The Energy Regulatory Commission (ERC) extended the compliance period for private generation companies (gencos) and distribution utilities (DUs) to June 29, 2018.
With the extension, gencos and DUs would have more time to allot common shares to the public as required by law.
The Electric Power Industry Reform Act of 2001 (EPIRA) mandated all private gencos and DUs to sell a portion of at least 15 percent of common shares to the public in a period of five years.
The ERC ruled that the extension was necessary in light of Mindanao having been placed under Martial Law by President Rodrigo Duterte last May. Recently, Congress approved extending Martial Law until December 31st.
After martial law was declared, the ERC began conducting public consultations on the directive, as prescribed under the ERC Rules of Practice.
“The Commission in order to complete the required public consultations on the instant petition and due to the fortuitous event mentioned, has resolved, to extend for one (1) year the compliance period provided in said Resolution pending final resolution on the Petition,” the power regulator said.
The EPIRA directive, which was implemented on June 29, 2011, was supposed to be complied with by June 29 of last year.
However, it was halted after the Private Electric Power Operators Association (PEPOA) filed a petition to suspend it in 2016.
The group first filed a petition on July 4, 2011 asking the commission “whether registration of common shares at the Securities and Exchange Commission (SEC) was inadvertently omitted as a mode of public offering.”
The second petition was filed on Oct. 13, 2015 asking that registration in the SEC “be included among the modes of public offering allowed.”