The Energy Regulatory Commission (ERC) has rejected a supplemental agreement between S.I. Power Corp. (Sipcor) and the Province of Siquijor Electric Cooperative Inc. (Prosielco), reiterating that the parties must adhere to their original, commission-approved power supply contract.
Outgoing ERC chairperson Monalisa Dimalanta clarified that while the supplemental deal was not dismissed outright, it was deemed unnecessary as it altered provisions already covered in the original agreement. “The commission did not see the necessity for that supplemental agreement if they will just follow the original agreement,” Dimalanta said in a briefing.
The regulator’s position holds significant commercial implications, signaling its commitment to uphold contract sanctity and regulatory oversight. It also aims to ensure continuous and reliable power supply for Siquijor residents—who have faced outages due to Sipcor’s underperforming generator sets, which provide only 5–6 MW against a demand of up to 9 MW, according to the Department of Energy.
As power supply issues persist, the National Electrification Administration is working with a third-party consultant to explore solutions and potential penalties for Sipcor.
Newly appointed ERC chief Francis Saturnino Juan said the issue will be a top priority under his leadership starting Friday, 8 August. “There is urgency to resolve this matter. We will study what will be the best way to protect the interest of our consumers in Siquijor,” Juan said.
The case underscores the regulator’s stance on enforcing contractual commitments while balancing corporate accountability and consumer protection in the power sector.
