By Lenie Lectura - July 5, 2018
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.
No comments:
Post a Comment