Section 2 of Republic Act No. 7638 or the “Department of Energy (DOE) Act of 1992” states that it is the policy of the State to ensure a continuous, adequate, reliable, and economic supply of energy through, among others, judicious conservation, renewal, and efficient utilization of energy, to keep pace with the country’s growth and economic development.

This Department Circular shall provide the framework for the development of fuel economy rating, fuel economy performance for transport vehicles, and related energy efficiency and conservation policies applicable to all manufacturers, importers, distributors, and dealers of vehicles in the Philippines.

The DOE is empowered to impose fines and penalties for any violation of the prohibited acts enumerated under Section 7 hereof and after exhausting the measures provided for under Section 9 of this Department Circular.

Prohibited Acts

• Failure to comply with energy labels;

• Removing, defacing or altering any energy label on the ECPs before the product is sold to the first retail purchaser or leased to the first lessee;

• Failure to provide accurate information or the provision of false or misleading information as required to be submitted under the EEC Act and the EEC-IRR;

• Selling, leasing, or importing transport vehicles that do not comply with PELP and MEP;

• Willfully refusing to submit any of the reports required therein; and

• Failure to comply with issued orders of the DOE in the discharge of its enforcement powers;

The imposition of the administrative fines and penalties shall be on a “per violation” basis and without prejudice to the blacklisting of the responsible entities.

The responsible officers and employees of any establishments or organization who willfully commits any of the prohibited acts under section 30 of EEC shall upon conviction, suffer the penalty of one (1) year to five (5) years or a fine ranging from a minimum of One hundred thousand pesos (P100, 000.00) to One hundred million pesos (P100,000,000.00) or twice the number of costs avoided for noncompliance, whichever is higher, or both, upon the discretion of the court. Any person who willfully aids or abets the commission of the prohibited acts, under Section 30 of the EEC Act or who causes the commission of such acts by another, shall be liable in the same manner as the principal.

In cases of association, partnership or corporation, the penalty shall be imposed on the partner, president, chief operating officer, chief executive officer, director, and the officer responsible for the violation.