Question & AnswerQ&A (Republic Act No. 7638)
Republic Act No. 7638 is known as the "Department of Energy Act of 1992."
The State aims to ensure a continuous, adequate, and economic supply of energy with the goal of achieving self-reliance in the country's energy requirements through integrated exploration, production, management, and development of indigenous energy resources, while encouraging private sector participation and emphasizing environmental protection.
Energy projects refer to activities or projects related to the exploration, extraction, production, importation-exportation, processing, transportation, marketing, distribution, utilization, conservation, stockpiling, or storage of all forms of energy products and resources.
The Department of Energy is tasked to prepare, integrate, coordinate, supervise, and control all government plans, programs, projects, and activities related to energy exploration, development, utilization, distribution, and conservation.
1) Formulate policies for a comprehensive program for efficient supply and economical use of energy consistent with national economic plans. 2) Develop and update the Philippine energy program emphasizing environment-friendly, indigenous, and low-cost energy resources. 3) Regulate private sector activities relative to energy projects, promoting private investment and participation.
The Secretary is appointed by the President, subject to confirmation by the Commission on Appointments. No officer, auditor, accountant, or legal counsel of any private company engaged primarily in the energy industry may be appointed within two years from their retirement, resignation, or separation.
They must be Filipino citizens and residents, of good moral character, and have proven competence in energy or utility economics, public administration, physical or engineering sciences, management, or law.
The Philippine National Oil Company (PNOC), the National Power Corporation (NPC), and the National Electrification Administration (NEA) are placed under the supervision of the Department of Energy.
The Secretary has the authority to examine nongovernment entities with contracts for exploration, development, or utilization of energy resources to ensure proper government revenue share collection and to verify compliance. Refusal to allow examination is grounds for contract cancellation.
Upon a declaration by the President based on the Secretary's recommendation, the Department can implement fuel and energy allocation plans, conservation measures including power or fuel rationing, load curtailment, and restrictions on government vehicle use.