SMC claims P34 billion relief from Meralco deal

San Miguel Corporation (SMC), led by Ramon Ang, is asking for P34 billion in relief from the Energy Regulatory Commission (ERC). This request comes after unexpected events increased costs in their power supply agreement with Manila Electric Company (Meralco). ERC Chair Monalisa Dimalanta confirmed that SMC had recently filed two petitions, which are currently under evaluation. One request seeks to recover costs from March to May 2022, while the other is for P29 billion related to costs from SMC's Sual Power and South Premiere Power Corp. in July and December 2022. If the ERC approves SMC’s requests, it could lead to a temporary price hike for power plants. This increase would ultimately be passed on to consumers by Meralco. Dimalanta noted that the ERC will assess the reasonableness of the petitions but emphasized the need for supporting documents to justify the requested relief. In September, the Supreme Court dismissed an ERC plea against the termination of the supply deal between SMC and Meralco. Both parties have faced significant financial losses due to rising fuel prices. Despite previous court decisions favoring SMC, the ERC’s request for intervention was ultimately rejected.