THE Energy Regulatory Commission (ERC) has revised its rules on the general public offering requirement (POR) to present power firms more time to comply, by starting the five-year compliance period only after they meet the prerequisites for a public offering as an alternative of from the issuance of their operating license.
Under Section 43 of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA), unlisted generation corporations and distribution utilities are required to supply and sell to the general public no less than 15% of their common shares.
Previously, the five-year compliance period was counted from the date the ERC issued a certificate of compliance (CoC), which authorizes an organization to operate an influence plant or related facility.
The amendment retains the five-year window but adjusts the beginning of the countdown to present corporations sufficient time to finish the prerequisites for a share offering.
ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said the revision addresses concerns raised by smaller generation firms that found it difficult to fulfill the requirement inside the previous timeframe.
“Counting the compliance period only after an organization is able to conduct a public offering levels the playing field for smaller players,” he said during a briefing on Monday.
He said that larger power corporations can easily comply by listing their shares on the Philippine Stock Exchange (PSE), while smaller generators often need additional time to organize the essential financial and operational requirements.
The ERC said the amendment also aligns its rules with current PSE listing standards to be sure that energy corporations follow a consistent regulatory framework once they determine to go public.
Data from the commission show that only 40 of 264 generation corporations have complied with the POR, while 131 remain non-compliant.
The remainder are exempt from the requirement. Non-compliant firms represent nearly 14,000 megawatts of generation capability.
Mr. Juan said the update is meant to advertise broader ownership and greater transparency in the ability sector by encouraging energy corporations to open their shares to the investing public.
“When energy corporations offer shares to the general public, it allows Filipinos to take a position directly within the industry that powers our nation,” he said. — Sheldeen Joy Talavera