ERC firm on shutdown of Villars’ Sipcor

Regulators dismissed the Court of Appeals’ (CA) decision in favor of Siquijor Island Power Corp. (Sipcor) as futile, since the Villar-led power firm’s operating permit had already lapsed.

“I would not comment on the decision itself or the merits of our case. But please note, regardless of the final outcome of the case, the term of Sipcor’s provisional authority to operate had already expired,” Energy Regulatory Commission (ERC) Chair Francis Saturnino Juan told reporters on Wednesday.

Juan said Sipcor cannot operate without applying for a renewal or for a fresh provisional authority and certificate of compliance.

Sipcor can still apply for these, but it needs to meet all the requirements, including the Department of Energy’s (DOE) certificate of endorsement. This document, however, was already revoked by the DOE.

The company used to be the only power supplier of the Province of Siquijor Electric Cooperative Inc. (Prosielco). Sipcor has bunker-fired generation units on the island.

The government, however, cancelled the firm’s permit to operate a year ago due to persistent electricity issues in the province.

“Why would it still operate if its power supply agreement with Prosielco was already terminated and Prosielco had already conducted its CSP (competitive selection process) and contracted with a new power provider?” Juan said.

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A copy of the CA ruling was not immediately available to the media, but in a letter to the Villar Group’s Premiere Island Power REIT Corp., Sipcor said the CA “reversed” the decision of the ERC, which revoked its provisional authorities to operate.

The letter noted the CA found the ERC “failed to afford procedural due process,” including the alleged absence of a show cause order against Sipcor.

Asked if the ERC indeed failed to follow the rules of procedure, Juan said: “We did not and we will point that out in our MR (motion for reconsideration).”