Audit report shows DOE failed to collect P1B from energy firms

State auditors found that the Department of Energy (DOE) collected only some P217 million out of the P1.2 billion owed by energy exploration and development companies as of 2022.

They called out the DOE for the low collections that have been a recurring problem for years.

“The non-collection of the above-mentioned balances deprived the DOE of using the funds for their intended purposes,” they stated in the report.

As of December 31, 2022, the remaining balance amounted to P1.02 billion.

The Commission on Audit (COA) reported that the total billings for Training Commitment (TC) during the year reached P972.39 million, but the actual collection was only P198.78 million. 

Meanwhile, the outstanding Development Assistance (DA) amounted to P264.51 million, but only P18.9 million has been paid.

The DOE collects TC and DA funds from service contracts related to the exploration, development, and production of conventional energy sources such as petroleum and coal, as well as renewable energy sources including biomass, geothermal, hydropower, ocean/tidal, wind, and solar.

Remittances from training commitments are set aside for the training needs of DOE personnel, and if unpaid within the year, they accrue for the duration of the service contract.

The Development Assistance, meanwhile, serves as a financial obligation aimed at bolstering the DOE’s technical resources, thereby facilitating the administration and monitoring of related projects. The assistance can be provided either in cash or in-kind.

The breakdown of uncollected obligations from service contractors showed that the largest outstanding balances were from hydropower companies at P275 million, followed by wind at P152 million, petroleum at P141 million, and solar at P112 million.

In response to the findings, the DOE said it would come up with strategies to improve collections from energy operators, regardless of the status of their contracts. – Rappler.com