San Miguel Corp. (SMC) subsidiaries Sual Power Inc. and South Premiere Power Corp. (SPPC) have petitioned the Energy Regulatory Commission (ERC) to collect up to P34 billion from Manila Electric Co. (Meralco) customers. This has reference to a Supreme Court ruling last year allowing the termination of power supply agreements (PSAs) between the subsidiaries and Meralco due to significant changes in circumstances (CIC).
ERC chairman Monalisa Dimalanta confirmed the filing, one seeking P5 billion from March to May 2022 and another P29 billion covering May to December 2022, to recover incremental fuel costs. The ERC is reviewing the claim. Dimalanta said the collection’s reasonableness and supporting documents will be closely evaluated no matter the rulings by the Court of Appeals and the Supreme Court.
The commercial impact on consumers could be significant as SMC argues that without the adjustments, Meralco may turn to more expensive energy sources, including the Wholesale Electricity Spot Market, resulting in higher electricity prices. SMC’s request follows the termination of the PSAs, initially set in 2019, after failed attempts to secure a temporary rate hike due to soaring global fuel costs.
The ongoing review underscores the complex regulatory landscape as SMC seeks to recover its costs while potentially reshaping electricity pricing across Luzon.
