ERC Considers Probe Into Leviste-Linked Solar Firm Over Unapproved ₱18/kWh Power Rates
- January 31, 2026
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The Energy Regulatory Commission (ERC) is weighing a possible investigation into Solar Para sa Bayan Corp. (SPBC), a solar power company linked to Batangas Rep. Leandro Leviste, over allegations that it charged electricity rates of up to ₱18 per kilowatt-hour in parts of Occidental Mindoro without regulatory approval.
The issue stems from reports that SPBC imposed the rates in Paluan, Occidental Mindoro in 2020, despite the absence of ERC-approved pricing. Under existing regulations, power providers must first secure approval from the commission before charging consumers.
Possible Rate Violations
ERC Chairperson Francis Saturnino Juan stressed that regulated energy companies are required to charge only reasonable rates approved by the commission and to comply with both ERC and Department of Energy rules.
“Regulated energy firms must charge reasonable rates approved by the commission and comply with ERC and Department of Energy regulations,” Juan said. He added that failure to comply could expose a company to liability under both ERC regulations and its franchise law.
“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,” he said.
Unfulfilled Low Rates
SPBC had promoted its franchise as a means of delivering affordable and clean electricity to remote and underserved communities. However, records from the Occidental Mindoro Electric Cooperative showed that the company failed to meet its initial pricing commitments.
In a 2020 letter, the cooperative said SPBC never achieved its promised rate of about ₱3 per kWh. Instead, the company reportedly charged rates exceeding ₱8 per kWh, with some reports indicating charges of as much as ₱18 per kWh.
The discrepancy between the promised and actual rates raised concerns among regulators and consumers about possible overcharging and noncompliance with approved pricing rules.
Operating Losses
Leviste did not directly respond to questions about the reported ₱18 per kWh charge. He has previously said, however, that SPBC’s rates ranged from ₱8 to ₱11.85 per kWh and argued that these were necessary to offset losses incurred while the company awaited the implementing rules and regulations (IRR) of its franchise.
According to Leviste, the delay in the IRR prevented SPBC from fully operating under the franchise framework, forcing the company to increase rates to recover expenses. He said the firm ultimately shut down operations after sustaining losses of about ₱500 million.
IRR Not Required
The ERC disputed the claim that an IRR was required for SPBC to continue operating. Juan clarified that under Section 21 of the franchise law, an IRR is required only for new areas where the company intends to provide electricity.
Plants that were already operating before the franchise was granted, he said, do not need an IRR to continue operations. However, ERC approval remains mandatory for any increase in electricity rates.
“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 said.
Source:
https://remate.ph/solar-company-na-konektado-kay-leviste-tatalupan-ng-erc
https://www.philstar.com/business/2026/01/16/2501209/levistes-solar-para-sa-bayan-now-defunct
