Power generation companies risk fines, permit suspensions, and even exclusion from government-run power auctions under tighter accountability rules issued by the Department of Energy (DOE).

Under Department Circular (DC) No. DC2026-02-0006, the DOE formalized an accountability policy covering all entities operating generation facilities to supply electricity to end-users.

The order covers Generation Companies, New Power Providers, Microgrid Service Providers, National Power Corp.–Small Power Utilities Group, distribution utilities, and local government units with generation assets.

“Accountability in the generation sector is essential to safeguarding power supply and sustaining confidence in the industry,” Energy Secretary Sharon S. Garin said Tuesday.

“This Circular reinforces clear standards and transparent reporting, and it supports timely corrective action to keep the power system dependable for households and businesses.”

The Circular sets stricter operational standards and enforcement measures to ensure reliable, affordable, and secure electricity nationwide.

For generation companies and other operators, this means tighter documentation, mandatory assessments, and closer scrutiny of compliance with permits and regulations.

Non-compliant entities risk fines, permit suspensions, and exclusion from DOE-administered auctions and programs. The DOE can also issue directives to prevent harm to the power system and consumers.

Facilities must operate only with valid certifications and clearances, keep regulatory approvals current, submit accurate reports, and promptly disclose incidents with corrective plans.

The DOE said reliable generation is critical to meeting rising demand, supporting economic activity, and sustaining the energy transition.

The rules are designed to prevent risks, enforce timely corrective action, and minimize system impacts.