Creation of the Department of Energy

Ensure continuous, adequate, and economic energy supply.
Achieve energy self-reliance through indigenous resource development.
Promote conservation, renewable energy, and efficient utilization.
Encourage private sector participation.
Rationalize and coordinate government energy programs balancing productivity and ecological concerns.

"Energy projects": Activities involving exploration, production, import/export, processing, transport, distribution, conservation, and storage of all energy forms.
"Board": Refers to the Energy Regulatory Board.

A government agency responsible for planning, supervising, and controlling energy-related government programs and activities.

Formulate policies for an efficient, economic energy supply aligned with national economic plans and environmental conservation.
Develop and update a comprehensive Philippine energy program with emphasis on indigenous, environment-friendly, and low-cost energy sources.
Establish and administer programs for all forms of energy resources and activities.
Supervise government energy-related activities to meet policy goals.
Regulate private sector energy activities while promoting private investment.
Implement deregulation of appropriate energy projects within four years.
Direct and disseminate energy research and development.
Create incentive and penalty systems for energy efficiency.
Promote accelerated nonconventional energy development.
Ensure benefits to communities and regions hosting energy resources while meeting national energy needs.
Encourage broad public ownership of energy enterprises.
Formulate necessary implementing rules and regulations.

Composed of the Office of the Secretary, Offices of Undersecretaries and Assistant Secretaries, and various bureaus and services.

Secretary appointed by the President with Commission on Appointments confirmation.
Prohibition against appointing recent officers of private energy firms.
Duties include policy establishment, department supervision, creation of regional offices/grids, and international oil and gas industry promotion.
Secretary is an ex officio member of NEDA, INFRACOM, ICC, and related infrastructure investment bodies.

Three Undersecretaries appointed by the President on Secretary's recommendation.
Three Assistant Secretaries assigned to operations, policy and programs, and administrative services.
All must meet citizenship, residency, moral character, and competence qualifications.

Energy Resource Development Bureau: Develop local energy resources, conduct research, provide training, and oversee service contractors.
Energy Utilization Management Bureau: Promote efficient energy transformation, monitor consumption, develop nonconventional energy applications, address rural energy needs, and implement conservation programs.
Energy Industry Administration Bureau: Formulate regulatory policies, contingency plans, and manage financial/fiscal policies for energy distributors and producers.
Energy Planning and Monitoring Bureau: Develop integrated energy plans, manage data and information, evaluate energy demand and supply, ensure environmental goals, and advise on international energy issues.
Administrative Support Services: Legal Counsel provides legal advice and case handling; Financial and Management Services handle budget, personnel, records, and administrative support.

Philippine National Oil Company (PNOC), National Power Corporation (NPC), National Electrification Administration (NEA) placed under Department supervision.
Secretary serves as ex officio chairman of these agencies' boards but is not chief executive officer.
Secretary may recommend board reorganizations.

Composed of five members from industry, labor, and consumer sectors.
Advises the President on overall energy programs and private sector participation.

Abolition of Office of Energy Affairs and Energy Coordinating Council.
Transfer of their powers, functions, funds, properties, and personnel to the Department.
Department to continue management of Technology Transfer for Energy Management projects.
Department subrogated to rights and liabilities of predecessor agencies.
Transfer of non-price regulatory powers of Energy Regulatory Board to the Department.
NPC and electric cooperatives' rate-setting powers transferred to Energy Regulatory Board.
Organizational structure and staffing to be established within 60 days, with preference to existing personnel.
Retiring employees to receive applicable benefits.

Initial funding up to Php 300 million sourced from previous agencies and Presidential allocation.
Subsequent funding included in the General Appropriations Act.
Collected fees, surcharges, fines, and 20% of special funds used to finance Department operations.

Secretary and top officials must disclose financial and employment interests before assuming office.
Required divestment from interests in entities under Department's supervision within 30 days of appointment or confirmation.
Applies also to immediate family members within the second degree of relationship.

Department and energy projects receive preferential treatment from Department of Environment and Natural Resources.
Other government agencies must act on Department projects within 10 days.
Secretary may establish interagency secretariat to expedite project approval.

Secretary or representative authorized to examine non-government entities with government energy contracts.
Can inspect records to ascertain government revenue share and fund collections.
Refusal or concealment may lead to contract cancellation.

In critically low energy supply circumstances, President may declare emergency on recommendation of Secretary.
Secretary empowered to implement fuel/energy allocation, rationing, load curtailment, and usage restrictions.