The situation, in brief
“Hindi po kailangan utusan kami kasi trabaho po namin ’to.” This was the remark of Energy Secretary Sharon Garin as she categorically denied that any directive from Malacañang or the leadership of the House of Representatives prompted the cancellation of power supply contracts linked to Solar…
“Hindi po kailangan utusan kami kasi trabaho po namin ’to.”
This was the remark of Energy Secretary Sharon Garin as she categorically denied that any directive from Malacañang or the leadership of the House of Representatives prompted the cancellation of power supply contracts linked to Solar Philippines, the energy firm founded by Batangas 1st District Rep. Leandro Legarda Leviste.
In an interview on DZRH News program Dos Por Dos on Wednesday morning, January 14, Garin said the decision was made in the regular course of the Department of Energy’s (DOE) mandate, following repeated failures by several renewable energy developers to meet their delivery obligations.
Garin stressed that the cancellations were based strictly on contract performance, not politics.
The DOE recently canceled a total of 163 power supply contracts amounting to around 17,000 megawatts, including 28 contracts awarded to Solar Philippines Power Holdings Inc..
Garin clarified that Solar Philippines became the focus of public attention only because of its scale and profile, stressing that many other firms were similarly affected.
Garin said Solar Philippines committed to deliver about 12,000 megawatts by December 2025 but failed to meet the agreed timeline.
“Dapat nag-deliver na siya ng 12,000 megawatts, pero wala pong naideliver,” she said, adding that only about 200 megawatts were supplied. “Hindi biro ang 12,000—halos more than half of our demand ’yan.”
She warned that such non-delivery has serious implications for energy security and power prices, noting that these committed capacities were already factored into the DOE’s national supply projections.
“Kapag hindi pumasok ’yan, nasisira ang plano,” Garin said, cautioning that thin supply could push prices up and increase the risk of brownouts, particularly during peak summer demand.
Rejecting claims of retaliation, Garin said the DOE had no choice but to enforce discipline among developers.
“We have to discipline our developers,” she said. “Kung may commitment kang mag-build at mag-deliver ng kuryente, you deliver. Otherwise, there will be a consequence.”
Garin also dismissed accusations of arbitrariness, saying the DOE observed due process before terminating the contracts. She said developers were required to submit annual progress reports and were issued repeated notices and show-cause orders.
On the reported multibillion-peso penalties, Garin said the estimated amounts were based on contract provisions, including performance bonds and other financial and contractual obligations.
“This is based on a contract na pinirmahan ng DOE at ng developer,” she said, stressing that the penalties were grounded in law and not imposed out of anger.
Garin said questions on enforcement, possible anti-competitive behavior, or potential conflict-of-interest issues involving Solar Philippines and its ownership would be left to the Department of Justice, the Office of the Solicitor General, or the Ombudsman.
“Kami regulator lang,” she said. “Sa amin, terminated na ang kontrata. They can appeal it in court if they want.”
