The Energy Regulatory Commission (ERC) has denied the request of Manila Electric Company (Meralco) and San Miguel-led Masinloc Power Co. Ltd. (MPCL) to begin their Power Supply Agreement (PSA) ahead of schedule.

In a statement, the ERC determined that awarding provisional authority for their PSA is “premature”, despite the successful competitive selection process (CSP).

“After due deliberation, the Commission determined that the CSP conducted by Meralco is compliant with the 2023 DOE [Department of Energy] CSP Circular and the applicable resolutions by the Commission,” the ERC said.

However, the ERC noted that the PSA will not take effect until August 2025, and therefore denied the applicants’ request.

“Considering that the expected delivery date of this PSA will not occur until Aug. 26, 2025, the urgency of supply from MPCL has not been established,” it explained.

Earlier this year, MPCL secured 500 megawatts (MW) of the 600 MW baseload power requirement that Meralco offered in a bidding last August.

According to Meralco, MPCL offered P5.6015 per kilowatt hour (kWh), while another bidder, GNPower Ltd. Co. secured the remaining 100 MW of Meralco’s baseload power at P5.7392 per kWh.

Eight firms initially submitted bids for this particular CSP, but only six submitted the required qualification documents, technical proposals, and bid prices.

MPCL manages the Masinloc Coal-fired thermal power plant in Zambales, which was acquired by SMC Global Power in 2018.

According to Meralco, MPCL owns and operates Units 3 and 4 of the plant, which are under construction and will have a net capacity of 619.50 MW.