Sen. Sherwin Gatchalian called on the Energy Regulatory Commission Friday to issue an ultimatum to the National Grid Corp. of the Philippines to comply with the requirement to list its shares of stock.
Gatchalian made the call after the NGCP filed another motion for reconsideration last August appealing to extend the deadline for compliance with the initial public offering requirement after the ERC denied its earlier petition.
The ERC had earlier issued a resolution stating that NGCP should commence immediately the process of its public listing and submit a compliance report.
While the ERC has yet to receive comments from the National Transmission Commission (Transco) and the Power Sector Assets and Liabilities Management (PSALM) Corp. on NGCP’s motion for reconsideration, the senator reminded the ERC that such requirement on the two intervenors lapses on Oct. 31.Gatchalian said he has misgivings over NGCP’s inaction on the matter, saying that there’s no showing that the grid operator will comply with the requirement to list its shares of stock.
“The resolution is absolute. Within six months NGCP should be conducting an IPO but I’m very sure that’s not going to happen. So if that will not happen what is the recourse?” Gatchalian asked.
ERC chairperson Agnes Devanadera said the NGCP has two options to satisfy the IPO requirement of the franchise, one is the public listing and the other is the listing of a holding company, in accordance with the franchise law.
The senator warned NGCP could be facing corresponding penalties and fines if it fails to comply with the ERC’s order.
“It’s clear in their franchise that they should be offering its shares to the public,” the senator said, stressing the need of undertaking an IPO especially in the case of NGCP which manages the state’s transmission assets.
“I would like to again stress that the system operator should comply and this is part of the governance mechanism to get the public involved,” he said.
“When the public is involved, then there’s more transparency. Shareholders demand accountability,” the lawmaker reiterated.