Regulators working on framework for public offering of power firms

MANILA, Philippines — The Energy Regulatory Commission (ERC) is joining forces with the Securities and Exchange Commission (SEC) to create a framework for the public offering requirement of power generation companies.

The ERC and SEC are exploring avenues of collaboration in order to streamline the latter’s regulatory processes for the regulated entities of both agencies.

Among the measures being proposed is the creation of  a joint ERC-SEC framework for the public offering requirement mandated by Section 43(t) of Republic Act   9136 or the Electric Power Industry Reform Act of 2001 (EPIRA).

Section 43(t) of the EPIRA requires generation companies to publicly offer and sell not less than 15 percent of their common shares of stocks in the stock market.

However, the ERC said that based on its records, the compliance rate to the public offering requirement is less than 50 percent for the generation sector alone.

The ERC said the joint framework seeks to simplify the registration process for covered entities to facilitate increased compliance to the public offering requirement.

The ERC earlier sought for the suspension of the mandatory public listing requirement for small renewable energy players in the country.

The commission proposed to suspend the application of the public offering requirement on generation companies which own and operate renewable energy facilities, and those that are not part of a portfolio of generation companies under a common parent company established or maintained as a holding company specifically for subsidiaries engaged in the business of power generation.

According to the ERC, the suspension of the requirement can be done in the meantime as amendments to the EPIRA are being made.

The ERC is mandated to promote competition in the power sector, encourage market development, ensure consumer choice, protect consumer interests and penalize abuse of market power.