ERC gives gencos, DUs 6 more months to sell 15% of shares

By Lenie Lectura – July 5, 2018
from Business Mirror

THE Energy Regulatory Commission (ERC) has extended the compliance period within which power- generation companies (gencos) and distribution utilities (DUs) should sell a portion of their shares.

In a resolution, the ERC extended for six months or until December 29, 2018, for all gencos and DUs to offer and sell to the public a portion of not less than 15 percent of their common shares of stocks.

Under the Electric Power Industry Reform Act of 2001, all private gencos and DUs are directed to sell a portion of at least 15 percent of common shares to the public in a period of five years.

The gencos, DUs or their respective holding companies already listed in the stock exchange are deemed in compliance.

The directive took effect on June 29, 2011, and was supposed to end on June 29, 2016. However, the ERC suspended the directive in 2016 following the petitions made by the Private Electric Power Operators Association.

Thus, the ERC decided then to extend the compliance for one year or until June 29, 2017. However, another one-year extension was granted mainly due to a fortuitous event as martial law was declared for the whole of Mindanao, thereby interrupting the conduct of hearings.

The ERC has been conducting public consultations on the directive, as prescribed under the ERC Rules of Practice, when martial law was declared.

Thus, the deadline for compliance of ERC Resolution 9, Series of 2011 was extended until June 29, 2018.