New SEC guidelines seen to power up energy sector

MANILA, Philippines — The Securities and Exchange Commission (SEC) is planning to launch early next year a set of guidelines that will help further energize the country’s power sector.

SEC Commissioner Javey Paul Francisco said the commission, as the national regulatory agency mandated to regulate the capital market, is “bringing a potent source of financing closer to energy companies” through regulations such as the Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services (SEC POWERS).

Francisco said SEC POWERS simplifies the registration of securities for power generation companies and distribution utilities.

“SEC POWERS is sort of a fast lane where we will prioritize registration of investments in the energy sector,” he said.

Francisco said the SEC, together with the Energy Regulatory Commission, will be officially launching the guidelines soon.

“We plan to launch that early next year. We’re coming up with the guidelines,” he said.

Under the guidelines, Francisco said the SEC Markets and Securities Regulation Department should complete the review of the registration statement of power generation companies and distribution utilities within 45 days from filing, in accordance with the requirements of the Securities Regulation Code, the Revised Corporation Code of the Philippines and pertinent issuances of the commission.

He said the guidelines are in line with Republic Act 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA), which mandates power generation companies and distribution utilities to offer and sell at least 15 percent of their shares to the public.

According to Francisco, the guidelines also waive the minimum public float requirement of 20 percent for listed companies, in favor of the 15-percent minimum requirement under EPIRA.

He said the simplified procedure is expected to enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors as provided under the EPIRA.

“That’s the intention, to enable faster approvals. The general concept that we have is to make it easier to comply and to make the processing faster so we’re coming in from a mindset of ease of doing business,” Francisco said.

He said that the SEC is committed to the government’s efforts in promoting renewable energy projects by enabling their growth.

The SEC commissioner said access to capital and fostering investment flows are crucial in allowing companies to expand and transition to more renewable power sources.

“This will allow companies to reach and provide electricity to more far-flung areas in the Philippines, thereby improving the quality of life of our fellow Filipinos and ensuring that they too, will be able to participate in and contribute to the country’s development,” he said.

Aside from regulations such as SEC POWERS, the commission is also working to promote sustainable finance.

Francisco said the SEC over the years has issued the necessary legal and regulatory frameworks that encourage both companies and investors to account for environmental and social factors when making investments.

“We have issued the guidelines on green bonds, social bonds, sustainability bonds, sustainability-linked bonds and blue bonds all aligned with the regionally and globally accepted standards. These efforts have paved the way for the Philippines to become the second leading issuer of ASEAN thematic bonds,” he said.