ERC Sets Rules Requiring DUs to Go Public

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MANILA, Philippines - New rules being drafted by the Energy Regulatory Commission (ERC) will require all power generation and distribution utilities (DUs) to undertake an initial public offering of equivalent to 15 percent of their shares.The ERC said this is in line with the mandate of the Electric Power Industry Reform Act (EPIRA) and the rules of the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SEC).While these rules are not new, the ERC has been encountering opposition from the industry players. But this time, the ERC appears to be firm in implementing these rules.In its 11-page proposed guidelines, the ERC said the aim is to enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors.The rules being drafted will detail the public offering process and requirements under Executive Order No. 226, otherwise known as the "Omnibus Investment Code of 1987," Republic Act No. 8799, otherwise known as the "Securities Regulation Code," the PSE's rules and regulations, and all other applicable laws, rules and regulations. …