SEC calls on energy firms to tap local capital market for growth

THE Securities and Exchange Commission (SEC) is urging energy companies to tap the local capital market to support their expansion plans.

SEC Chairperson Emilio B. Aquino said the corporate regulator aims to attract more investment in power projects by simplifying the securities registration process.

“With a simplified registration statement, we make it easier for power generators and distribution utilities to offer their shares to the public,” Mr. Aquino said in an e-mail statement on Wednesday.

Mr. Aquino also said the SEC seeks to introduce the capital market as a financing solution to meet the surging demand in the energy sector.

“Energy projects are very capital-intensive. This is where the capital market can come in,” Mr. Aquino said.

Mr. Aquino made these remarks as the SEC and the Energy Regulatory Commission (ERC) launched the Securing and Expanding Capital for Power Generation Operators and Wholesale Electricity and Retail Services (SEC POWERS) program on March 27.

Provided under SEC Memorandum Circular (MC) No. 4, issued last year, SEC POWERS aims to streamline the registration of securities for power generation and distribution utilities.

The MC supports Republic Act No. 9136, or the Electric Power Industry Reform Act, which mandates power generation and distribution firms to offer at least 15% of their shares to the public.

Under the initiative, the SEC Markets and Securities Regulation Department must complete the review of the registration statements of power generation and distribution firms within 45 days from filing.

Before filing the application, registrants must secure all necessary clearances from various SEC departments to ensure the timely processing of their registration statements.

The SEC said the simplified process for power generation and distribution firms also seeks to support the P67 trillion worth of investments needed to meet the country’s power demands under the Philippine Energy Plan 2023-2050.

“When we combine our expertise and resources, we’re not just making processes more efficient for investors and industry players — we are also strengthening the foundation for a stronger, more competitive energy sector,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said.

In March, the ERC said that 136 generation companies, accounting for 54% of all generating companies and nearly 14,000 megawatts of generating capacity, had not complied with the listing requirement under the Electric Power Industry Reform Act (EPIRA).

It added that only 37 energy companies were fully compliant with the listing requirement.

Non-compliant energy firms could face the revocation of their certificates of compliance or non-renewal of their operating licenses.

The ERC is aiming to get an additional 100 energy companies to comply with the public offering rules within the next 12 months. — Revin Mikhael D. Ochave