The Energy Regulatory Commission, in a 3-2 vote, denied the joint petition of San Miguel Corp. energy arm SMC Global Power Corp. for a P4.80 increase in the contracted prices of the Sual coal plant and Ilijan natural gas plant.

Granting the SMC energy arm's proposal would have resulted in a spike in power rates. SMC Global Power had sought a "temporary" relief amid what it claimed as a P15 billion loss from higher coal prices and the supply restrictions from the quickly depleting Malampaya field.

With the ERC denial, SMC's next move is awaited as it had threatened to unilaterally terminate its PSAs if ERC denies what it is seeking.

Consumer groups said SMC should be cited for economic sabotage if it backs out of its deals with Meralco which comprises a total of one gigawatt that will be removed from the electricity grid.

"We've had enough of this blackmail, and call onto the ERC and Department of Energy to hold SMC accountable for economic sabotage should it back out of its contractual obligations to provide power to consumers," Aaron Pedrosa, Secretary-General of Sanlakas, one of the oppositors, said.

"Historic victory! SMC-Meralco Rate Adjustment Denied 3-2! Tuloy ang laban para sa malinis at murang kuryente (Campaign for clean and reasonably priced electricity continues)," consumer group Power for People Coalition said in celebration.

P4P has spearheaded the battle against SMC's price increase petition and its threat to pull out from the PSAs.

Daily Tribune tried to get a reaction from SMC but had not received a reply at press time.

In a recent statement, SMC Global Power warned that power rates may increase by as much as 30 percent by this month in case the ERC failed to act on its petition for a temporary hike for its two PSAs.

Respect straight price PSA

SMC entered into a straight price, or fixed price PSA in 2019 for the supply of electricity from the Sual coal-fired power plant and the Ilijan LNG plant.

"SMC made the petition to escape the fixed price clause and make consumers foot the bill for their chosen fuel, alleging that they could not have foreseen the price spikes in the world market," P4P convenor Gerry Arances said.