Nearly 200 Power Firms Face Blacklisting Over Supply Shortages

MANILA, Philippines — At least 175 power producers are at risk of blacklisting over prolonged plant outages that have strained the country’s electricity system and triggered blackouts, according to the Department of Energy (DOE). DOE Secretary Sharon Garin said show cause orders (SCOs) would be issued to 164 on-grid and 11 off-grid generation companies (gencos) this week, demanding explanations for forced outages, reduced output, and failure to deliver committed capacities. The violations cover incidents between March 2025 and March 2026, with most SCOs targeting erring gencos in Luzon, where the majority of affected power plants are located. “We will enforce the rules on this because, as we have seen what’s happening in the Visayas, our consumers cannot afford any minute of interruption,” Garin told a media briefing yesterday. She added that power plant outages hit consumers in island and off-grid areas the hardest, as they rely solely on gencos for electricity supply amid the lack of grid connections. The shutdown of multiple power plants was felt most during the dry season, when extreme heat further intensified electricity demand and worsened grid conditions, triggering recurring alerts nationwide. Luzon and the Visayas simultaneously faced a string of yellow and red alerts in May, leading to rotational brownouts lasting up to seven hours, while Mindanao recorded its first yellow alert in June. Power strain continues to persist in the Visayas, where several major coal-fired plants remain offline. A yellow alert is raised when power reserves fall to low levels. If conditions worsen, it escalates to a red alert, which is issued when electricity supply is no longer enough to meet consumer demand. Garin warned that the issuance of SCOs is “just the start,” stressing that gencos found in violation could face permit revocation. DOE legal officer Gabriel Corpuz said the agency could go even further by blacklisting non-compliant gencos and barring them from joining government-approved auction programs for power supply deals. Corpuz cited the DOE circular outlining the accountability policy for entities engaged in power generation as the legal basis for the possible sanctions. “Although power generation is no longer a public utility, it is still subject to the Public Service Act. That’s why the DOE is holding them accountable for deficiencies,” he told reporters. Garin, meanwhile, clarified that the issuance of SCOs does not imply liability, noting that the agency still needs to assess the companies’ explanations and performance before taking further action. Asked about the identities of the gencos, the energy chief said the DOE is “not at liberty to give the names yet” to avoid any complications.