SMC units to start collecting deferred WESM charges

San Miguel Global Power

SMC Global Power Holdings Corp. announced Friday that its subsidiaries South Premiere Power Corp., San Miguel Energy Corp., and Masinloc Power Partners, Ltd., will now be able to collect the deferred generation charges for November and December 2013 billing period under their respective power supply agreements (PSAs) with Manila Electric Co.

SMCGP disclosed that it received a copy of the notice issued by the Supreme Court from its external counsel, Poblador Bautista & Reyes Law Offices last October 18.

The notice said the SC decision, which rescinded the March 3, 2014 order of the ERC voiding the regulated power rates at the Luzon Wholesale Electricity Spot Market in November and December 2013 supply months, should take effect immediately.

SMCGP said that with the SC ruling, the difference between the actual Luzon WESM prices and the regulated prices for the WESM sales and purchases made by its subsidiaries during the said billing periods, would also have to be settled with the operator of the spot market.

According to the SC, the ERC order was based on “unfinished investigation and yet it included a fallo voiding the Luzon WESM prices and imposing regulated prices instead.”

The ERC was investigating the cause of the high power rates and allegations of anti-competitive behaviour and possible market abuse by some industry players after WESM prices surged to unprecedented levels.

The SC said the ERC did not notify the affected parties in violation of their right to due process.

Meanwhile, the HIgh Court affirmed the December 9, 2013 order of the ERC to stagger the collection of the generation costs for the said supply months as there is no basis that the regulator committed grave abuse of discretion.

https://bilyonaryo.com/2022/10/21/smc-units-to-start-collecting-deferred-wesm-charges/power/