Congress OKs bill granting franchise to solar firm owned by Legarda’s son

Congress on Monday gave its final approval to the bill seeking to grant a 25-year franchise to Solar Para sa Bayan Corporation, a solar energy firm owned and operated by Leandro Leviste, son of outgoing Senator Loren Legarda.

The Senate and the House of Representatives, during their respective plenary sessions on Monday, ratified the bicameral conference committee report on the measure.

During the session, Senator Sherwin Gatchalian, chairman of the energy committee and one of those who defended the bill, expressed opposition on the ratification of the bicam report due to an insertion that he said would negatively affect the power industry.

“This insertion is in the definition of the underserved area which will now include areas where electricity services have been interrupted at least 12 times in the 12 months preceding the date of the determination of such area as underserved,” he said.

He explained there is no basis for the frequency of interruptions indicated in the bicameral report as the current standard for frequency of interruption is determined by the Energy Regulatory Commission (ERC) and is updated regularly.

“The ERC current standard for frequency interruption for on and off grid areas is 20 times per year. To legislate a regulatory parameter would tie the hands of the regulator and would substitute our unfounded judgment for their expertise,” he said.

He added there is no definition of the word “interruptions” in the bicameral report adding that frequency interruptions are not only a function of the performance of the distribution utility but also of power plant performance, availability of power supply,  kind of power plant, and even calamities.

“As such, a distribution utility can have interruptions because of fluctuations of solar power plants, typhoon, and even shortage of supply leading to the red alerts. To legislate a law and unfounded bar for an area to be considered underserved would be a disservice not only to the community but would be unfair to the franchise distribution utility,” Gatchalian said.

He further said there is no need for the insertion as frequency interruptions are already taken into consideration in the Senate version of the bill which defines underserved areas as those areas non compliant with the parameters of the utility distribution code or any other reason resulting to failing mark based on the latest annual evaluation of actual performance.

Senator Risa Hontiveros also registered a negative vote opposing the broadened definition of the ‘underserved.’

“An overly relaxed definition of underserved would be disservice to fairness and competition,” she said.

Senate Pro-Tempore Ralph Recto, a member of the bicam panel, said the concerns of Gatchalian and Hontiveros can be addressed in the implementing rules and regulations.

Senator Grace Poe, who chairs the public services committee, said at least a safeguard is already in place.

The measure allows the solar power firm to construct, install, establish, operate and maintain distributable power technologies and minigrid systems in the country.

The measure likewise requires Solar Para sa Bayan Corporation to operate its Distributable Power Technology (DPT) and minigrid systems in the least cost manner and to provide open and non-discriminatory access to its DPT and minigrid systems for any end-user within the franchise area.

The House approved the measure on third and final reading in December last year, but the Senate approved its version only last week.

Legarda, who has been elected as representative of the lone district of Antique, abstained from voting out of "delicadeza."

“As you know, I’ve abstained. That is my son’s company of which I’m not an owner and in the words of the sponsor, it was a social justice legislation. I abstained out of delicadeza because it is owned by my son, a 25-year-old entrepreneur,” she said.

Following the ratification of the measure, it will be transmitted to President Rodrigo Duterte for signing and enactment. — BM/BAP, GMA News