Duterte signs law granting franchise to solar firm owned by Legarda’s son

President Rodrigo Duterte has signed a law granting a 25-year franchise to the solar energy firm owned by the son of Antique Representative Loren Legarda.

Duterte signed Republic Act 11357 on Wednesday, a copy of which was released by Malacañang on Thursday.

The law allows the Solar Para sa Bayan Corporation to construct, install, establish, operate, and maintain distributable power technologies and mini-grid systems in remote and unviable, unserved, and underserved areas in the country.

The areas include barangays, municipalities, and cities in Aurora, Bohol, Cagayan, Camiguin, Capiz, Compostela Valley, Davao Oriental, Guimaras, Isabela, Masbate, Misamis Occidental, Occidental Mindoro, Oriental Mindoro, Palawan, and Tawi-Tawi.

The measure requires SPBC to operate its distributable power technology (DPT) and mini-grid systems in the least cost manner and to provide open and non-discriminatory access to its DPT and mini-grid systems for any end-user within the franchise area.

Earlier, an alliance of renewable energy developers asked Duterte to veto the measure, arguing that it violates the guarantee of due process and equal protection in the Constitution and encourages anti-competitive practices.

The Developers of Renewable Energy for AdvanceMent Inc. (DREAM) claimed that the measure intends to benefit only SBPC, a private corporation owned and operated by Leandro Leviste.

DREAM consists of various associations whose members are developers of renewable energy projects, including the Philippine Solar Power Alliance, Biomass Renewable Energy Alliance, PhilHydro Association Inc., Wind Energy Developers Association of the Philippines, and the National Geothermal Association of the Philippines.

The group warned that eliminating competition would potentially result in lack of innovation and improvement in electricity services leading to an increase in power rates in areas “which are likely inhabited by people who do not have the financial capability to pay unfairly priced services.”

The Electric Power Industry Reform Act and “numerous” administrative issuances already provide for existing mechanisms that address the problem of electrification of isolated areas, the alliance added.

Legarda, who was senator during the congressional deliberations on the measure, had said she did not take part in the voting on the franchise of Solar Para sa Bayan out of delicadeza. — MDM, GMA News