ERC readies rules on 15% listing of power utilites shares

All power generation and distribution utilities will have to offer 15 percent of shares of stock to the public via listing on the Philippine Stock Exchange, according to new rules being crafted by the Energy Regulatory Commission. New companies must implement their respective public offerings not later than five years from the issuance of their certificate of compliance, the commission stipulated. In an 11-page document, the ERC proposed guidelines that aim to enhance the flow of private capital and broaden the ownership base of power generation, transmission, and distribution sectors in line with provisions of the Electric Power Industry Reform Act. The proposed guidelines will help protect public interest, as Filipinos are directly affected by the rates set and services provided by power generators and distribution utilities, the ERC said. The commission also noted that the draft guidelines are consistent with the rules of the PSE and the Securities and Exchange Commission. The move to make public the shares of power generation and distribution utilities, however, is not new. Under EPIRA, the ERC regulates “the restructuring and modernization of the electric power industry, such as… the rules and guidelines under which generation companies and [distribution utilities] which are not publicly listed shall offer and sell to the public a portion of not less than 15 percent of their common shares of stock," the regulator said. —LRS/VS, GMANews.TV