PSALM loses case against SMC Global

SMC Global Power Holdings Corp., a subsidiary of conglomerate San Miguel Corp., has won anew versus the Power Sector Assets and Liabilities Management Corp. (PSALM) over a four-year dispute over the 1,200-megawat Ilijan power plant in Batangas.

In a filing with the Philippine Dealing Exchange over the weekend, SMC Global said the Court of Appeals’ (CA) fifth division, in a resolution dated 23 August, dismissed PSALM’s petition for certiorari against SMC Global’s subsidiary South Premiere Power Corp. (SPPC).

CA said PSALM failed to submit infirmities such as the names and addresses of the parties in the case as required under Section 3, Rule 46 of the Rules of Court, a copy of the petition to SPPC, and implead the Regional Trial Court (RTC).

“Upon perusal of the petition and its annexes, the Court rules to dismiss the petition,” CA said.

“Anent PSALM’s prayer for the issuance of a temporary restraining order and/or writ of preliminary injunction, the court rules to deny the same,” it added.

SPPC bagged the Ilijan plant’s independent power producer administration (IPPA) through a public bidding in April 2010.

However, PSALM terminated the IPPA in 2015 allegedly for the group’s non-payment of generation charges it computed using Wholesale Electricity Spot Market rates instead of the approved rates by the Energy Regulatory Commission.

SPPC filed a complaint versus PSALM with the Mandaluyong RTC due to willful breach of contract as a result of a flawed interpretation of certain provisions in relation to generation payments, under the administration agreement.

Prior to the CA’s dismissal, the Supreme Court earlier this year also went in favor with SPPC when PSALM challenged the its decision to affirm the writ of preliminary injunction.

PSALM asserted that the group failed to settle some P19.75 billion in taxes.