Wednesday, August 2, 2017

Power gencos, DUs given 1 more year to go public

By Danessa Rivera (The Philippine Star) | Updated August 2, 2017 - 12:00am

MANILA, Philippines - The Energy Regulatory Commission (ERC) has given private power generation companies (gencos) and distribution utilities (DUs) another year to go public.
The power regulator issued a resolution extending the compliance period of private gencos and DUs by another year, or until June 29, 2018 or until a decision is made.
This is considering martial law was declared by President Duterte in Mindanao to neutralize the local terror group Maute and contain violence in the region following a clash between government forces and the terror group in Marawi City last May 23.
The President’s request for an extended martial law in the region until Dec. 31 was granted by Congress last July 22.
The ERC has been conducting public consultations on the directive, as prescribed under the ERC Rules of Practice, when martial law was declared.
“The commission, in order to complete the required public consultations on the instant petition and due to the fortuitous event mentioned, has resolved, to extend for one (1) year the compliance period provided in said resolution pending final resolution on the petition,” the power regulator said.
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 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.
PEPOA first sought clarification from the ERC on July 4, 2011, asking the commission “whether registration of common shares at the Securities and Exchange Commission was inadvertently omitted as a mode of public offering.”

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