Premiere Island Power REIT Corp. is exploring the lease or disposal of its Siquijor Island power assets as its current tenant, S.I. Power Corp., remains embroiled in a legal battle with regulators.
The real estate investment trust, part of the Villar Group, told the Philippine Stock Exchange on Friday it may offload the assets on “commercially viable terms.”
The move follows the cessation of operations by S.I. Power Corp., known as SIPCOR, after the Energy Regulatory Commission revoked its provisional authorities to operate on Aug. 28, 2025. The ERC cited numerous violations, including SIPCOR’s failure to secure certificates of compliance and prolonged outages caused by poor maintenance.
The regulator also noted SIPCOR’s failure to meet reportorial requirements and its inability to fulfill obligations under power supply agreements with the Province of Siquijor Island Electric Cooperative Inc., the island’s lone distribution utility.
SIPCOR challenged the ERC decision before the Court of Appeals on Sept. 15, 2025, seeking a temporary restraining order. The ERC filed its formal comment Jan. 26, and SIPCOR is expected to file a reply shortly.
PREIT reported that SIPCOR’s operational halt has left the power producer unable to pay rent, leading to a decline in the REIT’s revenue. The affected properties support heavy fuel oil-fired power plants in Candanay Sur and Lazi, Siquijor.
While SIPCOR said it is exhausting all legal remedies to resume operations, PREIT said it has reserved the right to terminate the lease agreements and is actively seeking new tenants or buyers for the generation assets.
