San Miguel ends 2024, 2025 power supply deals with Meralco —ERC

San Miguel ends 2024, 2025 power supply deals with Meralco —ERC

San Miguel Corporation's (SMC) power unit SMC Global Power Holdings Inc. has terminated its 1,800-megawatt (MW) power supply deals with the Manila Electric Company (Meralco) for 2024 and 2025.

In a statement, Energy Regulatory Commission (ERC) chairperson Monalisa Dimalanta said the power industry regulator was informed by Meralco that the company “received from SMC Excellent Energy [Resources] and Masinloc Power Partners the Notices of Termination of the Power Supply Agreements (PSAs) for 1,200MW and 600MW, respectively.”

“According to Meralco, they will jointly file with Excellent Energy and Masinloc Power Partners the appropriate pleadings with ERC by Monday for the withdrawal of the PSAs,” Dimalanta said.

In 2021, Excellent Energy and Masinloc Power both bagged 20-year contracts for the supply of 1,200MW and 600MW, which would take effect by 2024 and 2025, respectively.

Excellent Energy and Masinloc Power are units of SMC Global Power Holdings.

“We confirm receipt of notices from San Miguel Global Power and are currently studying our available options, including the possibility of requesting DOE (Department of Energy) to conduct another round of CSP (competitive selection process) for the 1,800-MW requirement of Meralco,” the power distributor said in a separate statement.

Dimalanta said both Meralco and SMC Global Power applied for approval of the PSAs in March 2021.

The ERC chief said the PSAs are not yet approved by the regulator.

“[The] ERC will then review and act on such motions, when filed, after determination of compliance with law and legal processes. We note that no supply is currently being served yet to Meralco from these PSAs,” she said.

“As to violations, we will evaluate once we receive their filing,” she added.—LDF, GMA Integrated News