Power producers seek more time to comply with IPO requirement

The Philippine Independent Power Producers Association (PIPPA) has appealed anew to the Energy Regulatory Commission (ERC) to reconsider its directive to power plant owners to undertake an initial public offering (IPO) by June this year.

PIPPA president Ernesto Pantangco said the deadline set by ERC will not give ample time for power plant owners to prepare for such undertaking.

Pantangco said while the members of the PIPPA are committed to support the implementation of the Electric Power Industry Reform Act (EPIRA) provision on the sale of a portion of their common stock to the public, the group believes that this process should be made under an environment that is conducive to the success of any public offering, and after relevant issues with regard to the public offering are resolved.

"PIPPA submits that a deferment of the public offering is allowed under the EPIRA and under the precedent set in the implementation of a similar public offering provision in RA 8749, the Downstream Oil Deregulation Law of 1998," Pantangco said.  

PIPPA, he said, is also requesting the ERC to clarify the rules that will govern the requirement of public offering and to defer the compliance date of the requirement to such time when the conditions surrounding the undertaking of public offering would indicate greater opportunity for success.    

According to Pantangco, a public offering would require at least one year to prepare.