ERC wary of Ang-Lopez energy deal

MANILA, Philippines — Regulators are ready to look into the impact of billionaire Ramon Ang’s acquisition of a stake in Lopez Inc. on competition in the power market, given both parties’ massive influence in the sector.

Energy Regulatory Commission (ERC) chair Francis Saturnino Juan said they do not have the details of the deal yet to check if the tycoon will have some control over the holding company of the Lopez Group, or if the transaction would fall within the definition of an affiliate.

READ: Ramon Ang buys into Lopez empire amid family rift

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“There is a qualification for you to be considered an affiliate. There needs to be an element of control,” he told reporters last week.

“We will look into that if there is need to check the impact of the concerned stakeholders’ compliances with market share caps or cross-ownership limitations,” the ERC chief said.

Ang’s business empire covers power generation through its unit San Miguel Global Power Holdings Corp. (SMGP), which has about 5,710 MW of capacity from its portfolio of natural gas, coal and renewable energy, including hydroelectric power and battery energy storage systems.

Cross-ownership

In 2025, SMGP also scored a 3.8-percent stake in another power giant, Pangilinan-led Manila Electric Co.

Lopez Inc., meanwhile, has a footprint in the energy sector through First Philippine Holdings Corp. (FPH). FPH holds a dominant stake in First Gen, a power firm with an interest in gas assets and a growing renewables portfolio.

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Under the law, power generation groups are not allowed to own, operate or control over 30 percent of the installed generating capacity of a grid and no more than 25 percent of the national installed generating capacity.

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Meanwhile, cross-ownership, or the concentration of ownership in two or more related businesses, is not permitted between a transmission firm and any player in generation and distribution.

Last week, Ang made headlines anew after buying a 25.7-percent stake of Eugenio “Gabby” Lopez III’s family branch in Lopez Inc. This despite a controversial family feud that has been dragging on Lopez businesses for months. INQ