The Energy Regulatory Commission (ERC) has approved Manila Electric Co. (Meralco) to use the full 1,200-megawatt (MW) capacity of the Ilijan natural gas plant in Batangas under its deal with San Miguel-led South Premiere Power Corp. (SPPC). Announced after the ERC’s March 19, 2025 meeting, this adds 290 MW to the earlier 910 MW limit, aiming to keep electricity rates steady for Meralco customers by reducing reliance on pricey spot market power.
“After careful deliberation, the commission resolved to add 290 MW to the originally approved capacity,” the ERC stated, keeping the same terms set last May 9, 2024. This could lower Meralco’s blended rates by about P0.28 per kilowatt-hour, with final tweaks still to come. The deal replaces an older, expiring contract, offering a more affordable rate compared to the previous P5.13 per kWh.
The ERC also gave the go-ahead to power agreements for Eastern Samar Electric Cooperative (ESAMELCO) and Samar I Electric Cooperative (SAMELCO I) with Sual Power Inc., plus Cebu I Electric Cooperative (CEBECO I) with KEPCO SPC Power Corporation. These moves promise a more reliable supply for these regions.
Meralco’s expanded PSA with SPPC followed a bidding process to fill a 1,200-MW gap in its supply, with SPPC securing the win at a competitive rate. Chairperson Monalisa C. Dimalanta will sign off on the decisions soon.
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