BUSINESS
Advocates Philippines
Strict Enforcement Of LPG Law Pushed
Photo credit: DOE
The Department of Energy (DOE) announced the strict enforcement of the LPG Industry Regulation Act, pushing for compliance with safety standards and regulations in the LPG industry.
The deadline for obtaining a License to Operate (LTO) and the corresponding applicable Certificate of Registration (COR) under the Act will be strictly enforced as prescribed in Section 24 of the legislation and implemented through Section 39.1 of Department Circular No.DC2022-11-0037, commonly known as the "Guidelines on the Registration and Issuance of License to Operate to Qualified DOE-Regulated LPG Industry Participants and Penalizing Certain Prohibited Acts."
The DOE's Legal Services issued a legal opinion on July 6, 2023, affirming the enforcement of the July 7 2023 deadline. This deadline marks the end of the six-month transition period for LPG industry participants already engaged in the business upon the effectivity of the LTO Guidelines last January 7 2023.
It is important to note that any existing Standards Compliance Certificate (SCC) will be considered void after July 7 2023, as per Section 39.1 of Department Circular No.DC2022-11-0037.
Consequently, any DOE-regulated LPG industry participants conducting business without the required LTO and COR will be in violation of the prohibited acts outlined in the LPG Industry Regulation Act and will be penalized accordingly.
However, the DOE clarified that thedeadline does not prevent applicants from continuing to submit LTO and COR applications. The DOE will continue to accept and process applications beyond the deadline.
Former LPGMA Partylist Congressman Arnel Ty meanwhile expressed his support for the strict enforcement of the LPG Industry Regulation Act. He emphasized that the SCC and the current LTO are crucial safeguards that protect consumers and ensure the proper functioning of the LPG industry. Ty called out certain groups that repeatedly request extensions, highlighting their failure to meet the requirements outlined in the law.
Under the LPG Industry Regulation Act, every LPG industry participant must obtain an LTO specific to their site, plant, or outlet before commencing commercial operations. This license must be prominently displayed in their business establishment or premises. If an industry participant intends to engage in a new activity beyond their current license, they must obtain another license for that specific activity.
Compliance is essential, and industry participants are required to conduct business only with counterparts possessing a valid license for the specific activity they are engaged in. The DOE holds exclusive authority to issue the License to Operate, which remains valid for a period of three (3) years or as determined by the DOE.
Ty highlighted the significance of meeting requirements such as BIR Registrations, Business Permits, and Fire Safety Inspection Certificates (FSIC), stating that failure to comply not only jeopardizes their own operations but also undermines the integrity of the industry.
He expressed his hope that the DOE will rigorously enforce the new law, taking appropriate action against those continuously violating its provisions.
The deadline for obtaining a License to Operate (LTO) and the corresponding applicable Certificate of Registration (COR) under the Act will be strictly enforced as prescribed in Section 24 of the legislation and implemented through Section 39.1 of Department Circular No.DC2022-11-0037, commonly known as the "Guidelines on the Registration and Issuance of License to Operate to Qualified DOE-Regulated LPG Industry Participants and Penalizing Certain Prohibited Acts."
The DOE's Legal Services issued a legal opinion on July 6, 2023, affirming the enforcement of the July 7 2023 deadline. This deadline marks the end of the six-month transition period for LPG industry participants already engaged in the business upon the effectivity of the LTO Guidelines last January 7 2023.
It is important to note that any existing Standards Compliance Certificate (SCC) will be considered void after July 7 2023, as per Section 39.1 of Department Circular No.DC2022-11-0037.
Consequently, any DOE-regulated LPG industry participants conducting business without the required LTO and COR will be in violation of the prohibited acts outlined in the LPG Industry Regulation Act and will be penalized accordingly.
However, the DOE clarified that thedeadline does not prevent applicants from continuing to submit LTO and COR applications. The DOE will continue to accept and process applications beyond the deadline.
Former LPGMA Partylist Congressman Arnel Ty meanwhile expressed his support for the strict enforcement of the LPG Industry Regulation Act. He emphasized that the SCC and the current LTO are crucial safeguards that protect consumers and ensure the proper functioning of the LPG industry. Ty called out certain groups that repeatedly request extensions, highlighting their failure to meet the requirements outlined in the law.
Under the LPG Industry Regulation Act, every LPG industry participant must obtain an LTO specific to their site, plant, or outlet before commencing commercial operations. This license must be prominently displayed in their business establishment or premises. If an industry participant intends to engage in a new activity beyond their current license, they must obtain another license for that specific activity.
Compliance is essential, and industry participants are required to conduct business only with counterparts possessing a valid license for the specific activity they are engaged in. The DOE holds exclusive authority to issue the License to Operate, which remains valid for a period of three (3) years or as determined by the DOE.
Ty highlighted the significance of meeting requirements such as BIR Registrations, Business Permits, and Fire Safety Inspection Certificates (FSIC), stating that failure to comply not only jeopardizes their own operations but also undermines the integrity of the industry.
He expressed his hope that the DOE will rigorously enforce the new law, taking appropriate action against those continuously violating its provisions.
Jul 6, 2023
