ERC says Solar Para Sa Bayan may be fined up to P150M

By Sheldeen Joy Talavera, Reporter

THE ENERGY Regulatory Commission (ERC) said Solar Para sa Bayan Corp. (SPSB) could face fines of up to P150 million if it fails to justify alleged violations cited in show-cause orders issued to the company.

“The fines we can impose are P50,000 to P50 million per violation,” ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said in a Viber message on Wednesday.

In an order promulgated Jan. 30, the ERC asked SPSB to explain three alleged violations: failing to file required applications, operating without necessary regulatory authorizations, and charging unapproved electricity rates.

The commission said it issued the show-cause orders using its investigative and quasi-judicial powers under Republic Act (RA) No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA).

SPSB, linked to Batangas Rep. Leandro Leviste, was granted a 25-year congressional franchise in 2019 to construct, install, and operate distributed energy resources and microgrids in remote and unviable areas.

However, the franchise law requires the company to secure from ERC a certificate of public convenience and necessity (CPCN) and other permits and licenses for its distributed energy resources or microgrids.

“Despite the foregoing requirement, records show that Respondent SPSB Corp. has not, at any time, filed any application for a CPCN or any equivalent or other necessary authority, as expressly required under RA 11357,” the commission said.

ERC records also indicate that SPSB “has not applied for, nor been granted” any authority to operate, certificate of compliance, or provisional authority to operate.

Under EPIRA, retail electricity rates charged by distribution utilities in their captive market are regulated by the ERC. The commission flagged SPSB for allegedly “charging and collecting electricity rates” from residents of Paluan, Occidental Mindoro, since 2018 “without prior approval.”

The commission gave the company 15 days from receipt of the order to justify or defend the allegations, including providing sample consumer bills from 2018 until it ceased supplying power to Paluan.

Mr. Leviste has yet to respond to BusinessWorld’s request for comment via Viber and text message.

In a radio interview last month, he said SPSB’s franchise has been “ipso facto revoked” since the company ceased operations in 2022, citing government red tape and regulatory hurdles as reasons for failing to launch its planned projects.

Solar Philippines Power Project Holdings, Inc., another solar firm founded by Mr. Leviste, was fined P24 billion by the Department of Energy for failing to deliver more than 11,000 megawatts of renewable energy capacity.