August 26, 2025 | 12:00am
MANILA, Philippines — The Vitality Regulatory Fee needs Manila Electrical Co. (Meralco) and First Gen Corp. to stipulate the potential implications of extending their 1,000-megawatt (MW) gasoline provide deal.
The ERC has ordered Meralco and First Gen’s First Fuel Energy Corp. (FGPC) to make clear whether or not the proposed extension may result in an extra contracted capability.
The facility regulator likewise directed the events to submit a simulation of the influence of the transfer on the technology cost, which is handed on to shoppers.
This comes after Meralco and FGPC filed a joint manifestation and movement earlier than the ERC, looking for an interim extension for his or her energy buy settlement (PPA).
The contract, which covers FGPC’s Santa Rita pure gas-fired energy plant in Batangas, is scheduled to run out this month.
The businesses reportedly have additionally sought regulatory approval for the restoration of attendant prices – related bills associated to sustaining and working the gasoline plant – through the contract extension.
“Moreover, candidates are directed to clarify how they intend to make the most of or dispatch its current contracted vegetation, together with Santa Rita,” acknowledged the order signed by ERC chairman and CEO Francis Saturnino Juan.
Meralco and FGPC got three days from the receipt of the order to file their clarification.
Other than Santa Rita, Meralco can be sourcing a 500-MW gasoline provide from First Gen’s San Lorenzo plant, whose contract is ready to finish in 2027.
In its earlier filings, First Gen requested the fee to increase its PPA with Meralco with out conducting a government-mandated aggressive choice course of.
The ERC, nonetheless, suggested the events to adjust to the suitable treatment and correct process when requesting a contract extension.
With time working out, the Santa Rita plant dangers dealing with the identical destiny as First Gen’s San Gabriel plant, now working as a service provider facility after its PPA with Meralco expired in February 2024.
The contract expiration for the San Gabriel plant continued to deal a major blow to First Gen’s pure gasoline enterprise within the first half.
The “depressed” earnings from San Gabriel’s service provider gross sales place outweighed the rise within the recurring revenue of different First Gen gasoline vegetation, firm information confirmed.
