The Energy Regulatory Commission has granted interim approval to the power supply agreement (PSA) between Manila Electric Co. (Meralco) and GN Power Dinginin Ltd. Co. for a 100-megawatt capacity, subject to certain conditions.
Meralco and GNPD filed a joint application with the ERC on Sept. 17, 2024, for the approval of their 15-year PSA, with contract delivery starting on Aug. 26, 2025.
“After due deliberation, thorough evaluation of all the evidence submitted and appreciation of all information gathered during the hearings, the commission, pursuant to its regulatory powers, hereby resolves to grant interim relief to applicants Meralco and GNPD and allow them to implement their PSA starting 26 Aug. 2025,” the ERC said.
The commission considered several factors in granting the interim relief, including compliance with the competitive selection process, the supply-demand scenario, key features of the PSA, bid prices and the PSA rate, and rate evaluation.
“Based on its appreciation of the pieces of evidence offered by the applications vis-a-vis these parameters, the commission finds merit and necessity to allow the parties to implant their PSA pending the issuance of the final decision in this case,” the ERC said.
The ERC noted that the new PSA rate is lower than a previously approved PSA rate between GNPD and Meralco. It also said the proposed rate in the new PSA is lower than the rates Meralco pays for power from coal and natural gas.
GNPD offered a rate of P5.7392 per kilowatthour (total delivered levelized cost of energy rate, VAT and line rental inclusive) for 100 MW (net) of supply to Meralco during the competitive selection process in August 2024.
In granting interim relief, the ERC said GNPD is obligated to provide replacement power to Meralco at all times, even during planned or forced outages of the plant. It said the termination of the PSA requires ERC approval, and the parties must file the necessary motions.
It also directed Meralco to optimize its contracted capacity from all its suppliers, keeping in mind its obligation to supply power at the lowest cost.
