The Securities and Exchange Commission (SEC) has put in place a streamlined process for energy firms to raise capital quickly through the stock market beginning next year.
SEC commissioner Javey Paul D. Francisco said the fast lane has dedicated personnel prioritizing investments in the energy sector.
“The general concept to make it easier for them to comply with the process. We will have a dedicated staff,” Francisco said at the sidelines of the recent EJAP-AboitizPower Renewable Energy Forum.
“Here at the SEC, we reiterate our commitment to efforts in promoting renewable energy by enabling their growth. Access to capital and fostering investment flows are crucial in allowing companies to expand and transition to more renewable power sources,” he said.
“We will be officially launching these guidelines soon together with our counterparts at the Energy Regulatory Commission (ERC) to further promote the initiative for covered companies,” Francisco said.
The agency earlier instituted the Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services or SEC POWER program that simplifies the registration of securities for power generation companies and distribution utilities.
Under the guidelines, the SEC commits to complete the registration of power firms within 45 days in keeping with the requirements of the Securities Regulation Code (SRC), the Revised Corporation Code of the Philippines and pertinent issuances of the SEC.
The guidelines are in line with Republic Act No. 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 percent of their shares to the public.
The guidelines also waived the minimum public float requirement of 20 percent for listed companies, in favor of the 15 percent minimum requirement under EPIRA.
The simplified procedure is seen to boost the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors, as provided under the EPIRA Law.
