MGEN: SPNEC is different from Solar Philippines that is facing DOE fines

Meralco PowerGen Corp. (MGEN) on Sunday clarified that Solar Philippines New Energy Corp. (SPNEC) is different from Solar Philippines that is facing P24 billion in penalties imposed by the Department of Energy (DOE). 

This is according to Jonathan Andal’s report on “24 Oras Weekend” on Sunday night.

“SP New Energy Corporation (SPNEC) wishes to clarify that it is not liable to pay the P24 billion penalties quoted by the Department of Energy (DOE) for the terminated service contracts of Solar Philippines,” MGEN said in a statement. 

Both SPNEC and Solar Philippines were founded by Batangas 1st District Rep. Leandro Leviste.

However, it is Solar Philippines that is facing P24 billion in fines following the termination of over 11,000 megawatts worth of contracts in the past two years for failing to deliver on its production commitments.

“Of the 12,000 MW worth of contracts that have been terminated, only one for the 280 MW Sta. Rosa project is under SPNEC. The former management of the Sta. Rosa project offered and was awarded 280 MW in the first round of the Green Energy Auction Program of the DOE,” MGEN said.

It added that the Sta. Rosa project “already filed a notice of force majeure with the DOE last year citing reasons beyond its control preventing it from completing the projects by its target of December 2025.” 

Last week, MGen said it did not buy shares from Batangas 1st District Representative Leandro Leviste’s solar firm, Solar Para sa Bayan Corp. (SPBC), which was granted a 25-year congressional franchise.

The imposition of the fines came after Solar Philippines was found to have failed to deliver on its commitment to produce nearly 12 gigawatts of renewable energy capacity.

The DOE repeatedly issued notices and show cause orders to Solar Philippines regarding the renewal of their bonds, but the company failed to take any action.

According to the “24 Oras Weekend” report, Leviste said he has yet to receive any communication regarding the P24 billion fine.

“I have not received any communication addressed to me regarding a 24B penalty arising from the termination of a service contract of Solar Philippines,” he said in a text message. 

GMA Integrated News is trying to reach out to the DOE for comment. — Vince Angelo Ferreras/JMA, GMA Integrated News