ERC Sets 2025 Market Share Limits, Identifies Dominant Power Generators

The Energy Regulatory Commission (ERC) has set the 2025 market share limits for power generation companies, reinforcing that no single entity should exceed 30% of a grid’s installed generating capacity (IGC) or 25% of the national total. These limits, issued under ERC Resolution No. 7, Series of 2025, aim to prevent market dominance and promote fair competition in the electricity sector.

Under the Electric Power Industry Reform Act of 2001 (EPIRA), companies must comply with these restrictions to ensure a balanced and competitive energy market. The 2025 IGC and MSL figures were calculated using generation ownership and operational data from January to December 2024.

For 2025, the ERC has set the Installed Generating Capacity (IGC) for Luzon at 19,419 megawatts (MW), with a Market Share Limitation (MSL) cap of 5,825 MW. In the Visayas, the IGC stands at 3,383 MW, with an MSL cap of 1,015 MW. Mindanao has an IGC of 4,292 MW and an MSL cap of 1,287 MW. Nationally, the total IGC is 27,096 MW, with a corresponding MSL of 6,774 MW. These limits ensure that no single generation company gains excessive control over power supply in any grid or the entire country.

As of December 31, 2024, the five largest power generators collectively hold significant portions of the national energy market. San Miguel Corporation (SMC) leads with a 22.44% national market share, supplying 6,079 MW across Luzon, Visayas, and Mindanao. Aboitiz Equity Ventures, Inc. (AEVI) follows closely with a 21.75% share, delivering 5,894 MW across multiple grids. First Gen Corporation (FGC) holds 13.22%, dominating the Visayas market with 23.20% of its regional capacity. Manila Electric Company (MERALCO) accounts for 5.42% of the national market, with a strong 20.44% presence in the Visayas. Ayala Corporation (AC) holds a 5.28% share, generating 1,431 MW in Luzon and Visayas.

While these companies remain within the allowable market share limits, the ERC warned that any entity exceeding these thresholds must report within 15 days of occurrence. The commission will monitor ownership changes and conduct audits to ensure compliance with EPIRA.

The ERC is expected to review and adjust the 2025 IGC and MSL figures as new power plants come online or acquisitions shift ownership structures. Any company exceeding the set limits will be required to take corrective actions or face penalties.

Stakeholders can access the full resolution at https://www.erc.gov.ph/Files/Render/issuance/45158.

With San Miguel Corporation and Aboitiz Equity Ventures leading the national market share, how do you think the concentration of power generation among a few key players might impact electricity prices and energy security in the Philippines? Share your thoughts below!