Jamaine Punzalan

Article (news)

Alvin Elchico

ABS-CBN News

<p>MANILA — The Energy Regulatory Commission has authorized the extension of the power supply contract between Meralco and First Gas Power Corp&#x27;s Sta. Rita power plant for the delivery of 1,000 MW of electricity.</p><p>The extension is timely as the power supply agreement expires on Friday, August 29, 2025.</p><p>The ERC chose between rising generation costs for Meralco customers and exposing the Luzon grid to potential yellow or even red alert if the 1,000-MW plant does not operate.</p><div><a href="https://www.abs-cbn.com/news/business/2025/8/12/meralco-power-rates-go-up-again-in-august-1155">Meralco power rates go up again in August</a></div><p>Earlier, in a joint filing with the ERC, both Meralco and FirstGas claimed that if the contract is not extended, the Sta Rita plant would no longer operate, shaving off 1,000 MW of electricity in the Luzon grid.</p><p>But at the same time, both parties admitted that extending the contract would mean additional generating cost for Meralco as it has already contracted the 1,000 MW supply that should have expired this month.</p><p>&quot;Should the Sta. Rita Power Plant and other facilities supplied by Malampaya experience a complete shutdown, the issue transcends mere rate concerns and becomes a matter of energy security,” the ERC said in its order. </p><p>“Such a scenario could lead to widespread blackouts, with repercussions extending beyond potential increases in MERALCO&#x27;s generation charge. Ultimately, the resultant blackouts could severely impact the national economy,” it added. </p><p>In the end, the ERC chose to be cautious and ensure energy security for the Luzon grid. </p><div><a href="https://www.abs-cbn.com/news/business/2025/8/27/meralco-clears-dangling-cables-from-isps-cable-tv-providers-1921">Meralco clears dangling cables from ISPs, cable TV providers</a></div><div><br/></div><div><strong>OIL PRICE HIKE LOOMS AGAIN</strong></div><div><br/></div><p>Meanwhile, another oil price hike looms next week as oil prices in the world market continue to soar.</p><p>Based on the first 3 trading days, prices of all imported transport fuel were up. </p><ul><li>Diesel: P0.50 per liter increase</li><li>Gasoline:  P0.17 per liter increase</li><li>Kerosene: P0.56 per liter increase</li></ul><div><br/></div><p>Jetti Petroleum President Leo Bellas said prices were unlikely to go down in the next 2 trading days due to lingering geopolitical issues like the war between Russia and Ukraine.</p><p>For LPG, Regasco President Arnel Ty forecast a rollover or a slight increase of around P0.50 to P1 per kilogram by September 1. </p><p>According to Ty, by the start of the &quot;ber&quot; months, countries with winter start to stockpile LPG, which is used as heating fuel.</p><div><br style="caret-color:rgb(0, 0, 0);color:rgb(0, 0, 0)"/></div>

<p>The Energy Regulatory Commission has authorized the extension of the power supply contract between Meralco and First Gas Power Corp's Sta. Rita power plant for the delivery of 1,000 MW of electricity.</p>

The Energy Regulatory Commission has authorized the extension of the power supply contract between Meralco and First Gas Power Corp's Sta. Rita power plant for the delivery of 1,000 MW of electricity.

ERC approves Meralco-Sta. Rita Power Plant supply deal extension

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ERC approves Meralco-Sta. Rita Power Plant supply deal extension

Alvin Elchico,

ABS-CBN News

Published Aug 28, 2025 05:17 PM PHT

Read More:

First Gas Power Corp

Sta. Rita power plant

electricity

power

Meralco

ERC

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