Lower monthly bills are expected after the Energy Regulatory Commission (ERC) cleared the Meralco-GNPower-Dinginin (GNPD) electricity supply deal.
Electricity consumers and businesses can look forward to lower generation costs after ERC allowed the 15-year power supply agreement (PSA) starting today.
GNPD is a venture among Therma Power Inc., a subsidiary of AboitizPower; AC Energy Holdings Inc. of Ayala Corp.; and Power Partners Ltd. Co.
In an order dated 22 August, the ERC granted interim relief to Meralco and GNPD, authorizing them to proceed with their contract covering 100 megawatts (MW) of power.
“Granting this interim relief enables vital power supply agreements to proceed, while we continue to exercise due diligence before issuing a final ruling,” ERC chairperson and CEO Francis Saturnino Juan said on Monday.
Lower than previous rate
For the interim, the regulator approved a base fee P2.3055 per kilowatt-hour (kWh), lower than the previously approved PSA rate for the same power plant.
Meralco and GNPD executed the deal in September 2024 after a competitive selection process (CSP), with GNPD emerging as one of the winning bidders.
Both parties then sought ERC approval through a joint application filed in the same month.
The ERC said it considered compliance with the Department of Energy’s CSP rules, the commission’s guidelines, the supply-demand outlook, the bid price, and the PSA rate in issuing the order.