Over 100 erring power firms snub DOE show-cause order

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July 7, 2026 | 12:00am

MANILA, Philippines — Some 121 power producers appear to have shrugged off show cause orders (SCOs) issued by the Department of Energy (DOE) over potential violations.

Energy Secretary Sharon Garin said 114 of the 174 on-grid power generation companies (gencos) served with SCOs last week failed to respond.

In off-grid areas, meanwhile, seven of the 29 gencos also did not comply with the directive to explain their reportorial lapses and the prolonged outages of their power plants.

“The fact that the gencos did not respond to SCOs by the DOE is already a violation by itself,” Garin told a media briefing yesterday.

She warned that continued noncompliance would prompt the DOE to conduct further investigations and inspect the gencos’ facilities for possible violations of their power supply deals and permit conditions.

“Once these violations are established, the DOE can impose the penalties. And these will also be forwarded to the Energy Regulatory Commission for further action,” Garin warned.

“Now, the gravity of that can be escalated if we find out that they have other violations,” the energy chief said.

The DOE issued SCOs to the erring gencos, requiring them to explain their failure to submit self-assessment forms for the March 2025 to March 2026 period.

The agency also demanded explanations for forced outages, reduced output and the companies’ failure to deliver their committed capacities.

If found in violation, the gencos may be subject to administrative sanctions, including penalties and permit revocation, according to DOE legal officer Gabriel Corpuz.

The DOE, Corpuz noted, could go even further by blacklisting noncompliant firms, preventing them from joining government-approved power supply auctions.

The country’s major grids, especially the Visayas, came under power supply strain as several major plants went offline simultaneously. High electricity demand driven by the summer heat further tightened supply conditions.

According to Garin, the Visayas grid returned to normal conditions on July 1 after Panay Energy Development Corp.’s Unit 3 resumed operations, restoring 150 megawatts of capacity.

“This ends nearly two months of recurring supply warnings that began in May and reflects a welcome improvement in the region’s operating reserves, reducing the risk of rotating power interruptions,” she said.