ERC opposes consolidation of SMC power units’ cases

By Alena Mae S. Flores – February 9, 2023, 6:30 pm
from manilastandard.net

The Energy Regulatory Commission through the Office of Solicitor General filed an opposition to the decision of the Court of Appeals consolidating the cases filed by two power subsidiaries of San Miguel Corp. on their 2019 power supply agreements with Manila Electric Co.

The CA’s 16th Division earlier denied the request for a temporary retaining order by San Miguel Energy Corp., but ruled that the subject case should be consolidated with another case filed by South Premiere Power Corp. with the 13th Division.

“On SMEC, the 16th Division denied the TRO and injunction but they granted the consolidation so the OSG as our counsel filed a partial motion for reconsideration on the consolidation so in a way, they opposed the consolidation,” ERC chairperson Monalisa Dimalanmta said.

“As to the other case, the one in the 13th Division, there is no submission yet,” Dimalanta said.

“The argument of the OSG is, the two cases have different legal issues so it’s not prime for consolidation,’ she said.

The companies filed for a temporary rate hike with the ERC based on the change in circumstance, which the regulator denied. This prompted the companies to ask for a TRO and writ of injunction from the CA.

The CA’s 13th Division granted WPI to SPPC on its 2019 power supply agreement with Meralco involving 670 megawatts of supply. This prevented Meralco from implementing the order of the ERC to honor their fixed-rate PSA.

SPPC ceased to supply Meralco effective Dec. 7, 2022, following the CA’s grant of a 60-day temporary restraining order last year.

The CA said the grant of the WPI suspended the continued implementation of the PSA but did not terminate it.