The Energy Regulatory Commission (ERC) has approved an additional 290-megawatt (MW) capacity under the power supply agreement (PSA) between Manila Electric Co. (Meralco) and San Miguel Corp.-led South Premiere Power Corp. (SPPC).
According to an ERC notice, the newly approved capacity will adhere to the same rate and conditions set in the previous year. The annual capacity fee stands at ₱10,620.2084 per kilowatt (kW)-year, while the annual escalating fixed operations and maintenance (O&M) fee is set at ₱3,200/kW-year.
However, the ERC has deferred its decision on Meralco and SPPC’s additional requests, including interim relief and confidential treatment of information. The regulatory body stated that further deliberations are required to resolve pending issues, with specific directives issued to relevant units for review.
Last year, the ERC had granted provisional authority for Meralco’s PSA with SPPC, covering a 910-MW power supply from the Ilijan natural gas plant at a base rate of ₱5.9282 per kilowatt-hour (kWh). Under the previously approved PSA, SPPC was initially allocated 890 MW to 1,200 MW of supply for Meralco, with 290 MW already covered by an existing contract.
In November 2024, Meralco highlighted that its 1,200-MW supply agreement with SPPC helped shield approximately eight million customers from higher summer electricity costs, contributing to an estimated ₱10.7 billion in total savings.
