ERC Extends Meralco-First Gen Gas Deal

The Energy Regulatory Commission has granted a five-month extension to a major gas supply contract between Manila Electric Co. (Meralco) and First Gen Corp., citing its critical role in ensuring energy security.

- Brix Lelis

The ERC approved the parties' proposed interim extension, allowing First Gen to continue supplying power to Meralco until Jan. 31, 2026, pushing their contract's expiration date beyond the original August deadline.

"Although the motion evidently impacts Meralco's generation charge... there exist other equally compelling and urgent reasons that justify the proposed extension," the regulator said in an order dated Aug. 27.

"These reasons are anchored in policy considerations, such as ensuring grid and supply security and reliability, which fall more appropriately within the purview of the Department of Energy (DOE)," it said.

First Gen, owned by the Lopez Group, has been delivering electricity to the power utility led by tycoon Manuel V. Pangilinan through a power purchase agreement (PPA) executed onJan. 9, 1997.