THE COURT OF APPEALS (CA) has directed the Energy Regulatory Commission (ERC) to act on the request for price adjustments filed by San Miguel Global Power Holdings Corp. (SMGP) in 2022.
In a disclosure to the Philippine Dealing & Exchange Corp. on Monday, SMGP said it had received a copy of a CA resolution dated June 27, which partially granted the joint motions for price adjustments filed by the company’s affiliate and subsidiary, South Premiere Power Corp. (SPPC) and Sual Power, Inc. (SPI), respectively.
SPI was formerly known as San Miguel Energy Corp. SMGP did not release a copy of the resolution but quoted a portion of it.
“The Energy Regulatory Commission is directed to immediately implement our decision dated June 27, 2023 and, without further delay, act on the motions and make the necessary computation and breakdown of the appropriate amount for payments to petitioners… pursuant to their joint motions for price adjustments with Manila Electric Company (Meralco),” the decision read.
The appellate court also ordered the ERC to submit proof of its compliance with the resolution within 30 days of notice.
The case stemmed from the joint motions filed in 2022 by SPPC and SPI with Meralco, seeking temporary price adjustments under their 2019 power supply agreements (PSAs) to recover higher fuel costs due to “a change in circumstances.”
In August 2022, SMGP sought relief from the ERC to recover part of P15 billion in losses suffered by the units.
The ERC initially denied the petitions, citing the fixed-rate nature of the PSAs. SPPC and SPI then elevated the matter to the CA, which reversed the ERC’s ruling on June 27, 2023, citing “grave abuse of discretion.”
Asked for comment, ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said they had yet to receive a copy of the resolution.
In a March interview, Ms. Dimalanta said SMGP’s units had filed two motions claiming a total of P34 billion in incremental fuel costs.
The CA ruling follows the Supreme Court’s final decision last year denying the ERC’s motion for reconsideration and upholding the price adjustments sought by SMGP’s units.
SMGP, the power arm of conglomerate San Miguel Corp., maintains a diversified energy portfolio across conventional and renewable sources.
The conglomerate led the country’s power generation sector in 2024, accounting for 22.44% of the national grid. — Sheldeen Joy Talavera
