San Miguel Corp. no longer expects the Energy Regulatory Commission to approve a power supply agreement with Manila Electric Co.
San Miguel president Ramon Ang last week conceded that the ERC might not want to approve the application due to cases filed with the agency. He added electricity prices had also softened since the time the applications were filed.
“This means we hope ERC will still approve because prices were at P5 (per kilowatt-hour) at that time. Now it’s P3, so ERC may be afraid to approve it because of the high price. So it will be subjected to CSP (competitive selection process),” he said.
Ang said Meralco might be forced to do a CSP or bid out its requirements.
“So I’m not to hopeful because of the many cases filed with ERC. It will have an impact, revenues will go down, “ he said.
“We will have lower revenues but there is still profit because of lower cost of production,” he said.