A portion of the Caliraya, Botocan and Kalayaan hydroelectric power plants. The Philippine Competition Commission on Friday (Jan. 9, 2025) said it has approved the sale of the power plants to Cleanergy 9 Power Inc., which is owned by the Thunder Consortium comprised of Aboitiz Renewables, Inc. and Japanese firms Sumitomo Corporation and Electric Power Development Co. Ltd. (Photo courtesy of Caliraya Hydroelectric Power Plant)
The Philippine Competition Commission has approved the sale of three major power assets owned by the Power Sector Assets and Liabilities Management Corporation, clearing the way for their transfer to Cleanergy 9 Power Inc. while imposing safeguards aimed at preserving competition and protecting consumers.
In a statement Friday, the Philippine Competition Commission said it granted clearance for the divestment of the Caliraya Hydroelectric Power Plant, the Botocan Hydropower Plant, and the Kalayaan Pumped Storage Power Plant to Cleanergy 9 Power Inc., a company under the Thunder Consortium. The consortium is backed by Aboitiz Renewables Inc. alongside Japan’s Sumitomo Corporation and Electric Power Development Co. Ltd..
The commission stressed that its approval comes with binding voluntary commitments, crafted to address competition concerns identified during the merger review—particularly in the ancillary services spot market of the Luzon grid, where reserve power is critical to system stability.
During its initial assessment, the PCC flagged the risk that the Aboitiz Group could have both the ability and incentive to unilaterally raise prices or limit reserve capacity during a transition period of up to two years, or until the second quarter of 2027.
This interim phase precedes the implementation of an Energy Regulatory Commission–approved tariff for the Kalayaan facility under a Department of Energy circular.
To mitigate these risks, the Aboitiz Group committed to filing a complete tariff application for the Kalayaan Pumped Storage Power Plant with the Energy Regulatory Commission within prescribed timelines, including requests for provisional authority or interim relief when necessary.
The group also agreed to specific pricing and capacity allocation commitments related to its offers in the reserve segment of the Wholesale Electricity Spot Market covering the Luzon grid.
As part of the compliance framework, the PCC said the Aboitiz Group will appoint a senior competition compliance officer within 15 business days from approval. The officer will monitor adherence to the commitments, oversee reporting obligations, and act as the commission’s primary point of contact.
“By securing targeted commitments in the Luzon ancillary services market during this transition, the PCC is protecting consumers from undue price risks while ensuring reliability and fair competition,” PCC Chairperson Michael Aguinaldo said.
The decision underscores the regulator’s balancing act: enabling private sector participation in critical energy infrastructure while keeping a close watch on market power in a sector vital to the country’s economic stability.