THE Power Regulatory Fee (ERC) assured that it could situation a good determination on or earlier than Oct. 4 on the momentary reduction sought by San Miguel Corp. (SMC) and Manila Electrical Co. (Meralco).
“We’re aware of the timeline in SMC’s letter to Meralco,” Floresinda Baldo G. Digal, a commissioner on the ERC, informed BusinessWorld by way of Viber on Wednesday.
SMC, by means of its power arm SMC International Energy Holdings Corp., and Meralco collectively filed a petition with the ERC for a short lived price enhance.
ERC mentioned it began the deliberations on the petition, which covers the businesses’ two energy provide agreements (PSAs).
Ms. Digal mentioned that the ERC would give you its determination on or earlier than Oct. 4, or the date SMC warned it could terminate its PSAs.
In SMC’s letter to Meralco, it mentioned that South Premiere Energy Corp. and San Miguel Power Corp., the directors of the coal energy plant in Sual, Pangasinan, and pure gas-fired energy plant in Ilijan, Batangas had issued notices of termination of their PSAs, efficient on Oct. 4, if the regulatory physique denied its attraction for reduction.
Final month, SMC mentioned its Ilijan and Sual crops suffered mixed losses of P15 billion, prompting the corporate to hunt a price enhance to proceed supplying energy to Meralco.
If the ERC authorized the petition for momentary reduction, electrical energy costs in Luzon would go up by 30 centavos per kilowatt-hour (kWh) over a interval of six months.
Nevertheless, in SMC’s earlier assertion it mentioned that if ERC didn’t act on its petition, electrical energy costs in Luzon and adjoining provinces will go up as a lot as 30% beginning October.
In the meantime, Meralco beforehand mentioned that it had already secured emergency energy provide offers with a number of mills in case the termination of the PSAs will push by means of.
In a digital briefing on Sept. 8, Lawrence S. Fernandez, Meralco’s vice-president and head of utility economics, mentioned that preserving the prevailing PSAs with SMC is the least value possibility for shoppers.
Mr. Fernandez mentioned that Meralco had contracted “4 to 5” mills for the emergency buy of energy, together with from one energy plant of Aboitiz Energy Corp.
“The weighted common provides from the totally different suppliers had been between P7 and P8 per kilowatt-hour for one 12 months provide beginning October,” he mentioned. — Ashley Erika O. Jose