Consumer advocates and labor groups on Tuesday denounced the Energy Regulatory Commission (ERC) for approving power supply agreements (PSAs) that allegedly strengthen the market dominance of electricity distributor Meralco and its affiliated generation firms.
Members of the Power for People Coalition (P4P) staged a protest outside the ERC’s office in Pasig City, criticizing the regulator for clearing PSAs between Meralco and two gas-fired power plant operators—South Premiere Power Corp. (SPPC) and Excellent Energy Resources Inc. (EERI)—each covering 1,200 megawatts of supply.
Both SPPC and EERI are partly owned by Meralco through joint ventures with San Miguel Global Power Holdings and Aboitiz Power. Meralco reportedly holds the largest stake in both companies.
Gerry Arances, P4P convenor, warned that the deals will make consumers more vulnerable to price fluctuations in fossil fuel markets.
“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,” Arances said.
He cited a February 2025 report from the Institute for Energy Economics and Financial Analysis (IEEFA), which showed a 15 percent increase in Meralco’s average generation costs from gas-fired plants following the adoption of liquefied natural gas (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 said.
Arances also questioned the legality of Meralco’s contracts with its affiliated generators, claiming the utility is exceeding the cross-ownership limits set by the Electric Power Industry Reform Act (EPIRA).
“Meralco is buying more than 50 percent of its power from companies that it also owns, a monopolistic practice that the law specifically bans,” he said. “With the decision, ERC has clearly disregarded its mandate to consumers.”
Labor leader Leody de Guzman echoed the criticism, urging the ERC to prioritize public welfare over corporate interests.
“Ang trabaho ng ERC ay bantayan ang industriya ng kuryente at protektahan ang mga konsyumer. Malinaw ’yan sa batas,” said de Guzman. “Pero binabalewala ng komisyon ang kanilang mandato at mas lalong pinapaburan ang mga higanteng kumpanya sa kuryente tulad ng Meralco.”
