S.I. Power Corp. (Sipcor) has secured a court order that would allow it to restart its operations in Siquijor. However, the Energy Regulatory Commission (ERC) has stated that the company still lacks the necessary operating authority.
In a disclosure to the Philippine Stock Exchange on Wednesday, Aug. 19, Premiere Island Power REIT Corp. (PREIT) announced that the Court of Appeals had overturned an ERC decision that had revoked S.I. Power’s operational permits.
PREIT reported that the appellate court found the ERC had violated procedural due process by immediately canceling Sipcor's provisional authorities. The ruling indicated that the regulator failed to issue a show cause order as required by its own rules and also breached the Electric Power Industry Reform Act's (EPIRA) mandate for notice and hearing.
The court noted that the ERC had relied on uncontested materials, ordered an immediate shutdown on the day of service, and selected a replacement power supplier two days before officially issuing its decision.
Sipcor stated that it has repaired its generating units, restored electrical systems, planned fuel procurement, hired staff, and renewed local permits in preparation for a restart.
Despite the court's decision, the ERC maintains that Sipcor cannot resume operations without obtaining new approvals, as its original operating authority has expired. ERC Chairperson Francis Saturnino V. Juan stated on Wednesday, Aug. 19, that “Regardless of the final outcome of the case, the term of Sipcor’s provisional authority to operate had already expired.”
Juan added, “Sipcor cannot just resume operations without filing for its renewal or for a new provisional authority to operate or certificate of compliance.”
The ERC also intends to file a motion for reconsideration regarding the procedural lapses identified by the court.
Furthermore, Juan pointed out that the primary off-taker, Province of Siquijor Electric Cooperative Inc., has terminated its commercial contract with Sipcor and has selected a new provider through a competitive selection process, questioning Sipcor's basis for returning to the island's grid.
