Philippines releases draft regulations to amend requirements for designated establishments based on Energy Efficiency and Conservation Act 
On August 1, 2023, the Philippine Department of Energy (DOE) published three draft department circulars that stipulate compliance guidelines for various requirements for designated establishments in order to reclassify the designated establishments based on the Energy Efficiency and Conservation Act (RA11285) for each sector of industrial, commercial, and transport, and began soliciting opinions. Comments will be solicited until August 11, 2023. In addition to strengthening the threshold for designated establishments that are required to implement various energy efficiency and conservation measures, the draft department circulars stipulate the latest guidelines for the obligations on designated establishments, such as the submission of reports, the appointment of an Energy Efficiency (EE) Practitioner, and energy audits.
The details of the draft department circulars and the call for opinions can be viewed at the following URL:
https://www.doe.gov.ph/announcements/call-comments-three-3-draft-department-circular-designated-establishments-des-under
The following is an outline of the draft department circular for industrial facilities.
Sub-Sectors under the Industrial Sector
The sub-sector of designated establishments that are under the industrial sector shall be determined based on the Philippine Standard Industrial Classification (PSIC). The industrial classification based on PSIC is also published in Annex A of the draft department circular.
Classification of designated establishments
Designated establishments in the industrial sector are reclassified as follows according to their annual energy consumption: Refer to Section 10 for the method for calculating energy consumption.
| Category | Annual energy consumption |
|---|---|
| Other designated establishments | Less than 50,000 kWh |
| Type 1 designated establishment | 50,000 kWh to 1,000,000 kWh |
| Type 2 designated establishment | 1,001,000 kWh to 8,000,000 kWh |
| Type 3 designated establishment | 8,000,001 kWh or more |
Annual energy consumption reporting is also mandatory for designated establishments with an annual energy consumption of less than 50,000 kWh.
In addition, depending on whether it is a building/establishment located at a single address, or a building/establishment located at another address/location that is handled, managed, or supervised by the head office, etc., the “Single Address Designated Establishments” (SADE) or “Consolidated Designated establishments” (CDE) classification is given.
Submission of Reports
Designated establishments in the industrial sector must submit their Annual Energy Use Report (AEUR) and Annual Energy Efficiency and Conservation Report (AEECR) through the dedicated online submission platform. After submission, the DOE may conduct on-site inspection.
EE Practitioner
Designated establishments in the industrial sector must appoint appropriate an EE Practitioner as follows: The EE Practitioner must complete the prescribed training and be certified by the DOE. The certification process shall follow the provisions under DC No. DC2022-03-0007 or the Adoption of Training Regulations for the Certification of Energy Conservation Officer (ECOs) and DC No. DC2022-03-0008 or the Adoption of Training Regulations and Prescribing Certification Process for Training Institutions and Energy Managers (EMs)
| Category | EE Practitioner (mandatory) | Support staff (recommended) |
|---|---|---|
| Other designated establishments | N/A | N/A |
| Type 1 designated establishment | Certified Energy Manager (CEM) | Certified Energy Conservation Officer (CECO) |
| Type 2 designated establishment | ||
| Type 3 designated establishment | Certified Energy Manager (CEM) and Certified Energy Conservation Officer (CECO) |
Energy Auditing
Type 1, Type 2, and Type 3 designated establishments must submit energy audit reports to the DOE every three years. For other establishments, energy audits are recommended. For other designated establishments and Type 1 designated establishments, a Level 1 audit (on-site analysis) focusing on the identified significant energy use (SEU) is required. It can be performed by in-house energy auditors and is subject to evaluation. For Type 2 and Type 3 designated establishments, a Level 2 audit focusing on the SEU (Detailed Audit) is mandatory. If carried out by an internal energy auditor, it must be verified externally. In addition, mutual audits between designated establishments or within subsidiaries of business entities are also allowed. If the designated establishment decides to validate the report or conduct a mutual audit, the certification agreement or project agreement must be attached as an annex to the energy audit report.
In addition, the following is also stipulated in the circular.
- Identification of Significant Energy Use (SEU
- Establishment of Energy Usage Index (EUI)
- Integration of energy management system into business operations
- Grace period for submitting reports and identifying and certifying EE Practitioner
- Prohibited Acts and Penalties
