Meralco seeks exemption from procurement of emergency power supply

The country’s biggest power distributor, Manila Electric Co., renewed its request with the Department of Energy for exemption from the procurement of emergency power supply in the wake of the Court of Appeals ruling favoring San Miguel Corp.

The CA issued a 60-day temporary restraining order (TRO) in favor of SMC subsidiary South Premier Power Corp. (SPPC), suspending the implementation of its power supply agreement (PSA) with Meralco.

Sought for comment, Meralco’s first vice president and head of regulatory management Jose Ronald Valles said they are reviewing the resolution “in consultation with our counsel to determine the next steps.”

“We have also written the DOE to follow up on our previous letter requesting for CSP exemption of certain emergency PSAs that are ready to be implemented to shield our customers against volatile and potentially higher WESM (Wholesale Electricity Spot Market) price,” Valles said.

The TRO was in response to the motion filed by SPPC against ERC’s denial of its plea for a price increase in its 2019 PSA with Meralco.

With the CA decision, Meralco wants to ensure supply if and when SMC decides to walk away from its PSA.

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