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Philippine energy firm linked to Leviste fined by regulator
Batangas Rep. Leandro Leviste is under scrutiny over his sale of SP New Energy Corp., a company without a franchise.
The Department of Energy (DOE) fined Solar Philippine Power Project Holdings Inc. (SPPPHI) PHP 24 billion (US$403,71 million) for failing to meet power generation commitments under government contracts.
Leviste, son of Senator Loren Legarda, owns SPPPHI and said projects stalled due to permits not being issued. He clarified that the 2022 franchise revocation applied to SPBC, a different company.
The DOE’s penalty and licensing issues have raised questions about the legality of the sale and the company’s obligations.
🔗 Source: The Philippine Star
🧠 Food for thought
Implications, context, and why it matters.
The legal basis and status of the DOE’s P24-billion penalty on SPPPHI require scrutiny
- The legal basis for the Department of Energy (DOE) P24-billion penalty on Solar Philippine Power Project Holdings Inc. (SPPPHI) should be verified. The sanction was tied to non-fulfillment of obligations under more than 30 government service contracts.
- The method used to compute the P24-billion amount should be reviewed. Support for the assertion that regulations focus on contract cancellation procedures and the forfeiture of performance guarantees is not found in the Source Material provided here. Support for multi-billion peso fines is also not found.
- Standard termination steps for renewable energy contract holders should be clarified, along with any appeal routes. Whether the penalty is final or open to challenge should be determined. It has been stated by Leandro Leviste that the projects could not move forward because permits to proceed were not issued.
SPPPHI’s case may point investors to stalled projects linked to DOE service contracts
- Energy investors and developers may read the DOE’s P24-billion penalty on SPPPHI as a sign that more projects tied to government service contracts are stuck.
- That opens room to buy into or team up on paused sites tied to Renewable Energy Service Contracts (RESCs). RESCs are government agreements that allow developers to explore, develop, and operate renewable energy projects. The Source Material provided here does not support the view that RESCs gain value because early application steps have already been cleared.
- Firms can track the DOE’s official list of awarded contracts to spot developers falling behind. The suggestion that companies should move in before similar penalties land remains analysis, not a sourced fact.
