SAN MIGUEL CORP. (SMC) stated on Thursday that it’s going to promote its energy vegetation’ output to the wholesale electrical energy spot market (WESM) and can enter into bilateral contracts with off-takers after it did not safe the vitality regulator’s nod on its fee hike petition.
In a inventory market disclosure, SMC assured that it’s going to proceed supplying energy to Manila Electrical Co. (Meralco) inside the 60-day interval after the receipt of the Power Regulatory Fee (ERC) resolution.
Based on ERC, SMC is legally certain to proceed supplying energy to Meralco as said of their energy provide agreements (PSAs), which set 60 days earlier than it could actually terminate the availability deal.
Nonetheless, SMC stated that when the termination of the PSAs takes impact, its items South Premiere Energy Corp. and San Miguel Power Corp. — the directors of the Ilijan and Sual energy vegetation — must promote their generated energy to WESM “and enter into bilateral contracts with different off-takers.”
On Wednesday, SMC stated it could discover all authorized cures following the choice of the ERC.
On Monday, the ERC launched its order denying a joint petition from Meralco and SMC’s items, saying the speed improve sought by them was primarily based on a sound “change in circumstance.”
SMC beforehand stated it had incurred losses of about P15 billion, prompting the petition for the ability fee improve as surging gasoline prices breached the worth vary contemplated in the course of the execution of the PSAs with Meralco.
The ERC denied the petition, saying each SMC and Meralco had not exhausted obtainable choices earlier than submitting the petition.
“[SMC Global Power Corp.] and its subsidiaries will stay compliant with its monetary covenants below all present mortgage agreements and different debt devices,” SMC stated, referring to its energy arm. — Ashley Erika O. Jose