Gatchalian calls for steady electricity supply as appellate court issues TRO vs ERC decision

Senator Win Gatchalian has called on the Department of Energy (DOE), Energy Regulatory Commission (ERC), Meralco and San Miguel Corp. (SMC) to ensure a steady supply of electricity amid a temporary restraining order issued by the Court of Appeals (CA) versus a recent ERC decision denying a joint petition of Meralco and SMC-owned South Premiere Power Corp. (SPPC) and San Miguel Energy Corp. (SMEC) for temporary relief from high level of fuel prices.

"Pending the final resolution of the case, DOE, ERC, Meralco, and SMC must see to it that a steady supply of electricity is maintained and that there are no significant power interruptions," Gatchalian stressed.

According to Gatchalian, he will be closely monitoring the resolution of the case given that it will determine whether fixed price contracts of power supply agreements (PSA) can be changed or not.

"This case will set a precedent for the energy sector as to whether or not power-generating companies along with distribution utilities could revise power supply contracts with fixed prices. We hope that at the end of the day, consumer interest will be protected," he said.

The ERC's decision stemmed from a contract entered into in 2019 by SMC's electricity arm SMC Global Power Holdings Corporation and its subsidiaries for two fixed-price agreements to supply energy to Meralco consumers--one with its Sual coal-fired power plant in Pangasinan and the other with Ilijan natural gas plant in Batangas.

At the time the deal was made, coal prices were around $65 per metric ton which have since risen to over $400/MT. Also, thinning supply from the Malampaya natural gas field resulted in San Miguel buying power from the spot market.

Gatchalian nanawagan ng sapat na suplay ng kuryente sa gitna ng TRO ng CA laban sa ERC decision

Nanawagan si Senador Win Gatchalian sa Department of Energy (DOE), Energy Regulatory Commission (ERC), Meralco, at San Miguel Corp. (SMC) na tiyakin ang tuluy-tuloy na suplay ng kuryente sa gitna ng temporary restraining order na inilabas ng Court of Appeals (CA) laban sa pinakahuling desisyon ng ERC na tumatanggi sa joint petition ng Meralco at parehong kumpanya ng San Miguel na South Premiere Power Corp. (SPPC) at San Miguel Energy Corp. (SMEC) para sa pansamantalang kaluwagan mula sa mataas na presyo ng langis.

"Habang wala pang pinal na resolusyon ng kaso, dapat tiyakin ng DOE, ERC, Meralco, at SMC na mapanatili ang tuluy-tuloy na suplay ng kuryente para sa ating mga konsyumer," giit ni Gatchalian.

Ayon kay Gatchalian, mahigpit niyang babantayan ang pagresolba ng kaso dahil ito ang tutukoy kung ang fixed price contracts ng power supply agreements (PSA) ay maaaring baguhin o hindi.

"Ang kasong ito ay maaaring gawing basehan ng iba pang power-generating companies at distribution utilities na basta na lang babaguhin ang mga kontrata ng power supply na may mga nakapirming presyo. Umaasa tayo na ang interes ng mga konsumers ang mananaig," aniya.

Ang desisyon ng ERC ay nagmula sa isang kontratang pinasok noong 2019 ng electricity arm ng SMC na SMC Global Power Holdings Corporation at mga subsidiary nito para sa dalawang fixed-price na kasunduan para mag-suplay ng enerhiya sa mga konsyumer ng Meralco kabilang ang Sual coal-fired power plant nito sa Pangasinan at Ilijan natural gas plant sa Batangas.

Noong panahong nagpirmahan sila ng kontrata, ang presyo ng coal ay pumapalo sa $65 kada metrikong tonelada na tumaas na sa mahigit $400 kada metrikong tonelada.

Ang pagnipis ng suplay mula sa Malampaya natural gas field ay nagresulta sa pagbili ng kuryente ng San Miguel mula sa spot market.