ERC Issues Show Cause Orders Against Solar Para Sa Bayan Over Alleged Unauthorized Operations, Unapproved Power Rates

The Energy Regulatory Commission (ERC) has initiated the issuance of Show Cause Orders (SCOs) against Solar Para Sa Bayan Corp. (SPSB) following consumer complaints and reports citing violations of regulatory rules, including alleged unauthorized operations and the collection of electricity rates without prior approval.

According to the ERC, SPSB was found to have operated in Paluan, Occidental Mindoro, as well as in other off-grid locations, without securing mandatory regulatory clearances such as an Authority to Operate (ATO) and Certificates of Compliance (COC) for its generation facilities.

While SPSB was granted a 25-year non-exclusive franchise in 2019 under Republic Act No. 11357 to develop and operate distributed energy resources and renewable-based microgrids in remote, unserved, and underserved areas, the Commission stressed that the franchise does not exempt the company from complying with regulatory requirements, particularly those governing electricity pricing.

ERC Chairperson and Chief Executive Officer Atty. Francis Saturnino C. Juan underscored that charging power rates without regulatory approval constitutes a serious violation under the Commission’s rules.

“Charging electricity rates without the regulator’s prior approval is a grave offense for any regulated entity,” Chairperson Juan said in a recent interview, emphasizing the importance of strict compliance with ERC regulations and franchise conditions when operating and billing consumers.

He further noted that although there are reports suggesting SPSB has ceased operations, the gravity of the alleged violations still warrants a formal investigation. “Any penalties that may be imposed can still be enforced against the company and its assets,” he added.

The ERC said the issuance of the SCOs forms part of its mandate to protect electricity consumers and ensure full compliance by all power sector participants with existing laws, regulatory standards, and franchise obligations. The Commission also assured that due process will be observed in assessing the explanations and submissions of the parties concerned.