The University of the Philippines School of Economics, in collaboration with the Philippine Center for Economic Development, invites you to a brown bag seminar by Kenmore Espinoza, PhD candidate at the UP School of Economics.

The seminar is on December 3, 2025 (Wednesday), will be held at 12NN, Room 301, Encarnacion Hall, School of Economics, University of the Philippines. 

Seminar title: Bilateral Contract Formation and Spot Market Equilibria in the Electricity Market

Abstract:

Electricity prices in the Philippines have remained high despite the restructuring of the energy market and the establishment of the spot market under EPIRA. This outcome motivated the introduction of the Competitive Selection Process (CSP) to enhance competition and transparency in bilateral contracting. However, its system-wide effects, particularly its interaction with the spot market, remain underexplored. To analyze these dynamics, we develop a two-stage supply-function equilibrium model to assess (1) how contracting outcomes differ when agreements are formed through one-on-one negotiations, through a decentralized market with multiple generators, or through a centrally coordinated bilateral market, and (2) how contracting in each setting influences spot-market bidding strategies and resulting spot outcomes.