ERC extends Meralco-First Gas contract to avoid grid disruption

The Energy Regulatory Commission (ERC) has authorized the extension of the power supply contract between Meralco and First Gas Power Corp's Sta. Rita power plant for 1,000 MW of electricity.

This decision was made timely as the original agreement expires on Friday, August 29, 2025, to prevent potential disruptions in the Luzon grid.

The ERC weighed rising generation costs for Meralco customers against the risk of exposing the grid to a yellow or red alert if the plant does not operate.

First Gen President Francis Giles B. Puno expressed concerns about the need to reduce operational costs if the contract is not extended, including temporarily mothballing or shutting down the facility.

The companies are also requesting permission from the ERC to recover attendant costs during the implementation of the interim extension.

Should the Sta. Rita Power Plant and other facilities supplied by Malampaya experience a complete shutdown, it could lead to widespread blackouts with severe impacts on the national economy.