SAN Miguel Corp. on Tuesday confirmed that the Energy Regulatory Commission (ERC) had rejected the implementation of a 200-megawatt (MW) power supply deal with Manila Electric Co. (Meralco).
In a disclosure, San Miguel said the deal was denied because Meralco still had a projected power surplus for this year.
“We advise and confirm that the ERC, in its order dated July 14, denied the application for issuance of provisional authority or interim relief filed jointly by Meralco and Sual Power, Inc., requesting temporary authority to implement the 200 MW power supply between both parties,” San Miguel said.
It said the ERC order was issued “pending the full and final evaluation of the joint application, after considering that Meralco still has a projected power surplus in 2026.”
The ERC said in its decision that even without the power supply from San Miguel-owned Sual, Meralco was projected to have a power surplus of 479.25 MW in 2026, and that if the supply agreement were to be approved, that surplus would increase to 679.25 MW.
“Based on the foregoing, the commission finds that the evidence presented is insufficient to establish the urgency and immediate necessity to implement the power supply agreement,” the ERC said.
The commission added it would be proceeding with the evaluation of the joint application for the issuance of a final authority for the supply agreement.
Sual Power, a unit of San Miguel Global Power Holdings Inc., operates a 1,200-MW coal-fired power plant in Pangasinan.
Sual Power won Meralco’s competitive selection process in February after submitting the lowest bid of P4.2955 per kilowatt-hour.
On Tuesday, Meralco shares rose P7.00, or 1.19 percent, to P595 each, while San Miguel shares slipped P0.05, or 0.07 percent, closing at P67.95 apiece. THE MANILA TIMES
