South Premiere Power Corp. and the Manila Electric Co. will proceed to re-negotiate their power supply agreement after the 13th Division of the Court of Appeals issued a writ of preliminary injunction .
The appellate court said SPPC—a unit of SMC Global Power Holdings Corp. of conglomerate San Miguel Corp.—and Meralco shall agree on a “satisfactory solution” regarding the amendment of their PSA to SPPC’s commercial position prior to such change in circumstances, including an adjustment of the contract price.
The ERC order denied the rate hike joint petitions of SPPC and San Miguel Energy Corp. , and Meralco for price adjustments to serve as temporary relief covering a combined P5.2 billion in losses incurred from January to May 2022 due to the unprecedented spike in fuel prices. The same court directed SMEC, Meralco, and ERC to file a comment after the Sixteenth Division of the CA granted SMEC’s motion to consolidate the subject case with that of SPPC.