The Energy Regulatory Commission (ERC) issued July 3 two show-cause orders (SCOs) against Siquijor Island Power Corporation (SIPCOR) for possible violations of the 2023 Revised Certificate of Compliance (COC) Rules, covering its 4.701 megawatts (MW) Siquijor Diesel Power Plant-Expansion (SDPP-E) units 1 and 2, and its 3.232 MW Lazi Diesel Power Plants units 3 and 4.
Both SCOs cited SIPCOR’s failure to file a Provisional Authority to Operate (PAO) application at least 60 days before the expiration of the extended PAO validity, as required under the 2023 Revised COC Rules; and the unauthorized operation of the generating units without a valid PAO or COC, in violation of the EPIRA law and the 2023 Revised COC Rules.
In these orders, the ERC directed SIPCOR to explain the continued operation of all four units, noting that the PAO for SDPP-E Units 1 and 2 had already expired on March 16, 2024, and that the COC for Lazi DPP Units 3 and 4 was only valid until March 15, 2025.
“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 consumers to protect their welfare and deliver quality service and that begins with making sure that licenses to operate are up to date, and facilities are kept in good condition to deliver the service paid for,” ERC chairperson and CEO Monalisa Dimalanta said in a statement.
The Commission held a public hearing July 3 in Manila to formalize its investigation into the power situation in the island-province of Siquijor.
Presided over by ERC commissioners Alexis Lumbatan, Catherine Maceda, and Marko Romeo Fuentes, representatives from SIPCOR, the Province of Siquijor Electric Cooperative, Inc. (PROSIELCO), and the National Power Corporation presented information on their power supply agreements (PSAs), operational compliance, and regulatory obligations.
The ERC, however, noted that the information presented were limited, with some statements lacking supporting documents.
To address this, the Commission directed all parties to submit the necessary documents and data, including a full analysis on undelivered energy in Siquijor, from 2015 to 2024, for each of the PSAs between PROSIELCO and SIPCOR.
The hearing followed the ERC’s technical investigation conducted during a regulatory visit to Siquijor in May, prompted by consumer complaints filed with the Commission regarding prolonged power outages and potential violations of ERC regulations by the concerned parties. ||
