The Energy Regulatory Commission denied the joint application of Manila Electric Co. and Sual Power, Inc. for a proposed 200‑megawatt power supply agreement, stating that the request lacked demonstrated urgency.
In a decision issued on July 14, the regulator concluded that the evidence presented did not establish an immediate need for the additional supply, noting that Meralco is projected to maintain sufficient capacity without the extra 200 MW.
Sual Power is a subsidiary of San Miguel Global Power Holdings Corp., the power generation arm of San Miguel Corp., and operates a 1,200‑megawatt coal‑fired plant in Pangasinan.
The company secured the winning bid in Meralco’s competitive selection process earlier this year by offering the lowest price of P4.2955 per kilowatt‑hour.
The four‑year power supply agreement was intended to meet Meralco’s 200‑megawatt baseload requirement and to support compliance with Renewable Portfolio Standards that mandate a share of electricity from eligible renewable sources.
Although Sual Power’s generation assets are coal‑based, the agreement would allow the utility to satisfy renewable obligations through the purchase of renewable energy certificates.
ERC projections indicate that Meralco will have a surplus of 479.25 megawatts in 2026 even without the proposed supply from Sual Power.
The commission also reviewed Meralco’s existing and potential power suppliers in its assessment of the joint application.
ERC directed Meralco to submit its Renewable Portfolio Standards compliance report and to confirm whether the proposed supply had already been accounted for in its planning.
Meralco remains the country’s largest private electric distribution utility, serving more than 8.2 million customers in Metro Manila and surrounding provinces such as Bulacan, Cavite, Rizal, Laguna, Batangas, Pampanga, and Quezon.
The utility’s controlling shareholder, Beacon Electric Asset Holdings, is partially owned by PLDT, whose related holdings maintain interests in additional media enterprises.
