The Energy Regulatory Commission (ERC) on Tuesday warned power companies against operating and charging consumers without regulatory approval after issuing show-cause orders to Solar Para Sa Bayan Corp. (SPSB) for alleged violations.
The regulator said it is investigating reports that SPSB operated without the necessary permits and charged rates as high as P18 per kilowatt-hour. The allegations followed consumer complaints on alleged unauthorized operations in off-grid areas including Paluan, Occidental Mindoro.
ERC chairperson Francis Saturnino Juan said in a television interview that the commission would pursue the case even if the company has lost its franchise.
“This is not only for Solar Para Sa Bayan. We also want to show the entire industry, and other electric companies, that they cannot simply ignore the commission and impose and collect from consumers without the approval of the ERC,” Juan said.
Commission records showed that SPSB failed to secure an authority to operate or certificates of compliance for its generation facilities. The company did not obtain approved cost recovery measures, the ERC said.
Juan said the P18-per-kWh rate allegedly collected by SPSB exceeded prices charged by other electric cooperatives in the same region.
Energy companies are required to submit formal applications for tariffs and prices to ensure consumer protection against overcharging. Power generation firms and distribution utilities must also file for certificates of public convenience or compliance.
“This is a mortal sin because the company ignored the ERC. They just implemented what they wanted and the consumers were not protected,” Juan said.
The ERC is awaiting a formal response from the company. While reports suggest SPSB may no longer be operating, Juan clarified that the commission could still pursue penalties and levy assets if violations are proven.
SPSB was granted a 25-year nonexclusive franchise in 2019 under Republic Act 11357 to develop microgrids in underserved areas.
The ERC said the law requires strict compliance with regulatory approvals for all rates charged to the public.
