Meralco and SPI Seek ERC Approval for 200-MW Power Supply Deal

Manila Electric Co. (Meralco) and Sual Power, Inc. (SPI) have jointly filed a request with the Energy Regulatory Commission (ERC) to approve a four-year power supply agreement for 200 megawatts of baseload capacity. The deal, resulting from Meralco’s competitive bidding process, features SPI as the lowest bidder among six generation companies. SPI, a subsidiary of San Miguel Global Power Holdings Corp., operates a coal-fired plant in Pangasinan. The agreement aims to help Meralco comply with Renewable Portfolio Standards by allowing SPI to source electricity via the Wholesale Electricity Spot Market or the Renewable Energy Market. The proposed rate of P4.1955 per kilowatt-hour is significantly lower than estimated market costs, projecting approximately P631 million in savings for consumers. Although originally scheduled to begin in January, the contract was delayed due to administrative issues with the Department of Energy. The companies warn that further delays could expose consumers to price volatility in the spot market. Meralco serves over 8.1 million customers in Metro Manila and surrounding provinces, making this regulatory approval critical for maintaining stable and cost-effective energy supplies in the region.