ERC eases IPO timeline for power firms to level playing field

The Energy Regulatory Commission (ERC) has eased the initial public offering (IPO) timetable for power generation companies (gencos) to ensure a level playing field.

This revised timeline aims to provide a more realistic period for gencos to comply with the IPO requirement mandated by the Electric Power Industry Reform Act (Epira).

Under Epira, gencos are required to publicly offer and sell at least 15 percent of their common shares in the stock market.

The five-year compliance period for this requirement will now only begin once a genco meets the basic listing prerequisites, rather than from the issuance of their Certificate of Compliance (COC).

ERC Chairperson Francis Saturnino Juan explained that this adjustment prevents smaller gencos, lacking the financial backing of larger firms, from being disadvantaged in meeting the listing requirements on the Philippine Stock Exchange.