Wednesday, 16 April 2025, 11:38 pm

    DOE presses Meralco on full compliance with power supply deal

    The Department of Energy (DOE) is urging Manila Electric Co. (Meralco) to strictly comply with all provisions of its power supply agreements (PSAs), particularly the 1,200-megawatt deal with Excellent Energy Resources Inc. (EERI), amid delays in the latter’s plant commissioning and fuel supply readiness.

    DOE assistant secretary Mario Marasigan said in a briefing Monday that not all of EERI’s units are operating in full. “These units are still under testing and commissioning,” he said, noting that under the terms of the PSA, EERI should have been producing at full capacity as of end-December last year and delivering power to Meralco by August 2025.

    “If the facilities are still under testing and commissioning, that’s one of our concerns,” Marasigan said. “Even if there is replacement power, the capacity they’ll use to fulfill the 1,200 MW will come from existing facilities that should be serving other markets.”

    Fuel supply remains a concern, with the DOE saying that the Linseed LNG facility — EERI’s expected source — has delayed the operation of its primary storage unit from 15 May to the end of June. The facility is not expected to support EERI’s capacity requirements at the moment.

    On the likelihood of sanctions, the DOE deferred to the Energy Regulatory Commission which has regulatory authority over PSAs. ERC chairman Monalisa Dimalanta clarified that the Meralco-EERI contract operates under provisional approval. “This is still under evaluation, including its performance and price,” Dimalanta told reporters.

    Meanwhile, the DOE and ERC signed a data-sharing agreement to strengthen regulatory coordination and improve policy-making. According to energy secretary Raphael Lotilla, the initiative aims to “enable secure and timely access to reliable data,” supporting smarter energy policies and better service delivery.

    The agreement establishes focal points in both agencies for secure data exchange and mandates strong data protection protocols. It will cover key sectors, including power generation, transmission, distribution, renewable energy, and off-grid development.

    “Data is at the core of responsive regulation,” Dimalanta said. “This partnership will help the ERC assess system performance and design interventions grounded in actual market conditions.”

    Meralco has not issued a comment as of this writing.

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