PHILIPPINES Law and Practice Contributed by: Maria Lethel C. Alburo-Mejia, Puno Law
Executive Order (EO) No 21, Series of 2023 EO No 21, series of 2023 was issued by Presi- dent Ferdinand R Marcos Junior on 19 April 2023 to hasten the roll-out of offshore wind (OSW) projects by mandating a policy and administra- tive framework for the optimal development of OSW resources. The purpose of the EO is to harmonise and streamline permitting processes under a whole- of-government approach by directing that “all permitting agencies shall within 60 days from the effectivity of this Order, submit to the DOE a complete list of appropriate permits required by relevant permitting agencies, including all requirements, fees and procedures for the issu- ance thereof”. 2023 Revised COC Rules Under the EPIRA, generation companies must secure a certificate of compliance (COC) from the ERC prior to operations. The issuance of COCs was previously governed by ERC Reso- lution No 16, series of 2014, which is now super- seded by ERC Resolution No 17, series of 2023 (“2023 Revised COC Rules”). Under the 2023 Revised COC Rules, a COC is no longer subject to a term and will remain valid unless suspend- ed, revoked or annulled by the ERC after due notice and a hearing. The 2023 Revised COC Rules likewise institutionalised the issuance of a provisional authority to operate (PAO). A PAO is issued in the event that a generation company is unable to submit any or some of the require- ments for a COC. A PAO is valid for one year and can be renewed annually but cannot exceed five consecutive issuances. Simplified Registration Procedure for Power Generators and Distribution Utilities Generation companies and distribution utilities which are not publicly listed are required to offer
and sell to the public a portion that is not less than 15% of their common shares of stocks (“public offering requirement” or “POR”). Among the modes of public offering that are compliant with the POR are those set out in the Securities Regulation Code and its Implementing Rules and Regulations. Pursuant to this, the SEC issued SEC Memorandum Circular No 4, series of 2024, where it adopted the guidelines for a simplified registration of securities for generation companies and distribution utilities (“Securing & Expanding Capital for PowerGen Operators & Wholesale Electricity and Retail Services” or “SEC POWERS”). Under the SEC POWERS, the SEC must review and decide on an application for registration within 45 days from complete submission of the requirements. The SEC POW- ERS also allows direct public offering without underwriters or selling agents. 1.7 Announcements Regarding New Policies Downstream Natural Gas Industry Senate Bill No 2247, also known as “An Act Pro- moting the Development of the Philippine Down- stream Natural Gas Industry, Consolidating for the Purpose All Laws Relating to the Transmis- sion, Distribution, and Supply of Natural Gas, and Appropriating Funds Therefor” was filed in the Senate in 2023. A similar bill, House Bill (HB) No 8456 or the “Philippine Downstream Natural Gas Industry Development Act, another Legis- lative-Executive Development Advisory Coun- cil (LEDAC)” is also pending with the House of Representatives. Both bills seek to establish the Philippine Downstream Natural Gas Industry to promote the role of natural gas as a safe, envi- ronment-friendly, efficient, and cost-effective source of energy.
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