QuestionsQuestions (Republic Act No. 7638)
The short title is the “Department of Energy Act of 1992.”
To ensure a continuous, adequate, economic energy supply; achieve self-reliance through integrated exploration, production, management, and development of indigenous energy resources; promote judicious conservation and efficient utilization; rationalize, integrate, and coordinate government energy programs toward self-sufficiency and enhanced productivity without sacrificing ecological concerns.
Activities or projects relative to exploration, extraction, production, importation-exportation, processing, transportation, marketing, distribution, utilization, conservation, stockpiling, or storage of all forms of energy products and resources.
To prepare, integrate, coordinate, supervise, and control government plans, programs, projects, and activities related to energy exploration, development, utilization, distribution, and conservation.
Examples include: (1) formulating policies for a comprehensive program for efficient and economical energy supply and use; (2) developing and updating the Philippine energy program including directions toward privatization, deregulation, and reduction of oil-fired dependency; (3) establishing and administering programs for exploration, transportation, marketing, distribution, utilization, conservation, stockpiling, or storage; (4) supervising and controlling government energy-project activities; and (5) regulating private sector activities as provided by existing laws.
It must be updated within nine (9) months from the effectivity of the Act and submitted to Congress within ten (10) days from completion, and not later than September 15 every year thereafter.
At the end of four (4) years from the effectivity of the Act, the DOE—upon approval of the President—must institute the programs and timetable of deregulation of appropriate energy projects and activities.
The Secretary is appointed by the President, subject to confirmation by the Commission on Appointments.
No officer, external auditor, accountant, or legal counsel of any private company or enterprise primarily engaged in the energy industry is eligible for appointment as Secretary within two (2) years from retirement, resignation, or separation.
The Secretary is an ex officio member of the NEDA Board. He is also a member of NEDA’s INFRACOM and the Investment Coordinating Council (ICC).
The DOE has three (3) Undersecretaries. It also has three (3) Assistant Secretaries: one for operations, one for policy and programs, and one for administrative services.
The appointee must be a Philippine citizen and resident, of good moral character, and of proven competence in energy or utility economics, public administration, physical or engineering sciences, management, or law.
PNOC, NPC, and NEA are placed under DOE supervision. The Secretary may chair their boards concurrently, but in no case shall the Secretary be the chief executive officer or chief operating officer of those agencies or their subsidiaries.
Section 6(3) of PD 927 and Section 8 of PD 334 are repealed insofar as they provide that the Chairman of PNOC shall also be president and chief executive officer thereof.
It assists in policy formulation for efficient energy utilization and transformation/conversion/processing/refining/marketing/distribution/transportation/storage; monitors consumption and conducts energy audits; promotes and commercializes nonconventional energy applications; develops rural energy programs; plans allocation of oil/fuel during critically low-energy supply situations; coordinates with other agencies for environmental compliance; requires waste oil collection for recycling; and runs continuing energy conservation programs.
The non-price regulatory jurisdiction, powers, and functions of the Energy Regulatory Board under EO 172 are transferred to the DOE, with the transfer affecting only the funds/personnel completely or primarily involved in the exercise of those non-price regulatory powers.
NPC’s power to determine, fix, and prescribe customer rates under RA 6395 and electric cooperatives’ power to fix rates under PD 269 are transferred to the Energy Regulatory Board, exercisable only after due notice and hearing under EO 172 procedure.
The Secretary or representative has visitorial and examining authority over nongovernment entities with contracts for energy-related natural resources to determine the government’s share in revenue/product, ascertain funds collectible/products due, and verify collection/delivery. Refusal to allow examination or concealment of material information is a breach and a ground for contract cancellation.
In critically low-energy supply or imminent danger, the President may declare it upon recommendation of the Secretary. After the declaration, the Secretary implements the fuel and energy allocation plan and may formulate and implement measures for conservation, including rationing, load curtailment, and restrictions on use of government vehicles/resources.