ERC Eases Public Ownership Rules to Boost Transparency and Participation in Energy Sector

The Energy Regulatory Commission (ERC) has approved revised guidelines to simplify the public ownership process for power generation companies and electric distribution utilities, in a move aimed at strengthening transparency and encouraging wider public participation in the energy sector. The updated rules, approved on October 16, 2025, streamline compliance with the Public Offering Requirement (POR) under the Electric Power Industry Reform Act (EPIRA), which mandates that energy companies divest at least 15% of their ownership to the public.

Under the amended framework, companies can meet the POR requirement through listing shares on the Philippine Stock Exchange (PSE) or directly offering shares to the public. The new guidelines provide greater flexibility and clarity in implementation, particularly benefiting small and medium-sized energy companies that previously faced hurdles in meeting the regulatory standards.

Key provisions include a clearer definition of what constitutes a holding company, extended timelines for preparing public offerings, and alignment of ERC requirements with PSE listing standards. These adjustments are expected to reduce regulatory complexity and prevent delays in compliance, minimizing reliance on provisional authorities to operate and promoting the issuance of regular certificates of compliance.

ERC Chairperson and CEO Francis Saturnino C. Juan said the updated rules mark a significant step forward in democratizing energy ownership. “By making it easier for energy companies to offer shares to the public, we are promoting accountability, competition, and direct investment by Filipinos in the country’s energy infrastructure,” he said.

The ERC noted that the revisions remain fully aligned with the core objectives of the EPIRA law—to promote fair competition, enhance accountability across the power sector, and deliver long-term benefits to both investors and consumers.