P150-million fine may be imposed on another Leviste firm

National

A SOLAR energy company linked to Batangas Rep. Leandro Leviste may face penalties of up to P150 million after the Energy Regulatory Commission (ERC) launched an investigation into alleged illegal operations and excessive electricity charges.

ERC Chair Francis Saturnino Juan said Solar Para Sa Bayan Corp. (SPSB) is being investigated for three possible violations: operating without authority, failure to secure a certificate of compliance, and charging electricity rates without regulatory approval.

Each violation carries potential fines ranging from P50,000 to P50 million.

According to an Inquirer.net report, show cause order issued on Jan. 30, the ERC directed SPSB to explain multiple complaints regarding its electricity rates. Initial findings indicated that the company allegedly collected electricity payments from residents of Paluan, Occidental Mindoro, beginning in 2018 despite lacking proper authorization.

The commission stated that records show SPSB neither applied for nor obtained authority to operate and failed to secure the required compliance certificates. The ERC also emphasized that the company’s franchise requires prior approval of electricity rates before they can be charged to consumers.

While the order did not specify the exact rates collected, residents earlier claimed they were charged as much as P18 per kilowatt hour, significantly higher than the company’s earlier promise of P3 per kilowatt hour.

SPSB has been given 15 days to respond to the allegations. The company was also instructed to submit monthly consumer billing samples from 2018 until it ceased operations in Paluan.

The firm previously received a 25-year non-exclusive franchise during the Duterte administration, allowing it to develop microgrids and supply renewable energy to remote and underserved communities.

Leviste linked the allegations to what he described as political pressure associated with the so-called Cabral files, reportedly connected to alleged irregularities in flood control projects. He said he would respond to the accusations through proper legal channels.

Leviste also resigned from his position as board member of SP New Energy Corp. and its subsidiary, Terra Solar Philippines Inc., saying the move was intended to protect the companies from political attacks.

Meanwhile, another Leviste-linked firm, Solar Philippines Power Project Holdings Inc. (SPPHI), previously faced sanctions from the Department of Energy (DOE). The agency recently terminated 163 renewable energy projects due to failure to meet development timelines, with about 64 percent of the projects reportedly handled by SPPHI.

The canceled projects included 33 contracts awarded under the government’s Green Energy Auction Program, which aims to increase the country’s renewable energy share from 22 percent to 35 percent by 2030. Many of the halted projects were located in Luzon and were expected to generate more than 11,000 megawatts of electricity.

The DOE said the company did not respond to communications regarding compliance extensions or reconsideration requests.(Georgia Olivar, USJ-R Comm Intern)