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REPUBLIC ACT 7638 - DEPARTMENT OF ENERGY ACT OF 1992 DEC 9, 1992
DECLARATION OF POLICY
A. to ensure a continuous, adequate,
and economic supply of energy with
the end in view of ultimately
achieving self-reliance in the
countrys energy requirements
- through the integrated and
intensive exploration,
production, management,
- development of the countrys
indigenous energy resources,
- through the judicious
conservation, renewal and
efficient utilization of energy
to keep pace with the
countrys growth and
economic development
- taking into consideration the
active participation of the
private sector in the various
areas of energy resource
development;
B. to rationalize, integrate, and
coordinate the various programs of
the Government towards self-
sufficiency and enhanced
productivity in power and energy
without sacrificing ecological
concerns
Energy projects - activities or projects
relative to the exploration, extraction,
production, importation-exportation,
processing, transportation, marketing,
distribution, utilization, conservation,
stockpiling, or storage of all forms of energy
products and resources.
POWERS AND FUNCTIONS OF THE
DEPT SECRETARY
- Prepare, integrate, coordinate,
supervise, and control all plans,
programs, projects, and activities of
the Government relative to energy
exploration, development, utilization,
distribution, and conservation.
- Supervise the restructuring of the
electricity industry
Powers and Functions.
(a) Formulate policies for the planning and
implementation of a comprehensive
program for the efficient supply and
economical use of energy
(b) Develop and update the existing
Philippine energy program which shall
provide for an integrated and
comprehensive exploration, development,
utilization, distribution and conservation of
energy resources, with preferential bias for
environment-friendly, indigenous, and low-
cost sources of energy.
(c) Establish and administer programs for
the exploration, transportation, marketing,
distribution, utilization, conservation,
stockpiling and storage of energy resources
of all forms, whether conventional or non-
conventional;
(d) Exercise supervision and control over all
government activities relative to energy
(e) Regulate private sector activities as
provided under existing laws:
Provided, that the Department shall
endeavor to provide for an environment
conducive to free and active private sector
participation and investment in all energy
activities.
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REPUBLIC ACT 7638 - DEPARTMENT OF ENERGY ACT OF 1992 DEC 9, 1992

(f) Assess the requirements of, determine

priorities for, provide direction to, and
disseminate information resulting from BUREAUS AND SERVICES
energy research and development
programs Subject to the power of the Secretary, with
the approval of the President, to reorganize,
(g) Formulate and implement programs, restructure, and redefine the functions of
including a system of providing incentives the bureaus and services and to create
and penalties, for the judicious and efficient regional offices and such other service units
use of energy in all energy-consuming and divisions
sectors of the economy;
a. Energy Resource Development
(h) Formulate and implement a program for Bureau
the accelerated development of non-
conventional energy systems and the b. Energy Utilization Management
promotion and commercialization on its Bureau
applications;
c. Energy Policy and Planning Bureau
(i) Devise ways and means of giving direct d. Energy Policy Industry
benefits to the province, city, or municipality, Administration Bureau
especially the community and people
affected, and equitable and preferential e. Oil Industry Administration Board
benefit to the region that hosts the energy
resource and/or the energy-generating f. The Natuional Transmission
facility: Corporation (TRANSCO)
Provided, however, g. The Power Sector Assets and
That the other provinces, cities,
Liabilitis Management Coportatopm
municipalities, or regions shall not be
(PSALM)
deprived of their energy requirements;
h. National Electrification Administration
(j) Encourage private enterprises engaged (NEA)
in energy projects, including corporations,
cooperatives, and similar collective Relationship with Other Government
organizations, to broaden the base of their Departments
ownership and thereby encourage the
widest public ownership of energy-oriented - The Department and its priority
corporations; projects shall enjoy preferential
attention from the DENR relative to
(k) Formulate such rules and regulations as the exploration, development,
may be necessary to implement the exploitation, and extraction of
objectives of this Act; and petroleum, coal, and other
geothermal resources, and in the
(l) Exercise such other power as may be matter of providing technical support
necessary or incidental to attain the necessary for the establishment of
objectives of this Act power-generating plants.
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REPUBLIC ACT 7638 - DEPARTMENT OF ENERGY ACT OF 1992 DEC 9, 1992
ENERGY REGULATORY COMMISSION
- Provide policy guidelines and
regulatory framework for the
activities and operations of the
power sector
- Regulate the business of importing,
exporting, re-exporting, shipping,
transporting, processing, refining,
marketing and distributing energy
resources
Powers and Functions
a. Fix and regulate the prices of
petroleum products;
b. Fix and regulate the rate schedule or
prices of piped gas to be charged by
duly franchised gas companies
which distribute gas by means of
underground pipe system;
c. Fix and regulate the rates of pipeline
concessionaries
d. Regulate the capacities of new
refineries or additional capacities of
existing refineries and license
refineries that may be organized
after the issuance of this Executive
Order, under such terms and
conditions as are consistent with the
national interest;
e. Whenever the Board has determined
that there is a shortage of any
petroleum product, or when public
interest so requires, it may take such
steps as it may consider necessary,
including the temporary adjustment
of the levels of prices of petroleum
products and the payment to the Oil
Price Stabilization Fund by persons
or entities engaged in the petroleum
industry of such amounts as may be
determined by the Board, which will
enable the importer to recover its
cost of importation.
ELECTRIC POWER INDUSTRY REFORM
ACT
The Energy Regulatory Commission is an
independent quasi-judicial regulatory
agency created under the EPIRA.
abolished the Energy Regulatory Board
(powers and functions transferred)
a. A public utility must submit to
government regulations
b. ERC has authority to issue
provisional rate increases
c. Application for rate adjustment or
any relief affecting the consumers
must be verified and published
d.
DOWNSTREAM OIL INDUSTRY
DEREGULATION ACT OF 1998
Downstream Oil Industry refer to the
business of importing, exporting, re-
exporting, shipping, transporting,
processing, refining, storing, distributing,
marketing and/or selling crude oil, gasoline,
diesel, and liquefied petroleum gas (LPG),
kerosene, and other petroleum products
- Apply to all persons or entities
engaged in any and all activities of
the domestic downstream oil
industry, as well as persons or
companies directly importing refined
petroleum products for their own
use.
Declaration of Policy
It shall be the policy of the State to
liberalize and deregulate the downstream
oil industry in order to ensure a truly
competitive market under a regime of fair
prices, adequate and continuous supply of
environmentally-clean and high-quality
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REPUBLIC ACT 7638 - DEPARTMENT OF ENERGY ACT OF 1992 DEC 9, 1992
petroleum products. To this end, the State
shall promote and encourage the entry of
new participants in the downstream oil
industry, and introduce adequate measures
to ensure the attainment of these goals.
Liberalization of the Industry
any person or entity may import or
purchase any quantity of crude oil
and petroleum products from a
foreign or domestic source, lease or
own and operate refineries and other
downstream oil facilities and market
such crude oil and petroleum
products either in a generic name or
his or its own trade name, or use the
same for his or its own requirement
Tariff Treatment
a single and uniform tariff duty shall
be imposed and collected both on
imported crude oil and imported
refined petroleum products at the
rate of three percent (3%):
Provided, however, That the
President of the Philippines may, in
the exercise of his powers, reduce
such tariff rate when in his judgment
such reduction is warranted