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The Energy Regulatory Commission (ERC) is currently evaluating SMC Global Power Holdings Corp.’s (SMGP) request to recover costs from consumers.
In an ambush interview with ERC Chairperson Monalisa Dimalanta on the sidelines of the PhilEnergy Expo 2025, she shared that SMGP had filed a petition to allow them to collect ₱5 billion in losses due to a change in circumstance (CIC).
“They have filed already two motions. One, they are trying to collect [costs]… They want us to execute the Supreme Court, the Court of Appeals’ [CA] decision collecting ₱5 billion for that period of CIC,” she told reporters.
“They’ve also filed a second motion for the subsequent period. I think the first period was from March to May. The subsequent period is June to December, if I’m not mistaken,” Dimalanta added.
She assured that these petitions are undergoing evaluation. However, Dimalanta reiterated a concern on how this would impact consumers.
“That’s why initially we did not grant [the approval], right? But we’ll have to evaluate given all the things that have happened… Increases can happen. Changes in purchase power agreements (PPA), and power supply agreements (PSA) rates can happen as we know because of the fuel primarily because that’s the uncontrolled portion of the PSA. That’s why we need to evaluate,” the ERC chief elaborated.
To recall, in 2022, SMGP filed a notice of termination for its two PSAs with Manila Electric Co. (Meralco) through South Premiere Power Corp. and San Miguel Energy Corp., citing spikes in global fuel prices as a key factor in the CIC request.
Last year, the Supreme Court upheld the termination of the PSA between San Miguel and Meralco, following a CA decision that reversed the ERC’s rejection of San Miguel’s power units' rate hike petition.
As San Miguel had recently filed two motions, the ERC is left to conduct proper due process before giving them the go signal on cost recoveries.
“If the increase is justified, allowed under the contract, and there’s really the basis for the cost, the actual amounts claim, then we can allow for the increase and then we manage the impact by deferring the, extending the period of collection. That’s how we’re able to manage,” Dimalanta explained.
“We have to make sure first that the claim has basis under the PSA and that it is justified based on the supporting documents that were provided,” she added.
Dimalanta further emphasized that even with a decision from the CA and the Supreme Court, the regulators must verify that the documents and requirements have been met before any approval.
