CA grants SMC power arm’s plea to suspend its PSA with Meralco - BusinessMirror

THE Fourteenth Division of the Court of Appeals issued a Temporary Restraining Order in favor of South Premiere Power Corporation , a subsidiary of SMC Global Power Holdings Corp. , suspending the implementation of its power supply agreement with Manila Electric Company .

It added that the petition for certiorari of San Miguel Energy Corp. , another SMCGP subsidiary, is pending with the 17th Division of the CA.The CA said: “…in view of the circumstances and the interest of the general public, this Court grants the TRO and hereby suspends the implementation of the PSA. The TRO shall be effective for a period of 60 days from service on Respondents.”

The agency said the plea for price increase was denied since the agreed price in the PSA is fixed in nature, and the grounds for increase cited by SPPC and Meralco were not among the exceptions that would allow for price adjustment. “The fixed price PSA of Meralco with SPPC covers 670 MW of supply. This, along with the other fixed price PSAs, have been shielding Meralco consumers for the past several months from the volatility of prices from WESM and automatic fuel pass-through PSAs.

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