The Energy Regulatory Commission (ERC) has denied the joint application of Manila Electric Co. (Meralco) and Sual Power, Inc. for a 200-megawatt (MW) power supply agreement, according to a report by BusinessWorld. The regulator ruled that the evidence presented did not demonstrate an urgent need for the additional capacity.
In a decision dated July 14, the ERC stated that the proposed PSA failed to prove a supply deficiency or an imminent power shortage that would justify expedited approval. Meralco had sought to secure capacity from Sual Power’s coal-fired plant in Pangasinan to meet growing demand in its franchise area.
The denial could prompt Meralco to rebid the capacity or explore alternative supply sources. The ERC’s decision underscores its strict adherence to procurement rules, requiring clear justification for bilateral agreements outside the competitive selection process.