The Department of Energy (DOE) is clamping down on power generation companies, with more than a hundred firms facing potential regulatory penalties for failing to justify prolonged plant shutdowns and reduced operating capacities.

In a briefing on Monday, July 6, Gabriel B. Corpuz, legal officer of the DOE's Renewable Energy Management Bureau (REMB), said the agency has flagged 114 generation companies that have yet to explain the operational lapses affecting their facilities.

Out of 164 power firms initially issued show-cause orders due to extended outages or derated capacities, only 37 have submitted formal explanations. Five companies have requested deadline extensions, while 18 have acknowledged receipt of the government notices.

While the DOE has withheld the identity of the non-compliant companies, the agency is pressing for responses from the remaining generators to address supply vulnerabilities. The widespread outages have triggered grid instability and exacerbated power deficits across the country. The majority of the affected facilities are located in the Luzon and Mindanao grids, with approximately 20 companies situated in the Visayas region.

Under agency protocols, generation companies are required to submit valid explanations, comprehensive incident reports, and technical restoration plans within three days of receiving a notice. However, many operators have already missed their compliance windows.

“Their deadline was April. So they have a very long extension of us waiting for the response,” Energy Secretary Sharon Garin said.

The prolonged silence from operators will prompt deeper government interventions, according to Garin. The energy chief warned that the department is preparing to launch physical inspections of the errant facilities to verify if operators committed material violations of their power supply agreements or their certificates of compliance.

Confirmed infractions will be forwarded to the Energy Regulatory Commission, the industry watchdog empowered to impose fiscal penalties. Beyond administrative fines, habitual violators face severe regulatory sanctions, including the revocation of their certificates and operating licenses, Corpuz said.

Furthermore, blacklisted power producers will be barred from participating in future competitive selection processes and the government’s Green Energy Auction program, effectively cutting them off from lucrative new supply contracts.