SAN Miguel Global Power (SMGP) disputed a recent Energy Regulatory Commission (ERC) show cause order against its subsidiary South Premiere Power Corp. (SPPC), saying the 1,200-MW Ilijan Gas Power Plant had already been cleared of any violation by the Philippine Electricity Market Corp. (PEMC).
PEMC’s Market Surveillance Committee in March 2025, and its Board in May, ruled that SPPC did not breach the Must Offer Rule of the Wholesale Electricity Spot Market during the June 5–25, 2022 outage.
The shutdown, they found, stemmed from fuel supply constraints beyond SPPC’s control.
Despite this, the ERC on July 24, 2025, issued an order based on an older August 11, 2022 resolution, directing SPPC to explain why it should not be penalized for alleged anti-competitive behavior when the plant was on “open breaker status,” coinciding with high spot market prices.
SMGP said the outage followed the sudden cessation of pipeline gas supply—its primary fuel for 20 years—despite efforts to resolve the issue with the gas facility operator and agencies.
To ensure stable operations, SPPC has since built and commissioned an LNG terminal capable of fueling 2,500 MW, or about 15% of Luzon’s dependable capacity.
