Sipcor wins court order to restart Siquijor operations, but ERC blocks return
SIPCOR is a subsidiary of Prime Asset Ventures Inc. (PAVI), a holding company of the Villar family, led by billionaire Manuel Villar.
S.I. Power Corp. (Sipcor) secured a court victory that sets the stage for the power producer to restart generation in Siquijor, though energy regulators warned that the company still lacks valid operating authority.
In a disclosure to the Philippine Stock Exchange on Wednesday, Aug. 19, Premiere Island Power REIT Corp. (PREIT) said the Court of Appeals set aside an Energy Regulatory Commission (ERC) decision that revoked S.I. Power’s operational permits.
According to PREIT, the appellate court ruled that the ERC violated procedural due process by immediately canceling its provisional authorities.
The regulator failed to issue a show cause order as required by its own rules and breached the Electric Power Industry Reform Act's (EPIRA) mandate for notice and hearing, according to the ruling.
The panel noted that the ERC relied on uncontested materials, ordered an immediate shutdown on the day of service, and selected a replacement power supplier two days before officially promulgating its decision.
Sipocor said it has repaired generating units, restored electrical systems, planned fuel procurement, hired staff, and renewed local permits in preparation for a restart.
However, the regulator pushed back against an immediate return to service. ERC Chairperson Francis Saturnino V. Juan said on Wednesday, Aug. 19, that Sipcor cannot resume operations without securing fresh approvals, as its original operating authority has elapsed.
“Regardless of the final outcome of the case, the term of Sipcor’s provisional authority to operate had already expired,” Juan said in a Viber message.
“Sipcor cannot just resume operations without filing for its renewal or for a new provisional authority to operate or certificate of compliance,” he added.
The ERC also plans to file a motion for reconsideration regarding the procedural lapses cited by the court.
Juan added that the primary off-taker, Province of Siquijor Electric Cooperative Inc., has terminated its commercial contract with Sipcro and selected a replacement provider through a competitive selection process, questioning the company's basis for returning to the island's grid.