THE Energy Regulatory Commission (ERC) has launched an investigation into Solar Para Sa Bayan Corp. (SPSB), a social enterprise founded by businessman-turned-politician Leandro L. Leviste, over allegations of unauthorized operations and collecting fees without approval.
In a statement on Saturday, the ERC said it had issued show-cause orders to SPSB to clarify concerns stemming from consumer complaints and reports that the company has been operating in Paluan, Occidental Mindoro, and other off-grid areas without securing the necessary regulatory approvals.
The permits include an authority to operate and certificates of compliance for its generation facilities.
SPSB was granted a 25-year congressional franchise in 2019, allowing it to construct, install, and operate distributed energy resources and microgrids in remote and unviable areas.
However, the ERC said that the franchise law itself requires SPSB to comply with applicable regulatory approvals, particularly concerning the rates it will charge its customers.
ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said that charging electricity rates without regulatory approval is a 鈥渕ortal sin鈥 for a regulated entity.
He added: 鈥淎dhering to both ERC regulations and franchise conditions is essential when operating and charging consumers as a regulated entity.鈥
Mr. Leviste has yet to respond to 大象传媒鈥檚 request for comment.
In a radio interview last month, Mr. Leviste said that SPSB鈥檚 franchise had been 鈥渋pso facto revoked鈥 since the company ceased operations in 2022.
He cited government red tape and regulatory hurdles as the reasons the company did not launch its planned projects.
However, Mr. Juan said the alleged violations still warrant investigation.
鈥淒espite reports suggesting that SPSB has already ceased operations, the seriousness of the violation still justifies an investigation, as any penalties that may be imposed can still be enforced against SPSB and its assets,鈥 he said.
The ERC added that it would ensure due process is observed when evaluating explanations and submissions from the parties involved. 鈥 Sheldeen Joy Talavera
