DC2023-12-0032 — RPS Administrative Actions and Penalties
Full title: The Rules and Regulations on Administrative Actions for Violations of the Renewable Portfolio Standards (RPS) Rules
Issued: December 7, 2023 Signatory: Secretary Raphael P.M. Lotilla Authority: RA 9513 §36; DC2017-12-0015 §24(a) Rule 7 (as amended by DC2023-05-0015); DC2023-05-0014 §21(a) Rule 7
Effective: 15 days after publication in 2 newspapers of general circulation. Copy filed with UP Law Center — Office of the National Administrative Register.
What This Circular Does
DC2023-12-0032 establishes a comprehensive standalone procedure for all administrative actions arising from violations of the RPS Rules (on-grid and off-grid). It supersedes the penalty provisions of DC2017-12-0015 §24 and DC2023-05-0014 §21 by creating a dedicated enforcement framework, rather than relying on the general DOE Rules of Practice and Procedure.
Document Structure
| Part | Rules | Subject |
|---|---|---|
| Part I | Rule 1 (§§1–4) | Title, scope, 17 definitions, interpretation + suppletory Rules of Court |
| Part II | Rules 2–9 (§§1–29+) | Full administrative proceedings before the RPSCT |
| Part III | Rule 10 (§§1–2) | Institution of criminal proceedings |
| Part IV | Sections 1–7 | Final provisions, RPSCT internal rules, repealing clause, effectivity |
Key Definitions (Rule 1 §3)
| Term | Definition |
|---|---|
| RPSCT | RPS Composite Team — created under DC2017-12-0015 §19 Rule 5; composition ordered by Secretary from time to time |
| RPSCT Chairperson | Officer designated by Special Order as Chairperson |
| RPSCT Secretariat | Technical Management Services Division of REMB |
| Compliance Period | 26 December of current year to 25 December of following year |
| Report | RPSCT action upon a Complaint or REMB inquiry |
| Decision | Secretary’s action on the Report |
| Final Resolution | Secretary’s action on a Motion for Reconsideration |
| Protest | Request of aggrieved party to reconsider RPSCT Report |
| Show Cause Order | RPSCT directive requiring respondent to answer allegations |
Commencement of Administrative Actions (Rule 2)
- By complaint: filed within 4 years from last day of applicable Compliance Period
- RPSCT motu proprio: issued within 1 year from last day of applicable Compliance Period (upon REMB duly validated findings)
- Filing fee: PhP2,500–PhP20,000 (RPSCT may revise with Secretary approval); paid within 10 working days or complaint dismissed
- Email filing: rpsct_complaint@doe.gov.ph (PDF; electronic signature per Rules on Electronic Evidence)
- Evaluation: RPSCT decides within 5 working days of payment receipt whether to dismiss outright or require answer
Distribution utilities and entities holding a public franchise must name their officers and/or directors as additional respondents.
Procedural Timeline Summary
| Stage | Actor | Deadline |
|---|---|---|
| Answer | Respondent | 10 working days from Notice (1 extension max 30 calendar days) |
| RPSCT Report | RPSCT | 90 working days from respondent’s receipt of complaint/order |
| Protest (if any) | Aggrieved party | 15 calendar days from receipt of Report |
| RPSCT resolves Protest | RPSCT | 30 working days from filing |
| Endorsement to Secretary | RPSCT | 3 calendar days after resolution/expiry of protest period |
| Secretary’s Decision | Secretary | 30 working days from receipt of Report |
| Motion for Reconsideration | Party | 15 calendar days from receipt of Decision |
| Position Paper (aggrieved) | Aggrieved party | 15 calendar days from Secretary’s Order |
| Position Paper (adverse) | Adverse party | 15 calendar days from receipt of aggrieved party’s Position Paper |
| Final Resolution | Secretary | 30 working days after submission for resolution |
| Finality of Decision | — | 15 calendar days after receipt if no MFR filed |
| Finality of Final Resolution | — | 15 calendar days after receipt if no appeal to OP |
| Appeal to Office of the President | Aggrieved party | Per AO 22 s.2011 |
Default and Motion to Dismiss (Rules 3)
- Default if no answer filed: RPSCT may proceed to issue Report granting complainant’s relief; respondent may file motion under oath before Report issues upon showing of fraud/accident/mistake/excusable negligence + meritorious defense
- Motion to dismiss: only allowed on prescription grounds; all other grounds must be pleaded as affirmative defenses in the Answer
Administrative Penalties (Rule 8 §1)
Applicable authority: RA 9513 §36; DC2017-12-0015 §24(a) Rule 7; DC2023-05-0014 §21(a) Rule 7
The Department may impose one or more of:
(a) Administrative fines:
Minimum: PhP100,000 to PhP500,000
Alternatively: total damages caused or costs avoided for noncompliance — whichever is higher
Formula:
Cost Avoided for Noncompliance = (RR₁ − RR₂) × NES × 365
Where RR₁ = retail rate if respondent was RPS-compliant; RR₂ = actual retail rate charged to customers; NES = Net Electricity Sales in kWh for the year of noncompliance
(b) Cancellation or suspension of any permit, license, authority, or registration:
- Suspension not to exceed one (1) year
(c) Withholding of new permits, licenses, authorities or registrations
Critical constraint: Fines are imposed against officers and/or directors of the respondent and shall not be passed on to the Captive Market.
Escalating Sanctions
| Offense Count | Sanction |
|---|---|
| 2nd violation | DOE recommends revocation of respondent’s license, franchise, or authority to operate to appropriate government agency |
| 3rd violation | DOE recommends filing of criminal action for RA 9513 violation |
All escalation actions take effect only after finality of the Decision or Final Resolution.
Criminal Penalties (Rule 10)
Prohibited acts: Non-compliance/violation of RPS Rules (RA 9513 §35(a) and §35(e))
On 3rd violation, DOE refers matter to relevant government agency for criminal investigation and prosecution.
Penalties upon conviction:
- Imprisonment: 1–5 years
- Fine: PhP100,000–PhP100,000,000 or twice the amount of damages/costs avoided for noncompliance — whichever is higher
- Or both, at the court’s discretion
Corporate liability: Imposed on the partner, president, COO, CEO, directors, or officers responsible for the violation. Aiders and abettors are liable as principals.
Confidentiality (Rule 9)
DOE employees and RPSCT officers/members are prohibited from discussing any case or phase thereof with either party in the absence of the other, or with any third person without legal standing.
Final Provisions
- RPSCT shall issue internal rules within 60 calendar days of effectivity (covering quorum, voting, deliberations, filing, agenda, rollo, document repository)
- NREB and DOE to conduct IEC activities per RA 9513 §31 Rule 10
- Legal Services assists and supports DOE units during proceedings
Repealing Clause
The following provisions are repealed by DC2023-12-0032:
- DC2017-12-0015 §24 — penalty/enforcement provisions of the on-grid RPS rules
- DC2023-05-0014 §21 — penalty/enforcement provisions of the off-grid RPS rules
Specifically, the portions referring to applicability of the DOE Rules of Practice and Procedure to cases covered by this DC are repealed; the remaining substantive penalty ranges remain referenced as the authority for fines under Rule 8.
Full text: Cleaned copy