Power for People Coalition (P4P)
Pasig — Consumers, led by the Power for People Coalition (P4P) on Tuesday trooped to the office of the Energy Regulatory Commission (ERC) in Pasig City to express their displeasure at the approval of power supply agreements (PSAs) that Meralco executed with its associated generation companies (gencos), potentially driving up electricity prices and securing a monopoly for the power giant.
The ERC recently approved PSAs signed by Meralco with South Premiere Power Corp. (SPPC) and Excellent Energy Resources Inc. (EERI) amounting to 1,200 megawatts (MW) each. The two companies, both of which operate gas-fired power plants, are 40% owned by Meralco in partnership with San Miguel Global Power Holdings Corp. (SMGP) and Aboitiz Power, with Meralco holding the largest stake.
“The deals that the ERC approved adds another cross to bear for consumers. Already, these power plants account for a quarter of the blended cost of generation for Meralco consumers. This means we will become more dependent on these plants, and consequently, gas, for much of the power needs of the Meralco franchise area,” said Gerry Arances, P4P Convenor.
The Institute for Energy Economics and Financial Analysis (IEEFA) released findings in February 2025 showing that Meralco’s average cost of generation from gas-fired power plants has increased 15% since the introduction of LNG.
“Our reliance on gas will definitely trigger more power rate increases, as fossil fuel prices always go up in the world market during times of uncertainty. And who pays for these price increases? Not the gencos, not Meralco, but consumers,” he added.
The energy consumer advocate also slammed the ERC’s inaction on the cross-ownership issue of Meralco with these power plants.
“This decision does not just allow higher power rates, it ensures more of the profit from these power rate hikes go to Meralco. Meralco is already breaching the limit set by EPIRA for power contracted from associated companies. Meralco is buying more than 50% of its power from companies that it also owns, a monopolistic practice that the law specifically bans, and a violation of the law that the ERC continues to ignore. With the decision, ERC has clearly disregarded its mandate to consumers,” said Arances.
Labor leader Ka Leody de Guzman amplified these concerns, demanding that the ERC uphold its mandate.
“Ang trabaho ng ERC ay bantayan ang industriya ng kuryente at protektahan ang mga konsyumer. Malinaw ‘yan sa batas. Pero binabalewala ng komisyon ang kanilang mandato at mas lalong pinapaburan ang mga higanteng kumpanya sa kuryente tulad ng Meralco. Nanawagan kami sa ERC at sa mga komisyoner nito, tama na ang pagpepenitensya sa mga konsyumer. Pag-isipan ang mga desisyon ninyo kung tunay nga bang nakatulong ito sa ordinaryong mangaggawa,” said de Guzman.
[The ERC’s job is regulate the power industry and protect consumers. That’s what the law says. But the commission is ignoring its mandate and futher favoring giant power companies like Meralco. We call on the ERC and its commissioners, do not put the burden on consumers and reflect on your decisions to see if they have truly helped ordinary Filipinos.]
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