Article 78p. 78

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

RA No 7638 | Department of Energy Act

of 1992

AN

ACT

CREATING

THE DEPARTMENT OF ENERGY,

RATIONALIZING THE ORGANIZATION AND FUNCTIONS

OF GOVERNMENT AGENCIES RELATED TO ENERGY, AND

FOR OTHER PURPOSES

CHAPTER I General Provisions

SECTION 1. Short Title. — This Act shall be known as the

“Department of Energy Act of 1992.”

SECTION 2. Declaration of Policy. — It is hereby declared

the policy of the State: (a) to ensure a continuous,

adequate, and economic supply of energy with the end

in

view

of

ultimately

achieving

self-reliance in the

country’s energy requirements through the integrated

and intensive exploration, production, management, and

development

of

the

country’s

indigenous

energy

resources,

and

through

the

judicious

conservation,

renewal, and efficient utilization of energy to keep pace

with the country’s growth and economic development

and taking into consideration the active participation of

the

private

sector

in

the

various

areas

on energy

resource development; and (b) to rationalize, integrate,

and coordinate the various programs of the Government

towards self-sufficiency and enhanced productivity in

power energy without sacrificing ecological concerns.

SECTION 3. Definition of Terms. — (a) “Energy projects”

shall

mean

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.

(b) “Board” shall mean the Energy Regulatory Board.

SECTION 4. Department of Energy. — To carry out the

above-declared

policy,

there

is

hereby

created

the

Department of Energy, hereinafter referred to as the

Department, which shall prepare, integrate, coordinate,

supervise, and control all plans, programs, projects, and

activities

of

the

Government

relative

to

energy

exploration, development, utilization, distribution, and

conservation.

SECTION 5. Powers and Functions. — The Department

shall have the following powers and functions:

(a)

Formulate

policies

for

the

planning

and

implementation of a comprehensive program for the

efficient supply and economical use of energy consistent

with the approved national economic plan and with the

policies on environmental protection and conservation

and maintenance of ecological balance, and provide a

mechanism

for

the

integration,

rationalization,

and

coordination of the various energy programs of the

Government;

(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. The program shall

include a policy direction towards the privatization of

government agencies related to energy, deregulation of

the

power

and

energy

industry,

and

reduction

of

dependency on oil-fired plants. Said program shall be

updated within nine (9) months from the effectivity of

this Act and submitted to Congress within ten (10) days

from its completion and not later than the fifteenth day

of September every year thereafter;

(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

nonconventional;

(d) Exercise supervision and control over all government

activities relative to energy projects in order to attain the

goals embodied in Section 2 of this Act;

(e) Regulate private sector activities relative to energy

projects as provided for 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.

At the end of four (4) years from the effectivity of this

Act,

the

Department

shall,

upon

approval

of

the

President,

institute

the

programs

and

timetable of

deregulation

of

appropriate

energy

projects

and

activities of the energy industry;

(f) Assess the requirements of, determine priorities for,

provide

direction

to,

and

disseminate

information

resulting

from

energy

research

and

development

programs for the optimal development of various forms

of energy production and utilization technologies;

(g) Formulate and implement programs, including a

system of providing incentives and penalties, for the

judicious

and

efficient

use

of

energy

in

all

energy-consisting sectors of the economy;

(h)

Formulate

and

implement

a

program

for

the

accelerated development of nonconventional energy

systems and the promotion and commercialization of its

applications;

(i) Devise ways and means of giving direct benefit to the

province, city, or municipality, especially the community

and people affected, and equitable preferential benefit

to the region that hosts the energy resource and/or the

energy-generating facility: Provided, however, That the

other provinces, cities, municipalities, or regions shall not

be deprived of their energy requirements;

(j) Encourage private enterprises engaged in energy

projects,

including

corporations,

cooperatives,

and

similar collective organizations, to broaden the base of

their

ownership and thereby encourage the widest

public ownership of energy-oriented corporations;

(k) Formulate such rules and regulations as may be

necessary to implement the objectives of this Act; and

(l) Exercise such other powers as may be necessary or

incidental to attain the objectives of this Act.

CHAPTER II The Department Proper

SECTION 6. Composition. — The Department Proper shall

be composed of the Office of the Secretary and the

Offices of the Undersecretaries and Assistant Secretaries,

and the bureaus and services of the Department.

SECTION 7. Office of the Secretary. — The Office of the

Secretary

shall

consist

of

the

Secretary

and

his

immediate staff.

SECTION 8. The Secretary. — The Secretary shall be

appointed by the President, subject to confirmation by

the Commission on Appointments.

© 2018 Compiled by RGL

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