Question & AnswerQ&A (ERC Resolution NO. 18, S. 2005)
The main policy objective under Section 2(d) of Republic Act No. 9136 is to enhance the inflow of private capital and broaden the ownership base of the power generation, transmission, and distribution sectors.
Section 43(t) mandates the ERC to perform regulatory functions to ensure the successful restructuring and modernization of the electric power industry, including setting rules for generation companies and distribution utilities that are not publicly listed to offer and sell at least 15% of their common shares to the public.
They must offer and sell to the public not less than fifteen percent (15%) of their common shares of stocks.
No. Generation companies and distribution utilities or their holding companies that are already listed in the PSE are deemed in compliance with the public offering requirement.
Existing companies must implement the public offering not later than five (5) years from the effectivity of RA 9136, which took effect on June 26, 2001.
New companies must implement the public offering not later than five (5) years from the issuance of their Certificate of Compliance (COC).
The public offering is governed by the Omnibus Investment Code of 1987 as amended, its Implementing Rules and Regulations, the Securities Regulation Code (R.A. 8799), Philippine Stock Exchange rules and regulations, and other applicable laws and rules.
They must submit reports to the ERC within thirty (30) days from the public offering, including certifications from the PSE showing the number of shares listed, names of shareholders owning the shares, and other relevant information for monitoring and verification.
The resolution took effect immediately upon its adoption on August 17, 2005.
Rule 3, Section 4(m) of the IRR states the ERC's responsibility to require and regulate the public offering of at least 15% of the common shares for non-listed generation companies and distribution utilities.