The Governance Commission for Government-Owned or Controlled Corporations (GCG) has excluded the Philippine Electricity Market Corp. (PEMC) from the coverage of Republic Act No. 10149 or the GOCC Governance Act of 2011.
PEMC is a non-stock, non-profit corporation established in November 2003 by the Department of Energy (DOE) and representatives from various sectors of the electric power industry. For over a decade, PEMC served as the autonomous group market operator and governing body of the Philippine Wholesale Electricity Spot Market (WESM).
WESM is a centralized market where electricity is traded as a commodity, with prices determined by demand and supply.
GCG said in a statement Friday the decision, formalized through Memorandum Order No. 2025-15 dated July 11, 2025, recognizes significant changes in PEMC’s governance structure since 2018.
It said the exclusion addresses long-standing regulatory concerns, including previous issues with market fee approvals tied to government-owned or controlled corporation (GOCC) classification requirements.
The GCG said its decision was based on the pivotal changes in PEMC’s governance, which led to it ceasing to function as a GOCC: On May 15, 2018, the Independent Electricity Market Operator of the Philippines, Inc., replaced PEMC as the operator of the Wholesale Electricity Spot Market (WESM).
On June 27, 2018, the Secretary of Energy stepped down as PEMC board chairperson.
The GCG said its decision was supported by Department of Justice (DOJ) Opinion No. 35, issued on December 27, 2022.
This concluded that “PEMC can no longer be classified as a GOCC as it ceased to be owned or controlled by the government.”
The DOJ said the government no longer holds a controlling interest in PEMC, as board members are now selected through sector nominations and elected by members, without government involvement in the nomination and election process.
PEMC was incorporated on November 18, 2003, to serve as the autonomous group market operator for the wholesale electricity spot market, as mandated by Section 30 of Republic Act No. 9136, also known as the Electric Power Industry Reform Act (EPIRA) of 2001.
Despite its private corporation status in accordance with EPIRA’s legislative intent, the Secretary of Energy’s role as board chairman during PEMC’s initial operational period contributed to its previous misclassification as a GOCC.
The GCG’s delisting clarifies PEMC’s regulatory status, removing it from GOCC-related operational constraints. This allows PEMC to operate under its current governance structure without ambiguity regarding its classification.
The GCG noted that this exclusion is subject to reevaluation should any changes in PEMC’s relevant circumstances occur, ensuring continued appropriate oversight of the corporation’s governance structure.
The memorandum order, which took effect immediately, was signed by GCG chairperson Marius Corpus, ex-officio members Finance Secretary Ralph Recto and Budget Secretary Amenah Pangandaman, along with commissioners Brian Keith Hosaka and Bernadette Marie Berberabe-Martinez.
Be the first to comment