THE SUPREME COURT (SC) has denied with finality the motion for reconsideration filed by the Energy Regulatory Commission (ERC), upholding its decision on the power contracts between San Miguel Corp.’s (SMC) subsidiaries and Manila Electric Co. (Meralco).
In a regulatory filing on Tuesday, SMC said that it had received a copy of the resolution from the SC’s First Division denying the motion for reconsideration filed by the energy regulator regarding the high court’s decision dated Aug. 3.
“Considering that there is no substantial argument to warrant a modification of this Court’s resolution, the Court further resolved to deny reconsideration with finality,” the high court said.
The SC likewise denied the temporary restraining order and writ of preliminary injunction sought by the office of the solicitor general (OSG), which serves as the ERC’s counsel, for “lack of merit.”
“No further pleadings, motions, letters, or other communications shall be entertained herein,” the SC said.
The ruling stemmed from the joint motions filed by South Premiere Power Corp. (SPPC) and San Miguel Energy Corp., now Sual Power, Inc. (SPI), with Meralco in 2022, requesting price adjustments in relation to their 2019 power supply agreements (PSAs).
The companies sought a temporary increase in the contract price under the PSAs for a period of six months to recover incremental fuel costs arising from “a change in circumstances.”
The regulator denied the petition, stating that it had no basis, as the PSA is a fixed-rate contract.
SPPC and SPI brought the matter to the Court of Appeals, where the appellate court reversed the ruling of the ERC, in a decision dated June 27, 2023, for “grave abuse of discretion.”
Sought for comment, ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said, “We are consulting with OSG if there are still legal remedies available to the ERC.”
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
