DOE releases guidelines on technical audit for gencos, distribution utilities


The Department of Energy (DOE) is seeking to regulate a compliance assessment to evaluate the performance and efficiency of generation companies and power distributors.

The DOE published the draft circular “Providing for the Policies and Guidelines on the Conduct of Performance Audits for all Power Generation and Distribution System Facilities” on Tuesday and is seeking comments from gencos and distributors until next week.

The agency said there is a need for a regular compliance assessment on issuances, permits and licenses in the power sector. Once in effect, gencos and power distributors will be mandated to undergo a Technical Performance Audit conducted by an independent third party.

The audit will also determine the shortcomings in operations that contribute to power interruptions such as disruption in the electricity supply and the instability of electricity prices in the market.

Results from the technical audit will be used by the DOE to build its policies.

“Nothing in this circular is intended to encroach or step in the authority of the ERC (Energy Regulatory Commission) but the Technical Audit shall serve as basis of DOE’s future policies instrumental to the attainment of the primary goal of EPIRA particularly in ensuring the security, reliability and affordability of the supply of electric power,” the agency said.