President Ferdinand Marcos Jr. is hoping that the Court of Appeals (CA) will reconsider its order on the rate hike petition on SMC Global Power Holdings Corp. (SMGCP), the energy arm of the San Miguel Corporation (SMC).
Last Friday, SMC said in a Philippine Stock Exchange (PSE) disclosure that it had received a copy of the temporary restraining order (TRO) suspending the Energy Regulatory Commission’s (ERC) denial of the rate hike petition filed by subsidiary South Premier Power Corporation (SPPC) and Manila Electric Co. (MERALCO).
The TRO is in effect for 60 days, which will also suspend the power supply deal with MERALCO powered by the Ilijan Natural Gas Power plant in Batangas.
“The implementation of the PSA between Meralco and San Miguel, it is unfortunate that this has happened, it will cause further dislocations and possible price increase for power,” Marcos Jr. said in a statement.
“We hope that the CA will reconsider. And include in their deliberations the extremely deleterious effect this will have on power prices for ordinary Filipinos,” the president added.
SMCGP and MERALCO filed for a power rate hike in their PSAs after incurring a Php 15 billion loss amid high global prices and natural gas supply restrictions, but it was denied by the ERC.
“If these PSAs are immediately suspended, this brings us precisely to the situation which we at the ERC have sought to avoid with our ruling that required the proper observance of the terms of the PSA, including the contractually-agreed process of termination,” ERC chairperson and CEO Monalisa Dimalanta said in a separate statement.