Diversified San Miguel Corp. asked power retailer Manila Electric Co. to start the competitive selection process for power supply agreements as ordered by the Supreme Court.
The court required all PSA applications submitted by the distribution utilities on or after June 30, 2015 to comply with the CSP or public bidding in accordance with the 2015 circular of the Department of Energy.
“We cannot do anything and I have said that to you even before. Because the prices are higher so who will accept that. Of course, the court will look at the present value today which is very low so they will not allow it. We have been expecting that,” San Miguel president Ramon Ang said.
Meralco signed power supply agreements with seven generators in April 2016 to secure 3,551 megawatts of capacity in its franchise area which is the subject of the Supreme Court case.
“We submit ourselves to CSP. We have already advised Meralco to start the CSP process. I think we heard everybody will abide. For me, whatever they do with the pricing, we will join and fight during the bidding. At the end of the day, the lowest price wins. We follow the rules,” Ang said.