August 4, 2025
News

ERC Rejects PROSIELCO-SIPCOR Deal, Orders Compliance with Original Siquijor Power Contract

  • August 4, 2025
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ERC Rejects PROSIELCO-SIPCOR Deal, Orders Compliance with Original Siquijor Power Contract

The Energy Regulatory Commission (ERC) has denied the request of the Province of Siquijor Electric Cooperative, Inc. (PROSIELCO) and S.I. Power Corporation (SIPCOR) to immediately implement a supplemental agreement tied to their power supply arrangement.

In its June 16, 2025 decision, the Commission instead directed both parties to comply with their obligations under the original Power Supply Agreement (PSA) approved on December 17, 2012. Under Clause 5.2 of the PSA, SIPCOR is required to provide replacement power during periods of downtime, drawing from any source as long as the delivered capacity remains within the approved limit and pricing terms.

The ERC clarified that any energy supplied beyond the contractually approved capacity will be deemed ineligible and paid according to existing policies on excess or non-compliant power supply.

In addition to upholding the original contract, the Commission announced that a separate order will be issued, one that mandates PROSIELCO, SIPCOR, and the National Power Corporation (NPC) to ensure compliance with the provisional authority issued in ERC Case No. 2019-003 RC. The NPC was also reminded of its obligation to verify supplier payments against ERC-approved contracts in accordance with relevant regulations.

The action follows months of scrutiny over Siquijor’s local power supply situation. In August 2024, PROSIELCO and SIPCOR filed a joint manifestation seeking immediate implementation of their supplemental agreement, which the ERC has now rejected.

The orders were signed by the current ERC Chairperson and CEO Monalisa C. Dimalanta on behalf of the Commission.

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