Leviste Solar Firm Faces Possible Penalties Over Alleged Illegal Power Rates
- February 6, 2026
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The Energy Regulatory Commission (ERC) has launched a formal probe into Solar Para Sa Bayan Corp. (SPSB), a renewable energy firm founded by Batangas Rep. Leandro Leviste, over allegations that it operated without regulatory approval and charged unapproved electricity rates in parts of Occidental Mindoro and other off-grid areas. The investigation could result in administrative penalties of up to P150 million if violations are proven.
In a show-cause order promulgated on Jan. 30, the ERC cited three alleged violations by SPSB: operating without an authority to operate, failure to secure the required certificates of compliance (COC) for its generation facilities, and charging electricity rates without prior regulatory approval.
ERC Chair and Chief Executive Officer Francis Saturnino Juan said the commission may impose fines ranging from P50,000 to P50 million per violation, or as much as P150 million in total.
Unapproved Rates
According to the ERC, records show that SPSB has been charging and collecting electricity rates from residents of Paluan, Occidental Mindoro, since 2018 without first obtaining the necessary permits or approvals from the regulator.
Under its legislative franchise, SPSB is required to secure ERC approval of its retail rates before charging consumers. “Records clearly show that respondent SPSB Corp. has not applied for, nor been granted, any authority to operate, certificate of compliance, or provisional authority to operate for its operations,” the ERC said in its order.
While the show-cause order did not specify the rates allegedly collected, residents of Paluan previously claimed in media interviews that they were charged as much as P18 per kilowatt-hour, which is significantly higher than the P3 per kWh rate the company had reportedly promised.
The ERC has given SPSB 15 days from receipt of the order to submit a verified explanation and to show cause why no administrative penalty should be imposed. The company was also directed to submit sample consumer bills on a monthly basis from 2018 until the time it ceased operations in Paluan.
Defunct Company
Leviste has said in interviews that SPSB has been defunct and stopped operating many years ago, adding that he had already divested his stake in the company before entering politics. However, the ERC said the probe would proceed regardless of the firm’s current operational status.
“It can still continue because the company is still existing,” Juan said in a televised interview. “They may have lost their franchise or for other reasons, but if it can be proven that there was a violation, we will continue.”
Juan described charging fees without regulatory approval as a “mortal sin” for regulated entities, emphasizing that the investigation is also intended to send a signal to the broader power industry.
“We want to show to the entire industry, to other distribution utilities, that they cannot simply ignore the commission,” he said, adding that the ERC’s mandate is to protect consumers.
Franchise Obligations
SPSB was granted a 25-year non-exclusive franchise in 2019 under Republic Act No. 11357, allowing it to develop distributed renewable and hybrid energy resources and microgrids to supply electricity to remote, unviable, unserved, or underserved areas.
The ERC stressed that the franchise law itself requires compliance with all applicable regulatory approvals, particularly on rate-setting.
Questions have also been raised about ownership and control of the company. While SPSB is reportedly linked to Leviste, Section 18 of its franchise law prohibits the transfer of controlling interest without prior congressional approval. The ERC has not yet commented on whether this provision forms part of its ongoing inquiry.
Leviste-linked Firms Under Scrutiny
The case against SPSB comes amid wider regulatory action involving other energy companies associated with Leviste. Earlier, the Department of Energy (DOE) terminated 163 renewable energy projects across various firms for failure to meet development timelines. 64 percent of those projects were handled by Solar Philippines Power Project Holdings Inc. (SPPHI), another Leviste-founded company.
Energy Secretary Sharon Garin said the terminated contracts under SPPHI included 33 awarded through the Green Energy Auction Program (GEAP), as well as agreements secured between 2014 and 2019 outside the auction scheme. The idled projects, mostly located in Luzon, were expected to generate more than 11,000 megawatts of capacity.
According to the DOE, repeated attempts to communicate with the company yielded no response or request for extensions or reconsideration. Garin said contract terminations were carried out only after due process.
Source:
https://newsinfo.inquirer.net/2177835/another-leviste-firm-faces-up-to-p150-m-penalty
https://businessmirror.com.ph/2026/02/03/probe-against-leviste-led-spsb-will-continue-erc
