The Department of Energy (DoE) has announced plans to issue show-cause orders (SCOs) to 175 generation companies due to prolonged unplanned outages and other violations that have strained the country's power supply.
At a briefing, Energy Secretary Sharon S. Garin emphasized the importance of ensuring that generation companies meet their obligations to deliver power to the public. "This is a reminder to generation companies that they are public service providers," she said. "As a public service provider, you have an obligation to deliver to the people what is in demand, what is needed, in accordance with your contract with the distribution utility."
The majority of the companies receiving SCOs are located in Luzon, with about 60 to 80 having failed to deliver their committed capacities. In addition, around 20 firms in the Visayas and 40 in Mindanao will also be asked to explain their actions.
The DoE cited a range of violations, including forced outages, prolonged deratings, and failure to deliver committed capacities. The department also noted that some generation companies failed to submit required self-assessment forms, as mandated by a DoE circular issued in February 2026.
The circular covers various entities, including generation companies, new power providers, and distribution utilities. Noncompliant generation companies may face administrative sanctions, such as submission of corrective action plans, fines, suspension of operating authority, blacklisting from DoE auctions or programs, or cease-and-desist orders.
Energy Secretary Garin emphasized that enforcement actions will be carried out carefully to ensure that consumers have access to electricity. "Consumer protection must come first," she said. "We need to ensure that consumers have electricity day in and day out, which is why each and every case must be carefully planned."
The DoE has reported that the Visayas grid has experienced 45 yellow alerts and five red alerts due to forced outages of several power plants, resulting in rotational power interruptions in some areas. The department has vowed to enforce rules to prevent such disruptions, particularly in island and off-grid areas where providers are the sole source of power.
Meanwhile, the DoE has announced that 40 energy projects with a combined capacity of about 1.5 gigawatts have entered commercial operations so far this year. These projects are part of a larger effort to fast-track 200 energy projects directed by President Ferdinand R. Marcos, Jr. over the next three years.
Additionally, 14 energy projects with a combined capacity of 371.8 megawatts are in the advanced stages of testing and commissioning and are expected to begin commercial operations once they complete the remaining technical and regulatory requirements.
