ERC’s New Rules for the Financing and Construction of Transmission Projects by Entities other than the Transmission Network Provider
The Energy Regulatory Commission (“ERC”) adopted ERC Resolution No. 18, series of 2026 or the “Implementing Rules for the Development, Ownership, and Operation of Point-to-Point Limited Transmission Facilities and for the Financing and Construction of Transmission Projects by Entities Other than the Transmission Network Provider” (“ERC Resolution”). The ERC Resolution was issued pursuant to Department of Energy Department Circular No. DC2026-01-0001 (“DOE Circular”), which allows generation companies to finance and construct Associated Transmission Projects (“ATPs”) for the timely integration of power projects critical to the country’s energy transition and supply project. The DOE Circular defines ATPs as new or expanded transmission lines, substations, switchyards, control rooms, towers, and other transmission facilities beyond the generation company’s point-to-point facilities. However, the ERC Resolution clarified that ATPs exclude the uprating of existing transmission facilities of the transmission network provider, the National Grid Corporation of the Philippines (“NGCP”).
The ERC Resolution sets out the rules for qualified generation companies to construct and/or finance ATPs, which in turn, accelerates the completion of critical transmission facilities needed to connect new power plants to the national grid and deliver electricity to consumers reliably, and efficiently.
Among the requirements is the submission of: (i) Memorandum of Agreement with NGCP which, among others, governs the construction, financing, takeover and cost recovery for the ATP; or the transfer of ownership of the point-to-point limited transmission facilities or ATP in favour of the NGCP; and (ii) DOE certification and endorsement that the ATP falls under section 8 of the ERC Resolution. Section 8 of the ERC Resolution provides the conditions and circumstances in which a qualified generation company may be allowed to finance and construct ATPs, e.g. the ATP is part of the DOE-approved transmission development plan and, although part of the development plan, construction has not yet commenced because the transmission network provider has not awarded it to any third-party contractor, thereby potentially delaying the full delivery of the qualified generation company’s committed generation capacity.
SEC Issues Notice on Tier Classification of PLCs
On 2 June 2026, the Securities and Exchange Commission’s (“SEC”) issued a Notice (“Notice”) providing for the applicable tier classifications of Publicly Listed Companies (“PLCs”) or companies listed on the Philippine Stock Exchange (“PSE”) based on their market capitalisation as of 31 December 2025. The Notice was issued pursuant to SEC Memorandum Circular No. 16 series of 2025 (“Circular“) which adopted the Philippine Financial Reporting Standards (“PFRS“) for Philippine PLCs and large non-listed entities. For more information on the Circular, please go to our 1Q 2026 Regional Round-Up article titled “SEC Issues Circular Mandating Publicly Listed Companies and Large Non-Listed Entities to Submit Sustainability Reports“.
The tier classifications correspond to implementation timelines and reporting obligations of PLCs following the phased adoption of the PFRS. Under the Circular, PLCs under Tier 1 are mandated to adopt the PFRS on the fiscal year beginning on or after 1 January 2026, for reporting in 2027. PLCs under Tier 2 are mandated to adopt the PFRS on the fiscal year beginning on or after 1 January 2027, for reporting in 2028. Lastly, PLCs under Tier 3 are mandated to adopt the PFRS on the fiscal year beginning on or after 1 January 2028, for reporting in 2029. The Notice advises PLCs to note the timelines applicable to their tier classification to ensure their compliance with the sustainability-related disclosure requirements.
The Notice also provides that SEC shall issue separate issuances for covered entities under Tier 3, including PLCs whose debt securities are listed solely on the Philippine Dealing & Exchange Corp., and large non-listed entities meeting the applicable revenue threshold under the Circular.
The Philippines and Singapore Sign Landmark Carbon Credit Collaboration Agreement
Following Article 6.2 of the Paris Agreement, which created an avenue for countries to pursue voluntary cooperation in implementing mitigation and climate adapting activities, Philippines and Singapore signed the Implementation Agreement (“IA”) on 30 April 2026. The IA establishes a legally binding framework for carbon credit collaboration between the two countries, which allows carbon credit generated from authorised mitigation activities in the Philippines to be transferred to and used by Singaporean corporations to offset up to 5% of taxable emissions. To reinforce the framework’s integrity, Singapore committed 5% of the proceeds from the authorised carbon credits under the IA toward climate adaptation measures in the Philippines.
The IA serves as the Philippines’ first and Singapore’s eleventh Article 6.2 agreement. For the Philippines, its first Article 6.2 agreement signals its keenness to participate in the emerging international carbon market, which may lead to opportunities to reinvest in local resilience projects and other climate adaptation measures.
NPC Issues Guidelines on Data Scraping of Publicly Available Personal Data
On 13 April 2026, the National Privacy Commission (“NPC”) issued NPC Advisory No. 2026-01 (“Advisory”) which provides comprehensive guidelines on the scraping of publicly available personal data. While personal data are readily available and accessible to the public without restrictions, such accessibility does not eliminate the privacy rights of the data subjects or permit unrestricted use of their information. The Advisory was therefore issued to prevent the exploitation and misuse of scraped data and to minimise potential violations of the Data Privacy Act (“DPA”).
Under the Advisory, personal information controllers (“PICs”) must, among others, establish a specific and legitimate purpose for scraping publicly available personal data, inform the data subject that their personal data are processed using data scraping practices and technologies, and refrain from excessive or indiscriminate data scraping. PICs must also ensure that the privacy expectations of the data subjects are respected by providing adequate technical, organisational, and physical security measures. The Advisory also requires PICs to: (i) conduct a Privacy Impact Assessment to determine the nature, scope, and purpose of the data scraping; (ii) assess the risks to the rights and freedoms of the data subjects; and (iii) identify the safeguards to be adopted to prevent or mitigate such risks.
The Advisory further emphasises that PICs remain fully accountable in ensuring that their data scraping practices comply with the DPA and other relevant NPC issuances. Failure to do so may expose PICs to regulatory sanctions, penalties, and other liabilities under applicable privacy laws and regulations.
Philippine President Issues 13th Regular Foreign Investment Negative List
On 13 April 2026, the President of the Philippines, Ferdinand “Bongbong” R. Marcos, signed Executive Order No. 113 or the 13th Regular Foreign Investment Negative List (“13th RFINL“). The Regular Foreign Investment Negative List (“RFINL“) is regularly updated, and outlines the investment areas or activities open to foreigners and reserved for Philippine nationals.
Changes and amendments in the RFINL are made pursuant to existing laws and policies which open or restrict the participation of foreign investors in certain investment areas or activities in the Philippines. The 13th RFINL included and clarified foreign ownership restrictions contained in the Public Service Act, as amended, Retail Trade Law, as amended, the New Government Procurement Act, and the Transnational Higher Education Act, among others.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
