there is a need to 
institutionalize the CSP in order to enhance regulatory certainty, competition, and 
transparency.
This proposed measure mandates a centralized CSP conducted by a Third Party 
Auctioneer for all the uncontracted demand of the captive market. The CSP shall be 
conducted using an electronic network-based platform, and can can only be 
undertaken if it is in accordance with the approved Power Supply Procurement Plan 
of each distribution utility. PSAs shall also be standardized for the protection of 
consumers. 
For example, all PSAs shall now include a provision for replacement 
power. Lastly, ERC shall no longer review and approve each PSA provided it went 
through the CSP and follows the standardized PSA format.
Given the foregoing, the immediate passage of this measure is s o u ^t.
1 G.R. No. 227670. 03 May 2019.


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
s e n a t e
LB. No.
25>i'ua-j;
•19 JULll Pr-22
RECEiVLDL'.'. 
_ - ^ P
--------
Introd uced by Senator W IN  GATCHALIAN
AN ACT
IN STITUTIO NALIZING  REFORMS IN  THE PROCUREMENT OF SUPPLY 
BY DISTRIBUTION UTILITIES FOR THE CAPTIVE MARKET BY MANDATING 
A COMPETITIVE SELECTION PROCESS FOR POWER SUPPLY AGREEMENTS
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
1 
SECTION 1. 
Short Title. -  This Act shall be known as the "Competitive
2 
Selection Process for Power Supply Agreements Act".
3 
SEC. 2. Declaration o f Policy. -  It is hereby declared the policy of the State to:
4 
(a) Ensure the quality, reliability, security, and affordability of electric power
5 
supply;
6 
(b) Make certain that procurement of power supply agreements by distribution
7 
utilities engenders transparency, enhances 
certainty 
of supply, 
and
8 
guarantees stability of electricity prices to captive consumers; and
9 
(c) Protect public interest by ensuring least cost rates and quality of service to
10 
captive customers while 
the country 
has not yet transitioned to 
full retail
11 
competition.
12 
SEC. 3. Scope and Application. -  This Act shall apply to all distribution utilities
13 
in the procurement of supply for their captive market including those in the off-grid
1


1 
areas, except in the case of new power providers, qualified third parties, and as
2 
otherwise provided in Section 25 of this Act. It provides for the manner by which
3 
the procurement is to be undertaken, the required review procedure, and the
4 
timelines to be observed in such procedure.
5 
SEC. 4. Definition o f Terms. -  For purposes of this Act, the following terms
6 
shall be defined as stated below: Provided, That other terms used in this Act but not
7 
defined herein shall be understood to mean the way they are defined in Republic Act
8 
No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001, and
9 
its implementing rules and regulations:
10 
(a) Affiliate refers to any natural or juridical person which, alone or together with
11 
other natural or juridical persons, directly or indirectly, through one or more
12 
intermediaries, controls, is controlled by, or is under common control with
13 
another natural or juridical person. 
Affiliates shall include a subsidiary
14 
company, a parent company and the subsidiaries, directly or indirectly, of a
15 
common parent;
16 
(b) Bid refers to the offer of a price by a generation company or a supply
17 
aggregator during the competitive selection process to serve the power
18 
demand volume put forward for procurement by a distribution utility or a
19 
group of distribution utilities, on their own or through a demand aggregator.
20 
The price is the generation charge converted to per kilowatt hour inclusive of
21 
all costs passed on to the consumers as determined by the Energy Regulatory
22 
Commission (ERC);
23 
(c) Captive market refers to the electricity end-users who do not have the choice
24 
of a supplier of electricity, as determined by the ERC in accordance with
25 
Republic Act No. 9136;
26 
(d) Competitive selection process (CSP) refers to a procedure wherein a
27 
distribution utility or a group of distribution utilities, on their own or through a
28 
demand aggregator, undertake a transparent and competitive procurement of
29 
power supply agreements, in accordance with the provisions of this Act;
30 
(e) Demand aggregator refers to a natural or juridical person registered and
31 
licensed with the ERC, offering services for the consolidation of the power


1 
demand volume of distribution utilities for the purpose of subjecting it to a
2 
CSP;
3 
(f) Distribution utility (DU) refers to any electric cooperative, private corporation,
4 
government-owned utility, or existing local government unit which has an
5 
exclusive franchise to operate a distribution system in accordance with its
6 
franchise and Republic Act No. 9136, including those whose franchise area
7 
covers economic zones;
8 
(g) Electric cooperative (EC) refers to a DU organized pursuant to Presidential
9 
Decree 
No. 
269, 
otherwise 
known 
as 
the 
National 
Electrification
10 
Administration Decree as amended;
11 
(h) Electronic network-based platform refers to a computer network system as
12 
well as the instruments and apparatuses allowing the execution of related
13 
methods of operation and a plurality of user client devices capable of
14 
connecting to the communication network;
15 
(i) Force majeure or fortuitous event refers to an extraordinary event which is
16 
not foreseen, or which, though foreseen, is inevitable. Such event may be
17 
produced by two general causes: (1) by nature, such as a typhoon, storm,
18 
tropical depression, flood, drought, volcanic eruption, earthquake, tidal wave,
19 
or landslide, and (2) by the act of man, such as an act of war, sabotage,
20 
blockade, revolution, riot, insurrection, civil commotion, or any violent or
21 
threatening action;
22 
(j) General conditions refers to provisions which are generally applicable to all
23 
power supply agreements as determined by ERC;
24 
(k) Generation company refers to any person or entity authorized to operate
25 
facilities used in the generation of electricity;
26 
(I) Invitation to bid refers to a letter of invitation, whose contents are determined
27 
by the ERC, for generation companies and supply aggregators to submit a bid
28 
for a power demand volume put forward for procurement by a DU or a group
29 
of DUs, on their own or through a demand aggregator;
30 
(m) 
Market operator refers to the independent market operator of the
31 
Wholesale Electricity Spot Market pursuant to Republic Act No. 9136;


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
(n) Off-grid refers to areas that are not connected to the main high voltage 
backbone system;
(o) Particular conditions refers to additional terms in the power supply agreement 
not found in the general conditions introduced either by the DU, generation 
company, or supply aggregator;
(p) Power Supply Agreement (PSA) refers to a contract between a generation 
company or a supply aggregator and a DU whereby the latter purchases 
electricity from the former;
(q) Power Supply Procurement Plan (PSPP) refers to the assessment of a DU of a 
variety of its demand side and supply side resources, as part of 
its 
Distribution Development Plan resulting in a comprehensive power supply 
procurement schedule to meet customer electricity demand while ensuring an 
optimal supply mix for its captive market and taking into account existing 
government policies;
(r) Reserve price refers to the price set by ERC as a ceiling for each particular 
CSP;
(s) Supply aggregator refers to any natural or juridical person, registered and 
licensed with the ERC to sell power to DUs by combining generation capacities 
of generation companies and supply from the Wholesale Electricity Spot 
Market;
(t) Third party auctioneer (TPA) refers to a natural or juridical person mandated 
to coordinate and administer the conduct of all CSPs; and
(u) Wholesale Electricity Spot Market (WESM) refers to the electricity market 
created under Republic Act No. 9136.
CHAPTER I I
POWERS AND FUNCTIONS OF GOVERNMENT AGENCIES
SEC. 5. The Department o f Energy. -  In addition to its powers and functions 
under Republic Act No. 7638, otherwise known as the Department of Energy Act of 
1992, as amended, the DOE shall:


1 
(a) Exercise its supervisory power over the CSP by ensuring that the general
2 
principles provided in this Act are complied with;
3 
(b) Determine the components of the PSPP in accordance with Sections 4(q) and
4 
15 of this Act, and in consultation with ERC, NEA, National Power
5 
Corporation (NPC), and the DUs; and
6 
(c) Ensure that all submitted PSPPs are aligned and consistent with the annual
7 
Power Development Plan and the Philippine Energy Plan with the end in view
8 
of ensuring sufficient power supply while eliminating over procurement of
9 
power by DUs.
10 
SEC. 6. The Energy Regulatory Commission. -  In addition to its powers and
11 
functions in Republic Act No. 9136, the ERC shall:
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 
29
(a) Promulgate the CSP Regulations pursuant to Section 9 of this Act;
(b) Establish the reserve price for every CSP, in the exercise of its rate-setting 
power. In so doing, the ERC shall take into consideration, among others, a 
DU's demand profile, the available supply in the market, pricing benchmarks, 
and a reasonable rate of return;
(c) Verify whether each CSP has complied with all procedures and requirements 
as specified in Section 20 of this Act; and
(d) Regulate the TPA pursuant to Sections 9 and 17 of this Act, including the 
reasonable fee for its services.
SEC. 7. National Electrification Administration. -  In addition to its powers and 
functions under Presidential Decree No. 269, Creating the National Electrification 
Administration, as amended, and Republic Act No. 9136, the NEA shall:
(a) Assist and equip ECs in the formulation and creation of their PSPPs; and
(b) Facilitate the voluntary aggregation of ECs upon their request.
CHAPTER I I I
GENERAL PRINCIPLES OF A CSP


1 
SEC. 8. General Principles. -  DUs shall procure their power requirements
2 
through a CSP and the WESM, except as otherwise provided in Sections 22, 23, and
3 
25 of this Act. All CSPs shall be governed by the following principles:
4 
(a) Ensure sufficient and reliable power capacity is built in a timely manner, and
5 
acquired at the least possible cost by:
6 
(i) 
Enjoining completion of each CSP within a reasonable period of time;
7 
(ii) 
Making certain that every CSP is open to all technologies and resources
8 
subject to the load, operational, and system requirements of the
9 
concerned DU, including market considerations, and existing and future
10 
policies pursuant to applicable laws, rules, and regulations;
11 
(iii) 
Having an undisclosed reserve price for each CSP, as determined by
12 
the ERC, above which no offer shall be accepted;
13 
(b) Eliminate barriers to entry and maintain regulatory stability by:
14 
(i) 
Establishing a sole and centralized TPA tasked with conducting the
15 
various CSPs of all DUs;
16 
(ii) 
Mandating a clear and transparent CSP procedure with uniform
17 
requirements; and
18 
(iii) 
Requiring standardized forms, documents, and contracts for the CSP;
19 
and
20 
(c) Implement an effective 
monitoring and 
evaluation 
system to detect
21 
anticompetitive bidding behavior among CSP participants, which includes
22 
consumer consultation and representation in the CSP.
23 
SEC. 9. CSP Regulations. -  The CSP Regulations shall be promulgated by the
24 
ERC in consultation with all private and public stakeholders within thirty (30) days
25 
from the formulation of this Act's implementing rules and regulations. 
The CSP
26 
Regulations shall include, among others:
27 
(a) Duties, responsibilities, guarantees, and liabilities of all CSP participants in
28 
accordance with Chapter IV of this Act;
29 
(b) Rules, procedures, requirements, and timelines of the following:
30 
(i) 
The entire CSP including rules and guidelines for the evaluation of bids
31 
and awarding of PSAs: Provided, That the complete procedure shall not
6


1 
exceed ninety (90) days from the issuance of the invitation to bid until
2 
to the awarding of the PSA to the winning bidder;
3 
(ii) 
Qualification, procurement, and performance indices for the TPA
4 
including:
5 
(1) Detailed scope of work,
6 
(2) Bonds and guarantees,
7 
(3) Cost recovery mechanism and reasonable fees for the services of TPA,
8 
except as otherwise provided in Section 17 of this Act,
9 
(4) Monitoring and evaluation framework, and
10 
(5) Prohibited acts and penalties
11 
(iii) 
Registration of all CSP participants with the TPA,
12 
(iv) 
Registration 
and 
licensing 
of demand 
aggregators 
and 
supply
13 
aggregators,
14 
(v) 
Determination of the reserve price of every CSP,
15 
(vi) 
Preparation of the particular conditions of a PSA,
16 
(vii) 
Negotiated PSAs in accordance with Sections 22, 23, and 25 of this
17 
Act, and
18 
(viii) Grievance and dispute resolution mechanism;
19 
(c) Standardized contents of an invitation to bid and all other documents and
20 
forms necessary in the conduct of the CSP;
21 
(d) Standardized general conditions of a PSA in accordance with Section 19 of
22 
this Act;
23 
(e) Fines and penalties for non-compliance with any of the CSP Regulations; and
24 
(f) Other such rules, procedures, and requirements that will ensure the effective
25 
regulation of the CSP.
26
27
28
29
30
31
32
33
CHAPTER IV
CSP PARTICIPANTS
SEC. 10. Participants. -  The participants to the CSP are DUs, demand 
aggregators, generation companies, and supply aggregators, which shall all be duly- 
registered with the TPA. All CSP participants shall undergo training in accessing the 
CSP electronic network-based platform utilized by the TPA


1 
SEC. 11, Mandatory Registration. -  Upon the promulgation of the CSP
2 
Regulations, CSP participants shall register in accordance with Section 9(b) (iii) of
3 
this Act: Provided, that such registration shall bind the CSP participant to specific
4 
duties, responsibilities, guarantees, and liabilities pursuant to Section 9(a) of this
5 
Act. The ERC shall exercise ownership over the said registry which the TPA shall
6 
develop, update, and maintain. The TPA shall turn over such registry to the ERC
7 
upon the end of its contract or at any time the ERC deems it necessary.
8 
SEC. 12 . Distribution Utiiities. -  Each DU shall:
9 
(a) Prepare its annual PSPP pursuant to Section 15 of this Act;
10 
(b) Based on this PSPP, the DU shall:
11 
(i) 
Determine the power demand volume it shall put forward for
12 
procurement through a CSP, and
13 
(ii) 
Formulate the schedule for its CSP in accordance with the power
14 
demand volume determined;
15 
(c) Be prohibited from passing on the reasonable fee for the services of the TPA
16 
to its captive customers; and
17 
(d) Be liable for all provisions in the PSA together with all the other signatories
18 
such as generation companies and supply aggregators.
19 
SEC. 13, Demand aggregator. -  Demand aggregators shall serve as mere
20 
representatives of DUs in the CSP and shall not have the legal personality to enter
21 
into any PSA on behalf of the aggregated DUs. Generation companies and the
22 
transmission concessionaire, as well as any of their affiliates, shall be prohibited
23 
from acting as a demand aggregator.
24 
SEC. 14. Suppiy aggregator. -  Supply aggregators shall demonstrate sufficient
25 
financial and technical capabilities to ensure timely delivery of power demand
26 
volume put forward for procurement by DUs. The transmission concessionaire and
27 
its affiliates shall be prohibited from acting as a supply aggregator.
28 
SEC. 15. Power Supply Procurement Plan. -  Every DU shall prepare and
29 
submit its annual PSPP to the DOE as part of its annual Distribution Development
30 
Plan. In the preparation of the PSPP, the DU shall undertake a cost-benefit analysis
8


1 
of the power supply requirements for its captive market taking into consideration,
2 
among others, prevailing price in the market, energy demand forecasting, load,
3 
system, and operational requirements, other market considerations, and existing and
4 
future policies pursuant to applicable laws, rules, and regulations.
5 
The PSPP shall be updated annually and approved by the Board of Directors
6 
of the DU and submitted to DOE on or before the 15th of March of each year. In the
7 
case of ECs, the submission shall include the NEA. In the case of off-grid areas, the
8 
submission shall include the NPC. DOE, with NEA in the case of ECs and NPC in the
9 
case of off-grid areas, shall endorse the submitted PSPP within thirty (30) days from
10 
receipt to the ERC and the TPA. The endorsed PSPPs shall be posted by the ERC in
11 
the electronic portal as provided under Section 27 of this Act.
12 
CHAPTER V
13
14 
THIRD PARTY AUCTIONEER
15
16 
SEC. 16. Powers and Functions o f the Third Party Auctioneer. -  The TPA shall:
17 
(a) Be the sole body that coordinates and administers the conduct of all CSPs;
18 
(b) Provide and manage a secure electronic network-based platform for the
19 
bidding component of the CSP, subject to CSP Regulations, and the
20 
implementing rules and regulations of this Act;
21 
(c) Be liable for any negligence, abuse, delay, or preferential treatment in the
22 
conduct of the CSP including security breaches to the electronic platform;
23 
(d) Be entitled to recover its costs and a reasonable fee for its services, except as
24 
otherwise provided in Section 17 of this Act; and
25 
(e) Be regulated and its operation monitored and evaluated by the ERC.
26 
SEC. 17. Qualification and Operations o f the Third Party Auctioneer. -The
27 
market operator shall initially serve as the TPA for two (2) years from the
28 
commencement of its operations which shall be no later than one (1) year from the
29 
effectivity of this Act. The market operator shall not be entitled to a reasonable fee
30 
for its services but shall endeavor to use all of its existing systems and electronic
31 
platforms available to mitigate the costs of the conduct of the CSP. It shall submit


1 
an implementation plan to DOE and ERC within two (2) months from the effectivity
2 
of this Act.
3 
At the end of two (2) years, the ERC shall contract and appoint, after
4 
competitive bidding, a new TPA whose contract term shall be determined by ERC:
5 
Provided, That the market operator shall not be precluded from joining the
6 
competitive bidding. 
The new TPA shall have vast experience in competitive
7 
bidding, sufficient knowledge of the electric power industry, and a demonstrated
8 
ability to manage and conduct the CSP.
9 
The ERC shall review, at least once a year, the performance of the TPA
10 
according to a monitoring and evaluation framework incorporated in the CSP
11 
Regulations in accordance with Section 9(a)(ii)(4) of this Act: Provided, That ERC
12 
can at any time, motu proprio or upon complaint, determine negligence, abuse,
13 
delay, preferential treatment, or non-performance by the TPA and impose penalties
14 
upon any finding of such.
15 
SEC. 
18. 
Disquaiification as Third Party Auctioneer. -  All generation
16 
companies, 
transmission 
utilities, 
DUs, 
retail 
electricity 
suppliers, 
demand
17 
aggregators, supply aggregators, corporations involved in upstream exploration,
18 
development, and production as well as downstream operations, and all their
19 
affiliates, and all the members of the board of directors, officers, and employees,
20 
including their relatives up to the fourth degree of consanguinity or affinity are
21 
prohibited from acting as, being affiliated with, or having any stake in the TPA.
22 
CHAPTER V I
23
24 
FEATURES OF A CSP
25
26 
SEC. 19. Standardized Contracts. -  All contracts, forms, and documents used
27 
for the CSP shall be standardized and unified. 
PSAs shall have general conditions
28 
and particular conditions. The general conditions shall include a maximum contract
29 
period to be determined and adjusted regularly by ERC, and a provision for
30 
replacement power, the cost of which shall be shouldered by the generation
10


1 
company or supply aggregator. 
The particular conditions shall be reviewed and
2 
approved by the ERC pursuant to Section 9(b)(vi) of this Act.
3 
SEC. 20. Results and Approval. -  The TPA shall submit a report to ERC after
4 
the determination of the winning bidder within a period of time determined by ERC.
5 
The ERC shall, within fifteen (15) days from its receipt of the report, issue a
6 
resolution indicating whether or not the conduct of the CSP is compliant with this
7 
Act, its implementing rules and regulations, and the CSP Regulations. It shall
8 
likewise indicate whether the winning bid is below the reserve price. 
All PSAs
9 
awarded through a CSP and given a resolution of compliance shall be submitted to
10 
the ERC and shall no longer be subjected to its review and approval.
11 
SEC. 21. Non-Compliance with CSP Procedures and Regulations. -  Upon ERC's
12 
finding of non-compliance by any CSP participant or the TPA with this Act, its
13 
implementing rules and regulations, and the CSP Regulations, it shall order the TPA
14 
to re-administer the entire CSP subject to fines and penalties as determined by the
15 
ERC.
16 
SEC. 22. Force Majeure or Fortuitous Event -  A DU may enter into an interim
17 
negotiated contract with a generation company or supply aggregator on the basis
18 
solely of force majeure or fortuitous event: Provided, That the interim negotiated
19 
contract shall be effective immediately but shall be subject to a full review by the
20 
ERC in the exercise of its rate-making power, the results of which must be concluded
21 
and released within thirty (30) days from the parties' submission of all documents;
22 
Provided further, That the interim negotiated contract shall have a maximum period
23 
of one (1) year and the price shall not be higher than the reserve price for similarly
24 
situated power demand volume put forward for procurement.
25 
SEC. 23. Failed Bidding. -  On the day of actual bidding, failed bidding happens
26 
under the following circumstances:
27 
1. When there are no bids submitted for two consecutive rounds;
28 
2. When there is only one bidder and its bid is above the reserve price for two
29 
consecutive rounds; or
11


1 
3. When there is more than one bidder and all bids are above the reserve price
2 
for two consecutive rounds.
3 
Upon a failed bidding, the DU can enter into a negotiated contract with a
4 
generation company or supply aggregator: Provided, That the contract shall be
5 
subject to a full review of ERC in the exercise of its rate-making power, the results of
6 
which must be released within ninety (90) days from the parties' submission of all
7 
documents.
8 
SEC. 24. Negligence and Abuse. -  Any allegation of negligence or abuse on
9 
the part of the TPA at any stage of the CSP shall be filed with the ERC: Provided,
10 
That this is without prejudice to any civil or criminal case against the TPA.
11 
SEC. 25. Off-Grid Areas. -  The DOE shall provide a different CSP procedure in
12 
consultation with NPC and NEA for those off-grid areas with small demand, security
13 
problems, and any other similar criteria. No CSP shall be required for the supply of
14 
the NPC to the DUs in off-grid areas.
15 
CHAPTER V II
16
17 
TRANSPARENCY
18
19 
SEC. 26. Observers. -  The TPA shall, in all stages of the CSP, ensure that
20 
DOE, ERC, NEA, NPC, and other interested parties as determined by DOE are
21 
informed and that their representatives are allowed to observe.
22 
SEC. 27. Electronic Portal. -  The ERC shall develop or procure an electronic
23 
portal which shall serve as the primary source of information on the CSP: Provided,
24 
That the ERC shall ensure the integrity, security, and confidentiality of all documents
25 
submitted through the electronic portal.
26 
In all stages of the CSP, the TPA shall ensure that information from
27 
generation companies, supply aggregators, DUs, and demand aggregators shall be
28 
posted on the electronic portal to ensure equal access of information for all the CSP
29 
participants: Provided, That no proprietary information shall be posted on the
30 
electronic portal.
12


1
2
3
4
5
6
7
8
CHAPTER IV
PROHIBITED ACTS AND PENALTIES
SEC. 28. Confidentiality. -  
Prior to their official release, no aspect of the 
documents used in any CSP shall be divulged or released to any prospective 
generation company, supply aggregator, DU, demand aggregator, or any other 
person or entity having direct or indirect interest in the PSAs subject of CSP.
9 
SEC. 29. Administrative Offenses. -  The following acts, when committed by a
10 
government official or employee, shall be considered administrative offenses:
11 
a) Breach of confidentiality as provided under Sections 27 and 28 of this Act;
12 
b) Wilful acts which delay the operationalization of the CSP; and
13 
c) Failure to comply with the mandated timelines prescribed under Sections 9,
14 
15, 17, 20, 22, 23, and 34 of this Act.
15 
SEC. 30. Administrative Penalties. -  Any government official or employee
16 
found guilty of the act stated in Sections 29 (a) and (b), on the first offense shall be
17 
suspended from service for six (6) months and one (1) day to one (1) year without
18 
pay, and on the second offense shall be dismissed from service that shall carry with
19 
it perpetual disqualification from holding public office.
20 
Any government official or employee found guilty of the act stated in Sec. 29
21 
(c), on the first offense shall be reprimanded, on the second offense shall be
22 
suspended from service for one (1) to thirty (30) days, and on the third offense shall
23 
be dismissed from service that shall carry with it perpetual disqualification from
24 
holding public office.
25 
SEC. 31. Criminal Offenses. -  The performance of the following acts by any
26 
person shall be considered a criminal offense:
27 
1) Disclosure of the reserve price by any individual before the proclamation of
28 
the winning bidder;
29 
2) Tampering with the CSP software;
30 
3) Manipulation of any stage of the CSP procedure to unduly favor any
31 
participant;
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1 
4) Commission of cybercrime as defined by Republic Act No. 10175, otherwise
2 
known as the Cybercrime Prevention Act of 2012, including the manipulation
3 
or interference with the electronic network-based 
platform for bidding and
4 
the electronic portal of the ERC;
5 
5) Negligence or abuse in the conduct of the CSP, including in the management
6 
and operation of the electronic network-based platform for the bidding
7 
component of the CSP;
8 
6) Violation of Section 27 of this Act; and
9 
7) Collusion among CSP participants.
10 
SEC. 32. Criminal Liability. -  Any person found guilty of the acts stated in
11 
Section 24 shall receive a punishment of prision mayor and a fine ranging from Five
12 
hundred thousand Philippine pesos (P500,000.00) to Fifty million Philippines pesos
13 
(P50,000,000.00)
14 
CHAPTER V
15
16 
FINAL PROVISIONS
17
18 
SEC. 33. Prospective Application o f CSP. -  The coverage of the CSP as
19 
specified in this Act shall have prospective application. 
PSAs filed before the ERC
20 
prior to the operationalization of this Act, shall be exempt from its coverage.
21 
SEC. 34. Implementing Rules and Regulations. -  The DOE, in consultation
22 
with ERC, NEA, NPC, and public and private stakeholders shall formulate the
23 
implementing rules and regulations of this Act within thirty (30) from its effectivity.
24 
SEC. 35. Transitory Provision. -  Pending the formulation and effectivity of the
25 
implementing rules and regulations and CSP Regulations, the existing ERC
26 
Resolutions on CSP shall continue to apply.
27 
SEC. 36. Separability Clause. -  If any portion or provision of this Act is
28 
declared unconstitutional, the remainder of this Act or any provisions not affected
29 
thereby shall remain in force and effect.
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1 
SEC. 37. Repealing Clause. -  Any law, presidential decree or issuance,
2 
executive order, letter of instruction, rule or regulation inconsistent with the
3 
provisions of this Act is hereby repealed or modified accordingly.
4 
SEC. 38. Effectivity. -  This Act shall take effect fifteen (15) days following its
5 
complete publication in the Official Gazette or a newspaper of general circulation.
6 
Approved,
15