DEPARTMENT CIRCULAR NO. 2014-08-0014

ENJOINlNG ALL ELECTRICITY- CONSUMING SECTORS TO IMPLEMENT DEMAND-SIDE MANAGEMENT PROGRAM AND OTHER ENERGY CONSERVATION MEASURES

WHEREAS, Republic Act No. 7638, otherwise known as Department of Energy Act of 1992,.W drclares the policy of the State to ensure a continuous, adequate, and economic supply of energy with the end in view of ultimately achieving self- reliance in the country's energy requirements through the integrated and intensive exploration, production, management, and developmentt of the country's indigenous energy resources, and through the judicious conservation, renewal and efficient utilization of energy to keep peace with the country's growth and ewoomic development and taking into consideration the acttive participation of the private sector in the various areas of energy resource development.

WHEREAS, Republic Act No. 9136 or the Electric Power Industry Reforn Act of 2001 also known as EPIRA declares the policy of the State to:

I) ensure the quality, reliability, security of supply. and affordability of electric power; and

2) encourage the efficient use of energy and other modalities of demand side management;

WHEREAS. Section 37(1) of the EPIRA mandates the Department of Energy (DOE) to formulaiC and implement programs, including a system of providing incentives and penalties, for the judicious and efficient use of energy in all energy consuming sectors of the economy;

WHEREAS, on 31 August 2ClO4, Administrative Order No. 103. series of 2004 requires all government agencies, including govemment-owncd and controlled corporation, government financial institutions and other government instrumentalities to adopt measures reducing eIectridty consumption among others;

WHEREAS, Administrative Order No 110, series of 2004 and Administrative Order No.126, series of 2005, the  Govern adopted the Government Energy Management Program to lead by example;

WHEREAS, based on the 2014 Power Supply Situation Outlook for the country prepared by the National Grid Corporation of the Philipptnes (NGCP), it is projected that the country will be experiencing tightness In supply since miljar power planls are scheduled to undertake preventive mtenance during the summer months; and

WHEREAS, the NCCP reported that the Luzon Grid 15 expected to be on a  '"Yellow Alert Status" from March to June 2014, while the Mindanao Grid is already experiencing rotational brownouts.

NOW TI-lEREFORE. from the foregoing premises and pursuant to the mandate under the EPlRA and its implementmg rules and regulations, the DOE declares as follows:

Section 1. Demand Side Management Program. The DOE enjoins all electricity- consuming sectors particularly residential, industrial. commercial establishments including public facilities, operators of advertising billboards, and all other electricity end-users, to implement demand-Side management programs and other energy conservation measures to reduce the country's demand for supply of electricity. Provided that vital infrastructures such as hospitals, militar installations, airoports and of other facilities of similar character may mantain their regular use for the reliability and adequacy of power supply.

 To ensure compliance with this Circular, the DOE's Energy Utilization and Management Bureau (EUMB) shall develop and implement various electricity demand-side management programs and projects nationwide including a system of incentives and penalties for the same, after public consultation.---All DUs are likewise enjoined to implement demand-side management program and other energy conservation measures[...].---All electric power industry participants are hereby enjoined to extend their full support in implementing various energy conservation measures to reduce the demand (or electricity particularly during peak hours of summer months or during times of tightness in supply.

Section 2. Responsibilities of the Electric Power Industry Participants. All electric power industry participants are hereby enjoint to extend their full support in implementing various energy conservation measures to reduce Ihe demand (or electricity particularly during peak hours of summer months orduring timls of tightness in supply,

Section 3. Government Demand-side Management Program. Consistent With Section 3 of Admmistrative Order No. 126. series of 2005, where adequate ventilation is available all government agencies and offices shall discontinue the use of their air conditioning units, when weather permits, Provided That m cases wh(!re llirconditioning units are to be used, thethermoslat shall be sci no lower than 25 degrees celsius.

Section 4. Compliance Moniloring. To ensure the effective and efficient implementation of demand-side management, the DOE should closely monitor that compliance through distribution utilities through the Task Force composed of the Electric Power Industry (EPI), Electric Power Industry Bureau (EPIMB). EUMB and the Office of the Secretary (OSEC) on a weekly basis. Provided,that all government agencies shall contlnue to suomlt its compliance report as required under Section 4 of Administrative Order No. 126, series of 2005, copy furnished the Task Force under this Circular.

Section 5. Repealing clause. Except insofar as may be manifestly inconsistent herewith, nothing in this Circular shall be construed il5 to repeal any of the mechanisms already elCisting or responsibilities already provided for under existing rules.

Section 6. Separilbility of use. If for any reason, any section or provision of this Circular is declared unconstitutional or invalid, such parts not affected shall remain in full force and effect.

Section 7. Effectivity. This Circular shall tilkc effect jmmcdiiltcly and shall remain in effect until otherwise revoked.

Issued at Energy Center, Bonifacio Global City. T