The Department of Energy (DOE) will issue show cause orders to 175 generation companies for failing to comply with mandatory reporting requirements under its power sector accountability framework, as it tightens oversight to improve electricity supply reliability.
The companies failed to submit their annual self-assessment reports required 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, despite an extension of the submission deadline to April 24.
The non-compliant entities include 164 on-grid generation companies and 11 off-grid generation companies covering 37 generating facilities, according to the DOE.
The annual self-assessment is intended to help the department monitor the operational readiness, technical performance and contractual compliance of generation facilities, allowing regulators to identify potential deficiencies before they develop into power supply disruptions.
The DOE said companies that failed to submit the required reports would be required to explain their non-compliance and justify why administrative sanctions authorized under existing laws and regulations should not be imposed.
The department said failure to submit the reports hampers its ability to assess the operational condition of generation facilities and detect issues that could lead to forced outages, prolonged capacity deratings and failure to deliver contracted generation capacity, all of which could threaten the stability of the country’s electricity supply.
“The Department’s responsibility goes beyond ensuring compliance with our policies. More importantly, it is to ensure that every generation company entrusted with supplying electricity remains accountable to the Filipino people,” Energy Secretary Sharon Garin said.
“Reliable electricity begins with responsible operations. Generation companies must not only comply with regulatory requirements but must also demonstrate that they are capable of delivering the power they have committed to provide,” she added.
The accountability policy, issued on Feb. 19, establishes operational, technical, contractual and reporting obligations for power generation companies as part of the government’s efforts to strengthen the reliability and performance of the Philippine power sector.
The DOE said the enforcement action comes amid continued monitoring of recurring operational deficiencies at some generating facilities, including repeated forced outages, prolonged capacity deratings and failures to deliver contracted generation capacity that have contributed to supply disruptions in several parts of the country.
The accountability framework applies to both conventional and renewable energy generation companies operating in the Philippine power system. The DOE, however, did not identify the companies that would receive the show cause orders.
The department said it would continue strengthening oversight of the power generation sector through stricter enforcement, proactive monitoring and closer coordination with industry stakeholders to reduce forced outages, improve generator performance and help ensure a sufficient, reliable, affordable and secure electricity supply for consumers.
