SEC seeks clarity from ERC amid P100-million line fee controversy

The Sarangani Energy Corporation (SEC) is urging a fair resolution from the Energy Regulatory Commission (ERC) amid social media claims that it owes South Cotabato II Electric Cooperative (SOCOTECO II) P100 million in “unpaid line rental fees.”

In a statement, SEC clarified that no such financial obligation exists at present, stressing that the amount being circulated online is “not yet validated” and remains subject to an ongoing ERC review.

“The propriety of such charge has yet to be established, let alone the amount to be paid by SEC,” the company said. “Any determination of payment can only be made once the ERC resolves whether SOCOTECO II has the legal basis to impose said fees.”

The dispute stems from SOCOTECO II’s wheeling charges for electricity transmitted from SEC’s 237-megawatt coal-fired power plant in Maasim, Sarangani Province. The plant supplies power to SOCOTECO II’s franchise areas, including General Santos City, Sarangani Province, and parts of South Cotabato.

SEC underscored that it remains fully compliant with regulatory requirements and continues to cooperate with authorities to settle the issue properly.

The controversy erupted as SOCOTECO II faces mounting operational and financial challenges, including recent public scrutiny following its decision to decline Meralco’s offer of technical assistance.

Energy observers note that the issue has sparked online debate partly because of the corporate ties between SEC and Meralco PowerGen (MGen), both of which are affiliated under different entities of the Alcantara-led Alsons Power Group.

Despite the circulating claims, SEC reaffirmed its commitment to transparency and accountability, calling for responsible information sharing while the ERC determines the legitimate outcome of the dispute.