The Energy Regulatory Commission has authorized Manila Electric Co. to continue sourcing power from the 1,200‑megawatt Sta. Rita gas‑fired plant in Batangas for an additional six months, projecting consumer savings of 4.2 billion pesos through the use of Malampaya gas and other rate‑reduction measures.
Senior vice‑president and head of regulatory management Jose Ronald V. Valles explained that the commission granted a third interim extension of the utility’s power purchase agreement with First Gas Power Corp., noting that the negotiated rate has been approved.
The Sta. Rita plant is 60% owned by Razon‑led Prime Infrastructure Capital, Inc., and the Department of Energy has identified it as a critical generation asset for the Luzon grid.
A 10‑page order issued on June 24 permits Meralco and FGPC to enforce the agreement until December 25, 2026 under terms that are not less favorable to the public interest.
Rate‑reduction measures include FGPC assuming full financial risk for peso depreciation beyond 62 pesos per US dollar, covering line‑rental costs above 0.15 pesos per kWh up to 25 million pesos per billing period, and providing a monthly 50 million‑peso discount on nonfuel charges.
The extension also requires FGPC to share its Malampaya gas allocation with the Ilijan power plant from September 1, 2026, to reduce fuel costs under Meralco’s existing supply agreement with South Premiere Power Corp.
Supply of Malampaya gas to Ilijan is expected to generate 3.8 billion pesos in fuel savings, contributing to the overall 4.2 billion‑peso projected savings.
These measures are estimated to lower Meralco customers’ rates by an average of 0.36 pesos per kilowatt‑hour from September to December 2026.
Prime Infra, holding a majority stake in Sta. Rita, noted that using Malampaya gas supports reliable generation, fuel‑supply flexibility, and a more resilient and diversified energy mix.
The Malampaya deepwater gas‑to‑power project operated by Prime Energy Resources supplies about a quarter of Luzon’s electricity needs.
A statement from Prime Energy highlighted that indigenous Malampaya gas can lower electricity costs for consumers while delivering reliable supply.
