DOE Issues New Accountability Policy to Strengthen Power Generation Standards and Protect Consumers

The Department of Energy (DOE) has issued Department Circular No. DC2026-02-0006, introducing a comprehensive accountability policy for entities engaged in power generation to reinforce energy security and safeguard electricity consumers.

The Circular establishes clear operational requirements, assessment criteria and enforcement measures aimed at ensuring a sufficient, reliable, affordable and secure electricity supply nationwide. According to the DOE, dependable generation performance is critical to maintaining a stable power system capable of meeting rising demand, supporting economic growth and advancing the country’s energy transition agenda without compromising system adequacy.

The policy applies to all entities operating generation facilities that supply electricity to end-users. These include Generation Companies (GenCos), New Power Providers (NPPs), Microgrid Service Providers (MGSPs), the National Power Corporation–Small Power Utilities Group (NPC-SPUG), distribution utilities, local government units (LGUs) operating generation facilities and other stakeholders with generation operations.

Under the Circular, covered entities are required to operate only with valid certifications, permits and regulatory clearances. They must maintain continuous compliance with the conditions of these authorisations, including up-to-date health, safety, environmental and regulatory approvals. Coordination with the Energy Regulatory Commission (ERC) and other competent authorities is mandated to ensure adherence to applicable laws, rules and industry standards.

The DOE outlined several key accountability obligations. These include maintaining valid Certificates of Compliance (COC) or Provisional Authorities to Operate, complying with all terms and conditions of issued permits, keeping facilities aligned with legal and industry requirements, allowing periodic operational and technical assessments, and submitting accurate and transparent reports to the DOE, ERC, NPC and other concerned agencies. Entities are also required to promptly report significant incidents affecting power security or reliability, along with corrective action plans and timelines to restore capacity.

The department stated that the policy is designed to strengthen preventive compliance by identifying operational risks early, ensuring transparent disclosure of incidents and implementing time-bound corrective actions to mitigate system impacts.

The Circular also outlines enforcement measures for non-compliance. Based on DOE assessments, required submissions or valid complaints, entities may face administrative fines and penalties, suspension or cancellation of permits and licences, disqualification from DOE-administered competitive selection processes and capacity programmes, and other directives necessary to prevent harm to the power system and consumers.

Energy Secretary Sharon S. Garin said accountability in the generation sector is essential to safeguarding supply and sustaining industry confidence. She noted that the Circular reinforces clear standards and transparent reporting, while supporting timely corrective action to ensure a dependable power system for households and businesses.