Meralco Secures Lower Power Rates For Consumers

In a significant development for electricity consumers, the Manila Electric Company (Meralco) has secured the lowest power rates for its 600-megawatt (MW) baseload supply requirement through a transparent and competitive bidding process.

Meralco's Competitive Selection Process (CSP) successfully secures significantly lower power rates for consumers, with winning bids from Masinloc Power and GNPower Dinginin promising affordable electricity starting August 2025.

The bid opening, held on August 27, saw six out of eight initially interested bidders submitting their proposals, marking a successful culmination of Meralco's efforts to provide affordable energy to its customers.

The competitive selection process (CSP) faced hurdles earlier this year, including a temporary restraining order (TRO) issued by the Regional Trial Court (RTC) of Taguig.

The TRO was based on a complaint filed by Prime Energy and the SC 38 Consortium, led by Tycoon Enrique Razon, challenging Meralco's Terms of Reference (TOR) for allegedly not aligning with the Department of Energy’s (DOE) policy that gives preference to indigenous natural gas (ING).

However, the RTC recently dismissed the complaint due to a lack of jurisdiction, allowing Meralco’s Bids and Awards Committee (BAC) to proceed with the 600 MW CSP.

Meralco Senior Vice President and Regulatory Management Head, Atty. Jose Ronald Valles, expressed satisfaction with the bidding results, highlighting the process's transparency and competitiveness.

“The transparency and competitiveness of MERALCO’s bidding process is underscored by the fact that majority of the price offers received were lower than the ceiling price set. In fact, the winning bidders’ offers were at least Php1 lower than the reserved price,” Valles stated.

The bidding saw SMC’s Masinloc Power Partnership Co. Ltd. and Aboitiz Power’s GNPower Dinginin Ltd. Co. emerging as the winning bidders.

Masinloc Power offered a rate of Php5.6015 per kilowatt-hour (kWh) for 500 MW, while GNPower bid Php5.7392 per kWh for 100 MW.

These rates are significantly below the reserve price of Php7.2609 per kWh set by Meralco and offer a much-needed reprieve for consumers facing high electricity costs. These rates are also considerably lower than the current billing rate of Php7.5471 per kWh from First Gas' San Lorenzo Plant, which uses indigenous natural gas.

“This CSP is a testament to Meralco’s commitment to securing power supply at the least cost possible,” said Lawrence S. Fernandez, Chairman of Meralco’s BAC-PSA.

The successful bids pave the way for the immediate signing of Power Supply Agreements (PSAs), subject to the Energy Regulatory Commission's (ERC) evaluation and approval, with a planned effectivity date of August 2025.

With these developments, Meralco continues to demonstrate its dedication to providing affordable, reliable, and sustainable energy solutions to its customers.