The Philippine Competition Commission (PCC) has cleared the proposed sale by the Power Sector Assets and Liabilities Management (PSALM) Corporation of the Caliraya, Botocan, and Kalayaan pumped storage power plants to Cleanergy 9 Power Inc., an Aboitiz Group unit—subject to binding safeguards to protect competition in the Luzon power market.
In a statement, the PCC said its approval comes with voluntary commitments designed to address competition risks identified during its merger review, particularly in the Luzon grid’s ancillary services spot market.
During Phase 1 of the review, the commission flagged concerns over the Aboitiz Group’s ability and incentive to raise prices or limit reserve capacity during the interim period before the Kalayaan Pumped Storage Power Plant (KPSPP) secures an Energy Regulatory Commission (ERC)-approved tariff. This window runs until up to two years from the effectivity of Department of Energy Circular No. DC2025-04-0006, or around the second quarter of 2027.
Aboitiz submitted commitments to mitigate risks and these were accepted by the PCC. These include filing a complete KPSPP tariff application with the ERC within prescribed timelines, along with applications for provisional authority or interim relief to allow temporary rates while the full tariff case is under review.
The group also committed to specific pricing and capacity allocation measures governing its offers in the reserve segment of the Wholesale Electricity Spot Market for the Luzon grid.
Aboitiz will appoint a senior competition compliance officer within 15 business days from PCC approval to monitor adherence, oversee reporting, and serve as the PCC’s primary contact. The commitments take effect immediately and remain until the ERC-approved tariff is implemented, with penalties and safeguards against circumvention.
The Caliraya-Botocan-Kalayaan complex is a DOE-certified Energy Project of National Significance.
“Targeted commitments during this transition protect consumers from undue price risks while ensuring reliability and fair competition,” PCC Chairperson Michael Aguinaldo said.
