The Securities and Exchange Commission (SEC) yesterday said energy companies seeking to tap the capital market for funds can now undergo a simplified registration process.
In a statement, the SEC said its partnership with the Energy Regulatory Commission (ERC) launched the “Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services (SEC POWERS) on March 27 in an event called “POWER ON: Harnessing the Power of the Capital Market for a More Sustainable Energy Sector.”
The SEC POWERS partnership, issued in 2024 through SEC Memorandum Circular No. 4, Series of 2024, aims to streamline the securities registration of power generation companies and distribution utilities.
This supports the requirement of power generation and distribution companies 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 SEC said the simplified process supports the investments needed by the power industry to meet the country’s energy requirements, estimated to reach P67 trillion based on the Philippine Energy Plan 2023-2050.
“With the issuance of SEC POWERS, we aspire to usher in more substantial investments in power projects by streamlining the securities registration process. This will make it easier for power generators and distribution utilities to offer their shares to the public,” SEC chairman Emilio Aquino said.
Easing the process will be very helpful, given the capital-intensive nature of energy projects, he said.
“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,” Aquino added.
Under the SEC POWERS, the SEC Markets and Securities Regulation Department (MSRD) must review the covered companies’ registration statements within 45 days of filing the documents.
Before applying with the MSRD, the companies must 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.
