ERC Declares Market Suspension, Rolls our Modified Pricing Mechanism Amid Energy Crisis
On 25 March 2026, the Energy Regulatory Commission (“ERC“) issued an Order in ERC Case No. 2026-018 suspending the operations of the Wholesale Electricity Spot Market (“WESM“) across Luzon, Visayas, and Mindanao with effect from 26 March 2026, in response to the energy crisis caused by global fuel supply disruptions. This action was taken pursuant to Executive Order No. 110, Series of 2026, which declared a national energy emergency and authorised the immediate implementation of regulatory measures to stabilise power supply and pricing. During the suspension period, grid operations will be governed by Special Operating Guidelines issued by the Department of Energy (“DOE“), with emphasis on renewable energy utilisation and fuel conservation.
Subsequently, ERC issued ERC Resolution No. 10, Series of 2026, adopting a Modified Administered Pricing (“AP“) mechanism for WESM with technology-specific pricing to better align with prevailing fuel costs and ensure continued operation of power generators. Under the Modified AP mechanism, (i) coal plants may be paid at a fixed rate, (ii) natural gas plants may be paid based on contracted prices, and (iii) renewable energy sources such as hydro and geothermal, may be subject to administered pricing with preferential dispatch. Oil-based plants will be compensated based on administered prices when dispatched or contracted.
The suspension of normal WESM operations will stay in effect until ERC, in consultation with DOE, determines that conditions are suitable for the resumption of normal market operations.
DICT Signs the Implementing Rules and Regulations of the E-Governance Act
On 24 March 2026, the Department of Information and Communications Technology (“DICT“) signed the Implementing Rules and Regulations (“IRR“) of Republic Act No. 12254, otherwise known as the E-Governance Act. The E-Governance Act recognises the importance of information and communication technology (“ICT“) in delivering responsive and transparent online citizen-centred services. It seeks to promote economic growth while balancing the rights to freedom and information of the Filipino citizens.
With the E-Governance Act and the IRR now in effect, government services are expected to become faster, simpler, and more efficient across all national and local government agencies. The IRR mandate the adoption of common standards and enhanced cybersecurity measures to restructure government processes around the needs of citizens availing their services.
To achieve the objectives of the E-Governance Act and the IRR, DICT has been designated as the lead implementing agency responsible for overseeing national and local ICT projects. DICT is mandated to ensure that these projects are aligned and harmonised with the National ICT Development Agenda and the E-Government Master Plan. In furtherance of this mandate, DICT shall facilitate the adoption of emerging technologies, formulate and implement the necessary policies and procedures, and ensure full compliance with existing data privacy laws.
PCC Increases Compulsory Notification Thresholds
The Philippine Competition Commission (“PCC“) has increased the thresholds for compulsory merger notification under the Philippine Competition Act and its Implementing Rules and Regulations. With effect from 1 March 2026, parties must notify PCC where their mergers and acquisitions (including joint ventures) meet the Size of Party (“SOP“) and Size of Transaction (“SOT“) thresholds (and any other relevant thresholds). The SOP was raised from PHP8.5 billion to PHP9.1 billion, and SOT from PHP3.5 billion to PHP3.8 billion.
SOP pertains to the higher of (i) the aggregate value of the assets in the Philippines; and (ii) the gross revenues from sales in, into, or from the Philippines of a party’s Ultimate Parent Entity (“UPE”), including all entities that the UPE controls, directly or indirectly.
SOT generally pertains to the higher of (i) the aggregate value of the assets to be acquired; and (ii) the gross revenues generated by such assets, or of the acquired entity and entities it controls, depending on the type of transaction.
PCC reviews notifiable mergers and acquisitions (including joint ventures) to prevent a substantial lessening of competition. PCC may still conduct a motu proprio review of transactions below the thresholds where there are indications of potential harm to competition.
DENR Issues Guidelines on Voluntary Carbon Credits
On 24 February 2026, the Department of Environment and Natural Resources issued Administrative Order (“AO“) No. 2026-05, which sets out the guidelines for the establishment, registration, and monitoring of all Forest Carbon Credit Projects undertaken within forest lands, protected areas under the National Integrated Protected Areas System, and ancestral lands/domains.
AO No. 2026-05 ensures transparency and alignment with international climate commitments, while simultaneously highlighting the importance of the participation of stakeholders such as local communities and Indigenous Cultural Communities/Indigenous Peoples (“ICCs/IPs“). Through these voluntary forest carbon credit projects, local reforestation and conservation is incentivised as they allow affected communities, qualified project proponents, and developers to generate tradable carbon credits which may be sold in carbon markets.
Moreover, AO No. 2026-05 provides for community benefit-sharing of these voluntary forest carbon credit projects with the ICCs/IPs such as, but not limited to, a fair and equitable share of revenues from carbon credits accruing to participating ICCs/IPs. By setting a clearer regulatory framework for Philippine carbon initiatives aligning with international carbon standards, AO No. 2026-05 opens new avenues for sustainable financing to foreign investors and development partners.
SEC Establishes Centralised Online Registry for Declaration of Beneficial Ownership Information
Securities and Exchange Commission (“SEC“) Memorandum Circular (“MC“) No. 15, Series of 2025 has introduced the Revised Beneficial Ownership Disclosure Rules (“Revised Rules“) establishing the Hierarchical and Applicable Relations and Beneficial Ownership Registry (“HARBOR“). HARBOR serves as a web-based centralised registry for identifying, declaring, and reporting beneficial ownership information.
SEC issued the Revised Rules to enhance transparency and prevent the risk of misuse of corporate vehicles for purposes contrary to law. To achieve this goal, SEC expanded the scope of the rules beyond domestic stock and non‑stock corporations that are required to file a General Information Sheet. The Revised Rules extend the requirement to natural and juridical persons under SEC jurisdiction, such as domestic stock and non-stock corporations, partnerships, foreign corporations, one‑person corporations, and individuals identified as beneficial owners of corporations.
The Revised Rules provide for the mandatory disclosure of nominee arrangements. Every nominee incorporator, director, trustee or shareholder must disclose their status as such, and the identity of their nominator(s), to SEC through HARBOR. As a general rule, the disclosure requirement prescribed under the Revised Rules does not apply to covered institutions and persons under section 3(a) of the Anti-Money Laundering Act (“AMLA“), as amended, and SEC MC No. 16, Series of 2018, or any amendments thereof. This exemption applies only to nominee or trust arrangements related to products and services offered by Covered Institutions/Persons that are already subject to Customer Identification Requirements and Record Keeping by Supervising Authorities under the AMLA and its applicable Rules and Regulations.
The Revised Rules provide that no person shall issue, sell, or offer for sale or distribution bearer shares and bearer share warrants.
The Revised Rules took effect on 1 January 2026. However, SEC will continue to allow the declaration of beneficial owners through the General Information Sheet until 15 May 2026.
SEC Issues Circular Mandating Publicly Listed Companies and Large Non-Listed Entities to Submit Sustainability Reports
The Securities and Exchange Commission (“SEC“) issued Memorandum Circular No. 16 series of 2025 (“Circular“) adopting the Philippine Financial Reporting Standards (“PFRS“) for Philippine publicly listed companies (“PLCs“) and large non-listed entities (“LNLs“).
Under the Circular, PLCs and LNLs are mandated to issue Sustainability Reports that have been reviewed and approved by the board of directors, to be submitted alongside their annual reports or audited financial statements, as applicable. Among the disclosures required to be reported is a mandatory external limited assurance on Greenhouse Gas emissions by an independent assurance practitioner.
Section 4 of the Circular provides that covered companies may be exempt from mandatory reporting if their ultimate parent, as defined by the applicable PFRS Accounting Standards, is already preparing and filing the prescribed Sustainability Report as required in the Philippines or in their home country, provided that the parent’s report is publicly available, and the covered company submits a Certificate of Exemption.
We previously reported on the issuance of the Circular. To read more about this, please refer to our January 2026 article titled “Securities and Exchange Commission Adopts Reporting Standards on Sustainability Disclosures“.
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
