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 Leviste over alleged regulatory breaches — giving the company a chance to explain before any penalties are imposed.

Leviste was able to secure a 25-year Congressional franchise to construct, install, establish, operate and maintain distributed energy resources and microgrids in remote areas in selected provinces under Republic Act 11357.

In 2022, three years after he was granted the franchise meant to bring electricity to unserved and underserved communities around the country, Leviste shut down SPBC.

Unauthorized operations

On Tuesday, ERC chairperson and CEO Francis Saturnino Juan said the investigation regarding SPSB stems from complaints about unauthorized operations and unapproved electricity rate hikes in Occidental Mindoro when the solar company was still in operation.

“We looked at the commission’s records and found that there were many complaints received. 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 also 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.

Secure ERC permit to operate

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.”