Power firms get more time to comply with public offering requirement

THE Energy Regulatory Commission (ERC) has revised its rules on the public offering requirement (POR) to give power firms more time to comply, by starting the five-year compliance period only after they meet the prerequisites for a public offering instead of from the issuance of their operating license.

- Sheldeen Joy Talavera

Under Section 43 of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA), unlisted generation companies and distribution utilities are required to offer and sell to the public at least 15% of their common shares.

Previously, the five-year compliance period was counted from the date the ERC issued a certificate of compliance (CoC), which authorizes a company to operate a power plant or related facility.

The amendment retains the five-year window but adjusts the start of the countdown to give companies sufficient time to complete the prerequisites for a share offering.