THE Energy Regulatory Commission (ERC) said Wednesday that it would be asking the Court of Appeals to reconsider a ruling overturning the agency’s 2025 decision to revoke S.I. Power Corp.’s (Sipcor) permits to operate.
“With this development, we will be filing our motion for reconsideration through the Office of the Solicitor General,” ERC Chairman and CEO Francis Saturnino Juan said.
Premiere Island Power REIT Corp. (PREIT), a real estate investment trust backed by Manuel Villar Jr.’s Prime Asset Ventures, Inc. (PAVI) group, told the stock exchange that Sipcor had received the CA decision promulgated on July 24.
PREIT leases power generation assets to Sipcor, while Sipcor serves as PREIT’s primary sponsor and tenant, supplying power to Siquijor Island.
PREIT said Sipcor “expressed its intention to proceed with lifting the suspension of the lease agreement dated 11 April 2022, as amended, once these are achieved.”
In a letter, Sipcor said it wished to “assure PREIT that, throughout the pendency of the instant case, Sipcor has implemented good-faith efforts to address the concerns identified during the ERC’s investigation.”
“These include the repair and maintenance of generating units and related equipment, restoration and testing of electrical systems, procurement planning for fuel and lubricating oil requirements, recruitment of operations and maintenance personnel, renewal of necessary permits, and testing and commissioning of the facilities. These measures demonstrate our commitment and readiness to resume operations in Siquijor.”
The ERC evoked Sipcor’s provisional authorities to operate its generation units, citing violations including failure to secure a certificate of compliance; prolonged unit outages due to poor maintenance planning and delayed parts replacement; non-compliance with reportorial requirements; and failing to comply with its obligations under its power supply agreements.
In overturning the ERC decision, the Court of Appeals said the commission had denied the company procedural due process.
Regarding Sipcor’s plan to resume its operations, Juan said: “Regardless of the final outcome of the case, the term of Sipcor’s provisional authority to operate had already expired, so it cannot just resume operations without filing for its renewal or for a new provisional authority to operate or certificate of compliance.”
“Its power supply agreement with Province of Siquijor Electric Cooperative, Inc. was already terminated and the said electric cooperative had already conducted its Competitive Selection Process and contracted a new power provider already,” he added.
PREIT shares on Wednesday surged P0.06, or 6.0 percent, to close at P1.06 apiece.
