ERC approves 290MW Meralco, SPPC supply deal

By Jed Macapagal – March 26, 2025
from Malaya Business Insight

The Energy Regulatory Commission (ERC) has approved an additional 290 megawatts (MW) capacity to the existing power supply agreement (PSA) between the Manila Electric Co. (Meralco) and San Miguel Corp.’s South Premiere Power Corp. (SPPC).

The regulatory body said in an issuance posted on its website  on Tuesday that this addi-tional supply will have similar terms and rates with the earlier approved PSA be-tween the parties worth 910 MW from the 1,200 MW Ilijan natural gas-fired power plant.

This new approval from the ERC now allows SMC to supply the entire capacity of the Ilijan plant to Meralco.

ERC said the PSA also has a pass-through fuel fee which is dependent on the fuel in-dex.

In January 2024, Meralco secured the best bid for 1,200 MW worth of supply under a com-petitive selection process wherein SPPC submitted the lowest offer of a total lev-elized cost of electricity rate at P7.0718 per kilowatt-hour (kWh).

The contract was for a 15-year PSA to cover Meralco’s future capacity requirements.

Approval for the remaining 290 MW capacity was delayed as the ERC evaluated that a simi-lar capacity back then was still contracted under an earlier different contract be-tween the two similar parties.