POWER generation companies must comply with an accountability policy or face sanctions, the Department of Energy (DOE) said on Tuesday.
Department Circular 2026-02-0006 requires entities to operate generation facilities only with valid certifications, permits and clearances, and to maintain continuous compliance with the conditions of these authorizations.
“Accountability in the generation sector is essential to safeguarding power supply and sustaining confidence in the industry. This circular reinforces clear standards and transparent reporting, and it supports timely corrective action to keep the power system dependable for households and businesses,” Energy Secretary Sharon Garin said.
The circular covers generation companies, new power providers, microgrid service providers, National Power Corp.-small power utilities, distribution utilities and local government units operating generation facilities and other stakeholders with power generation operations.
The entities are accountable to the following:
– Maintaining valid certifications and clearances required for facility operation and other necessary regulatory permits and licenses.
– Complying with all terms and conditions of issued certificates, permits and clearances.
– Keeping facilities compliant with applicable laws, regulations and industry best practices.
– Allowing periodic operational and technical assessments by the DOE or its authorized representatives.
– Submitting accurate, complete and transparent data and reports to the respective concerned agencies.
– Promptly reporting significant incidents that may affect power security, reliability or availability, including event details, while also providing a corrective work plan to restore maximum capacity within a defined time frame.
Failure to comply will result in enforcement actions for the appropriate issue:
– Administrative fines and penalties, as provided under applicable rules.
– Suspension or cancellation of applicable permits, licenses, approvals or authorizations.
– Disqualification or exclusion from participation in DOE-administered or DOE-authorized competitive selection processes, auctions and other award mechanisms.
– Appropriate directives to compel compliance, including necessary orders to protect electricity consumers.
– Other measures permitted under existing legal and regulatory frameworks to ensure corrective action.