The Energy Regulatory Commission (ERC) rejected the request of Manila Electric Company (MERALCO) and Masinloc Power Co. Ltd. (MPCL) to implement their Power Supply Agreement (PSA) ahead of its scheduled start date.
In a report by Manila Bulletin, the ERC ruled that granting provisional authority to activate the PSA was “premature,” even though the agreement passed the competitive selection process (CSP).
The ERC stated that following deliberation, the Commission found that Meralco’s CSP is consistent with the 2023 DOE [Department of Energy] CSP Circular and the Commission’s related resolutions.
However, despite this compliance, the ERC clarified that the PSA will not commence until August 2025, leading to the denial of the applicant’s request.
Earlier this year, MPCL secured 500 megawatts (MW) of the 600 MW baseload power capacity offered by MERALCO during a bidding process held in August.
MERALCO disclosed that MPCL bid Php 5.6015 per kilowatt-hour (kWh) for the 500 MW, while GNPower Ltd. Co. secured the remaining 100 MW with a bid of Php 5.7392 per kWh.
Out of eight firms that initially submitted bids for this CSP, only six met the required qualifications, technical proposals, and bid prices.
MPCL operates the Masinloc Coal-fired Power Plant in Zambales, which was acquired by SMC Global Power in 2018.
According to Meralco, MPCL oversees Units 3 and 4 of the plant, which are under construction and expected to add a combined net capacity of 619.50 MW.
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