The Energy Regulatory Commission (ERC) is scrutinizing Solar Para Sa Bayan Corp. (SPSB), an energy company founded by businessman and Batangas 1st District Representative Leandro Levister, over alleged regulatory breaches—giving the company a chance to explain before any penalties are imposed.

In a public interview on Tuesday, ERC chairperson and CEO Francis Saturnino Juan said the investigation stems from complaints about unauthorized operations and unapproved electricity rate hikes in Occidental Mindoro.

“We looked at the commission’s records and found that there were many complaints received in the first place. These complaints concern the operation of SPSB in a municipality in Mindoro Occidental. When we reviewed the records, it turned out that the operation was neither requested nor approved by the ERC,” Juan said.

Juan said SPSB bypassed critical regulatory steps and allegedly operated without the necessary permits.

“An energy company needs to submit an application to the ERC regarding the price increase for its customers. We are wondering why SPSB did not submit an application.

From the complaints received by the commission, we learned that SPSB had already informed its customers that rates would increase to P18 per kilowatt-hour, compared to the cooperative operating in Paluan,” he explained.

SPSB, like any distribution utility, generation company, or qualified third party must secure the proper ERC permits to operate, such as a Certificate of Public Convenience or a Certificate of Compliance for generation companies. He said the company did not obtain these required permits.

While the ERC called the violations severe, Juan said penalties are on hold pending SPSB’s response.

“First, we will wait for their verification and explanation regarding the show-cause orders we issued. Afterward, we will determine what happened and establish the facts.

Based on those facts, if there was a violation, the commission can issue a warrant for punishment, including penalties. Even if the company is no longer operating, we can still enforce penalties if they have the means to comply,” Juan said.

The regulator warned the entire electricity sector that ignoring ERC rules and customer protections will not be tolerated. “Companies cannot ignore the commission or their customers and bypass ERC approval,” Juan said.

Early this year, the Department of Energy said Solar Philippines, another firm led by Leviste, failed to deliver over 11,427.83 megawatts (MW) of promised renewable energy projects, leaving at least P24 billion in contractual obligations. 

About 163 renewable energy service contracts totaling 17,904.02 MW were terminated in 2024 and 2025, including 33 awarded to Solar Philippines’ subsidiaries—seven from the first Green Energy Auction with a combined capacity of 1,350 MW and one from the second auction with 20 MW.