SMC Global Power Holdings will offer the power currently being supplied by its two power plants to Manila Electric Co. (Meraco) to other off-takers as well as to the spot market once the termination of its power supply agreement (PSAs) with the power distributor takes effect.
“Once the termination of the PSAs takes effect, South Premiere Power Corp. (SPPC) and San Miguel Energy Corp. (SMEC) will have to sell its power to WESM and enter into bilateral contracts with other off-takers, the pricing of which will be market-based, and thus will provide better financials and economics for SMCGP on consolidated basis,” conglomerate San Miguel Corp. said in disclosure to the Philippine Stock Exchange.
MVP-led Meralco will abide by ERC ruling but wont terminate power supply deals with San Miguel
SMC said that based on the Energy Regulatory Commission (ERC)’s order junking its joint rate increase petition with Meralco, any termination will take effect 60 days from the receipt of the orders.
SPPC and SMEC received the ERC orders on Oct. 3.
Higher power rates in the offing as ERC rejects SMC-Meralco’s petition
“Within this 60-day period, SMEC and SPPC are required to continue the supply of power to Meralco at a cost higher than the contracted price under the PSAs,” SMC said.
“Nevertheless, SPPC and SMEC will continue to explore other legal remedies relating to the ERC orders,” it added.
SMC Global Power earlier assured uninterrupted power supply to Meralco despite the ERC’s denial of its petition.