Units of San Miguel and Aboitiz have won contracts to supply a combined 600 megawatts of power to Manila Electric Company, the country’s largest electricity distributor. The winners were chosen through competitive bidding that drew offers from six qualified companies.
San Miguel Global Power subsidiaries submitted the lowest rates, offering to supply two blocks of 200 megawatts each at about 5.36 and 5.44 pesos per kilowatt-hour. An Aboitiz Power unit took the remaining 200 megawatts with a slightly higher bid.
The supply agreements run for 15 years, with deliveries set to begin in February 2028 for part of the capacity and in February 2029 for the rest. Long-term contracts of this kind help a distributor lock in supply and give power producers a steadier revenue base.
Competitive bidding has become the standard way for Meralco to secure new supply, a process meant to push rates lower and give customers more predictable costs. The company said several bidders took part, which helped bring down the winning prices.
Power supply remains a closely watched issue in the Philippines, where demand keeps rising and reliability is a constant concern. Deals that add committed capacity years in advance are seen as important for keeping the grid stable.
The outcome also reflects the continued dominance of the country’s largest power producers, which have the scale to compete for contracts of this size.
