The Department of Energy (DOE) is escalating enforcement actions against generation companies that failed to comply with mandatory reportorial requirements under the Department’s accountability framework provided under the issued Show Cause Orders (SCOs).
The reportorial requirements 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, which requires generation companies to submit Annual Self Assessment Forms and other reportorial requirements. These submissions enable the DOE to assess the operational readiness, technical performance, and compliance of generation facilities, allowing the Department to identify potential risks early and implement timely interventions before they affect the reliability of electricity supply.
To enforce compliance with these requirements, the DOE issued 174 SCOs covering on-grid generation facilities and 29 SCOs covering off-grid facilities, directing them to explain why no administrative or criminal action should be imposed against them for failing to submit the required reports on time.
Following the lapse of the prescribed period, 37 on-grid facilities submitted the required documents, five requested extensions, and 18 acknowledged receipts of the Show Cause Orders but have yet to comply. However, 114 on-grid facilities failed to respond altogether.
Among the off-grid facilities, 12 submitted the required reports, five requested extensions, while seven likewise failed to respond.
Energy Secretary Sharon S. Garin said the Department afforded all concerned generation companies due process and every reasonable opportunity to comply but emphasized that persistent non-compliance will now be met with appropriate regulatory action.
“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. 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,” the Secretary said.
The DOE emphasized that the failure of generation companies to respond to the SCOs will constitute an additional instance of non-compliance under existing DOE rules and regulations and will subject the concerned facilities to heightened regulatory oversight.
As part of the next phase of enforcement, the Department will conduct more comprehensive inspections of the non-responsive facilities to verify compliance with operational, technical, contractual, and regulatory requirements. These inspections will also enable the DOE to determine whether the facilities continue to operate safely, reliably, and in accordance with the standards prescribed under the Department’s accountability framework.
Depending on the outcome of the administrative proceedings and the subsequent inspections, the DOE may suspend or revoke the issued Certificate of Endorsement of the concerned generation companies. It may likewise recommend to the Energy Regulatory Commission the cancellation of the Certificate of Compliance, imposition of appropriate fines and penalties, and blacklist or disqualify erring entities where authorized under existing rules.
Secretary Garin stressed that the Department’s objective is not merely to enforce compliance but to strengthen the reliability of the country’s power generation sector through greater operational accountability.
“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 reaffirmed its commitment to continuously strengthen oversight of the power generation sector through proactive monitoring, rigorous enforcement of accountability measures, and timely regulatory interventions to ensure a sufficient, reliable, affordable, and secure supply of electricity for all Filipinos.
