ERC revokes SIPCOR’s permit

The Energy Regulatory Commission ordered the immediate revocation of all provisional authorities to operate for S.I. Power Corp. (SIPCOR)’s generating units over “multiple violations of operational and regulatory compliance requirements,” the Department of Energy (DOE) said Friday.

The ERC served the order to SIPCOR on Friday, citing several violations, including the company’s failure to secure a certificate of compliance (COC) before operating its generating sets, including rented units; prevent prolonged unit outages caused by poor maintenance and delayed parts replacement; comply with reportorial requirements; and meet its obligations under power supply agreements (PSAs) with the Province of Siquijor Island Electric Cooperative Inc (PROSIELCO).

The ERC also directed SIPCOR to stop operating its power plants.

ERC chairperson Francis Saturnino Juan delivered the order, accompanied by DOE Undersecretary Mario Marasigan and National Electrification Administration (NEA) administrator Antonio Mariano Almeda.

“Despite the President’s visit, SIPCOR’s attempted improvements were short-lived,” Energy Secretary Sharon Garin said in a statement.

Garin said that from June 16 to Aug. 25, customers in Siquijor saw an average daily power outage of six hours, with limited generating capacity being the main cause.

“SIPCOR’s unstable plants caused power interruptions every single day from July 20 to August 4, with outages exceeding seven hours a day on five separate days during this period,” she said.

Garin said SIPCOR had failed to maintain its minimum fuel inventory, meeting the 10-day threshold on only 21 out of 71 days of monitoring.

Garin said these failures interrupted the delivery of essential public services, such as to hospitals and schools, and also disrupted businesses, especially the tourism sector, a major source of livelihood for Siquijor residents.

PROSIELCO last week signed emergency power supply agreements (EPSA) with TotalPower Inc for 15.7 megawatts of power from three generation facilities on the island, Garin said.

“SIPCOR has now been directed to cooperate and synchronize its plants’ shutdown with the commercial operations and synchronization of the new generating units to PROSIELCO’s distribution lines,” she said.

Garin said the shutdown order “puts an end to SIPCOR’s operations and the disruption that it has brought to the people of Siquijor.”

“We have laid down the path toward a future of improved power service on the island,” she said.

Almeda mobilized linemen from neighboring electric cooperatives, including Cebu I Electric Cooperative and Cebu III Electric Cooperative, to support the PROSIELCO team in expediting the completion of take-off terminals for the new plants.

“This swift and coordinated response ensures reliable and sustainable power for the Province and demonstrates the Government’s commitment to energy security and public service,” NEA said in a separate statement.