MANILA - Meralco said on Monday San Miguel Global Power Holdings Corp's notice of termination for the 2 power supply agreements (PSAs) has no impact on operations as electricity is not yet being supplied under the deal.
In a disclosure to the stock exchange, Meralco said SMC's power arm submitted the notices of termination for the power supply agreements (PSA) entered into by its subsidiaries Excellent Energy Resources, Inc and Masinloc Power Partners Co. Ltd.
The 2 PSAs were for the contract capacity of P1,800 MW with commercial operations dating from 2024 to 2025.
"There is no impact to the business, financial condition, and operations of MERALCO, as electricity is not yet being supplied under the involved power supply agreements," Meralco said.
"Nevertheless, MERALCO is evaluating the best available options for the benefit of its customers, without excluding the possibility of immediately requesting the Department of Energy to approve the reconduct of a competitive selection process for the contract capacity of 1,800 MW (net), with commercial operations date 2024-2025," it added.
Meralco said the notices of termination cited the PSA provision allowing termination for non-occurence of several conditions for its commencement and acceptance as the Energy Regulatory Commission has yet to issue a Final Approval of applications for the PSA's filed on March 18, 2021 and March 24, 2021.
In a separate disclosure, San Miguel Corp said that the 2 subsidiaries of SMC Global Power Holding Corp were "constrained to issue notices of termination" to Meralco due to the said non-issuance of ERC of final approval.