Consumer groups wanted the Energy Regulatory Commission to compel San Miguel Corp. to show proof of its claim of P15 billion losses in its petition to amend the fixed rates in its power supply agreement with distributor Manila Electric Co.

Its energy unit, San Miguel Global Power, has invoked the "change-in-circumstance" provision in the PSA to seek a temporary adjustment in the charges of its Sual coal plant and the Ilijan natural gas plant.

SMC Global Power blamed higher coal prices and supply restrictions from the Malampaya field for losses that had accumulated. It had threatened to cut off electricity supply totaling 1 gigawatt by 3 October if it fails to obtain a revision of terms in its PSA.

Oppositors to the PSA amendment said that SMC Global Power should first show proof that it is indeed losing before ERC acts on the notification to end the deal with Meralco.

Power for People Coalition provided Daily Tribune with data showing that other energy producers with a similar PSA to Meralco have not complained of having accumulated losses.

Once SMC Global Power unilaterally rescinds its PSA, consumer groups wanted the ERC to cite the company for being unreliable which would be the basis for Meralco to blacklist the company from joining PSA auctions under the competitive selection process.

Data showed that out of the six PSAs with a straight energy price scheme that included the two SMC Global Power deals, only the SMC unit claimed incurring losses.

Pricing scheme acts as a cover

The six PSAs with straight energy pricing and a total contracted capacity of 1,700 megawatts.

Approximately 210 megawatts out of the 1,700 MW were purchased from solar and geothermal power plants.

The charts showed Meralco's power rates have not increased as drastically as those in other provinces because of the straight energy pricing PSAs.

"Consumers have been protected from increasing fossil fuel prices, leaving generation companies to shoulder these risks," according to P4P.