The Energy Regulatory Commission (ERC) is pressing power companies to comply with a long-standing rule requiring them to offer at least 15% of their shares to the public, as mandated by the Electric Power Industry Reform Act of 2001 (EPIRA).
ERC Chairperson Monalisa Dimalanta revealed that only 37 out of 251 generation firms—just 15%—have complied with the requirement. To address this, the ERC is working with the Securities and Exchange Commission (SEC) through the newly launched SEC POWERS initiative, which aims to simplify the listing process and make capital markets more accessible to power companies.
“We have been trying to enforce it, but over the last 20 years, it has been difficult because you cannot force the market to buy,” Dimalanta said. “So we have been working with the SEC for almost two years to make the process more accessible for our gencos and smaller distribution utilities.”
Failure to comply means companies risk losing their certificates of compliance, effectively barring them from operating. However, Dimalanta admitted enforcement is complicated—revoking these certificates could take 14 gigawatts of power off the grid, severely impacting the energy supply.
SEC Chairman Emilio Aquino said the SEC POWERS program will help power companies attract investors by streamlining securities registration. “With a simplified registration statement, we make it easier for power generators and distribution utilities to offer their shares to the public,” he said.
Dimalanta expressed optimism that at least 100 companies will comply within the next year, but challenges remain, as some firms find the listing process costly and complex.
With only a fraction of power firms complying over the past two decades, should the government enforce stricter penalties, or should the rule be reconsidered? Share your thoughts!
Follow Power Philippines on Facebook and LinkedIn for more updates.
There are no comments
Add yours