Aboitiz Power Corp. is challenging a P1.37-million penalty imposed on its joint venture SN Aboitiz Power–Magat, Inc. (SNAP Magat) after the Philippine Electricity Market Corp.’s Enforcement and Compliance Office (PEMC-ECO) flagged alleged violations of dispatch standards.

In a disclosure on Monday, AboitizPower said SNAP Magat received a Notice of Confirmation of Penalty covering “alleged non-compliance with the Dispatch Conformance Standards… for the billing period covering June, amounting to approximately P1,372,912.88.”

The company said SNAP Magat maintains that “a majority of these non-compliances were caused by SNAP Magat’s adherence to its obligation to provide Ancillary Services under its Ancillary Services Procurement Agreement with the System Operator.”

SNAP Magat filed an Appeal Memorandum before the PEMC Compliance Committee on 21 November “to contest the PEMC-ECO’s current resolution on the alleged non-compliance,” AboitizPower said, adding that the matter “remains pending at this time.”

AboitizPower added that it will issue further disclosures once there are “material concrete developments.”

SNAP Magat is a joint venture of Aboitiz Renewables, Inc. and SN Power Philippines Inc.