Energy giants vie for Meralco’s new supply deal

MANILA, Philippines —  The new supply contract of Manila Electric Co. (Meralco) has attracted major energy players, including those controlled by the Lopezes, San Miguel Group and Aboitiz family.

In a pre-bid conference yesterday, the Manuel V. Pangilinan-led power distribution giant named the six energy firms interested in supplying its 400-megawatt (MW) mid-merit requirements starting next year.

Joining the bidding war are Masinloc Power Co. Ltd. and Sual Power Inc., subsidiaries of tycoon Ramon Ang’s San Miguel Global Power Holdings Corp.

Lopez-led First Gas Power Corp. and First NatGas Power Corp., Aboitiz Power Corp. unit GNPower Dinginin Ltd. Co. (GNPD) and the Filinvest Group’s FDC Misamis Power Corp. have also expressed interest in the deal.

“We look forward to the participation of these prospective bidders during the bid submission deadline and bid opening scheduled on Oct. 1,” Meralco bids and awards committee chairman Lawrence Fernandez said.

This competitive selection process (CSP) covers a 15-year power supply agreement (PSA) taking effect on Aug. 26, 2025.

Previously, Meralco declared the best bids for its 600-MW baseload supply, with Masinloc Power taking the 500-MW requirement at P5.6015 per kilowatt-hour and GNPD the remaining capacity at P5.7392 per kWh.

Both offers were significantly lower than the P7.2609 per kWh reserve price set for the bidding.

Jose Ronald Valles, Meralco SVP and head of regulatory management, is hoping that there will be “no further delays” as they aim for the immediate signing of the PSAs from the 600-MW CSP.

The Energy Regulatory Commission (ERC) is set to conduct a review and approval process for the supply contracts prior to implementation.

“We trust that the ERC evaluation and approval will also be swift so customers can enjoy these very low rates upon scheduled delivery date in August 2025,” Valles added.

The procurement of a new supply is deemed essential to meet Meralco’s power requirements amid growing energy demand within its franchise coverage, which includes Metro Manila and nearby provinces.

As of end-June, Meralco’s customer count had reached 7.9 million.