Groups battling the petition of San Miguel Corp.'s energy arm SMC Global Power for rate increases accused the conglomerate of obfuscation or gaslighting to obtain public support.

The Energy Regulatory Commission last Monday dismissed the petition of SMC Global Power in a 3-2 decision as the regulator essentially said straight pricing in the power supply agreements does not allow rate increases.

SMC Global Power petitioned for its units, South Premiere Power Corp. which operates the Ilijan natural gas plant, and San Miguel Energy Corp. which runs the Sual coal plant, a total of P4.80 per kilowatt-hour in "temporary" increases covering five months.

SMC Global Power wanted to recover P5 billion in losses from higher coal costs and supply restrictions from the Malampaya natural gas plant.

It previously threatened to terminate its PSAs with Meralco if it failed to obtain the ERC's nod but it backtracked and later said it will keep the contracts but will pursue legal remedies available to it.

Civic organizations outlined the likely steps that can be taken to uphold the welfare of consumers, starting with not allowing SMC to terminate the PSA.

"The ERC said PSAs are not ordinary commercial contracts, there is public interest (involved) in these contracts," according to the Consumer Coalition Power for People.

"The law allows Meralco to seek damages from SMC. Sue SMC to force it to perform according to the PSA or have SMC comply with the six-month notice period before any termination of PSAs," P4P convenor Gerry Arances indicated.

"And if that happens, Meralco can blacklist SMC," the P4P head said.

Very real consequences should be applied to companies that only seek to profit from the energy industry and ignore the public welfare aspect of the service, Arances added.

The consumer group added that should SMC insist on terminating the PSAs in question, then Meralco should look at renewable energy to take up the shortfall.