Legarda says she abstained from son’s solar firm franchise out of delicadeza

Outgoing Senator Loren Legarda said Thursday that she did not take part in the voting on the franchise of Solar Para sa Bayan, which is owned by her son Leandro Leviste, out of delicadeza.

Sixteen senators voted for the approval of the bill seeking to grant a 25-year franchise to Leviste’s solar company.  Legarda abstained.

“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,” Legarda said during Kapihan sa Senado.

She refused to give further comment on the franchise saying she is not an expert on the issue.

Legarda, who won a congressional seat in Antique, added that she did not defend the measure on the plenary and even made sure that she was outside the session hall when it was being discussed to avoid any conflict.

The measure, which originated from the House of Representatives, was passed by the Senate but with several amendments following some questions raised by senators.

During the period of interpellation last week, Senator Panfilo Lacson, citing Section 6 of the Electric Power Industry Reform Act (EPIRA), questioned the application of the solar firm for a national franchise as it is engaged in power generation but is not considered operating as a public utility firm.

Senator Grace Poe, sponsor of the bill, said that micro-grid technology is relatively new in the Philippines and legislators might not have envisioned it when they crafted the EPIRA in 2001.

Senate Minority Leader Franklin Drilon also asked why the solar firm was applying for a franchise when it is already legally operating even without a legislative franchise.

Senator Win Gatchalian, head of the committee on energy, replied that Solar Para sa Bayan was just operating under the Qualified Third Party program and that granting it a franchise would expand its coverage.

Senate President Vicente Sotto III also said that the bill should ensure the firm will not become a mega-franchise.

Gatchalian said the firm, after the grant of the "non-exclusive" franchise, will still have to undergo a competitive selection process in the said areas to allow other competitors to enter.

Under the Senate's version of the bill, the Solar Para sa Bayan shall provide solar power service to the barangays, municipalities, and cities in following areas as determined by the Department of Energy:

• Aurora
• Batangas
• Bohol
• Cagayan
• Camiguin
• Compostela Valley
• Davao Oriental
• Isabela
• Masbate
• Misamis Occidental
• Occidental Mindoro
• Palawan
• Tawi-tawi.

The bill still has to be discussed by the bicameral conference committee before it will be ratified by the Senate and House and then submitted to Malacanang for the President’s signature. —MDM, GMA News