The Energy Regulatory Commission (ERC) has approved amendments to the Public Offering Requirement (POR), giving great benefit to small and medium-sized power producers and utilities that previously struggled with the complex process of complying with the Electric Power Industry Reform Act (EPIRA).

EPIRA requires generation companies and distribution utilities to sell a portion of their ownership to the public. The revised POR simplifies this process, encouraging broader compliance and reducing the need for repeated provisional authorities to operate (PAO). With clearer and more practical rules, the ERC aims to ensure that qualified entities can secure regular Certificates of Compliance (COC) instead of temporary permits.

The revised guidelines, approved on October 16, 2025, streamline the process for energy companies to offer at least 15 percent of their ownership to the public. This is done by either listing shares on the Philippine Stock Exchange (PSE) or by directly offering them to investors. The announcement was made during the ERC’s press briefing on October 20.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said the move encourages greater public participation and accountability in the energy industry. “When energy companies offer shares to the public, it allows Filipinos to invest directly in the industry that powers our nation. It also makes these companies more accountable to their investors and the consumers they serve,” he said.

The updated POR rules introduce three main changes: a clearer definition of holding companies, more practical timelines for completing the public offering process, and alignment with the current listing standards of the PSE. These adjustments aim to simplify compliance and ensure energy firms follow a single and unified set of standards when they decide to go public.

The Commission said the revised timelines would give companies more time to prepare and raise capital properly, instead of relying on repeated provisional authorities to operate while awaiting full compliance.

Juan described the update as “a win for rationality and public participation in the energy sector,” emphasizing that the new rules are designed to uphold the spirit of the EPIRA law by promoting fair competition, strengthening transparency, and protecting both consumers and investors.

How do you think these updated rules will affect energy companies planning to go public in the coming years?

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