Manila Electric Co.’s (MERALCO) application to exempt its planned emergency power supply agreements (EPSAs) with other generation companies from undergoing competitive selection process (CSP) is still under evaluation by the Department of Energy (DOE).
In a report by The Philippine Star, Energy secretary Raphael Lotilla said that they are currently discussing MERALCO’s application with the power bureau and have yet to make a decision.
MERALCO applied for the exemption after the Energy Regulatory Commission (ERC) denied its petition with San Miguel Corp.’s SMC Global Power Holdings Corp. (SMCGP) for a temporary rate hike in its power supply agreements.
MERALCO stressed that customers in its franchise area might be exposed to volatile prices if SMCGP decides to terminate the contract.
SMCGP, however, has yet to formally issue its notice on the fate of the PSAs. The San Miguel energy company, however, said that it will continue to supply power to MERALCO.
Under the ERC order, any termination will take effect 60 days after receiving the said order.
MERALCO said that it will exert efforts and push for remedies under the contract and in law in order to preserve its PSAs with SMCGP.