PCC fines PEMHI, MGen ₱5.8M over delayed merger reports

Philippine Competition Commission (PCC) logo. PCC Published on : Oct 30, 2026, 5:48 pm THE Philippine Competition Commission (PCC) found Pilipinas Enterprise Management Holdings, Inc. (PEMHI) and MERALCO PowerGen Corp. (MGen) solidarily liable for administrative penalties amounting to P5.8 million for violating Section 29(b) of the Philippine Competition Act.

The penalty stems from the repeated failure of the respondents to strictly comply with the mandatory reporting obligations tied to their merger clearance. Following the ruling, MGen fully settled the P5.8-million administrative fine on October 16, 2026, with the proceeds remitted to the Bureau of the Treasury.

The case arose from a major transaction involving the acquisition of equity interests in key power generation and industrial entities by MGen and Therma NatGas Power Inc. through Chromite Gas Holdings, Inc. and San Miguel Global Power Holdings Corp. To address competition concerns regarding coordinated effects in the sale of energy and unilateral exercise of market power in the energy sector, the parties submitted voluntary commitments embodied in an Undertaking.

These commitments were accepted by the Commission, allowing the transaction to proceed subject to the parties’ strict compliance with the commitments and other terms and conditions provided in the Undertaking. Under Section 2.2 of the Undertaking, the notifying parties are required to submit to the PCC’s Mergers and Acquisitions Office (MAO), within 15 days from the end of each calendar quarter, copies of the Comparative Retail Electricity Market (CREM) reports submitted by the retail electricity supplier (RES) entities to the Energy Regulatory Commission (ERC).

Following a complaint filed by the MAO, the Commission evaluated reporting delays involving Global Energy Supply Corporation, a RES subsidiary under PEMHI. The Commission found the respondents liable for three counts of non-compliance due to the belated submission of Global Energy Supply Corporation’s CREM reports for the first, second, and third quarters of 2025.

Specifically, the first quarter report was delayed by 215 days, the second quarter report by 126 days, and the third quarter report by 34 days. The Commission dismissed the respondents’ defense that the delays were attributable to oversight, simple human error, and misunderstanding of the requirements.

Furthermore, the PCC ruled that the respondents could not invoke flexibility in the submission of the CREM reports under ERC regulatory resolutions, as the timeline for compliance originated from their own voluntary undertaking. “Voluntary commitments submitted as a condition for merger approval are binding obligations that must be fulfilled in good faith,” said PCC Chairperson Michael Aguinaldo.

“Strict compliance remains the general rule, particularly in pre-identified priority sectors like energy. Unsubstantiated delays compromise our capacity to monitor transactions effectively, and this decision underscores that regulatory timelines cannot be treated as a matter of corporate convenience,” he added.

This enforcement action underscores the PCC’s rigorous oversight of post-merger commitments. By holding entities strictly accountable for reporting lapses in critical industries, the Commission enforces its mandate of ensuring businesses compete and consumers benefit. PR