A substantial financial penalty looms over Solar Para sa Bayan Corp. (SPSB), potentially reaching up to 150 million pesos, as the Energy Regulatory Commission (ERC) demands answers to serious allegations of regulatory breaches.
The ERC, wielding its investigative authority under the Electric Power Industry Reform Act, has issued show-cause orders, compelling SPSB to explain why it allegedly operated without proper authorization, failed to file necessary applications, and imposed unapproved electricity rates on consumers.
At the heart of the issue lies SPSB’s 2019 congressional franchise, intended to bring power to remote areas through distributed energy resources and microgrids. This franchise, however, explicitly required the company to obtain crucial permits and licenses from the ERC – a step the commission asserts was never taken.
Records reveal SPSB never applied for a Certificate of Public Convenience and Necessity (CPCN), or any equivalent authority, despite the legal obligation. The ERC further states the company lacked any authorization to operate, a certificate of compliance, or even a provisional authority.
The commission’s scrutiny extends to the rates charged to residents of Paluan, Occidental Mindoro. SPSB is accused of collecting payment for electricity since 2018 without securing prior ERC approval, a direct violation of regulations governing retail electricity rates.
SPSB has been given fifteen days to respond to the allegations, including submitting sample consumer bills dating back to 2018. The ERC is prepared to levy fines ranging from 50,000 to 50 million pesos *per violation* if a satisfactory explanation isn’t provided.
Linked to Batangas Representative Leandro Leviste, SPSB previously cited government obstacles and regulatory delays as reasons for halting operations in 2022, even suggesting its franchise had effectively been revoked. This claim is now under intense examination.
This situation echoes past difficulties for Leviste’s other solar venture, Solar Philippines Power Project Holdings, Inc., which faced a staggering 24 billion peso fine from the Department of Energy for failing to deliver promised renewable energy capacity.
