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GCG Officially Excludes Philippine Electricity Market Corporation from GOCC Coverage

The Governance Commission for Government-Owned or Controlled Corporations (GCG) has officially excluded the Philippine Electricity Market Corporation (PEMC) from the coverage of Republic Act No. 10149 through Memorandum Order No. 2025-15, dated 11 July 2025.

The decision formally recognizes significant changes in PEMC's governance structure that have occurred since 2018, addressing regulatory concerns including previous issues with market fee approvals related to GOCC classification requirements.

Key Developments

The exclusion is based on significant changes in PEMC's governance structure that occurred in 2018. According to the memorandum order, PEMC ceased to function as a GOCC when:

• The Independent Electricity Market Operator of the Philippines, Inc. replaced PEMC as the operator of the Wholesale Electricity Spot Market (WESM) on 15 May 2018.
• The Secretary of Energy stepped down as PEMC Board Chairperson on 27 June 2018.

Legal Foundation

The decision is supported by Department of Justice (DOJ) Opinion No. 35 dated 27 December 2022, which stated that "PEMC can no longer be classified as a GOCC as it ceased to be owned or controlled by the government." The DOJ opinion emphasized that the government no longer has controlling interest in PEMC since board members are now selected through sector nominations and elected by members, without government participation in the nomination and election process.

Historical Context

PEMC was originally incorporated on 18 November 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 (Electric Power Industry Reform Act (EPIRA) of 2001). Since its inception, PEMC has maintained its status as a private corporation, in accordance with the legislative intent and regulatory framework set forth under the EPIRA. During its initial operation period, the Secretary of Energy served as the Board Chairman which contributed to the company’s misclassification as a GOCC.

Impact on Operations

The delisting made by the GCG clarifies PEMC's regulatory status and removes it from GOCC-related operational constraints, allowing the corporation to operate under its current governance structure without ambiguity regarding its classification.

Future Considerations

The GCG has indicated that this exclusion will be subject to reevaluation should any changes in PEMC's relevant circumstances occur, ensuring continued appropriate oversight of the corporation's governance structure.

GCG Chairperson Atty. Marius P. Corpus, Ex-Officio Members DOF Secretary Ralph G. Recto, DBM Secretary Amenah F. Pangandaman along with Commissioners Atty. Brian Keith F. Hosaka and Atty. Bernadette Marie B. Berberabe-Martinez signed the memorandum order dated 11 July 2025, which takes effect immediately.