SMC Global Power to find legal options vs ERC order
BY LENIE LECTURA – JANUARY 30, 2023
from Business Mirror
SMC Global Power Holdings Corp. (SMCGP) said it would pursue all available legal remedies after its unit failed to secure a temporary restraining order (TRO) to prevent the Energy Regulatory Commission (ERC) from enforcing its September 2022 order.
The next legal steps, SMCGP said, is “in line with our fiduciary duties to our stakeholders, to preserve our ability to provide stable power supply for consumers and forge ahead with new and existing projects aimed at helping secure our country’s future power needs.”
The Sixteenth Division of the Court of Appeals (CA) issued a resolution last January 13, denying the petition for the issuance of a TRO filed by San Miguel Energy Corp. (SMEC) that was meant to suspend the implementation of the September 29, 2022, order of the ERC.
The ERC order denied the joint motions of the Manila Electric Co. (Meralco) and SMCGP units for price adjustments to serve as temporary relief covering a combined P5.2 billion losses incurred by South Premier Power Corp. (SPPC) and SMEC from January to May 2022 due to the unprecedented spike in fuel prices.
The SPPC was able to secure a TRO.
The 16th division of the CA granted SMEC’s motion that the subject case be consolidated with another case with similar facts filed by the SPPC pending before the Thirteenth Division of the CA.
“We remain confident that our government, through the judiciary, is one with us in promoting an environment where both consumers and industries collaborate in delivering on our country’s energy goals and providing viable and shared solutions to address the ongoing power crisis,” SMCGP said.
Meralco, for its part, said the CA decision “ultimately benefits” its more than seven million customers as it ensures continuous supply and protects them from further exposure to potentially higher electricity rates.
“Meralco welcomes the decision of the Court of Appeals denying the TRO and writ of preliminary injunction sought by SMEC in relation to the power supply agreement (PSA) covering the supply of 330 megawatts (MW),” the private distribution utility firm said.
