THE SECURITIES and Exchange Commission (SEC) is preparing a framework for energy companies to comply with the public listing requirement of the Energy Regulatory Commission (ERC), an official of the agency said.
“The ERC has actually come out with a directive that [companies] have to offer 15% of their ownership. We want it to be easier for these power generators and power distributors to comply with that requirement,” SEC Director Vicente Graciano P. Felizmenio, Jr. told reporters on the sidelines of an SEC event last Friday.
Under the Electric Power Industry Reform Act, power generation companies and distribution utilities that are not publicly listed are mandated to offer and sell to the public a portion or not less than 15% of their common shares of stocks.
“We are trying to provide a very friendly environment for power generators and distributors to actually meet the requirements [of the] ERC,” Mr. Felizmenio said. “That is why we are drafting this [directive] that would ensure compliance.”
He said the draft of the proposed framework is set to be released within the year.
“Kailangan lang naming i-fine tune at i-discuss ‘yun (We would still need to fine-tune and discuss it),” he added.
Mr. Felizmenio said the proposed framework would be similar to the SEC’s Securing and Expanding Capital for Farms and Agribusiness Related Modernization Schemes or SEC Farms program, which aims to help farm-based companies in sourcing funds for their agricultural projects by selling securities through simplified registration.
The companies may raise up to P500 million per project under the program, which was launched last month.
Meanwhile, Mr. Felizmenio said an agri-based company signaled its intention to tap the SEC Farms initiative to raise funding for poultry farms across the country.
“Meron nang nag-express sa amin at ang target nya is November… parang ang gusto nya is to put up a poultry farm across the country, in every region,” he said.
(One company has already expressed its intention to us, and it is targeting in November to put up a poultry farm across the country, in every region.) — Adrian H. Halili