Power firms told to comply with minimum public float

MANILA, Philippines — Private power generation companies (gencos) and distribution utilities (DUs) have until the end of December to comply with the required minimum public ownership.

In a resolution, the Energy Regulatory Commission (ERC) said it has set Dec. 29 as deadline for gencos and DUs “to offer and sell to the public a portion of not less than 15 percent of their common shares of stocks.”

This is an extension of another six months from the previous deadline set on June 29 this year.

The ERC is seeking clarification from the Securities and Exchange Commission (SEC) on the allowed modes of public offering.

Under the Electric Power Industry Reform Act of 2001, all private gencos and DUs are directed to sell at least 15 percent of common shares to the public in a period of five years.

The directive took effect on June 29, 2011 and was supposed to end on June 29, 2016.

However, the ERC suspended the directive in 2016 following the petitions made by the Private Electric Power Operators Association (PEPOA).

PEPOA first sought clarification from the ERC on July 4, 2011, asking the ERC “whether registration of common shares at the SEC was inadvertently omitted as a mode of public offering.”

The deadline was first reset to June 29, 2017 to give time to  the affected parties to comply with the directive.

However, it was further pushed back to June 29 this year, considering martial law was declared by President Duterte in Mindanao to neutralize the local terror group Maute and to contain violence in the region following a clash between government forces and the terror group in Marawi City in May last year.