The Energy Regulatory Commission (ERC) has rejected the joint petition of San Miguel Corp. and Manila Electric Co. (Meralco) for a power rate hike.
In its 40-page decision, the ERC denied the joint motion for price adjustment filed by Meralco and South Premiere Power Corp. (SPPC)., a subsidiary of listed conglomerate SMC.
“As the regulatory body of the power industry, the Commission finds it necessary that applicants be reminded of their obligations under the PSA (power supply agreement) which they have entered into voluntarily. More importantly, the Commission emphasizes the responsibilities of Meralco under Republic Act No. 9136 and its franchise, as a distribution utility, to provide electricity to its consumers in the least cost manner,” the ERC said in its Sept. 29 decision.
SMC, through its energy arm SMC Global Power Holdings Corp., and Meralco earlier filed a petition for a temporary rate increase.
SMC claimed its coal power plant in Sual, Pangasinan and the natural gas-fired power plant in Ilijan, Batangas had incurred losses of P15 billion due to the soaring prices of coal and natural gas as well as restrictions in their supply. It said a temporary rate increase was needed to enable these plants to continue supplying power to Meralco.
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