ERC revises requirements for power firms’ public offer

MANILA, Philippines — The Energy Regulatory Commission (ERC) has revised the public offering requirement for private power generation companies (gencos) and distribution utilities (DUs).

The ERC issued a resolution giving power companies more options to comply with the minimum public ownership set by Electric Power Industry Reform Act (EPIRA) of 2001.

Now, there are “other options or manners” for their compliance, ERC spokesperson Floresinda Digal said.

Under the law, all private gencos and DUs are directed to sell a portion of at least 15 percent of common shares to the public in a period of five years.

In the resolution, the power companies are no longer limited to offer their shares by listing in the Philippine Stock Exchange (PSE), any other exchange or direct offer to the public or employees approved by the Board of Investments (BOI).

This is because the ERC also adopted the modes of public offering in accordance with the 2015 Implementing Rules and Regulations (IRR) of the Securities Regulation Code (SRC).

Under the 2015 IRR of the SRC, public offering is defined as any offering of securities to the public or to anyone, whether solicited or unsolicited.

The following modes are considered as public offering: publication in any newspaper, magazine or printed reading material which is distributed within the Philippines; presentation in any public or commercial place; advertisement or announcement on radio, television, telephone, electronic communications, information communication technology or any other forms of communications; and distribution and/or making available flyers, brochures or any offering material in a public or commercial place or to prospective purchasers through the portal system, information communication technology and other means of information distribution.

The options to comply with the public ownership requirement came after the Securities and Exchange Commission (SEC) responded to the ERC’s letter request for an updated opinion on the authorized modes of public offering.