Energy security emerged as a clear regulatory priority as the Energy Regulatory Commission approved an extension of the power supply agreement between Meralco and First Gen.
The five-month extension allows Meralco to continue sourcing electricity from First Gen’s 1,000-megawatt Sta. Rita gas plant in Batangas until June 25, 2026, just ahead of the peak summer demand period. The ERC cited the importance of supply stability, noting that the arrangement will remain under the same commercial terms and be passed through to consumers.
The decision underscores the balancing act regulators face between price considerations and system reliability. As demand rises and reserve margins tighten, continuity of supply has become a central concern, reinforcing the strategic importance of existing generation assets while longer-term capacity solutions are developed.