The Governance Commission for Government-Owned or Controlled Corporations (GCG) has officially delisted the Philippine Electricity Market Corporation (PEMC) from its coverage, confirming that the entity no longer qualifies as a GOCC under Republic Act No. 10149.

The decision, issued through Memorandum Order No. 2025-15 dated July 11, 2025, recognizes PEMC’s significant governance changes since 2018, particularly the transfer of Wholesale Electricity Spot Market (WESM) operations to the Independent Electricity Market Operator of the Philippines (IEMOP) and the resignation of the Secretary of Energy as Board Chair of PEMC.

According to the GCG, the move addresses longstanding regulatory uncertainties surrounding PEMC’s market fee approvals and clarifies its status under the current legal and operational framework.

The GCG’s ruling is grounded in Department of Justice Opinion No. 35, issued in December 2022, which stated that PEMC could no longer be classified as a GOCC due to the government’s lack of controlling interest. The DOJ emphasized that PEMC’s board is now composed of members nominated and elected by power sector stakeholders, with no government participation in the process.

PEMC was originally incorporated in 2003 as a non-stock, non-profit corporation, following the passage of the Electric Power Industry Reform Act (EPIRA) of 2001. It served as the autonomous group market operator and governing body of the WESM for over a decade.

In line with EPIRA’s mandate for an independent market operator, the Department of Energy and industry stakeholders endorsed the transfer of WESM operations to IEMOP in 2018. PEMC has since retained a governance role through its board and the WESM and Renewable Energy Market Governance Committees.

With its removal from GOCC classification, PEMC is no longer subject to GCG-related constraints and may continue operating under its existing governance structure. The GCG noted that the exemption is subject to future reevaluation, should PEMC’s structure or circumstances materially change.

The memorandum order was signed by GCG Chairperson Atty. Marius P. Corpus, along with Ex-Officio Members Finance Secretary Ralph G. Recto and Budget Secretary Amenah F. Pangandaman, and Commissioners Atty. Brian Keith F. Hosaka and Atty. Bernadette Marie B. Berberabe-Martinez. It took effect immediately.

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