The Energy Regulatory Commission (ERC) has initiated the issuance of Show Cause Orders (SCOs) against Solar Para Sa Bayan Corp. (SPSB) in response to consumer complaints and reports of violations of ERC rules and regulations. These include allegations of unauthorized operations and the imposition of power rates without prior approval from the Commission.
The ERC learned that SPSB operated in Paluan, Occidental Mindoro, as well as other off-grid areas, without securing the necessary regulatory approvals, such as an Authority to Operate (ATO) and Certificates of Compliance (COC) for its generation facilities.
In 2019, SPSB was granted a 25-year non-exclusive franchise under Republic Act No. 11357 to develop distributed energy resources and microgrids using renewable energy technology, or a hybrid thereof, to supply electric power to customers and end users in remote, unviable, unserved, or underserved areas.
ERC Chairperson and CEO Francis Saturnino C. Juan said charging electricity rates without regulatory approval is considered a serious matter under the Commission’s rules.
However, the ERC pointed out that the franchise law itself mandates SPSB to comply with applicable regulatory approvals, particularly concerning the rates it will charge its customers.
ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said charging electricity rates without regulatory approval is considered a serious matter under the Commission’s rules.
“Mortal sin ’yan para sa isang regulated entity na ikaw ay maningil nang hindi mo man lang hingin yung approval ng regulator mo,” said Juan in a recent interview, Chairperson Juan emphasized that “adhering to both ERC regulations and franchise conditions is essential when operating and charging consumers as a regulated entity.”
Juan added that “despite reports suggesting that SPSB has already ceased operations, the seriousness of the violation still justifies an investigation, as any penalties that may be imposed can still be enforced against SPSB and its assets.”
The ERC highlighted that issuing the SCOs is integral to its responsibility to safeguard electricity consumers and ensure that all power sector participants adhere to relevant laws, regulations, and franchise conditions.
The Commission assured that due process will be observed in evaluating the explanations and submissions from the parties involved.
