GCG delists PEMC from GOCC coverage, clarifies status

The Governance Commission for Government-Owned or Controlled Corporations (GCG) has officially removed the Philippine Electricity Market Corporation (PEMC) from the coverage of Republic Act No. 10149, citing a fundamental shift in the organization’s governance structure since 2018.

The change was formalized through Memorandum Order No. 2025-15, issued on July 11, 2025, and signed by GCG Chairperson Atty. Marius P. Corpus, with Ex-Officio Members Finance Secretary Ralph G. Recto, Budget Secretary Amenah F. Pangandaman, and Commissioners Atty. Brian Keith F. Hosaka and Atty. Bernadette Marie B. Berberabe-Martinez.

The order took immediate effect and clarifies PEMC’s non-GOCC status, freeing it from regulatory requirements specific to government-owned entities.

The GCG’s decision aligns with Department of Justice (DOJ) Opinion No. 35, issued on December 27, 2022, which concluded that “PEMC can no longer be classified as a GOCC as it ceased to be owned or controlled by the government.”

The DOJ cited that PEMC’s board is now elected through sector nominations without any direct government participation, effectively removing state control over corporate governance.

PEMC’s delisting comes in light of significant milestones from 2018, including the May 15 transition of the Wholesale Electricity Spot Market (WESM) operations to the Independent Electricity Market Operator of the Philippines (IEMOP) and the June 27 resignation of the Secretary of Energy as PEMC Board Chair.

“These changes marked a clear departure from government oversight, justifying the corporation’s exclusion from the GOCC framework,” the GCG memorandum stated.

Established in November 2003 as a non-stock, non-profit entity, PEMC was initially tasked under the Electric Power Industry Reform Act (EPIRA) of 2001 to serve as the autonomous group market operator of WESM.

While the Department of Energy (DOE) previously played a key role, including appointing the Secretary as PEMC Board Chair, the corporation has evolved into a privately governed body with members representing various electric power industry sectors.

PEMC continued to serve as the WESM operator until September 26, 2018, when IEMOP formally assumed operational control, in line with EPIRA’s requirement for an independent market operator.

Today, PEMC remains the governing body of WESM through its Board of Directors and key committees such as the WESM Governance Committee and Renewable Energy Market Governance Committee.

The WESM, launched in Luzon in 2006 and expanded to Visayas in 2010 and Mindanao in 2023, functions as a centralized trading platform for electricity, where prices are dictated by demand and supply in real time.

The GCG emphasized that PEMC’s exclusion is not permanent and will be subject to review if future changes warrant reevaluation.

This regulatory clarity resolves previous issues related to market fee approvals and reinforces PEMC’s capacity to operate under its current governance structure without ambiguity.