Press Release
June 8, 2021

Gatchalian seeks lifting of IPO requirement on gencos to lure more market players

To lure more companies to engage in the generation of electricity in the country, Senator Win Gatchalian is seeking the lifting of the public offering requirement provision in the Electric Power Industry Reform Act of 2001 or the EPIRA law.

"In order to promote competition and encourage market development, we have to relax some policies such as the public listing which proved to be burdensome to generation companies especially to small renewable energy (RE) gencos that have difficulty in complying," Gatchalian said.

"Kung mas marami ang mga kumpanya na makakapagbigay ng suplay ng kuryente, mas maigi ito dahil nakasisiguro tayo ng tuloy-tuloy na serbisyo at mas marami tayong mapagkukunan ng suplay ng enerhiya," the Chairperson of the Senate Energy Committee said.

In filing Senate Bill No. 2217, Gatchalian said Section 43(T) of Republic Act No. 9136, otherwise known as the EPIRA Act no longer serves its purpose.

"The initial purpose of the public offering requirement for generation companies in the EPIRA has been rendered irrelevant given all the developments in the electric power sector. If we were to encourage more investments in generation to meet our demand needs in the next 20 years, it is crucial to eliminate this additional barrier to entry," Gatchalian said.

In removing this additional requirement or barrier to entry, Gatchalian emphasized the need to attract more investments in the generation sector as the next 20 years will require an additional capacity of 71,817 megawatt (MW) installed capacity by 2040.

The lawmaker added that 9,508MW or 13.24% of the additional total installed capacity will come from renewable energy capacity to meet the 1% renewable portfolio standard requirement under the Renewable Energy Act of 2008.

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Tanggalin ang IPO requirement sa EPIRA upang lumawak ang merkado - Gatchalian

Para makahikayat ng mas maraming mamumuhunan sa sektor ng enerhiya sa bansa, ipinanukala ni Senador Win Gatchalian ang pagtanggal ng probisyon sa Electric Power Industry Reform Act of 2001 o EPIRA law na nag-uutos sa mga generation companies (gencos) na magsagawa ng initial public offering o IPO.

"Kung gusto nating itaguyod ang kumpetisyon at paunlarin ang sektor ng enerhiya, kailangan nating luwagan ang ilang patakaran katulad ng pag-oobliga sa mga generation companies na magkaroon ng IPO dahil nagiging balakid ito lalo na sa mas maliliit na renewable energy (RE) gencos," paliwanag ni Gatchalian.

"Kung mas marami ang mga kumpanya na makakapagbigay ng suplay ng kuryente, mas maigi ito dahil nakasisiguro tayo ng tuloy-tuloy na serbisyo at mas marami tayong mapagkukunan ng suplay ng enerhiya," sabi ng Chairperson ng Senate Energy Committee.

"Ang inisyal na layunin ng public offering requirement para sa mga gencos sa ilalim ng EPIRA ay wala ng katuturan sa ngayon bunsod ng mga pagbabagong naganap sa sektor ng enerhiya. Kung gusto nating maka-engganyo ng mga mamumuhunan sa paggawa o paghahanap ng mapagkukunan ng suplay ng kuryente upang mapunan ang tumataas na pangangailangan natin sa susunod na dalawang dekada, kailangan na nating tanggalin ang naturang requirement dahil nagiging balakid lamang ito sa paglago ng industriya," dagdag pa ni Gatchalian.

Sa pagbawi ng nasabing probisyon, iginiit ng mambabatas ang pangangailangan ng mas maraming namumuhunan sa generation sector lalo na't kakailanganin ng kargdagang 71,817 megawatt (MW) installed capacity pagdating ng taong 2040.

Ayon sa mambabatas, ang pagkakaroon ng 9,508MW o 13.24% ng karagdagang installed capacity ay manggagaling sa renewable energy upang maisakatuparan ang 1% renewable portfolio standard requirement sa ilalim ng Renewable Energy Act of 2008.

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