Manila Electric Company (Meralco) has secured a P4.2955 per kilowatt-hour (kWh) offer from Sual Power Inc. (SPI) to supply 200 megawatts (MW) of baseload power, a development expected to help keep generation costs competitive for consumers.

Meralco said Tuesday SPI, which operates the Sual coal-fired power plant in Pangasinan, submitted the lowest offer in its competitive selection process (CSP).

The strong response to the tender underscored ample supply interest, with six generation companies—out of 15 initial bidders—submitting compliant offers totaling 531 MW, more than double the 200-MW requirement.

SPI’s P4.2955 per kWh offer for the entire 200-MW requirement was declared the best bid.

“As in previous years, this CSP has successfully secured the required power supply for customers at the lowest possible cost, achieved through an open and transparent process," Meralco Bids and Awards Committee for Power Supply Agreements Chairman Lawrence S. Fernandez said.

Identified as possible next best bids were Mariveles Power Generation Corp., which offered P4.3805 per kWh for 200 MW of supply; Bac-Man Geothermal Inc., which offered P4.5187 per kWh for 35 MW; and San Manuel Solar Inc., which offered P4.5787 per kWh for 46 MW.

Also on the list were ACEN Corp., which offered P5.2087 per kWh for 25 MW of supply, and First Gen Hydro Power Corp., which offered P5.4906 per kWh for 25 MW.

The contract will lock in 200 MW of baseload supply for Meralco, reinforcing supply security while supporting compliance with Renewable Portfolio Standards, subject to approval by the Energy Regulatory Commission (ERC).

Before the deal is finalized, the Bids and Awards Committee will complete a post-qualification review and issue a Notice of Award to SPI.

Consumer groups monitored the bidding as official observers, with the entire process broadcast live on Meralco’s YouTube page to ensure transparency.

Meralco said the selection was conducted under strict regulatory oversight and in full compliance with competitive selection rules set by the ERC and the Department of Energy, reinforcing safeguards meant to secure least-cost power for customers.