Bilar, William Karol Benedict W.

Environmental Law
Position Paper

House Bill 8179

“An Act Granting Solar Para Sa Bayan Corporation A Franchise To Construct, Install,
Establish, Operate And Maintain Distributable Power Techonologies And Minigrid
Systems Throughout the Philippines To Improve Access To Sustainable Energy”

News regarding HB 8179 made headlines around 3Q 2018, with thousands of

Filipinos, may it be netizens, journalists and legislators as well, expressing their
opposition towards the passing of this bill. The bill in question, which concerns a rather
fundamental need in today’s society is bound to receive the level of attention it has gotten,
considering that should the bill be passed into law, will no doubt affect not only our daily
lives, business landscapes but also the government’s plan of conservation and
sustainable development of Natural Resources
In order for one to arrive at and educated opinion with respect to the topic at hand
it is imperative that one must be informed and knowledgeable about the pertinent details
of the bill and from such information infer the probable consequences. So just what is
House Bill 8197?
House Bill 8197 authored by Rep. Arthur C. Yap, will grant the Solar Para Sa
Bayan Corp (SPSBC) a franchise to construct, install,establish and operate and maintain
distributable power technologies and minigrid systems. Provided for by the text itself, it is
stated to be non – exclusive, gives no incentives, incurs zero cost to government and
obligates Solar Para Sa Bayan to charge the least cost for power and be subject to ERC
regulation. Solar Para Sa Bayan President Leandro L. Leviste stated that it was just
meeting community needs, citing a Pulse Asia survey that 82% of Filipinos favor new
options for electric providers, due to Filipinos who endure the highest power rates in Asia,
he furthermore highlighted the minigrids already installed in 12 towns to the benefit of
200,000 Filipinos.
 While the bill on its face, looks to be promising and effective in solving the problem
of meeting the needs of unserved localities and communities while providing a cheaper
option for power, however upon further analysis of the bill, valid points of concern were
presented by various organizations that expressed their strong disapproval to the
passage of the House Bill.
That according to them HB8179 effectively grants a monopoly and exempts one
company from the rules of competition and oversight provided under EPIRA and the
Renewable Energy Act. That there is no legal necessity to grant Solar Para sa Bayan a
nationwide franchise since there are existing regulatory framework allowing entry,
whether private or public including LGUs to participate in the provision of electricity in un
served or un energized areas.
The electric cooperatives said that HB8179, will give undue favor to one private
company, a blanket authority to establish minigirds in the entire country with no oversight
or consumer protections, where the only obligation of the company is to submit an annual
report on operations, nor a stipulation thaht the private company to actually and
concretely provide electricity to any specific areas. Presly De Jesus, Philreca president,
in addressing the “non- exclusivity” of the bill stated that the long and complex process in
applying for a franchise from the congress, which has no legal basis and necessity would
be stopped, and in my opinion the addition of these formalities would pose as a deterrent
for other solar energy developers.
In conclusion, I’m personally opposed to this bill for the unfavorable consequences
its enactment will entail not only to consumers but also other businesses and the
environment as well.
As I stated earlier, upon its face, the House Bill is inherently good, where the main
purpose is to provide a wider access of power to basically everyone, however in its
application, the legislature lacked insight as to future repercussions. My main gripe with
the bill itself is the establishment of a monopoly and the illusion of choice.
In a business standpoint, the consumer always loses in a monopoly, in the
absence of a competitor, a company is left with the discretion to price the products as
they see fit, furthermore the pressure to improve the service and/or the product is virtually
non- existent.
 Which leads to the next affected sector, the environment, the goal of the
government to sustainably develop natural resources to be more specific. In the absence
of competition as stated earlier, research and development for improvement for the use
and implementation of solar energy will undoubtedly, come to a halt or at least slow down.
I also found the House Bill to be very insufficient in regulating the affairs of Solar
Para Sa Bayan, the bill gave SPSBC too much discretion in carrying out its operations,
going as far as giving then the inherent power of stat the power of eminent domain to be
used in expropriating private lands for the construction of their minigrids.
I stand with the suggestion of the various associations that ““Instead, our policy
makers and legislators should craft another bill that promotes fair and healthy competition,
fosters reforms and innovations, for qualified third parties (QTPs) in un-served and
missionary areas, enabling the continuing expansion of clean energy projects, broader
and more efficient services, and lower electricity rates, especially for unserved and
underserved areas,”

References:
https://www.bworldonline.com/house-resolution-seeks-to-block-national-franchise-for-
solar-firm/
https://powerphilippines.com/2018/09/14/powerplayers-slam-house-bill-granting-solar-
para-sa-bayan-franchise/
https://www.philstar.com/opinion/2018/10/17/1860619/level-playing-field-energy
https://www.sunstar.com.ph/article/1776999