ERC seeks suspension of public listing for small RE firms

MANILA, Philippines — The Energy Regulatory Commission (ERC) is seeking the suspension of the mandatory public listing requirement for small renewable energy players in the country.

Section 43(t) of the Electric Power Industry Reform Act of 2001 (EPIRA) requires generation companies to publicly offer and sell not less than 15 percent of their common shares of stocks in the stock market.

However, the ERC noted that 51 percent of generation companies, or 118 out of 143, have not met the requirement.

Among these 118 entities, 65 are renewable energy enterprises, with 24 falling under the category of small renewable energy companies.

“So our plea with the Joint Congressional Energy Commission (JCEC) is if it is possible (to suspend the requirement) because now, the effect is these small renewable energy companies, or companies that are not able to do public listing, can not get certificate of compliance which requires the public offer listing,” ERC chairperson and CEO Monalisa Dimalanta said.

The ERC is proposing to suspend the application of the public offering requirement on generation companies which own and operate renewable energy facilities, and those that are not part of a portfolio of generation companies under a common parent company established or maintained as a holding company specifically for subsidiaries engaged in the business of power generation.

Dimalanta hopes that the suspension of the requirement can be done in the meantime as amendments to the EPIRA are being made.

“As a matter of fact, when EPIRA was passed, the Renewable Energy Act was not yet enacted. The RE Act was enacted in 2008 so

EPIRA could not have contemplated the emergence of small renewable energy companies. One megawatt (MW) solar plant for example. So it could not have contemplated these companies to go and do public listing,” Dimalanta said.