The Manila Electric Co. (MERALCO) has issued a notice of claim against San Miguel Corporation’s South Premiere Power Corporation (SPPC) to cover the additional costs incurred as a result of the 60-day temporary restraining order (TRO) on their power supply agreement (PSA).
In a statement released on Monday, MERALCO said that since the termination of the supply agreement last December 7, it has been sourcing the 670 MW contract capacity from the Wholesale Electricity Spot Market (WESM).
MERALCO has asked SPPC to pay the price difference between the contract price and the WESM price, “to which MERALCO would be exposed during the effectivity of the TRO.”
The distribution company further noted that the claims will be on top of all applicable fines, penalties, and liquidated damages under the PSA in the event that the Court of Appeals will resolve the main case and denies the petition of SPPC.
“Meralco has been exhausting all efforts to protect its customers from potentially higher generation costs while ensuring continuity of stable, reliable, and least cost power under the current circumstances,” the company said in a statement.
The TRO suspends Energy Regulatory Commission’s (ERC) denial of the rate hike petition filed by SPPC and MERALCO.
SMC Global Power Holdings Corp. (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.