Meralco says power deal with SMC “terminated”



Power distributor Manila Electric Company (Meralco) on late Friday evening confirmed the termination of the 1,800-megawatt (MW) power supply deals with San Miguel Corporation’s (SMC) power unit SMC Global Power Holdings Inc., for 2024 and 2025.

In a statement, Meralco said that they received the notices of termination and informed ERC about the situation.

“We confirm receipt of notices from San Miguel Global Power and are currently studying our available options, including the possibility of requesting DOE to conduct another round of CSP for the 1,800-MW requirement of Meralco starting 2024 and 2025,” they said.

Energy Regulatory Commission (ERC) chairperson Monalisa Dimalanta had likewise confirmed that they were informed by Meralco about the receipt of the notice from SMC Excellent Energy [Resources] and Masinloc Power Partners on the the Notices of Termination of the Power Supply Agreements (PSAs) for 1,200MW and 600MW, respectively.

She said that Meralco will jointly file with Excellent Energy and Masinloc Power Partners the appropriate pleadings with ERC by Monday, with regards to their withdrawal of the PSAs.

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

Both Meralco and SMC Global Power had applied for approval of the PSAs in March 2021.

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

She said the ERC will review and act on the motions to be filed and will determine the compliance with law and legal processes.

They will also look into the possible violations after receiving the filing.

Catherine R. Cueto

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