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The Securities and Exchange Commission (SEC) and the Energy Regulatory Commission (ERC) are simplifying the process of raising capital through the capital market by power generation and distribution companies to support their growth and expansion.
The SEC and ERC formally launched the Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services (SEC POWERS) in an event titled “POWER ON: Harnessing the Power of the Capital Market for a More Sustainable Energy Sector.”
Issued in 2024 through SEC Memorandum Circular No. 4, Series of 2024, SEC POWERS aims to streamline the registration of securities for power generation and distribution utilities.
This supports the requirement for power generation and distribution firms to offer and sell at least 15 percent of their shares to the public, as mandated by Section 43(t) of Republic Act No. 9136, or the Electric Power Industry Reform Act.
The simplified process also seeks to support the investments needed to meet the country’s energy requirements, which is estimated to reach P67 trillion, according to the Philippine Energy Plan 2023-2050.
SEC Chairperson Emilio B. Aquino“Energy projects are very capital intensive. This is where the capital market can come in. We aim to introduce the limitless potential of tapping the capital market as a financing solution to meet the growing demand of the energy sector,” SEC Chairperson Emilio B. Aquino said.
He added that, “With the issuance of SEC POWERS, we aspire to usher in more substantial investments in power projects by streamlining 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.”
Under the program, the SEC Markets and Securities Regulation Department (MSRD) is required to complete the review of the registration statement of the covered companies within 45 days from the filing, pursuant to RA No. 8799, or the Securities Regulation Code.
Before filing an application with the MSRD, the registrants are required to secure all the necessary clearances from the SEC Company Registration and Monitoring Department, Corporate Governance and Finance Department, Enforcement and Investor Protection Department, Office of the General Counsel, and Office of the General Accountant to ensure the timely processing of their registration statements.
ERC Chairperson and CEO Monalisa C. Dimalanta“This is exactly why the synergy between the ERC and SEC matters. By working together, we’re finding solutions that not only meet regulatory requirements but also provide our regulated entities the support they need to grow,” ERC Chairperson and CEO Monalisa C. Dimalanta said.
She noted that, “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.”
The event also featured discussions from Oliver O. Leonardo, Director of the SEC MSRD; Rochelle V. Moreno, Chief Energy Regulation Officer at the ERC; and Marigel B. Garcia, Vice President and Head of Issuer Regulation Division at the Philippine Stock Exchange, among other speakers, on the salient points and processes of SEC POWERS.
Oliver Tan, President and CEO of Citicore Renewable Energy Corporation, also shared his testimonials as a publicly listed company in the energy sector.
