SMC should have accountability if it will pursue a threatened pullout from power supply agreements with Meralco on 4 October, consumer groups demanded yesterday.

"The electricity involved in the deal is such a big chunk of supply for Luzon and it will disrupt the whole system," consumer group Power for People Coalition said.

"When a large power plant is taken off the grid, it causes rotating brownouts, so there must be an accountability there," P4P convenor Gerry Arances said.

Arances added there should be an implication in their action particularly in making a very low offer for the PSA.

"Electricity consumers and the economy will have to be protected," according to the civic group head.

SMC affiliate SMC Global Power wanted to recover P5.2 billion from electricity consumers within six months based on its petition with ERC.

SMC's unit had sought to amend its tariff and collect an additional P4 per kilowatt hour for the Sual coal plant operated by San Miguel Energy Corp. and an additional 80 centavos per kWh for the Ilijan natural gas facility of South Premiere Power Corp.

SMC Global threatened to pull out from the two PSAs if ERC does not grant the tariff adjustment plea.

Ball in ERC's court

ERC granting additional rates to money-losing contracts is unprecedented, never mind that it is temporary, according to a stakeholder.

He added that the ERC allowing a rate adjustment will open the floodgates to similar claims from four independent power producers "who are in the same boat as SMC."

"If ERC decides in favor of SMC, these other power companies can also apply for temporary tariff adjustment," an official of an electricity producer said.

P4P's Arances said if SMC indeed pulls out, "the automatic measure of the Energy Regulatory Commission will be to mandate a new auction," most likely for an emergency PSA.