PREIT climbed as much as 8 percent to P1.08 before closing at P1.06, up 6 percent, data from the stock exchange showed.
The Court of Appeals granted S.I. Power Corp.’s (SIPCOR) petition and reversed an Energy Regulatory Commission decision that revoked the authority of its generating units to operate, a stock exchange filing on Tuesday showed.
The court found that the ERC failed to afford SIPCOR procedural due process, including requirements for a show-cause order and proper notice and hearing before shutting down the facilities.
Revenue could return
SIPCOR told PREIT it intends to lift the suspension of their lease agreement once the court decision becomes final and its authority to operate is formally restored, allowing PREIT to resume recognizing lease revenue.
The power producer said it has been preparing for a restart by repairing generating units, testing electrical systems, planning fuel purchases, renewing permits and recruiting operations and maintenance personnel.
PREIT said the eventual resumption of lease revenue is expected to have a favorable impact on its financial condition, although this remains dependent on material developments in the case and the formal restoration of SIPCOR’s authority to operate.
—Edited by Miguel R. Camus
