ERC to issue show cause orders vs Solar Para Sa Bayan

MANILA — The Energy Regulatory Commission (ERC) will issue Show Cause Orders against Solar Para Sa Bayan Corp. (SPSB) following consumer complaints and reports of alleged violations, including unauthorized operations and charging electricity rates without prior approval.

The Commission said it learned that SPSB operated in Paluan, Occidental Mindoro, as well as other off-grid areas, without securing required regulatory approvals such as an Authority to Operate and Certificates of Compliance for its generation facilities.

SPSB was granted a 25-year non-exclusive franchise in 2019 under Republic Act No. 11357 to develop distributed energy resources and microgrids using renewable or hybrid technologies for remote, unviable, unserved, or underserved areas.

The ERC emphasized that the franchise law requires SPSB to comply with all applicable regulations, particularly those governing rate-setting and the need for prior regulatory approval before charging customers.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said charging electricity rates without approval is a serious violation under Commission rules.

“Mortal sin ’yan para sa isang regulated entity na ikaw ay maningil nang hindi mo man lang hingin yung approval ng regulator mo,” Juan said.

Juan stressed that “adhering to both ERC regulations and franchise conditions is essential when operating and charging consumers as a regulated entity.”

He added that “despite 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.”

The ERC said the issuance of Show Cause Orders is part of its mandate to protect electricity consumers and ensure that all power sector participants comply with laws, regulations, and franchise conditions.

The Commission assured that due process will be observed, including allowing SPSB to submit explanations and respond to the allegations.

SPSB has drawn public attention amid broader scrutiny of renewable energy and microgrid projects, particularly in off-grid communities.

The ERC clarified that SPSB is separate from Solar Philippines Power Project Holdings and from SP New Energy Corp., noting that the current action focuses solely on SPSB’s compliance with regulatory approvals and rate-setting rules.