The Energy Regulatory Commission (ERC) has issued Show Cause Orders (SCOs) against Solar Para Sa Bayan Corp. (SPSB) following complaints and reports of regulatory violations, including alleged unauthorized operations and charging of electricity rates without approval.

The ERC said it learned that SPSB operated in Paluan, Occidental Mindoro, as well as other off-grid areas, without securing required regulatory approval documents such as an Authority to Operate (ATO) and Certificates of Compliance (COC). These are both critical clearances required before power companies can legally operate and bill customers.

SPSB was granted a 25-year non-exclusive franchise in 2019 under Republic Act No. 11357 to develop renewable energy-based distributed energy resources and microgrids in remote and unserved or underserved areas. The ERC stressed, however, that the franchise law itself requires compliance with existing regulations, especially on topics such as rate-setting and approvals.

ERC Chairperson and CEO Francis Saturnino C. Juan said charging electricity rates without regulatory approval is considered a serious violation under the Commission’s rules. “Mortal sin ’yan para sa isang regulated entity na ikaw ay maningil nang hindi mo man lang hingin yung approval ng regulator mo,” Juan explained.

Juan added that even if reports suggest SPSB may have already ceased their operations, the Commission is still justified in proceeding with an investigation. He noted that any penalties that may be imposed can still be enforced against the company and its assets, spotlighting the ERC’s enforcement authority.

The ERC said the issuance of SCOs forms part of its mandate to protect electricity consumers and ensure that all power sector participants comply with applicable laws, regulations, and franchise conditions. The Commission also assured that due process will be observed such as SPSB being given the opportunity to respond and submit explanations.

SPSB has drawn heightened public attention in recent months amid broader scrutiny of renewable energy and microgrid projects. 

Solar Para Sa Bayan Corp., a franchise holder focused on off-grid microgrids, is separate from Solar Philippines Power Project Holdings, which has been linked to terminated large-scale renewable energy service contracts, and from SP New Energy Corp. (SPNEC), a listed firm that has publicly stated it is distinct from Solar Philippines entities. The Commission specified that the current action specifically concerns SPSB’s compliance with regulatory approvals and rate-setting rules.

As private participation expands in off-grid electrification, the ERC said adherence to regulatory requirements remains non-negotiable—but how effectively will enforcement protect consumers in remote communities while ensuring reliable power access?

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