The Energy Regulatory Commission (ERC) has granted interim relief to the Manila Electric Company (MERALCO) and GNPower Dinginin Ltd. Co. (GNPD), thus allowing them to implement a 15-year power supply agreement (PSA) covering 100 megawatts (MW) beginning August 26, 2025.

In an order dated August 22, 2025 under ERC Case No. 2024-125 RC, the regulator authorized the two firms to proceed with the PSA while the final decision on their joint application remains pending. MERALCO and GNPD executed the contract in September 2024 after a competitive selection process (CSP) where GNPD was named among the successful bidders. Both parties subsequently filed a joint application with the ERC for approval of the deal.

The ERC said it considered several factors in granting the provisional relief. These range from compliance with the Department of Energy’s CSP rules and the Commission’s own CSP guidelines to the prevailing supply-demand outlook, the PSA’s features, and the offered bid price and rate. Based on the evidence submitted, the ERC ruled there was merit in allowing the PSA’s implementation in the meantime.

For the interim period, the Commission adopted a total base fee of PHP2.3055 per kilowatt-hour (kWh), which is lower than the previously approved PSA rate for the same power plant. ERC Chairperson and CEO Atty. Francis Saturnino Juan said the move strikes a balance between consumer protection and ensuring a stable and competitively priced electricity supply. “Granting this interim relief enables vital power supply agreements to proceed, while we continue to exercise due diligence before issuing a final ruling,” Juan said.

The ERC’s full order can be accessed through its official website.

Do you think this interim relief will help bring electricity costs down for consumers, or will the real impact only be seen once the ERC issues its final decision?

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