New SEC Guidelines to aid in growth of power sector

The Securities and Exchange Commission (SEC) is preparing to launch a set of guidelines early next year aimed at stimulating further growth in the country’s power sector. 

The initiative, titled Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services (SEC POWERS), will streamline the financing process for energy companies.

In a report by the Philippine Star, SEC Commissioner Javey Paul Francisco said the new guidelines would simplify the registration of securities for power generation companies and distribution utilities, providing a faster pathway to secure investments. 

Developed in partnership with the Energy Regulatory Commission, the guidelines will officially be launched early next year. 

Under the new rules, the SEC’s Markets and Securities Regulation Department will be required to complete the review of registration statements within 45 days of filing, as outlined by the Securities Regulation Code, the Revised Corporation Code of the Philippines, and relevant SEC issuances.

The guidelines are aligned 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% of their shares to the public. Notably, the guidelines will waive the usual 20% minimum public float requirement in favor of the 15% threshold set by EPIRA.

Francisco noted that these simplified procedures are intended to accelerate approvals and ease compliance, supporting faster capital inflows into the energy sector. “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 added.

The SEC also promotes renewable energy projects as part of the government’s broader efforts to transition to cleaner energy sources. Access to capital is crucial for enabling companies to expand renewable power and reach more remote areas of the Philippines, improving electricity access and contributing to national development.

Additionally, the SEC continues to encourage sustainable finance through the issuance of frameworks for green bonds, social bonds, sustainability bonds, and blue bonds, aligned with internationally accepted standards. These efforts have positioned the Philippines as the second leading issuer of ASEAN thematic bonds.