ERC: 54% of Power Firms Non-Compliant With IPO Rule

At least five in every 10 power producers remain non-compliant with the public offering rule under the Electric Power Industry Reform Act (EPIRA), according to the Energy Regulatory Commission.

- By Brix Lelis

But the ERC is optimistic that the Securities and Exchange Commission's (SEC) simplified process could help improve the compliance rate.

Based on the latest ERC data, 54 percent or 136 of the 251 power generation companies (gencos) in the country have yet to offer or sell to the public at least 15 percent of their common shares.

These energy firms have a combined capacity of about 13,745 megawatts.

"Our compliance rate is just 15 percent or 37 out of 251 gencos," ERC chairperson and CEO Monalisa Dimalanta told reporters yesterday.

Dimalanta warned that power firms risk having their license to operate revoked if they fail to comply with the public offering requirements.