Key energy pact’s approval hailed
By Maria Bernadette Romero – 01 Jan 2025, 00:20
from The Daily Tribune
A pivotal milestone was how energy stakeholders described the Philippine Competition Commission’s (PCC) green light to the joint acquisition of two gas-fired power plants and a liquefied natural gas (LNG) terminal by Meralco PowerGen Corp. (MGEN), Aboitiz Power Corp. (AboitizPower), and San Miguel Global Power Holdings Corp. (San Miguel Power).
The transaction is poised to bolster the nation’s energy security.
Under the agreement, MGEN and AboitizPower’s joint venture, Chromite Gas Holdings Inc. (Chromite), will acquire a 67 percent stake in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp.
Additionally, the consortium will take full ownership of Linseed Field Corp. (LFC), the operator of an LNG terminal in Batangas City.
Chromite — 60 percent owned by MGEN and 40 percent by AboitizPower — will hold the majority stake, while San Miguel Power retains a 33 percent share. The deal underscores a significant collaboration between key players in the Philippine energy landscape.
Regulatory conditions ensure competition
In approving the acquisition, the PCC has imposed stringent safeguards to maintain competitive practices. These measures include independent operations.
Acquired companies must function separately from their parent firms, with distinct management, information technology (IT) systems, and office locations.
The PCC will also oversee the bidding process for power supply agreements to ensure transparency and fairness.
Power plants are required to report unplanned outages to the PCC within seven days.
Regular reports to the Competitive Retail Electricity Market will be mandatory, and a compliance officer will be appointed to enforce adherence to these rules.
These safeguards will remain in effect for five years, with possible extensions. Noncompliance could result in fines of up to P2 million per day per violation.
“These safeguards aim to protect consumers and businesses while supporting critical investments in energy security,” the PCC said in a statement.
