San Miguel unit insists on RTC jurisdiction over Ilijan plant case

San Miguel power unit South Premiere Power Corp. (SPPC) on Monday maintained that the Mandaluyong Regional Trial Court (RTC) had jurisdiction over a pending case involving the Ilijan power plant.

In a statement, SPPC responded to remarks made by Leyte Representative Vicente Veloso questioning the RTC's jurisdiction over the computation of generation charges under the Ilijan power contract.

"Both the Supreme Court and the Court of Appeals (CA) have already ruled that the Mandaluyong Regional Trial Court has jurisdiction over the pending case between South Premiere Power Corporation (SPPC) and PSALM on the computation of generation charges under the Ilijan power contract," the company said.

Veloso earlier questioned the RTC's jurisdiction, as he said power-related issues should be handled by the Energy Regulatory Commission (ERC).

It was referring to the case involving SPPC and the Power Sector Assets and Liabilities Management (PSALM) regarding the Ilijan Power Plant.

The plant sits on a 60-hectare site at Arenas Point, Barangay Ilijan in Batangas, where SPPC assumed administration in June 2010.

in 2012, SPPC and PSALM began discussions on the proper computation for generation payments, as both parties had differences in their respective interpretations.

PSALM computed generation payments based on prevailing Wholesale Electricity Spot Market (WESM) prices from November to December 2013, when there was a temporary spike.

The computations were then challenged by SPPC and the matter was now pending before the courts.

San Miguel Corp. last month criticized the PSALM and the Department of Finance (DOF), saying that they should let the courts decide the issue.

SMC last month also questioned supposed unpaid debts, as the company said it already made P314.6 billion in payments, consisting of P73.9 billion in fixed monthly payments and P240.7 billion in generation charges. — Jon Viktor Cabuenas/DVM, GMA News