Danessa Rivera (The Philippine Star)
- July 9, 2018 - 12:00am
MANILA, Philippines — Private power
generation companies (gencos) and distribution utilities (DUs) have until the
end of December to comply with the required minimum public ownership.
In a resolution, the Energy
Regulatory Commission (ERC) said it has set Dec. 29 as deadline for gencos and
DUs “to offer and sell to the public a portion of not less than 15 percent of
their common shares of stocks.”
This is an extension of another six
months from the previous deadline set on June 29 this year.
The ERC is seeking clarification
from the Securities and Exchange Commission (SEC) on the allowed modes of
public offering.
Under the Electric Power Industry
Reform Act of 2001, all private gencos and DUs are directed to sell 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).
PEPOA first sought clarification
from the ERC on July 4, 2011, asking the ERC “whether registration of common
shares at the SEC was inadvertently omitted as a mode of public offering.”
The deadline was first reset to June
29, 2017 to give time to the affected parties to comply with the
directive.
However, it was further pushed back
to June 29 this year, considering martial law was declared by President Duterte
in Mindanao to neutralize the local terror group Maute and to contain violence
in the region following a clash between government forces and the terror group
in Marawi City in May last year.
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