The Energy Regulatory Commission (ERC) has ordered Solar Para Sa Bayan Corporation (SPSB Corp.) to explain alleged violations of power sector rules that could expose the company to administrative penalties of up to PHP 150 million.

Solar Para Sa Bayan Corporation (SPSB Corp.), founded by Batangas 1st District Representative Leandro Leviste, was granted a 25-year non-exclusive congressional franchise in 2019 under Republic Act No. 11357 to build, install, and operate distributed energy resources and microgrids in remote areas.

The ERC’s show-cause order, signed by ERC Chairperson and CEO Francis Saturnino C. Juan, approved during the Commission’s January 29 meeting, also notes that records indicate SPSB “has been charging and collecting electricity rates” without prior ERC approval, one of the regulatory issues under review. 

The case comes amid broader sector scrutiny, including around PHP 24 billion in penalties the Department of Energy has sought from another Leviste-linked firm, Solar Philippines, for contractual non-performance.

In a show cause order promulgated on January 30, 2026, the ERC cited three alleged violations: operating as a qualified third party without the required authority to operate, failing to secure a certificate of compliance, and charging electricity rates without prior ERC approval.

The Commission directed SPSB Corp. to submit a verified explanation within 15 calendar days from receipt of the order, showing cause why no administrative penalty should be imposed.

While the order did not impose a fine, ERC officials said penalties may reach up to ?50 million per violation under existing rules, potentially totaling PHP 150 million if all three alleged violations are upheld.

According to the ERC, records show SPSB Corp. performed functions of a Qualified Third Party (QTP) as early as 2018 without securing the required Authority to Operate (ATO) and Certificate of Compliance (COC).

The Commission also said the company failed to apply for a Certificate of Public Convenience and Necessity (CPCN) or any equivalent authority, despite holding a 25-year non-exclusive franchise granted in 2019 under Republic Act No. 11357. 

In addition, the ERC said SPSB Corp. had been charging and collecting electricity rates without ERC approval since 2018, in violation of the Electric Power Industry Reform Act and its franchise, which require retail rates to be regulated and approved by the Commission.

The ERC ordered SPSB Corp. to submit supporting documents, including consumer bills, service area maps, system diagrams, tariff statements, and permits from the Department of Energy, the Department of Environment and Natural Resources, and other agencies.

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