ERC eyes probe of Leviste-led Solar PH sister company

The Energy Regulatory Commission (ERC) may investigate another solar company linked to Batangas Rep. Leandre Leviste over alleged excessive electricity charges.

According to Maki Pulido’s report on “24 Oras” Wednesday, Solar Para sa Bayan (SPBC) reportedly charged up to P18 per kilowatt-hour in Paluan, Occidental Mindoro in 2020—rates that were not approved by the commission.

ERC Chairperson Atty. Francis Saturnino Juan emphasized that regulated energy companies must secure ERC approval before charging consumers.

“Regulated energy firms must charge reasonable rates approved by the commission and comply with ERC and Department of Energy regulations,” Juan said.

Leviste’s company had promised its franchise would deliver affordable and clean energy to remote communities.

However, a 2020 letter from the Occidental Mindoro Electric Cooperative showed that the promised P3 per kWh rate was never achieved, with SPBC instead charging rates exceeding P8 per kWh.

“He is accountable under our rules. Of course, he is also responsible under the provisions of the franchise law itself, because he would be in violation if it is proven that he operated and charged rates without ERC approval,” Juan added.

Leviste did not directly respond to questions regarding the unapproved rates. He maintained, however, that the company’s ₱8 to ₱11.85 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 ₱500 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 explained.—Mariel Celine Serquiña/MCG, GMA Integrated News