The Energy Regulatory Commission (ERC) has issued two Show Cause Orders (SCOs) against S.I. Power Corporation (SIPCOR) for possible violations of compliance rules, following a public hearing into prolonged power outages in Siquijor province.

The hearing, held on 3 July 2025 at the ERC Main Office, was led by Commissioners Alexis M. Lumbatan, Catherine P. Maceda, and Marko Romeo L. Fuentes. Representatives from SIPCOR, the Province of Siquijor Electric Cooperative, Inc. (PROSIELCO), and the National Power Corporation (NPC) were present to provide details on their power supply agreements (PSAs), operations, and regulatory compliance.

The Commission found the submitted information insufficient, with some lacking documentary support. It has since directed all parties to submit complete data, including a full analysis of undelivered energy in Siquijor from 2015 to 2024 across all PSAs between PROSIELCO and SIPCOR.

The ERC’s inquiry stemmed from a regulatory visit to Siquijor in May 2025 after receiving consumer complaints over frequent and extended power outages.

On the same day as the hearing, ERC issued SCOs covering SIPCOR’s 4.701 MW Siquijor Diesel Power Plant-Expansion (SDPP-E) Units 1 and 2 and its 3.232 MW Lazi Diesel Power Plant Units 3 and 4.

SIPCOR was cited for failing to apply for a Provisional Authority to Operate (PAO) at least 60 days before the expiry of its extended validity—contravening the 2023 Revised Certificate of Compliance (COC) Rules—and for operating the said units without valid PAOs or COCs, in violation of the Electric Power Industry Reform Act (EPIRA), its Implementing Rules and Regulations (IRR), and the 2023 Revised COC Rules.

The Commission noted that the PAO for SDPP-E Units 1 and 2 expired on 16 March 2024, while the COC for Lazi DPP Units 3 and 4 remains valid only until 15 March 2025.

“We once again call on all our stakeholders, especially Generation Companies and Distribution Utilities, to fulfill their obligations, not just to the ERC but more importantly to the consumers, in a timely and transparent manner,” said ERC Chairperson and CEO Monalisa C. Dimalanta.

“Operating a power facility is a business imbued with public interest. As suppliers of a basic necessity in modern life, generators have a direct responsibility to Filipino consumers to protect their welfare and deliver quality service, and that begins with making sure licenses to operate are up to date and facilities are kept in good condition to deliver the service paid for,” she added.

Prior to the hearing, the DOE had reported significant improvements in Siquijor’s power supply, restoring capacity to 10.6 MW as of mid-June through emergency coordination with NEA, SIPCOR, and the provincial government. The DOE cited the rehabilitation of SIPCOR units, deployment of additional gensets, and plans for solar integration and grid looping as part of both short- and long-term interventions to stabilize power in the province.

What measures do you think should be in place to prevent prolonged power disruptions in off-grid areas like Siquijor? Join the discussion. 

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