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Republic of the Philippines
Department of Energy
(Kagawaran ng Enerhiya)

BAGONG PILIPINAS

DEPARTMENT CIRCULAR NO. DC2026- 01 - 0001

PROMULGATING THE REVISED RULES AND GUIDELINES GOVERNING THE
IMPLEMENTATION OF THE GREEN ENERGY OPTION PROGRAM

WHEREAS, Republic Act No. 7638, otherwise known as the "Department of Energy
(DOE) Act of 1992", declares it as a policy of the State to, among others, ensure a
continuous, adequate and economic supply of energy through the integrated and
intensive exploration, production, management and development of the country's
indigenous energy resources;

WHEREAS, Republic Act No. 9136, otherwise known as the “Electric Power Industry
Reform Act of 2001" or “EPIRA", declares the policy of the State to, among others: (a)
assure socially and environmentally compatible energy sources and infrastructure;
and (b) promote the utilization of indigenous and new and renewable energy (RE)
Resources in power generation in order to reduce dependence on imported energy;

WHEREAS, Section 37(e)(i) of the EPIRA mandates the DOE to encourage private
sector investments in the electric power industry and promote the development of
indigenous and RE Resources;

WHEREAS, Republic Act No. 9513, otherwise known as the "Renewable Energy Act
of 2008" or the “RE Act” declares the policy of the State to increase the utilization of
RE by institutionalizing the development of national and local capabilities in the use of
RE systems, and promoting its efficient and cost-effective commercial application by
providing fiscal and non-fiscal incentives;

WHEREAS, Section 6 of the RE Act provides that all stakeholders in the electric power
industry shall contribute to the growth of the RE industry in the country;

WHEREAS, Section 9 of the RE Act provides that the DOE shall establish a Green
Energy Option Program (GEOP), which provides Electricity End-Users the option to
choose RE Resources as their sources of energy;

WHEREAS, Section 9 of the RE Act, further provides that the DOE, in consultation
with the National Renewable Energy Board (NREB), shall promulgate the appropriate
implementing rules and regulations (IRR) necessary, incidental or convenient to
achieve the objectives of the RE Act;

WHEREAS, on 18 July 2018, the DOE issued Department Circular (DC) No. DC2018-
07-0019 titled, “Promulgating the Rules and Guidelines Governing the Establishment
of the Green Energy Option Program Pursuant to the Renewable Energy Act of 2008”,
establishing the GEOP Rules;

WHEREAS, on 22 April 2020, the DOE issued DC No. DC2020-04-0009 titled,
“Guidelines Governing the Issuance of Operating Permits to Renewable Energy

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City,
Philippines 1632 Tel. No. (Trunkline)(632)8479-2900
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Suppliers under the Green Energy Option Program,” prescribing the guidelines and
procedures in the issuance, administration, and revocation of GEOP Operating
Permits to RE Suppliers;

WHEREAS, on 22 April 2021, the Energy Regulatory Commission (ERC) issued
Resolution No. 08, Series of 2021 titled, “A Resolution Adopting the Green Energy
Option Program,” setting the regulatory framework to operationalize the GEOP;

WHEREAS, on 03 December 2021, the GEOP was implemented on a voluntary basis
in Luzon and Visayas;

WHEREAS, on 31 January 2023, the DOE issued DC No. DC2023-01-0004 titled,
“Adopting Amendments to the WESM Rules, Retail Rules and Various Market
Manuals, and Promulgation of the Retail Manual on the Procedures for the
Implementation of the Green Energy Option Program’;

WHEREAS, with the commencement of the commercial operation of WESM in
Mindanao on 26 January 2023 and cognizant of the readiness of the Mindanao Grid
for retail market operations, the DOE issued DC No. DC2024-03-0009 on 01 March
2024, declaring 26 March 2024 as the commencement date of the commercial
operations of Retail Competition and Open Access (RCOA) and GEOP in Mindanao;

WHEREAS, on 14 August 2024, the ERC issued Resolution No. 13, Series of 2024,
title “A Resolution Adopting the Omnibus Rules for Customer Choice Programs in the
Retail Market”, consolidating all directives and issuances governing the various
Customer Choice Programs in the Retail Market including the RCOA, GEOP, and
Retail Aggregation Program (RAP);

WHEREAS, the DOE acknowledges stakeholder feedback regarding operational
challenges and prospective enhancements to the program aimed at increasing End-
User participation;

WHEREAS, the DOE conducted a public consultation covering Luzon, Visayas, and
Mindanao areas on 13 May 2025 for the proposed amendments to the GEOP Rules;
and

NOW, THEREFORE, premises considered, the DOE hereby issues, adopts and
promulgates the following rules and guidelines:

RULE 1
GENERAL PROVISIONS

Section 1.Title. This Circular shall be known as the "Revised Rules and Guidelines
Governing the Implementation of the Green Energy Option Program (GEOP) in the
Philippines” and shall hereinafter be referred to as the “Revised GEOP Ruies.”

Section 2. Purpose. This Circular shall have the following objectives:

2.1. Harmonize existing rules and set transparent guidelines to address current
challenges of the GEOP; and
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2.2.

Expand the coverage of the GEOP to enable broader participation of End-Users,
RE Suppliers, and other industry players, consistent with the objectives of the
RE Act to promote greater utilization and broader access to renewable energy
resources.

Section 3. Guiding Principles. Consistent with the intent of the RE Act to empower
End-Users to choose RE Resources and contribute in meeting the national RE targets
under the Philippine Energy Plan and the National Renewable Energy Program, the
following principles shall apply:

3.1.

3.2.

3.3.

3.4,

3.5.

Any End-User opting to participate in the GEOP shall inform its host Distribution
Utility (DU) of its plan to source power from RE Resources. The DU and RE
Supplier, on the other hand, shall fully inform the End-User of the attendant
technical, commercial, and legal arrangements necessary to implement the
GEOP;

The DU and RE Supplier shall agree and facilitate, in a timely manner, the
implementation of the GEOP for the End-User, including but not limited to,
applicable wheeling, metering, and supply agreements;

The DUs shall ensure reliable and efficient wire or wheeling services to the End-
User and/or the RE Supplier. In cases the GEOP Supply Contract is canceled,
revoked, or terminated for any reason, the DUs shall continue to provide the
wheeling services; Provided, however, That all obligations of the End-User or RE
Supplier are settled or paid;

All rates and charges to End-Users shall be unbundled, segregated, and itemized
for each of the generation components, transmission charges and/or distribution
charges, supply charges and other applicable charges; and

The GEOP shall be a non-regulated activity, specifically with respect to its
generation and supply components. It is intended to develop and promote the
increased utilization of indigenous and environment-friendly sources of energy
through the empowerment of End-Users to choose RE resources. ;

Section 4. Scope. This Circular shall apply to the following stakeholders:

4.9,
4.10.

. End-Users;

. RE Suppliers;

. DUs including Economic Zone Developers and Utility Enterprises;

. National Transmission Corporation (TRANSCO) or its successors-in-interest;
. Metering Service Providers (MSPs);

. Market Operator (MO);

. Suppliers of Last Resort (SOLR);

. Central Registration Body (CRB);

RE Registrar; and
Energy Regulatory Commission (ERC).

Section 5. Definition of Terms. As used in this Circular, the following terms shall be
defined as follows:
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5.1,

m2,

5.3.

5.4.

5.5.

5.6,

5.7.

5.8.

5.9,

“Aggregated End-User” refers to an End-User that form part of an Aggregated
Group to qualify for the GEOP threshold in accordance with Section 7 of this
Circular.

“Aggregated Group” refers to Aggregated End-Users located within a
contiguous area, whose electricity demand have been consolidated and supplied
by an RE Supplier to qualify for the GEOP threshold in accordance with Section
7 of this Circular;

“Captive Market” refers to End-Users who do not have the choice of supplier of
electricity, as may be determined by the ERC in accordance with the EPIRA;

“Certificate of Compliance” or “COC” refers to a certificate issued by the ERC
in favor of a person or entity to operate a generation facility pursuant to Section
6 of EPIRA and Section 4 of its IRR;

“Contiguous Areas” refer to areas located within geographical boundaries in
which the aggregated supply of electricity of similarly situated End-Users can be
measured through metering devices. Such areas shall be within the same
franchise area of a DU, including:

i. Subdivisions;
ii. Villages;
iii. Business Districts;
iv. Economic Zones;
v. Condominium buildings;
vi. Commercial establishments;
vii. Mixed-use development complexes; and
viii. Others, as may be determined by the DOE and ERC.

“Distribution Utility’ or “BU” refers to any electric cooperative, private
corporation, government-owned utility or existing local government unit which
has an exclusive franchise to operate a distribution system in accordance with
its franchise and the EPIRA, including utility enterprises which are licensed to
operate in the economic zones;

“End-User” refers to any person or entity requiring the supply and delivery of
electricity for its own use and who chooses RE Resources as sources of its
energy; Provided, That it has satisfied the eligibility requirements stated under
Rule 2, Section 6 and 7 of this Circular;

“Generation Facility” refers to a facility where electricity is produced through
the conversion of some other form of energy resource by means of a suitable
apparatus, equipment, or machinery;

"GEOP Operating Permit" refers to a document issued by the DOE to an entity
allowing the supply of electric power to an End-User, pursuant to Rule 5 of this
Circular;

.“GEOP Entities” refer to electric power industry participants mandated to carry

out the responsibilities under the GEOP, pursuant to Section 14 of this Circular;
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5.11.

5.12.

5.13.

5.16.

5.17.

5.18.

5.19.

5.20.

“Metering Service Provider” or “MSP” refers to a person or entity authorized
by the ERC to provide metering services as defined in the Distribution Services
and Open Access Rules;

“Net Electricity Sales” refer to energy supply less system losses and own use
reckoned from 26 December of the preceding year to 25 December of the current
year;

“Network Service Provider” or “NSP” refers to a person or entity engaged in
the activity of owning, controlling, or operating a transmission or distribution
system in accordance with their respective exclusive franchise, intended for the
conveyance of electric power from the Generation Facility to the End-User;

.“RE Certificate” or “REC” refers to a certificate representing all renewable and

environmental attributes from one megawatt-hour (1MWh) of electricity
generation sourced from duly registered and eligible RE Generation Facilities;

. “Renewable Energy Market" or “REM" refers to the venue where RECs are

tracked, surrendered or traded based on the amount of power generated from
RPS-eligible RE resources for the compliance of Mandated Participants with the
Renewable Portfolio Standards (RPS);

“RE Registrar" or refers to the entity designated to operate the RE Market and
to issue, keep and verify RECs, pursuant to Section 8 of the RE Act and DC No.
DC2019-12-0016 (or the "REM Rules");

"RE Resources” refer to energy resources that do not have an upper limit on
the total quantity to be used. Such resources are renewable on a regular basis,
and whose renewal rate is relatively rapid to consider availability over an
indefinite period of time. These include, among others, biomass, solar, wind,
geothermal, ocean energy and hydropower that conform with internationally
accepted norms and standards on dams, and other emerging renewable energy
technologies;

“RE Supplier” refers to any individual or juridical entity created, registered or
authorized to operate in the Philippines in accordance with existing laws, which
is engaged in the production and/or supply of electric power from RE Resources
to End-User, and duly issued an Operating Permit by the DOE and a Retail
Electricity License by the ERC;

“Replacement Power" refers to the supply of electricity to an End-User enrolled
in the GEOP which shall be delivered should the supply contracted by the RE
Supplier be unavailable for whatever cause or reason; and

“Wholesale Electricity Spot Market” or “WESM" refers to the wholesale
electricity spot market established by the DOE pursuant to Section 30 of the
EPIRA.

Furthermore, this Circular hereby adopts by reference the terms defined in the EPIRA
and RE Act and their respective IRRs.
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RULE 2
ELIGIBLE END-USERS

Section 6. Eligible End-Users. The following End-Users may opt to participate in the
GEOP;

6.1. Existing End-Users with a recorded monthly average peak demand of 50 kW and
above for the past twelve (12) months; and

6.2. New End-Users with a projected monthly average peak demand of 50 kW and
above who choose their RE Supplier and apply for a Distribution Wheeling
Services with the host DU.

6.3. GEOP Aggregation. End-Users within a Contiguous Area, whose demand do
not meet the 50 kW eligibility minimum requirement, may form an Aggregated
Group and participate in the GEOP, subject to the following:

There shall be no limit to the number of End-Users forming an Aggregated
Group;

ii. Aggregated End-Users are located in one franchise area of a DU; .

iii. | The RE Supplier shall act as the aggregator and facilitate the switching of the
Aggregated Group, subject to applicable rules and guidelines of the ERC;
and

iv. Until such time that the DOE, in consultation with the industry stakeholders,
determines the readiness of the full implementation of GEOP Aggregation,
the GEOP Aggregation shall apply to all eligible End-Users within a
Contiguous Area as defined in Section 5.5; Provided, That the consumption
of the members of the Aggregated End-Users shall be measured through
metering devices.

6.4. Participation in the GEOP shall be open to eligible End-Users in On-Grid areas
of Luzon, Visayas, and Mindanao.

Section 7.Upholding End-User Choice. Any eligible End-User shall have the option
to voluntarily contract directly with an RE Supplier.

7.1. An End-User from the Captive Market that opted to contract with an RE Supplier
may revert as the customer of the DU; Provided, That it has fulfilled all its
contractual/financial obligations to the RE Supplier and has executed the
relevant agreement for the supply of electricity by the DU.

7.2. Any End-User who reverted to the DU as a customer may again participate in
the GEOP, subject to the fulfillment of its contractual obligations with the DU.

7.3. Reversion of End-Users from retail to Captive Market and vice versa shall
conform with the rules and regulations set by the ERC.
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Section 8. Mandatory Review and Lowering of Threshold. To ensure the
progressive expansion of the GEOP and to eventually allow all end-users the right to
choose renewable energy, the following mechanism for threshold adjustment is hereby
established:

8.1. The DOE, in coordination with the NREB and the ERC, shall conduct an annual
review of the 50 kW threshold. The initial review shall be conducted twelve (12)
months from the effectivity of this Circular;

8.2. The review shall prioritize the phased reduction of the threshold (e.g., to 20 kW,
10 kW, and eventually 0 kW) based on the following indicators:

(a) The number of licensed RE Suppliers in the market;

(b) The availability of smart metering infrastructure; and

(c) The impact of previous threshold reductions on the stability of DU captive
r

8.3. Based on the results of the assessment, the DOE Secretary shall issue a
Supplemental Circular to lower the threshold. Such issuance shall be deemed
an integral part of these guidelines without the need for a full revision of this
Circular.

RULE 3
GEOP SUPPLY, STREAMLINED REGULATION,
AND SUPPORT MECHANISMS

Section 9. Eligible Facilities. The following facilities are eligible to provide electricity
supply under the GEOP:

9.1. All RE Facilities, whether or not the same is eligible for RPS compliance; and

9.2. Energy Storage Systems solely integrated to an RE Facility, subject to rules,
guidelines, and relevant regulations of the DOE and the ERC.

All facilities supplying under the GEOP shall have the necessary Certificate of
Compliance (COC) from the ERC;

Section 10. RE Suppliers. Entities that shall utilize an RE Facility eligible to supply
power under the GEOP shall secure an Operating Permit from the DOE and a Retail
Electricity Supplier (RES) License from the ERC pursuant to Rule 5 of this Circular.

Section 11. GEOP Supply Contract. The GEOP Supply Contract shall govern the
relationship between the End-User and the RE Supplier.

11.1. The GEOP Supply Contract shall not require approval from the ERC. Moreover,
the DOE and ERC may not review the terms and conditions of the GEOP Supply
Contract, including the price of electricity agreed upon, except in the event of
contractual disputes.

11.2. The DU shall not be financially liable for any excess power provided by the RE
Supplier to the End-User under the GEOP Supply Contract.
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Section 12. Billing Mechanisms. End-Users shall have the option to choose
between a single or dual billing arrangement under the GEOP. This notwithstanding,
the RE Supplier shall provide a consolidated billing statement to the End-User
reflecting all charges for the electricity supply and wires/wheeling services from the
DU.

Section 13. Support Mechanism for RE Suppliers.

13.1.Green Energy Auction for GEOP. The DOE may implement an auction
program enabling RE Suppliers to procure RE supply for participating End-
Users. For this purpose, the DOE may direct the Green Energy Auction
Committee to formulate the guidelines and terms of reference and to administer
the auction under this Section.

13.2. RE Pool. To accelerate exploration, development, and utilization of RE
resources and to ensure RE supply is available in a least-cost manner, RE
Suppliers and RE Generators/Developers may enter into a joint action or
establish a pool of RE supply under the GEOP to the extent permitted by
applicable laws.

RULE 4
GEOP MANDATE

Section 14. GEOP Mandated Activities.

14.1. The DUs, MO, and RE Suppliers, shall provide individually and/or collectively,
the mechanisms for the physical connection and commercial arrangements
necessary to ensure the success of the GEOP.

14.2. Any eligible End-User intending to switch to GEOP, including members of an
Aggregated Group through its RE Supplier acting as the aggregator, shall notify
the DU, through registered mail, electronic mail, or personal service, of its
intention to participate in the GEOP within three (3) months prior to the effectivity
of the GEOP Supply Contract.

14.3. End-Users under the GEOP shall comply with obligations and be entitled to rights
set forth in the Magna Carta for Retail Customers under ERC Resolution No. 13,
Series of 2024 or any amendments thereto.

Section 15. Responsibilities of GEOP Entities.

15.1.RE Suppliers shall:

i. Secure an Operating Permit from the DOE pursuant to Rule 5 of this Circular;

ii. Register with the MO, through the CRB and the RE Registrar;

iii. Provide a transparent and simplified offer sheet to the End-User, containing
the terms and conditions of the GEOP Contract to the End-User;
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vi.

vil.

viii.

ix.

Incorporate in the GEOP Supply Contract with the End-User the mechanism
to address the intermittency or availability factor of the RE Facilities to ensure
the continuous power supply service, the provision of Replacement Power,
and the responsibility for payment of transmission and/or distribution wheeling
charges, if applicable;

Ensure transparency in the monthly electric bill of the GEOP's End-User;

Comply with the reportorial requirements of the DOE, ERC, CRB and the RE
Registrar;

Inform the GEOP End-user of its option to choose between a single or dual
billing scheme;

Submit annual reports to the Renewable Energy Management Bureau
(REMB) of the DOE on or before every 30" of January, or as may be deemed
necessary by the DOE. The report shall contain the following data:

(i) | Monthly kWh generated from owned, operated, and/or contracted RE
facility; .

(ii) | Monthly kWh purchased per RE resource;

(iii) Monthly kWh sold per customer;

(iv) Peak Demand per customer in kW;

(v) Available supply capacity per technology in MW;

(vi) Monthly kWh purchased for Replacement Power; and

(vii) Any additional information requested by the DOE.

The DOE shall establish a compliance template for this purpose; and

Facilitate the switching of its GEOP customers including the submission of
complete requirements to the CRB.

15.2.DUs as NSPs shall:

i.
ii.

Provide open and non-discriminatory access to its distribution system;
Segregate and itemize all charges to End-User or RE Supplier;

Ensure reliability and efficiency of transmission or distribution system; and
Incorporate GEOP supply requirements to the annual preparation and
updating of the Distribution Development Plan to consider the needed

infrastructures to support the expansion of RE and effectively operationalize
the GEOP.

15.3. TRANSCO or its successors-in-interest shall:

Provide open and non-discriminatory access to its transmission facilities;

Segregate and itemize all charges to the End-User or RE Suppliers;
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lil.

Ensure the dispatch of the generating facilities, in accordance with the WESM
Rules and the Philippine Grid Code; and

Incorporate GEOP supply to its annual preparation and update of its
Transmission Development Plan, ensuring the reliability and efficiency of the
transmission system, including the provision of the needed ancillary services,
to support the expansion of RE.

15.4. MSPs shall:

iil.

The host DU shall perform as the default Retail MSP within its franchise to
ensure compliance with the installation and maintenance of all revenue
metering facilities of the End-User;

In the case of End-Users directly connected to the transmission facilities,
TRANSCO or its successors-in-interest shall perform as the Retail MSP for
the same End-Users’

Register as GEOP MSP with the CRB; Provided, That all DUs registered as
Retail MSP in the Retail Market shall be automatically registered as GEOP
MSP in the CRB without the need of any supplementing requirements; and

Submit annually on or before the 30" of January or as deemed necessary to
the DOE list of eligible customers under their franchise areas with respective
peak demand (in kW) and contact information.

15.5.DUs as the SOLR shall:

Impose rates and/or charges duly approved by the ERC;

Automatically provide supply to the End-User, in the event that the RE
Supplier and its corresponding Replacement Power is not able to perform its
obligation under the GEOP Supply Contract. As an alternative, the RE
Supplier may enter into a commercial agreement with the DU or other
generators for the provision of Replacement Power to the End-User. The
SOLR mechanism shall only be triggered upon the cessation of service by the
RE Supplier as determined by the ERC; and

All DUs registered as SOLR in the Retail Market shall be automatically
registered as GEOP SOLR in the CRB without the need of any supplementing
requirements.

15.6.CRB and RE Registrar shail:

lil.

Register the GEOP's End-Users with their RE Supplier;

Facilitate amendments to the WESM and Retail Rules and Manuals, if
necessary;

Monitor the compliance of all RE Suppliers and account for the equivalent
RECs generation supplied by the RE Suppliers as prescribed under Section
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16 of this Circular. Any RE Supplier violating this provision shall be subjected
to penalties under Rule 6 of this Circular; and

iv. Submit quarterly report / updates to the DOE including, but not limited to:

(i) | List of GEOP End-Users’ name served by each RE Supplier;

(ii) | Meter Number and Market Short Name;

(iii) Monthly registered peak and average demand (in kV);

(iv) Monthly metered quantity (in kWh);

(v) Number of GEOP End-Users that switched, sorted by the DU
franchise area; and

(vi) Percent (%) increase in Switching per DU franchise area.

Section 16. Responsibilities of the DOE through the REMB. Consistent with
Section 32 of the RE Act, the REMB shall:

16.1. Evaluate the applications for and recommend the issuance of Operating Permits
to RE Suppliers, pursuant to Rule 5 of this Circular;

16.2. Monitor the energy output compliance of all RE Suppliers;

16.3.Post on the DOE website the GEOP requirements and processes, list of RE
Suppliers issued with GEOP Operation Permits with contact details, and other
relevant information about the GEOP;

16.4. Conduct Information, Education and Communication Campaign campaigns to
inform all End-Users and other entities involved in the GEOP; and

16.5. Undertake regular review and assessment of the GEOP Rules, including the
GEOP eligibility threshold to promote wider utilization of RE resources, and
propose amendments, if necessary.

Section 17. Other Provisions.

17.1. Provision of Replacement Power. To ensure that End-Users are supplied with
24/7 sufficient and reliable electricity, the RE Supplier shall secure adequate
supply and ensure the availability of Replacement Power. Within three (3) years
but no later than five (5) years from the effectivity of this Circular, an RE Supplier
may source at least fifty percent (50%) of its Replacement Power from RE
Resources, and the balance requirements may be sourced from WESM or other
supply sources. Thereafter, all Replacement Power shall exclusively be sourced
from RE Resources.

17.2.Energy Supply Volume-based Matching. To ensure proper accounting and
provide flexibility in the implementation of Section 17.1 hereof, at the end of each
contract year, the total energy delivered, in kWh or MWh, including Replacement
Power, supplied by a RE Supplier to its End-User shall be equal or greater than
the contracted energy and demand of the End-user.
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17.3. RECs Derived from the GEOP. The RECs generated from the energy supplied
to the End-Users under the GEOP are classified as Voluntary RECs and shall be
allocated to the relevant End-User as a party to the GEOP Supply Contract.

RULE 5
GEOP OPERATING PERMIT GUIDELINES

Section 18. RE Supplier Qualifications. Any person, natural or juridical, registered
and/or authorized to operate in the Philippines under existing Philippine laws and
engaged in the business of generating and/or supplying electricity from RE Resources
may apply fora GEOP Operating Permit as a RE Supplier under GEOP;

Section 19. Application Requirements. All applications, including new and renewal
of the GEOP Operating Permit, shall be in writing and verified. All applicants shall
likewise submit the following documents to the DOE:

19.1. Affidavit of undertaking on the capability to supply and deliver the RE generation
to the End-user, indicating all RE Facilities, including Replacement Power, where
the supply for the GEOP will be sourced;

19.2. Proof of RE Supply Contract/s;
19.3. Proof of payment of the processing fee.

All existing RE Suppliers under the RCOA intending to supply electricity under the
GEOP shall apply for a GEOP Operating Permit and comply with all the requirements
stated herein.

Section 20. Processing and Approval of Applications.

20.1. The DOE, through the REMB, shall be responsible for evaluating all applications
for the issuance of GEOP Operating Permits to eligible RE Suppliers.

20.2. Within ten (10) working days from the submission of complete application
documents and compliance with the requirements, the REMB Director shall
recommend to the Secretary the approval or disapproval of the application.

20.3. The application shall be acted upon by the DOE Secretary, upon endorsement
by the Supervising Assistant Secretary and Undersecretary of the REMB.

Section 21. Period of Validity. The GEOP Operating Permit shall be valid for a
period of five (5) years from the date of issuance stated therein, unless earlier revoked
by the DOE for any violation of this Circular.

Section 22. Renewal of Application. Six (6) months prior to its expiration, the RE
Supplier may apply for renewal of its GEOP Operating Permit, subject to submission
of required documents and payment fee under Section 19 of this Circular.
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Section 23. Suspension, Revocation or Cancellation of GEOP Operating
Permits. The DOE may suspend, revoke, or cancel any GEOP Operating Permit on
the following grounds:

23.1. Failure of the RE Supplier to comply with its obligations under the GEOP Rules
and the terms and conditions under which the GEOP Operating Permit was
issued;

23.2. Providing false or misleading information to the End-User or the DOE;

23.3. Failure to respond to DOE directives, communications, inquiries within the
periods provided therein, or address customer complaints within five (5) working
days from receipt of the same; and

23.4. Termination of the GEOP Contract by the End-User for cause.

Upon a positive finding by the DOE that the RE Supplier has committed of any of the
above enumerated grounds, the latter shall be required to explain in writing why its
GEOP Operating Permit should not be suspended, revoked, or cancelled. The RE
Supplier shall be given a non-extendible period of fifteen (15) calendar days to submit
its explanation, which shall be accompanied by supporting documents.

Not later than fifteen working (15) days from its receipt of the RE Supplier's written
explanation, the REMB shall submit its findings and recommendations to the DOE
Secretary, through its Supervising Assistant Secretary and Undersecretary. The DOE
Secretary shall have a period of five (5) working days to act upon said
recommendation. The decision of the DOE Secretary shall be final and immediately
executory,.

The RE Supplier shall immediately be notified of the decision of the DOE Secretary in
writing, within three (3) days upon receipt by REMB of the DOE Secretary's decision,
through personal service, registered mail, private courier service, or through electronic
mail.

Section 24. Penalties. Without prejudice to Rule 6 of this Circular, the following are
the penalties which may be imposed upon a RE Supplier that has been found to have
committed any of the acts provided in Section 23 hereof and has failed to provide
justifications therefor:

24.1. First Offense. Suspension of the GEOP Operating Permit for six (6) months;

24.2. Second Offense. Suspension of the GEOP Operating Permit for one (1) year;
and

24.3. Third Offense. Cancellation/Revocation of the GEOP Operating Permit.

Provided, That in cases where the RE Supplier was found to have twice committed
the same violation in succession, the GEOP Operating Permit shall be
cancelled/revoked.

RULE 6
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PROHIBITED ACTS AND SANCTIONS

Section 25. Prohibited Act. Pursuant to Section 35(e) of the RE Act, non-
compliance with or violation of the GEOP Rules shall be subject to the administrative
and/or criminal penalties herein provided.

Section 26. Penalties for Non-Compliance. Consistent with RE Act, its IRR and
this Circular, the following administrative and criminal sanctions may be imposed:

26.1. Administrative Liability. The DOE may impose a penalty ranging from a
minimum of One Hundred Thousand Pesos (P100,000.00) to Five Hundred
Thousand Pesos (P500,000.00) or, upon its discretion, may recommend to the
appropriate government agency, the revocation of the DU's or Generation
Facility’s license, franchise, or authority to operate;

26.2. Criminal Liability. In accordance with Section 36 (Penalty Clause) and Section
35 (Prohibited Acts) of the RE Act, any person who willfully fails to comply with
or violates the GEOP Rules shall be imposed with the penalties provided under
the RE Act. Any person who willfully aids or abets the commission of such failure
or violation or who causes the commission of any such act by another shall be
liable in the same manner as the principal.

In the case of associations, partnerships, or corporations, the penalty shall be
imposed on the partner, president, chief operating officer, chief executive officer,
directors or officers responsible for the violation.

The failure to comply with or any violation of the GEOP Rules, upon conviction
thereof, shall be imposed the penalty of imprisonment of one (1) year to five (5)
years, or a fine ranging from a minimum of One Hundred Thousand Pesos
(P100,000.00) to One Hundred Million Pesos (P100,000,000.00), or twice the
amount of damages caused or costs avoided for non-compliance, whichever is
higher, or both upon the discretion of the court.

This is without prejudice to the penalties provided for under existing
environmental regulations prescribed by the Department of Environment and
Natural Resources or any other concerned government agency;

26.3. The DOE Rules of Practice and Procedure shall be applicable to cases for the
imposition of the foregoing penalties; and

26.4.In no case shall a fine or penalty imposed on a DU or RE Supplier/Generation
Facility be charged to any of its End-Users or be considered as a substitute for
compliance.

Section 27. Separability Clause. If any provision of this Circular is declared invalid
or unconstitutional, the other provisions not affected thereby shall remain valid and
subsisting.

Section 28. Repealing Clause. All previous Department Circulars which are
inconsistent with the provisions of this Circular are hereby repealed, amended, or
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modified accordingly. Correspondingly, DC Nos. DC2018-07-0019 and DC2020-04-
0009 are hereby repealed.

Section 29. Effectivity. This Circular shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation. Copies of this Circular
shall be filed with the University of the Philippines Law Center — Office of the National
Administrative Register.

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bs Sh4ron S. Garin

26 JAN 2026