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Image: Power Philippines News
Image: Power Philippines News

Three DOE circulars now more inclusive — PE2

(PE2 Note: PE2 supports the DOE enforcement of 3 new circulars which lower consumption thresholds of designated establishments and which become effective on 11 Jan 2024.)

The Philippine Energy Efficiency Alliance (PE2) recognizes the efforts of the Department of Energy (DOE) in making the Energy Efficiency and Conservation Act more inclusive, thereby securing more local businesses from energy price shocks in the unpredictable global energy market.

This came after the issuance of three new DOE department circulars aimed at reclassifying and adjusting the consumption threshold of the Designated Establishments (DE) in the industrial, commercial, and transport sectors.

“The new DOE department circulars support the overarching objective of making the Energy Efficiency and Conservation Act more inclusive by capturing medium-sized private energy end-users under the policy mandate and obligations of designated establishments in the commercial, industrial, and transport sectors,” said PE2 president Alexander Ablaza.

The circular on the reclassification mandated the department to review, evaluate, update, and adjust the list of identified DEs every two years. With this, electric cooperatives, distribution utilities, as well as transmission utilities, and generating companies were required to submit their lists of energy-consuming establishments and accounts to the department.

Ablaza said that allowing an extensive section of energy end-users would make the transition to clean energy more swift.

“The clean energy transition toward more efficient use of energy can be accelerated if the country captures a wider segment of energy end-use economy,” said PE2.

By doing so, the Philippines would have a better opportunity to contribute to the agreement at COP28, doubling the advancement of energy efficiency by 2030.

The circulars, which were signed last December 18 by Energy Secretary Raphael Lotilla, would take effect on January 11 of this year.

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