The Energy Regulatory Commission (ERC) approved the recovery of P31.34 billion by four power generation companies following the termination of five power supply agreements (PSAs) with Manila Electric Co. (Meralco) due to a change in circumstances.
The recovery will result in a P0.2816 per kilowatt-hour (kWh) rate impact, though the ERC said the overall effect on Meralco’s rates will be minimal as the charges are spread out over time.
ACEN will recover P1.75 billion over 12 months, while San Miguel Corp. affiliates will recover P29.21 billion over 36 months—P15.85 billion for South Premiere Energy Corp. and P13.36 billion for San Miguel Energy Corp. Panay Energy Development Corp. will recover P380.6 million over 12 months.
ERC Chair Francis Saturnino Juan said Meralco has been implementing CIC-related charges of about P0.28 per kWh since September 2025, with remaining adjustments starting March 2026 to limit rate impact.
The recoveries stem from PSAs terminated after the ERC denied temporary rate hikes in 2022 despite rising fuel costs. In 2024, the Supreme Court ruled that a change in circumstances is a valid ground for terminating power supply contracts.
