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Energy & Related Regulations

COVID-19 Client Advisory

AS OF 17 MARCH 2020

As of 17 March 2020

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COVID-19 Client Advisory on Energy & Related Regulations

A. Effect on Operations

1. Are there any restrictions on the operation of private establishments providing

power and energy services during this Enhanced Community Quarantine (ECQ) period? Private establishments providing basic necessities and such activities related to, among others, power and energy, are mandated to operate during this period. In all such establishments, the management is required to adopt strict skeletal workforce to support operations, as well as strict social distancing measures.

2. Is the movement of energy-related goods and domestic travel of personnel permitted during the quarantine period? Yes. According to DOE Memorandum dated 14 March 2020, the importation and domestic transportation of the following are allowed:

(a) Fuel, such as diesel, fuel oil, natural gas, coal and lubricants, and

(b) Spare parts needed to build, operate and maintain energy infrastructure, including energy exploration, development, generation, transmission, distribution and energy retail.

The movement of cargo within, to and from the entire Luzon remains unhampered, subject to guidelines issued by the Department of Transportation with respect to the accompanying crew or personnel of transiting cargo, as per the Memorandum of the Executive Secretary dated 16 March 2020. Likewise, domestic travel of energy-related work force is allowed, provided company ID is presented. For those who perform indirect services such as the security, technical and other support personnel, they may present certification from the energy agency or the company. Kindly refer to our Advisory on Employment Matters and relevant Supplements for labor-specific concerns.

As of 17 March 2020

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According to IATF Media Briefing as of 17 March 2020, the DOE, as the government agency with jurisdiction over said energy-related personnel, shall issue official Inter-Agency Task Force (IATF) accreditation IDs. The period for issuance of such IDs shall be until 21 March 2020. Bona fide IDs issued by power/energy-related establishments shall be honored by law enforcement agencies until 21 March 2020.

Government agencies, LGU and energy-related service provider personnel shall abide by precautionary measures issued by the Department of Health (DOH) under DOH Department Circular No. 2020-0131 dated 11 March 2020.

3. Will energy-related foreign service providers, such as construction workers, technical field advisors, technical experts from equipment suppliers, be permitted entry into the Philippines during this period? No, energy-related foreign service providers will no longer be allowed to enter the Philippines during this period, unless they are inbound international passengers in transit upon effectivity of the ECQ. This is still subject to applicable quarantine procedures if they are coming from countries with existing travel restrictions imposed by the IATF. Please also refer to our Advisory on Immigration Matters in this regard.

4. Does the quarantine period have any effect on validity of permits and licenses?

What if a permit or license is about to expire during this period and extension or renewal is not obtained?

On DOE-Issued Permits According to DOE Memorandum dated 14 March 2020, permits necessary to operate and maintain generation, transmission and distribution facilities for areas imposed with community quarantine shall be automatically granted for a period of 60 days after the end of the community quarantine period, unless the agency or local government unit (LGU) granting such permit allows for online submission and definite timeline that ensures unimpeded provision of energy services.

As of 17 March 2020

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On ERC-Issued Permits Pursuant to Advisory dated 17 March 2020 by the Energy Regulatory Commission (ERC), the following permits/licenses expiring during the ECQ period are extended for 60 days from 14 April 2020, provided that the required application for renewal has already been filed with the ERC:

(a) Certificate of Compliance (b) Provisional Authority to Operate (c) Retail Electricity Supplier License (d) Certificate of Authority as WESM Metering Services Provider (e) Meter Type Approval (f) Meter Shop Approval

B. Operations of Government Offices

1. Is there any suspension of operation or closure of Government offices in the Energy Sector?

DOE The DOE remains open but operating on skeletal workforce and alternative working arrangements from 16 March 2020 until 14 April 2020, from 8:00am until 4:30pm. ERC The ERC is closed from 17 March 2020 to 14 April 2020. Based on its Advisory dated 13 March 2020, the ERC already advised that all scheduled hearings conducted by the Legal Services, conferences conducted by the Community Affairs Service, and pre-filing conferences conducted by the Regulatory Operations Service are cancelled until further notice. Based on ERC Advisory dated 17 March 2020, they will be implementing a work-from-home policy for all its employees starting 17 March 2020.

As of 17 March 2020

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Board of Investments (BOI) In an Advisory dated 17 March 2020, the BOI has advised the public that it will implement a work-from-home arrangement in view of the ECQ period in Luzon, from 17 March 2020 to 13 April 2020. Note that the BOI has not issued any extension or suspension of regulatory filings/submissions. All transactions with the BOI shall be made by email at startup@boi.gov.ph. These will promptly acted upon by the BOI consistent with relevant issuances for the management of the COVID-19 situation.

2. Are filing deadlines affected by the work-from-home policy of ERC during the

ECQ period?

Yes, the ERC advised that all deadlines for payment of permit fees and other payables to ERC falling within the period 15 March 2020-14 April 2020 are extended for 30 days from 14 April 2020. Further, all compliances, submissions, pleadings falling due during the same period may be filed after 14 April 2020.

3. Can Applications, Petitions and Complaints be filed with ERC during the ECQ period?

No, as per ERC Advisory dated 17 March 2020, all ERC employees will be working from home. Thus, they will be unable to receive any Application, Petition and/or Complaint. However, Consumer Complaints can still be sent to info@erc.gov.ph.

Disclaimer and Limitations — This advisory is intended to provide general guidance to clients of PJS Law only, based on laws and issuances as of the date stated above. Please confirm with our lawyers for possible updates or contact pjs@pjslaw.com if you have clarifications or other concerns.