DOE tightens scrutiny of noncompliant power generators

The Department of Energy is escalating enforcement actions against generation companies that failed to comply with mandatory reportorial requirements, placing non-responsive power facilities under closer regulatory scrutiny as the government tightens accountability across the power generation sector.

The DOE said 114 on-grid generation facilities failed to respond to show cause orders issued under the department’s accountability framework.

The agency issued 174 show cause orders covering on-grid generation facilities and 29 show cause orders covering off-grid facilities.

The orders directed the companies to explain why administrative or criminal action should not be imposed against them for failing to submit required reports on time.

The reportorial requirements are mandated under 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 reportorial requirements.

The DOE said the submissions allow the department to assess the operational readiness, technical performance, and compliance of generation facilities.

The reports also help the agency identify potential risks early and implement timely interventions before they affect electricity supply reliability.

Following the lapse of the prescribed period, 37 on-grid facilities submitted the required documents.

Five on-grid facilities requested extensions, while 18 acknowledged receiving the show cause orders but have yet to comply.

Another 114 on-grid facilities did not respond at all.

For off-grid facilities, 12 submitted the required reports, five requested extensions, and seven failed to respond.

Energy Secretary Sharon S. Garin said the DOE gave all concerned generation companies due process and reasonable opportunity to comply.

Garin said persistent noncompliance 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,” Garin said.

The DOE said failure to respond to the show cause orders will constitute an additional instance of noncompliance under existing department rules and regulations.

The agency said the concerned facilities will be subjected to heightened regulatory oversight.

As part of the next phase of enforcement, the DOE will conduct more comprehensive inspections of non-responsive facilities.

The inspections will verify compliance with operational, technical, contractual, and regulatory requirements.

The inspections will also determine whether the facilities continue to operate safely, reliably, and in accordance with standards prescribed under the DOE’s accountability framework.

Depending on the outcome of administrative proceedings and inspections, the DOE may suspend or revoke the Certificates of Endorsement of the concerned generation companies.

The department may also recommend to the Energy Regulatory Commission the cancellation of Certificates of Compliance.

The DOE may likewise recommend the imposition of fines and penalties, as well as blacklisting or disqualification of erring entities where authorized under existing rules.

The compliance campaign comes as the DOE continues to monitor power generation reliability following recent pressure on the Visayas Grid.

The Visayas Grid exited Yellow Alert status this week after Panay Energy Development Corp. Unit 3 returned to service and restored 150 megawatts of generating capacity.

The return of PEDC Unit 3 improved operating reserves.

Several major facilities remain under scheduled maintenance, including Therma Visayas Units 1 and 2 and KEPCO-SPC Unit 1.

The Visayas Grid also continues to receive around 700 MW of imported power from Luzon and Mindanao.

The DOE did not directly link the non-responsive generation facilities to the recent Visayas Yellow Alerts.

However, the agency said the required reports are designed to help ensure that power generators remain capable of supporting reliable electricity supply.

Garin said the department’s objective is not only to enforce compliance but also to strengthen reliability in the 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,” Garin said.

The DOE said it remains committed to strengthening oversight of the power generation sector through proactive monitoring, rigorous enforcement of accountability measures, and timely regulatory interventions.

The agency said these efforts are intended to ensure a sufficient, reliable, affordable, and secure supply of electricity for all Filipinos.