The Energy Regulatory Commission said it extended by another six months the deadline for power generation and distribution companies to offer and sell to the public at least 15 percent of their common shares.
“Now, therefore, the commission, after thorough and due deliberation, resolved to extend for a period of six months or until Dec. 29, 2018, for generation companies and DUs [distribution utilities] to offer and sell to the public a portion of not less than 15 percent of their common shares of stocks,” the ERC said.
The regulator moved the deadline from June 29, 2018 to get more time to evaluate the results of the series of public consultations held from May 2017 to May 2018.
The ERC said it was also waiting for the response of the Securities and Exchange Commission on the allowed modes of the public offering under the existing rules in relation to Section 43 (t) of the Electric Power Industry Reform Act of 2001.
Section 43 (t) of the Epira states that the ERC should perform its functions to ensure the successful restructuring of the power industry such as but not limited to the rules and guidelines on the listing of the shares of the generation firms and distribution utilities.
The ERC previously issued Resolution No. 9, Series of 2011 which provided a period of 5 years from its effectivity for generation companies and distribution utilities to offer and sell shares to the public.
The five-year period ended on June 29, 2016 but was extended by the commission to June 29, 2017 and then again to June 29, 2018.
The ERC said public consultations on the issue was delayed because of the Marawi armed conflict which forced the government to declare Martial Law in Mindanao last year.
It said generation firms, distribution firms or their respective holding companies listed in the Philippine Stock Exchange were deemed in compliance.
The Philippine Independent Power Producers Association earlier asked the ERC to defer the implementation of the public offering rules as the “provision should be made under an environment that is conducive to the success of any public offering, and after relevant issues with regard to the public offering are resolved.”
“PIPPA, on behalf of all its members, respectfully requests the ERC to defer the compliance date of the requirement to such time when the conditions surrounding the undertaking of the public offering would indicate greater opportunity for success,” it said.
The group said the ERC resolution failed to set rules and guidelines to be followed by generation companies which were in the form of partnerships or joint ventures.
“Not all generation companies are in the form of stock corporations. Hence, there would be difficult for these generation companies to comply with the public offering as they do not have common shares of stock,” it said.