The Department of Energy (DOE) has issued Department Circular No. DC2026-10-0021, the Supplemental Power Generator Accountability Policy, which sets supplemental guidelines for the implementation and enforcement of DC No. DC2026-02-0006, the Power Generator Accountability Policy. The Circular was signed by Energy Secretary Sharon S. Garin (date-stamped 25 September 2026). It sets a uniform procedure for issuing Show Cause Orders (SCOs) to generation companies (Gencos), evaluating their explanations, imposing progressive administrative sanctions and corrective action plans, and factoring a Genco's compliance into the DOE's Certificates of Endorsement (COEs) and other endorsements.

Key provisions

  • Continuing obligation. A Genco's reporting obligations are continuing; the imposition of a sanction does not extinguish the duty to submit the required explanation and documents.
  • Grounds for an SCO. These include failure to submit required reports and self-assessments on time; failure to report outages or deratings within 48 hours; reports with material deficiencies, inconsistencies or misrepresentations; failure to meet technical parameters; failure to submit or implement a Corrective Action Plan (CAP), Contingency Plan or other corrective measure required by the DOE; and any ground for an Incidental/Special Assessment. Monthly reports count as missed after three consecutive months, or three months within a six-month period, without submission; an annual report counts as missed 30 calendar days after its deadline. SCOs are served through the Genco's registered account in the DOE Electric Power Database Management System (DEPDMS), and service is complete upon successful transmission.
  • 72-hour explanation. The Genco must submit a written explanation, under oath, with supporting documents within seventy-two (72) hours from receipt of the SCO, unless a different period is set. A request for an extension must be sent by email before the period expires and must state its grounds. Failure to answer, or to correct a deficient submission, is a waiver of the right to be heard, and the DOE will decide on the records.
  • DOE Order in 15 working days. The DOE issues a written Order within fifteen (15) working days from receipt of the explanation (or completion of any inspection or assessment), either accepting it or finding a violation, classifying the offense and imposing the sanction.
  • Reporting violations (Sec. 15.1). First offense: stern warning or Strict Compliance Monitoring. Second: referral to the ERC, suspension of the COE, or suspension from DOE programs until compliance. Third and subsequent: revocation of the COE, blacklisting, or endorsement to the ERC for suspension or revocation of the Certificate of Compliance (COC).
  • Technical and performance violations (Sec. 15.3). First offense: ERC referral or a CAP or Contingency Plan. Second: ERC referral or suspension for one year or until compliance, whichever is longer. Third and subsequent: revocation, blacklisting or ERC endorsement for COC action.
  • CAP monitoring. Progress reports are due within thirty (30) calendar days from CAP approval and every fifteen (15) calendar days after, until full compliance.
  • Three-year record. A finding of non-compliance stays on record for three (3) years; the progressive sanction record resets if there is no further finding within that period.
  • No endorsement with outstanding obligations. The DOE will not issue or renew a COE or other endorsement to a Genco with an outstanding financial or work obligation, including those of its parent or subsidiary entities, unless settled or otherwise resolved.

Who is affected

Generation companies and their parent and subsidiary entities, particularly those that need DOE endorsements or COEs for ERC applications or participation in DOE-administered programs.

Effectivity

The Circular takes effect immediately after its publication in the Official Gazette or in two newspapers of general circulation. The DOE website lists it as published on 6 October 2026. The ERC must issue implementing guidelines or amendments within sixty (60) calendar days from the Circular's effectivity. Enforcement actions issued before effectivity remain valid, and pending proceedings may continue under the Circular.

Practical takeaways

  • Treat SCOs as urgent: the 72-hour window is short, and silence is a waiver.
  • Track reporting deadlines closely; missed reports count toward progressive sanctions.
  • Clear outstanding financial or work obligations across the group before seeking a COE or endorsement.
  • Keep CAP progress reports on a 15-day calendar after the first 30-day report.

Source: DOE Department Circular No. DC2026-10-0021, Supplemental Guidelines for the Implementation and Enforcement of Department Circular No. DC2026-02-0006, Otherwise Known as the "Power Generator Accountability Policy," and Other Related Issuances, date-stamped 25 September 2026, https://doe.gov.ph/circular-no-dc-2026-10-0021

This alert was prepared by OS Law. This alert is for general information only and is not legal advice. Please consult counsel on how these rules apply to your specific circumstances.