Should regulators decide to amend the power supply agreements (PSA) between Manila Electric Co. (MERALCO) and the power units of San Miguel Corporation, ACEN Corporation said that its PSAs with the distribution company should be tweaked as well.
In a report by BusinessWorld, ACEN president Eric Francia said that they are hopeful that regulators and MERALCO “will treat all suppliers fairly and consistently,” adding that ACEN has the same contract and similar circumstances, “so if there is a change in circumstance in one supplier, the same should apply to others.”
ACEN currently has a 200 megawatt (PSA) with MERALCO priced at Php4.7450 per kilowatt-hour (kWh) for 10 years until December 25, 2029.
SMC Global Power Holdings Corp. (SMCGP) earlier filed a power rate hike with the Energy Regulatory Commission (ERC) after incurring a Php15 billion loss on power generation amid high global coal prices and natural gas supply restrictions from the Malampaya Gas Field.
The San Miguel unit has applied for a Php 0.80 per kilowatt hour (kWh) hike for the 670-MW contracted capacity of the Ilijan plant, going from Php 4.30/kwh to Php 5.10/kwh. It also applied for an average Php4/kWh increase for the 300 MW contracted capacity of the Sual plant, going from Php4.30/kWh to as much as Php8.30/kWh.
SMCGP is seeking temporary and partial cost recovery of its losses incurred from January to May 2022 through a rate increase on its contract capacity under the PSAs to be amortized over a period of six months.
However, San Miguel’s power arm expressed its intention in terminating its two PSAs with MERALCO in October if the regulatory board would ignore its petition. The possible termination may lead to a 30% jump in electricity prices in the MERALCO franchise area.