Pangilinan-led Manila Electric Company (Meralco) on Monday said its business and operations will not be impacted by the termination of the two power supply agreements (PSAs) with units of San Miguel Global Power Holdings Inc..
In a filing to the local bourse, Meralco said it is considering the possible steps to take moving forward, as the Energy Regulatory Commission (ERC) has yet to issue a final approval on the applications for the PSAs.
“There is no impact to the business, financial condition, and operations of Meralco, as electricity is not yet being supplied under the involved power supply agreements,” it said.
The ERC last week said it was informed by Meralco that the company received the notices of termination of the PSAs for 1,200 megawatts (MW) with Excellent Energy Resources Inc., and 600 MW with Masinloc Power Partners Co. Ltd..
The two firms bagged 20-year contracts which were slated to take effect by 2024 and 2025, with the applications for the approval of the PSAs filed on 2021.
“Nevertheless, Meralco is evaluating the best available options for the benefit of its customers, without excluding the possibility of immediately requesting the DOE to approve the reconduct of a competitive selection process for the contract capacity…” Meralco said.
Meralco constructs, operates, and maintains electric distribution systems in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal, as well as certain areas in the provinces of Batangas, Laguna, Pampanga, and Quezon.
The firm counts as subsidiaries and associates Vantage Energy Solutions and Management Inc. and MeridianX Inc., acting as retail electricity suppliers in Luzon and the Visayas.
Shares in the company closed Monday’s trading at P309.00 apiece, up by P5.00 or 1.64% from last Friday’s finish of P304.00 per share.—LDF, GMA Integrated News