Department of Energy's Authority and Responsibilities
- Sections 5(b) and 5(c) of R.A. 7638 empower the Department of Energy (DOE) to establish and administer comprehensive programs related to all facets of energy resources.
- These include exploration, transportation, marketing, distribution, utilization, conservation, stockpiling, and storage of energy resources such as coal.
- The DOE’s efforts aim at meeting increasing energy demand and reducing dependence on imported fuels.
Supervision and Control Over Energy Projects
- Under Section 5(d) of R.A. 7638, the DOE exercises supervision and control over all government activities tied to energy projects.
- This supervisory role exists to ensure the fulfillment of the goals outlined in Section 2 regarding energy self-sufficiency.
Development of the Coal Industry Action Plan
- The DOE, supported by the Philippine coal mining industry and other agencies, formulated a Coal Industry Action Plan.
- This plan includes creating a guaranteed market for locally produced coal.
- The measure is designed to facilitate coal marketing and enhance the financial health of local coal producers.
Mandatory Utilization of Local Coal by NPC
- The National Power Corporation (NPC) is mandated to utilize local coal for at least 10% of its total coal requirements.
Compliance Reporting Requirements
- NPC is required to submit biannual reports to the DOE through the Energy Industry Administration Bureau.
- Reports must be submitted within the month following each semester.
- These reports serve to establish compliance with the circular’s provisions.
Effectivity of the Circular
- The circular becomes effective one day after its complete publication in a newspaper of general circulation.
Legal Authority and Adoption
- The circular was adopted on May 25, 1995, and signed by Acting Secretary Francisco L. Viray.