The Energy Regulatory Commission (ERC) is set to review the impact of the $3.3-billion liquefied natural gas (LNG) deal on power rates.
Meralco Power Gen Corp. (MGen), Aboitiz Power Corp. and San Miguel Global Power Holdings Corp. (SMGP) recently partnered for the country’s first and most expansive integrated LNG facility in Batangas.

Monalisa Dimalanta, ERC chairperson, said while the review of the merger falls under the mandate of the Philippine Competition Commission (PCC), the regulatory body is mandated to study the effect, if any, on the present and future power supply agreements (PSAs) between the three parties.
The deal which values the entire enterprise at $3.3 billion involves MGen and Aboitiz Power to jointly invest in two of SMGP’s gas-fired power plants including the 1,278 megawatts (MW) Ilijan power plant and a new 1,320 MW combined cycle power facility.
The three companies will then acquire the LNG import and regasification terminal of Linseed Field Corp. that will be used to receive, store and process LNG fuel for the two power plants.
Dimalanta said the ERC will also look into the behavior of players in the Wholesale Electricity Spot Market and retail market with the LNG deal.
The ERC and the PCC earlier launched a joint task force to monitor and investigate allegations of anti-competitive practices in the power sector.
This initiative builds upon the 2019 memorandum of agreement between the two regulators to foster competition in the energy industry in response to concerns about power outages and corresponding increases in prices of electricity.
The United Filipino Consumers and Commuters earlier expressed fears the partnership of the conglomerates effectively monopolizes the LNG market which would allow the companies to dictate prices leading to higher power rates.