Metro Manila (CNN Philippines, August 1) — President Rodrigo Duterte has signed into law the bill granting a 25-year franchise to a solar power firm owned by Antique Rep. Loren Legarda’s son, despite strong opposition from major business groups.
Presidential Legislative Liaison Office chief Adelino Sitoy said Duterte approved the legislative franchise of Solar Para Sa Bayan Corporation (SPSBC) on Wednesday — a move which businesses fear would give it an “undue competitive edge.”
Five business groups have previously called on Duterte to review the bill granting the solar power firm a franchise, warning that it may have been approved without sufficient deliberation.
Manila Electric Co. had also opposed the grant of a franchise to SPSBC.
SPSBC, owned by Leandro Leviste, promotes itself as a social enterprise looking to provide cheap electricity to Filipino households, particularly in areas which remain without access to power, through renewable energy sources.
Unlike existing utility firms with separate power generation and distribution companies, the Leviste-led electricity provider will take on the construction, installation, establishment of connections, as well as the operation and maintenance of “distributable” energy resources via a microgrid system. This is also different from the current practice that puts power firms on the wholesale electricity spot market, where the rates are set through daily trading.
The bill granting SPSBC a 25-year franchise cleared the Senate last month, while it hurdled the House in December 2018. Leviste’s mother, Legarda, abstained from voting.
Under the law, Congress has the power to grant franchises to companies providing public services such as utilities and media.
