THE Department of Energy (DoE) is drafting guidelines that would govern the audit and reporting and remittance obligations of companies engaged in exploration, development and utilization of coal, petroleum, renewable energy (RE) sources, and power generation.
The DoE cited its authority to do so under Administrative Order No. 38, which allows it to “formulate and implement fiscal policies, programs, and regulations on the indigenous energy resources service contractors (SCs), power generation companies (GenCos), and energy resource developers (ERDs).”
The draft circular covers the submission of financial reports; remittance of the government’s share of contracts to the DoE; direct remittance of financial benefits to the host local government units and designated beneficiaries of GenCos and ERDs; and the audit and evaluation of such reports and remittances.
“All submissions of mandated financial reports shall be complied with in accordance with the prescribed timelines as provided under existing DoE issuances,” the DoE said.
Failure to submit any financial reports on time will trigger a penalty of P1,000 per report, with “any fraction of a quarter considered one quarter,” the DoE said.
Lateness or non-submission after one year will trigger the “initiation of the suspension and/or cancellation of the coal, petroleum and RE service contracts and/or revocation of permits and accreditation certificates.”
Non-compliant GenCos and ERDs may result in a DoE recommendation to suspend or revoke their permits, certificates, and other authorizations to the Energy Regulatory Commission for appropriate action.
GenCos and ERDs will be required to submit to the DoE an electricity sales report and allocation and remittance report on a per power plant basis within 60 days after each billing quarter of a calendar year.
“The DoE shall commence the audit of the books of account of the auditee within 36 months following the end of each calendar year. Any audit shall be completed within 12 months from the commencement thereof,” the department said.
“Within 45 working days following the completion of such audit, the DoE shall issue an initial audit report, including audit exceptions on the reported revenues, expenditures, and electricity sales in kWh (kilowatt hour), if any,” it added.
Meanwhile, the DoE said that failure to remit the assessed government share will result in interest and/or surcharges computed from the day following the date when the assessment became final and executory. — Sheldeen Joy Talavera