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DOE Releases Supplements and Amendments to the Energy Resiliency Planning and Programming of the Energy Sector

On 17 January 2018, the Department of Energy (“DOE”) issued Department Circular (“DC”) No. DC2018-01-001 or the “Adoption of Energy Resiliency in the Planning and Programming of the Energy Sector to Mitigate Potential Impacts of Disasters”, which promulgated the adoption and mainstreaming of resiliency programs in the planning, project implementation and operations of the energy sector. It also created the Task Force on Energy Resiliency (“TFER”) which is the primary organization mandated to respond to natural and human-induced disasters to ensure immediate restoration of power and oil supply and services in disaster-stricken areas.

For the efficient implementation of these programs, the DOE promulgated DC No. DC2022-06-0028 which broadens the functions and expands membership of the TFER and provides certain enhancements on the Resiliency Compliance Plan (“RCP”).

DC No. DC2022-06-0028 shall apply to all energy industry participants which include but are not limited to the energy resource, all types of renewable energy, power, oil, gas, and energy utilization sectors. Under this DC, the RCP is now divided, but not limited, to the following categories:

  1. Strengthening Infrastructure – enhancement of structural integrity and reliability of systems through physical construction and application of structural measures and engineering techniques based on risk assessments. 
  2. Systems – administrative directives, organizations, operational skills and capacity building, policies and guidelines to implement strategies.
  3. Disaster Risk Financing and Insurance – comprehensive and effective financial planning and mechanism to increase financial response capacity of agencies/private companies against the impact of natural and human-induced disasters; 
  4. Stockpiling – the identification and procurement of essential inventory items and equipment beforehand and placement in strategic and resilient locations;
  5. Response – provision of emergency services and public assistance during or immediately after a disaster; and
  6. Rehabilitation and recovery – rehabilitation and improvement of facilities, livelihood and living conditions of affected communities based on Build Back Better principles. 

The provisions on RCP Compliance Monitoring, Assessment, and Funding were also amended to include specific details on the implementation of such monitoring, assessment, and funding. Under the new rules, all concerned energy participants shall submit or update their RCPs on or before 30 April of the year to the following DOE units:

  1. Electric Power Industry Management Bureau – Conventional or Non-Renewable Energy Power generation companies, transmission companies, and distribution utilities.
  2. Renewable Energy Management Bureau – all renewable energy power generation companies.
  3. Oil Industry Management Bureau – downstream oil and natural gas companies.
  4. Energy Resource Development Bureau – onshore and offshore oil and gas companies/facilities.
  5. Energy Utilization Management Bureau – companies/facilities with electric vehicle charging station.
  6. Energy Policy and Planning Bureau – attached agencies (i.e., National Electrification Administration [“NEA”], National Power Corporation [“NPC”], Philippine National Oil Company [“PNOC”], Power Sector Assets and Liabilities Management Corporation, and National Transmission Corporation [“TransCo”]).

RCPs of Electronic Cooperatives shall be submitted through the NEA for review and consolidation. NEA, in coordination with the DOE, will develop the standard RCP template to be used. The deadline of submission to NEA is every 31 March of the year, while deadline for submission of the consolidated RCPs to the DOE is every 30 April of the year. Meanwhile, RCPs of NPC Mindanao Generation and Small Power Utilities Group shall be submitted for review and consolidation to the NPC not later than 31 March of every year. The consolidated RCPs must then be submitted to the DOE by 30 April of the year.

The DOE also plans to develop an online platform to facilitate the efficient and organized collection, retrieval, processing, and data management of RCPs.

The Task Force on Energy Resiliency

In addition to the powers granted under DC2018-01-0001, the TFER shall now have the power to: (i) formulate and adopt comprehensive and risk-based energy resiliency policies, strategies, plans and programs; (ii) conduct vulnerability and risk assessment of energy systems; (iii) develop appropriate mechanisms and strategies on disaster risk financing and insurance policies and programs; (iv) promote innovative solutions on energy resiliency; and (v) develop and conduct organizational capacity building programs to strengthen disaster preparedness, among others. 

The membership of the TFER is divided into two (2) groups, power, and oil and gas. The power task group shall be composed of the likes of NEA, NPC, TransCo, and other corporations and organizations related to energy. Meanwhile, the oil and gas task group shall be composed of the PNOC, and other corporations or organizations related to gas and petroleum. During disaster response and/or implementation of other energy resiliency-related matters, the other task groups may request assistance from the Security Group, which shall be composed of the Philippine National Police, Armed Forces of the Philippines, Bureau of Fire Protection, and other security agencies as needed.