ERC readies show-cause orders vs Leviste firm
Billionaire lawmaker Leandro Leviste’s woes continue to mount, as energy regulators are set to issue show-cause orders against Solar Para Sa Bayan Corp. (SPSB) over allegedly expensive power charges.
Energy Regulatory Commission (ERC) Chair and CEO Francis Saturnino Juan said on Saturday they had received consumer complaints and reports of violations, claiming that the solar firm implemented power rates even without the regulator’s clearance.
Based on its findings, SPSB operated in Paluan, Occidental Mindoro, including other off-grid areas, even without an authority to operate and certificates of compliance for its generation facilities.
No approval
The ERC did not disclose how much was charged to consumers, as well as the period of the supposed imposition of rates. It is also yet to give a specific date when the orders will be issued.
But according to a television interview, residents in Paluan claimed that they had been charged up to P18 per kilowatt hour (kWh) without the ERC’s approval.
SPSB was also reportedly charging rates surpassing P8 per kWh, far from its promise of P3 per kWh.
Although the solar group received a 25-year nonexclusive franchise, the ERC insisted SPSB had to meet all regulatory approvals, especially those involving power rates.
In 2019, under former President Rodrigo Duterte’s leadership, SPSB secured the franchise to develop microgrids and tap renewable energy sources to supply electricity to remote, unviable, unserved or underserved communities.
For Juan, it is a “mortal sin” for a regulated entity to charge consumers without first obtaining the necessary permits.
“Adhering to both ERC regulations and franchise conditions is essential when operating and charging consumers as a regulated entity,” the ERC chief said in a statement.
“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,” he added.
News about SPSB surfaced earlier this month after Ombudsman Jesus Crispin Remulla claimed that Leviste sold his solar energy franchise to tycoon Manuel V. Pangilinan.
However, the Pangilinan group already clarified this issue, saying SP New Energy Corp. (SPNEC) is a “separate and distinct corporate entity” from SPSB.
Meanwhile, Leviste’s Solar Philippines is also facing a hefty P24-billion penalty over its failure to deliver more than 11,000 megawatts of renewable energy capacity.
Following this energy contract chaos, the young tycoon decided to abandon his post as a member of the board of directors of SPNEC and its subsidiary Terra Solar Philippines Inc.
“To prevent Meralco and other investors in the companies I sold from being caught up in any wrongful political attacks against me, I resigned as a board director,” he said in a social media post.
