DOE tightens scrutiny of 121 power facilities over reporting lapses

CEBU CITY— At least 121 power generation facilities are facing heightened regulatory scrutiny after failing to respond to Show Cause Orders (SCOs) issued by the Department of Energy (DOE) requiring them to explain why they failed to comply with mandatory reportorial requirements.

Of the total, 114 are on-grid facilities and seven are off-grid, according to a DOE statement issued on July 7.

Energy Secretary Sharon S. Garin warned that persistent non-compliance would prompt appropriate enforcement action, saying the companies had been given "every reasonable opportunity to comply."

"Accountability is not optional. These reportorial requirements exist for one reason: To help ensure that generation companies remain capable of delivering the reliable electricity that Filipino consumers depend on every day," Garin said.

"When companies disregard these obligations despite being given the opportunity to explain, the Department has the responsibility to act decisively to protect the public interest," she added.

The DOE said failure to respond to the SCOs constitutes an additional violation under existing rules and will subject the concerned facilities to heightened regulatory oversight.

Energy Secretary Sharon Garin

Compliance checks

The department issued 174 SCOs to on-grid generation facilities and 29 to off-grid facilities, directing them to explain why administrative or criminal sanctions should not be imposed for failing to submit required reports on time.

The reports are mandated under DOE Department Circular No. DC2026-02-0006, or the Policy on Accountability of Entities Engaged in Power Generation to Ensure Sufficient, Reliable, Affordable, and Secure Supply of Energy in the Country.

The circular requires generation companies to submit annual self-assessment forms and other mandatory reports, enabling the DOE to evaluate their operational readiness, technical performance, and regulatory compliance. 

The department said the information allows it to identify potential risks early and intervene before they affect power supply reliability.

Among the 174 on-grid facilities, 37 submitted the required documents, five requested extensions, and 18 acknowledged receipt of the SCOs but have yet to comply. The remaining 114 failed to respond.

For off-grid facilities, 12 submitted the required reports, five sought extensions, five acknowledged receipt but have yet to comply, while seven did not respond.

Tougher oversight

The DOE said it will conduct more comprehensive inspections of facilities that failed to respond to verify compliance with operational, technical, contractual, and regulatory requirements.

The inspections are intended to determine whether the facilities remain safe, reliable, and compliant with the department's accountability framework.

Depending on the outcome of administrative proceedings and inspections, the DOE may suspend or revoke a generation company's Certificate of Endorsement.

The department may also recommend that the Energy Regulatory Commission cancel a company's Certificate of Compliance, impose appropriate fines and penalties, or blacklist and disqualify erring entities where authorized under existing regulations.

Power reliability

Garin said the enforcement drive is intended not only to ensure compliance but also to strengthen the reliability and resilience of the country's power generation sector.

"Reliable electricity begins with responsible operators. Strong oversight today helps prevent avoidable outages tomorrow. By ensuring that generation companies comply with their obligations, we are strengthening the resilience of our power system and better protecting Filipino consumers from unnecessary supply disruptions," she said.

The DOE reiterated its commitment to tighten oversight of power generation companies through proactive monitoring and stricter enforcement of accountability standards to help secure a stable, reliable, and affordable electricity supply. —Ed: Corrie S. Narisma

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Connie Fernandez-Brojan
Connie Fernandez-Brojan

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