33 SMC power deals ‘invalid’
PSAs of four units of SMC Global Power also have contracts that the Supreme Court voided in a landmark 2019 decision for not following the legally-mandated competitive selection process.

Aside from the two controversial power supply agreements with Manila Electric Co. which San Miguel Corp. energy arm SMC Global Power wanted to be amended and are the subject of consumer protests, at least 33 other PSAs should be under Energy Regulatory Commission scrutiny for being invalid.
PSAs of four units of SMC Global Power also have contracts that the Supreme Court voided in a landmark 2019 decision for not following the legally-mandated competitive selection process.
Consumer group Power for People Coalition discovered that some are still in effect "and contributing to the spike in power rates in various parts of the country."
Consumer groups earlier identified the use of a two-step pricing scheme in PSAs as the culprit for the spikes in power rates in different parts of the country.
SMC Global Power wanted to amend the contract of its units South Premiere Power Corp. which runs the 1,200-megawatt Ilijan natural gas plant and the Sual coal plant of San Miguel Energy Corp. which are both based on straight pricing that does not allow pass-on costs.
P4P wrote ERC last Friday to identify at least 28 of the 90 PSAs declared as invalid by the Supreme Court on 19 September 2019, which remain in effect. P4P also discovered 30 other PSAs as having the same characteristics that the SC ruling voided.
P4P said a total of 120 deals were ordered to comply with requirements under the competitive selection process.
According to P4P, among the invalid PSA that remains active is between Zamboanga City Electric Cooperative and San Miguel Consolidated Power Corp. which contributes to 62.7 percent of Zamboanga City's power, charging ₱10.57 per kilowatt hour in August.
Among the anomalous PSAs are San Miguel Energy Corporation's pacts with Peninsula Electric Cooperative, Camarines Sur II Electric Cooperative, Nueva Vizcaya Electric Cooperative, Isabela II Electric Cooperative, Ilocos Sur Electric Cooperative Inc., Pangasinan III Electric Cooperative, Tarlac I Electric Cooperative, and Clark Electric Distribution Corp.
San Miguel Consolidated Power Corp. also has deficient deals with Pangasinan III Electric Cooperative, Zamboanga Del Sur I Electric Cooperative, Agusan Del Sur Electric Cooperative, Misamis Oriental I Rural Electric Service Cooperative, Davao Del Norte Electric Corporation, Cotabato Electric Cooperative Inc., Zamboanga City Electric Cooperative Inc., Surigao Del Sur II Electric Cooperative, Cotabato Electric Cooperative Inc.; and Tarlac I Electric Cooperative.
