Question & AnswerQ&A (DOE DEPARTMENT CIRCULAR NO. DC 2010-03-0003)
The DOE is mandated to ensure the reliability, quality, and supply of electric power, establish and administer programs for exploration, transportation, marketing, distribution, utilization, conservation, stockpiling and storage of energy resources of all forms, whether conventional or non-conventional.
This Circular applies to all Generation Companies, Distribution Utilities in the Philippines as defined by the EPIRA, and the National Transmission Corporation (TRANSCO) or its concessionaire, currently the National Grid Corporation of the Philippines (NGCP).
Generation Companies must operate their generation facilities in accordance with their Maximum Available Capacity, maintain adequate fuel stockpiles (15 days for oil-based, 30 days for coal), submit monthly reports on capacity and fuel inventory, notify the System Operator of planned and unplanned shutdowns, seek DOE clearance before deactivating critical units, and comply with the Philippine Grid Code (PGC).
Maximum Available Capacity is the registered maximum capacity minus forced outages, scheduled outages, and de-rated capacity due to technical constraints. It determines the operational capacity that a generation company can make available at any time.
Oil-based generation companies must maintain an in-country fuel stock equivalent to at least 15 days running inventory including shipments in transit. Coal power plants must maintain a coal inventory sufficient for 30 days running, including shipments in transit.
TRANSCO/NGCP must ensure transmission facilities are adequate as per the Transmission Development Plan (TDP) approved by the DOE, provide open and non-discriminatory access to the grid, submit grid operating and maintenance plans to DOE, inform DOE of power interruptions, and institutionalize connection agreements with all grid users.
Distribution Utilities must regularly submit Distribution Utility Development Plans (DDP), Monthly Operations Reports (MOR), and Monthly Financial and Statistical Reports (MFSR for ECs) to the DOE. They must comply with the PGC and Philippine Distribution Code, report significant load interruptions or threats, and ensure power supply contracts cover their franchise areas.
The DOE through the Electric Power Industry Management Bureau (EPIMB) will monitor compliance of generation companies, distribution utilities, and NGCP. The DOE in consultation with the Energy Regulatory Commission (ERC) will implement enforcement and penalty mechanisms for non-compliance.
The ERC ensures the timely recovery of generation costs of power plants according to existing laws and procedures, and works with DOE to enforce penalties for non-compliance with the Circular.
The DOE may seek assistance from other government bodies such as the Bureau of Customs and the National Water Resources Board to facilitate fuel inventory monitoring and water resource supply for power generation.