The Manila Electric Co. (Meralco) has formally asked the Court of Appeals (CA) to deny the temporary restraining order (TRO) and writ of preliminary injunction (WPI) sought by San Miguel Corp. (SMC) subsidiary San Miguel Energy Corp. (SMEC) in relation to their power supply agreement (PSA).
SMEC currently supplies 330 megawatts (MW) to Meralco under a PSA clinched after a competitive selection process in 2019.
In its motion dated Dec. 21, 2022, Meralco said the issuance of an injunction will lead to the termination of its PSA with SMEC and will disrupt the supply of electricity as well as expose its customers to potentially higher power rates.
“With due respect, the possible grant of the TRO or writ of preliminary injunction will lead to petitioner SMEC’s cessation in supplying electricity to Meralco, which it is obligated to do pursuant to the terms and conditions of the PSA,” Meralco said in a statement.
Meralco said the CA should deny SMEC’s application and “direct the parties to continuously implement the PSA that would serve and protect the public from the unnecessary burden of increased electricity costs.”
The company added the Electric Power Industry Reform Act of 2001 expressly states that supply sector where SMEC belongs is a business affected by public interest and granting its request for a TRO would allow the property rights of the generation company to take precedence over public welfare.
Last Monday, Meralco also asked the CA to lift the TRO it issued in favor of South Premiere Power Corp. (SPPC) and to deny the generation company’s application for WPI.
The TRO granted to the SMC subsidiary led to the cessation of 670 MW of power supply that SPPC was obligated to deliver under its PSA which has a lower rate compared to the Wholesale Electricity Spot Market and the Emergency Power Supply Agreement where Meralco currently sources the replacement power.
