Law Summary
Department of Energy Mandate and Policy Formation
- The Department of Energy (DOE) is mandated to formulate and implement comprehensive programs for efficient and economical energy supply.
- Policies align with the national economic plan.
- DOE integrates, coordinates, and rationalizes government energy programs.
- Priority is given to environment-friendly, indigenous, and low-cost energy sources.
Recognition of Natural Gas as an Indigenous Energy Resource
- Natural gas is recognized among indigenous resources including fossil fuels and geothermal energy.
- It is considered environment-friendly, indigenous, and a low-cost energy source.
Regulation and Promotion of Private Sector Participation
- DOE is authorized to regulate private sector energy activities.
- The policy environment must encourage free and active private sector participation and investment.
Promotion of Natural Gas in the Energy Mix
- The government promotes natural gas as part of the national energy mix.
- Aims to develop a Philippine Gas Industry serving a wide variety of users (power plants, industrial, commercial, residential).
Strategic Development of Malampaya/Camago Gas Field
- Malampaya/Camago gas field is designated as the foundation of the Philippine Gas Industry.
- Plans include supply primarily to efficient gas-fired power plants starting in 2001.
Private Sector-Led Industry with Government Oversight
- The Gas Industry development will align with policies encouraging private sector leadership.
- Government involvement in ownership is limited to cases providing substantial cost reduction and economic benefit.
- Government’s primary role will be policy direction and regulation.
Regulatory Framework Principles
- Regulation will facilitate safe operation and growth of the industry.
- Ensure equitable and non-discriminatory access for all participants in the gas industry.
Compliance with Environmental and Safety Standards
- Gas industry facilities must comply with Philippine environmental laws.
- Facilities must conform to international safety standards.
Policy Objective to Stabilize Energy Prices
- The development of the Gas Industry aims to utilize indigenous energy resources.
- This utilization is intended to stabilize energy prices nationally.
Effectivity Clause
- The Department Circular becomes effective one day after full publication in a national newspaper.
- The Circular was adopted on June 15, 1995, by Secretary Francisco L. Viray.