A shadow of scrutiny has fallen upon Solar Para Sa Bayan Corp. (SPSB), the ambitious social enterprise spearheaded by Leandro L. Leviste, as the Energy Regulatory Commission (ERC) initiates a formal investigation.
The probe centers on allegations that SPSB engaged in unauthorized operations and collected fees from customers without obtaining the necessary approvals – a serious breach of regulatory protocol.
Consumer complaints and reports from the field, specifically in Paluan, Occidental Mindoro, and other remote locations, triggered the ERC’s action, prompting the issuance of show-cause orders demanding clarification from SPSB.
At the heart of the matter lies the requirement for SPSB to secure crucial permits: an authority to operate and certificates of compliance for its power generation facilities, despite being granted a 25-year congressional franchise in 2019.
That franchise, intended to bring power to underserved areas through distributed energy resources and microgrids, came with a critical caveat – full compliance with all applicable regulatory approvals, especially regarding pricing.
ERC Chairperson Francis Saturnino C. Juan delivered a stark warning, labeling the act of charging electricity rates without approval a “mortal sin” for any regulated entity.
Juan emphasized that strict adherence to both ERC regulations and the conditions of their franchise is non-negotiable when serving customers and collecting payment for electricity.
Leviste, when previously contacted, has not yet offered a response to these unfolding concerns, leaving questions unanswered about the company’s actions.
In a recent radio interview, Leviste claimed the company’s franchise was effectively nullified after operations ceased in 2022, citing crippling government red tape and regulatory obstacles as the cause.
However, the ERC firmly maintains that the alleged violations demand investigation, regardless of the company’s current operational status.
According to Juan, any penalties assessed can still be enforced against SPSB and its remaining assets, ensuring accountability even after a reported shutdown.
The ERC has pledged to uphold due process throughout the evaluation of SPSB’s explanations and submissions, promising a thorough and impartial review of the situation.
