Listed power distributor Manila Electric Co. said Monday that San Miguel Global Power has submitted on Friday a notice of termination of the 2021 power supply deal covering 1,800 megawatts.
The 1,800MW would have been delivered by San Miguel Global’s subsidiaries Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd., starting 2024 and 2025.
Meralco said San Miguel Global cited the provision in the power supply agreement “allowing termination for non-occurrence of several conditions for the commencement and acceptance” of the deal. Meralco said six month after the filing the application for final approval on March 18, 2021 by Masinloc Power and on March 24, 2021 by Excellent Energy, the Energy Regulatory Commission has yet to issue a final approval.
“Pursuant to the said PSA provision, the termination shall be effective upon the lapse of fifteen (15) days from MERALCO’s receipt of the notice, or on 1 April 2023,” the power distributor said.
Meralco assured the termination of the agreements won’t impact its business, financial condition and operations.
“Nevertheless, MERALCO is evaluating the best available options for the benefit of its customers, without excluding the possibility of immediately requesting the Department of Energy to approve the reconduct of a competitive selection process for the contract capacity of 1,800 MW (net), with commercial operations date 2024-2025,” the company said.
