PRESS RELEASE
9 January 2026

PCC clears PSALM-Aboitiz power plant sale, imposes market safeguards

On November 28, 2025, the Philippine Competition Commission (PCC) cleared the proposed sale of the Caliraya Hydroelectric Power Plant, Botocan Hydroelectric Power Plant, and Kalayaan Pumped Storage Power Plant (KPSPP) by the Power Sector Assets and Liabilities Management (PSALM) Corporation to Cleanergy 9 Power Inc., a part of the Aboitiz Group. The clearance is subject to binding voluntary commitments designed to address competition concerns identified during PCC’s merger review, particularly in the ancillary services spot market of the Luzon grid.

The Aboitiz Group is a major participant in the Philippine energy sector and holds the largest market share in the regulating, contingency, and dispatchable reserves market in the Luzon grid. PSALM is likewise a significant market participant through the capacity provided by the Caliraya Hydroelectric Power Plant, Botocan Hydroelectric Power Plant, and KPSPP.

During Phase 1 review of the transaction, concerns were identified on the ability and incentive of the Aboitiz Group to engage in unilateral price increases and potential constraints on reserve capacity during the interim period, which has a maximum duration of two years from the effectivity of the Department of Energy (DOE) Department Circular No. DC2025-04-0006 or until the second quarter of 2027, before the implementation of an Energy Regulatory Commission (ERC)‑approved tariff for the KPSPP pursuant to the said circular. To address these concerns, the Aboitiz Group submitted voluntary commitments that were accepted by PCC. These commitments require Aboitiz Group to file the complete tariff application for KPSPP with the ERC within the prescribed timelines, including an application for provisional authority or interim relief, temporary ERC approvals that allow rates to take effect while the full tariff application is pending. The Aboitiz Group also had commitments on pricing and capacity allocation in relation to offers in the reserve segment of the Wholesale Electricity Spot Market (WESM) involving the Luzon grid.

To ensure compliance, Aboitiz Group will appoint a senior competition compliance officer within fifteen business days of PCC’s approval of the Undertaking to monitor adherence to the commitments, oversee reporting, and serve as PCC’s primary liaison.

The commitments take effect upon PCC’s clearance and remain valid until Cleanergy implements the ERC‑approved KPSPP tariff. The Undertaking also provides for penalties in case of non‑compliance, a defined cure period, and safeguards against circumvention, consistent with the Philippine Competition Act (PCA) and PCC merger rules.

The Caliraya-Botocan-Kalayaan Hydroelectric Power Plant is certified by the DOE as an Energy Project of National Significance.

“By securing targeted commitments in the Luzon ancillary services market during this transition, PCC is protecting consumers from undue price risks while ensuring reliability and fair competition,” PCC Chairperson Michael Aguinaldo said.

The PCC conducts merger reviews to ensure that transactions do not substantially lessen competition in the market. By assessing potential effects on prices, supply, innovation, and consumer choice, the Commission safeguards consumer welfare and promotes fair market conditions consistent with the PCA.

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REFERENCE:  
publicaffairs@phcc.gov.ph  
Public Affairs and Research Division
Communications and Knowledge Management Office
Philippine Competition Commission