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This law promotes energy conservation from energy production to energy consumption. Energy conservation is implemented through the adoption of appropriate measures that are technologically feasible, economically sound, environmentally-friendly, and socially affordable.

Classification of Designated Establishments

RA 11285 Section 19 classifies designated establishments as follows:

Designated Establishments Energy Consumption
Classification Annual Energy Consumption (kWh) Monthly Energy Consumption (kWh)
Minimum Maximum Minimum Maximum
Type 1 500,000 4,000,000 41,667 333,333
Type 2 >4,000,000 - >333,333 -
The thresholds for determining Type 1 or Type 2 designated establishments shall be periodically reviewed and adjusted, if deemed necessary, by the DOE.

The designated establishments shall have the following obligations:

(a) Integrate an energy management system policy into the business operation based on ISO 50001 or any similar framework;

(b) Set up programs to develop and design measures that promote energy efficiency, conservation, and sufficiency that may include installation of renewable energy technologies;

(c) Set up annual targets, plans, and methods of measurements and verification for the implementation of energy efficiency and conservation projects; (d) Keep records on monthly energy consumption data and other energy-related data;

(e) Improve average specific energy consumption in accordance with the annual reduction targets to be established by the DOE in the NEECP;

(f) Submit an annual Energy Consumption and Conservation Report (ECCR) to the DOE by the 15th of April of every year;

(g) Conduct an energy audit once every three (3) years, by engaging either a certified energy auditor or an accredited Energy Service Company (ESCO) and submit an energy audit report to the DOE upon completion of the energy audit;

(h) Employ a Certified Energy Conservation Officer (CECO) for Type 1 designated establishments, and a Certified. Energy Manager (CEM) for Type 2 designated establishments: Provided, That the CECO and the CEM may be chosen from within the organization or hired through external recruitment; and

(i) Duly notify the DOE on the appointment or separation from the service of them respective CECOs or CEMs within ten (10) working days from the effectivity of these personnel action.

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