ERC gives Solar Para sa Bayan chance to explain alleged violations

The Energy Regulatory Commission (ERC) has issued a show cause order (SCO) to Solar Para sa Bayan Corp. (SPSB), another solar company linked to Batangas Rep. Leandro Leviste, giving the firm a chance to explain alleged violations before penalties could be imposed.

In an interview on state-run PTV on Tuesday, ERC chairperson and CEO Francis Saturnino Juan said the SCO was in relation to the power industry regulator’s probe into the complaints it received against SPSB concerning the latter’s unauthorized operations and unapproved electricity rate in Paluan town, Occidental Mindoro.

“We looked into the records of the commission and we found that there are several complaints against the company… These complaints pertain to Solar Para sa Bayan’s operations in a municipality in Occidental Mindoro. When we reviewed our records, it was found that the company did not get permission from the ERC to operate and there is no approved electricity rate to be charged by Solar Para sa Bayan,” Juan said in Filipino.

The ERC chief said companies, whether power distributors or generators, need to submit an application to the commission to operate as well as to increase prices for its customers.

“We are wondering why Solar Para sa Bayan did not submit an application,” Juan said.

“From the complaints received by the commission, we learned that Solar Para sa Bayan had already charged its customers up to P18 per kilowatt-hour, higher compared to the cooperative operating in Paluan,” he said.

The ERC, last month, announced it is investigating SPSB over alleged excessive electricity charges reportedly up to P18 per kilowatt-hour in Paluan in 2020 — rates that were not approved by the commission.

In Maki Pulido’s report on 24 Oras, Leviste did not directly respond to questions regarding the unapproved rates.

He maintained, however, that the company’s P8 to P11.85 per kWh rates were necessary to cover losses incurred while awaiting the implementing rules and regulations (IRR) of the franchise, which would have allowed full operation at lower rates.

Due to the IRR delay, Leviste said the company had to increase rates to recover expenses, eventually shutting down the plant after sustaining losses of P500 million.

ERC clarified that under Section 21 of the franchise, an IRR is only required for new areas where the company intends to provide electricity. Plants already in operation before the franchise was granted do not need an IRR.

“An IRR is not needed for a franchise to continue operating. However, you still need to obtain the commission’s approval for increasing the rates,” Juan said.

The ERC chief said the commission will wait for verification and SPSB’s explanation regarding the show-cause order 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,” he said. — BAP, GMA Integrated News