The Energy Regulatory Commission (ERC) has denied the request of Manila Electric Company (Meralco) and Sual Power Inc. (SPI), a San Miguel Global Power subsidiary, for provisional authority or interim relief to implement their proposed 200-megawatt (MW) power supply agreement (PSA).

The proposed PSA covers the supply of 200 MW from SPI to Meralco from the operations effective date until January 25, 2030, unless terminated earlier.

In its July 14 order, the ERC clarified that it would continue evaluating the joint application for final authority despite denying the interim relief request.

The commission said the evidence presented was insufficient to establish the urgency and immediate necessity for implementing the proposed PSA at this stage.

The ERC found that Meralco was projected to have a 479.25-MW supply surplus in 2026 even without SPI’s supply.

If the proposed SPI PSA were added, Meralco’s projected surplus would rise to 679.25 MW.

In simple terms, interim relief would have allowed the 200-MW supply deal to take effect before the ERC completed its full review.

By denying the request, the regulator is saying Meralco has not yet shown that consumers urgently need the additional supply, especially since its 2026 supply outlook already shows a surplus.

The ERC also reviewed Meralco’s latest one-month generation mix and found that only 7.09% of its supply came from the Wholesale Electricity Spot Market (WESM).

The regulator said adding the SPI PSA would further result in a surplus in Meralco’s supply portfolio.

Meralco’s submitted supply-demand scenario earlier showed a 372-MW surplus for 2026, while projected deficits from 2027 to 2034 ranged from 40 MW to 768 MW.

The joint application was dated April 17, 2026 and filed by Meralco and SPI on May 6, 2026.

The ERC earlier set hearings for June 16 and June 23, with Meralco and SPI later directed to submit additional documents and their formal offer of evidence.

The ERC also directed Meralco to submit detailed information on the calculation of its annual available Renewable Portfolio Standards (RPS) compliance.

Meralco was likewise ordered to confirm whether the proposed PSA had already been considered in the computation of its annual available RPS compliance.

The case remains under ERC evaluation for final authority following the denial of interim relief.

How should regulators weigh short-term supply surplus against future demand growth when reviewing power supply deals?

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