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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