Electricity consumers could finally see some relief from elevated power prices beginning in September after Prime Energy secured a deal to supply indigenous Malampaya natural gas to the 1,200-megawatt Ilijan Power Plant.

Prime Energy, operator of Service Contract No. 38, on Thursday confirmed signing an Interim Natural Gas Supply Arrangement with South Premiere Power Corp. (SPPC), under which Malampaya gas will be supplied to the Ilijan facility from September to 25 February 2027.

The company said the arrangement is expected to reduce fuel costs by an average of P0.36 per kilowatt-hour, with the savings set to be reflected in consumers’ electricity bills.

Meralco has already announced a generation charge reduction of about P0.36 per kWh starting September.

“This demonstrates that indigenous Malampaya gas can help lower electricity costs for consumers while delivering reliable energy supply,” Prime Energy President and Chief Executive Officer Donnabel Kuizon Cruz said.

“Through this arrangement, the SC38 Consortium and SPPC are reducing fuel costs, maximizing the use of existing infrastructure, and strengthening the country’s energy security. Every unit of indigenous gas that displaces imported fuel helps make electricity more affordable for Filipino households and businesses while reinforcing the country’s energy independence,” she added.

The company said the Ilijan supply underscores the strategic role of Malampaya in helping shield consumers from global fuel price volatility while meeting the country’s growing electricity demand.

Prime Energy added that the Malampaya project also continues to provide significant revenues to the government. 

Under the fiscal terms of Service Contract No. 38, about 40 percent to 60 percent of every peso of the project’s net proceeds accrues to the government. Over the past two decades, Malampaya has contributed more than $14 billion in revenues.