Manila Electric Co. (Meralco), the country’s largest power distributor, has asked the Energy Regulatory Commission (ERC) to approve its emergency power supply agreement (EPSA) with Sual Power Inc. (SPI) after a key baseload contract was terminated late last year.  

Meralco senior vice president and head of regulatory management Jose Ronald Valles said the utility had to secure emergency supply after ACEN Corp. ceased delivering 200 megawatts under a 2019 power supply agreement (PSA).  

"Considering the resulting deficit of baseload capacity and the approaching peak demand during summer months, Meralco notified the ERC of its need to enter into an EPSA while we revisit our Power Supply Procurement Plan to determine the need to conduct CSP (competitive selection process) for the remaining term of the terminated PSA," Valles said in an interview with reporters.  

Meralco sought proposals from six suppliers — Masinloc Power Generation Co., SPI, Southwest Luzon Power, First Natural Gas, Therma South Luzon, and South Luzon Thermal Energy Corp. — and selected SPI for offering the lowest price at P5.05 per kilowatt-hour (kWh), plus a 10-centavo line rental cap.  

The EPSA, which runs from 26 January to 25 January 2026 has already taken effect while the ERC reviews the application. 

Meralco argues that the ACEN contract termination qualifies as a force majeure event. As such, it should be allowed to enter into emergency procurement without a CSP. 

The company also said the deal is cheaper than sourcing from the Wholesale Electricity Spot Market, potentially saving consumers P3.88 billion.