Question & AnswerQ&A (DOE DEPARTMENT CIRCULAR NO. 95-06-006)
The primary policy of the State under R.A. 7638 is to ensure a continuous, adequate, and economic supply of energy, aiming ultimately for self-reliance in the country's energy requirements through integrated and intensive exploration, production, management, and development of indigenous energy resources without sacrificing ecological concerns.
The DOE is mandated to formulate policies for planning and implementing a comprehensive program for efficient supply and economical use of energy consistent with the national economic plan, integrate, rationalize, and coordinate various government energy programs with a preference for environment-friendly, indigenous, and low-cost energy sources.
Natural gas is recognized as an environment-friendly, indigenous, and low-cost source of energy among the country's fossil fuels and other indigenous energy resources.
The Malampaya/Camago gas field is the foundation of the Philippine Gas Industry, planned and developed primarily to supply efficient gas-fired power plants starting in the year 2001.
The government encourages private sector participation and seeks to reduce its direct involvement in owning assets and facilities, limiting its role to policy direction and regulation unless government involvement significantly reduces natural gas costs and benefits the public economically.
Government regulation will facilitate safe operation and growth of the industry while ensuring equitable and non-discriminatory access to all industry participants.
Facilities must comply with all existing Philippine environmental regulations and international safety standards.
The objective is to utilize indigenous energy resources primarily to stabilize energy prices.
It took effect immediately one day after its complete publication in a national newspaper of general circulation, adopted on 15 June 1995.
The Department is authorized to regulate private sector energy activities while providing an environment conducive to free and active private sector participation and investment.