THE government is eyeing possible action against the Villar-led Siquijor Island Power Corporation (SIPCOR) operations due to ongoing power outages on Siquijor Island, officials warned.
Energy Secretary Sharon Garin stated that the department found several violations by SIPCOR, which supplies power to the Province of Siquijor Electric Cooperative, Inc. (PROSIELCO). The findings have been submitted to the Energy Regulatory Commission (ERC).
“They have a lot of violations,” Garin said, emphasizing that the findings were based on records and investigation, without political bias.
National Electrification Administration (NEA) Administrator Antonio Mariano Almeda announced that the agency would enlist the University of the Philippines College of Engineering to conduct a third-party assessment of SIPCOR’s power facilities.
“I was given a directive by the secretary of Energy to hire an independent third-party surveyor to test and evaluate the viability of the plant, if it can still produce electricity,” Almeda said.
He outlined two potential scenarios once the assessment is completed. “There will be conditions that will be imposed, and if we are not convinced that they can still continue according to the provisions of the contract—and I believe contractual obligations should always give way to the paramount interest of public welfare—that’s the time that the government will step in,” Almeda explained.
Almeda clarified that while he raised the possibility of a government takeover, it stems from the general principle of the state’s police power. “The state always has the police power to take over a public utility. It has to. If there would be any contractual obligation, it should give way to the paramount interest of public welfare,” he added.
Garin cited Section 71 of the Electric Power Industry Reform Act of 2001, which allows “the President to address imminent electricity shortages by requesting authorization from Congress to establish additional generating capacity.”
Almeda also noted that the ERC could impose penalties on SIPCOR and order consumer refunds if violations of its rules or the power supply agreement are found. The NEA is also coordinating with the Department of Justice for any “violations other than power obligations.”
Among the “serious lapses” identified by officials is SIPCOR’s lack of a reserve generator and its failure to deliver its committed capacity under its contract.
