SMCGP to continue to supply power to MERALCO


SMC Global Power Holdings Corporation (SMCGP), the power arm of San Miguel Corporation (SMC), will continue to supply power to the Manila Electric Co. (MERALCO) to spare customers from power interruptions. 

“The Energy Regulatory Commission (ERC), armed with such data, knows too well that denying the petition will not only cripple us but more importantly, burden consumers who will have to face higher electricity bills,” SMCGP said in a statement. 

The ERC denied SMCGP and MERALCO’s joint price hike petition on two of its power supply agreements (PSAs) amid high global oil prices and natural gas supply restrictions. 

“The temporary relief would have enabled us to preserve few of the last remaining fixed-rate PSAs of MERALCO that are responsible for keeping power rates in Metro Manila compared to other parts of the country, amid surging global prices,” the San Miguel company added. 

SMCGP earlier said that it might terminate its PSAs with MERALCO if the ERC would not provide relief – this, in turn, may result in a 30% increase in electricity prices beginning in October. 

Following the denial of the petition, the SMC power company will be exploring other legal remedies that would allow the company to “sustainably provide for the increasing power needs of our country while meeting our obligations to our various stakeholders.” 

SMCGP said it will focus on maximizing its existing power assets to help sustain the country’s economic recovery, and at the same time, invest in technologies that would facilitate the company’s transition to cleaner energy.