The Energy Regulatory Commission (ERC) is considering an investigation into Solar Para sa Bayan (SPBC), a company linked to Batangas 1st District Representative Leandro Leviste, over alleged excessive electricity charges in Occidental Mindoro.
SPBC reportedly billed consumers up to ₱18 per kilowatt-hour in Paluan in 2020—rates not cleared by the commission. ERC Chairperson Atty. Francis Saturnino Juan stressed that regulated firms must secure approval before imposing charges.
“Regulated energy firms must charge reasonable rates approved by the commission and comply with ERC and Department of Energy regulations,” Juan said.
Leviste’s franchise had promised affordable clean energy, but a 2020 letter from the Occidental Mindoro Electric Cooperative revealed the pledged ₱3 per kWh rate was never met, with actual charges exceeding ₱8 per kWh.
“He is accountable under our rules. Of course, he is also responsible under the provisions of the franchise law itself, because he would be in violation if it is proven that he operated and charged rates without ERC approval,” Juan added.
Leviste did not directly address the issue of unapproved rates, but argued that charges between ₱8 and ₱11.85 per kWh were necessary to offset losses while awaiting the implementing rules and regulations (IRR) of the franchise.
He said delays forced the company to raise rates, eventually leading to ₱500 million in losses and the plant’s closure.
ERC clarified that under Section 21 of the franchise, an IRR is only required for new service areas. Existing plants may continue operations but must still obtain ERC approval for any rate increases.
“An IRR is not needed for a franchise to continue operating. However, you still need to obtain the commission’s approval for increasing the rates,” Juan explained.