The Energy Regulatory Commission (ERC) has renewed close coordination with the Securities and Exchange Commission (SEC) in boosting power generation company (genco) compliance to mandatory listing rules that at the moment seems to have been loosely observed. Only 37 of 251 gencos are listed firms at the moment, representing only 15 percent of the industry. The Electric Power Industry Reform Act (EPIRA) mandates non-listed gencos and distribution utilities (DUs) to sell at least 15 percent of their common shares to the public within five years of commercial operations.
ERC chair Monalisa Dimalanta highlighted the challenges faced by gencos, especially independent renewable energy (RE) developers, who struggle to access capital and grow their operations. She said the SEC – ERC collaboration streamlines the listing process, making it more accessible for industry players and ensures compliance.
This agency synergy is crucial for improving efficiency in the sector, provide the necessary support for growth, and foster a more competitive energy market. Despite challenges, such as the costly and complex process of listing, the agencies are working to find solutions that balance regulatory enforcement with the industry’s need for funding.
The ERC also clarified that while public listing is not mandatory, gencos must still meet the 15 percent public offering requirement. Failure to comply could result in non-renewal or revocation of their operating license, which could remove 14,000 megawatts of power from the grid. Nevertheless, SEC officials said the gencos can meet the mandatory requirements even without listing by becoming registered issuers of securities.
