WHEREAS, Republic Act No. 7638, as amended, otherwise known as the "The Department of Energy (DOE) Act of 1992", mandates the DOE to prepare, integrate, coordinate, supervise, and activities of the Government relative to energy exploration, development, utilization, distribution, and conservation.

WHEREAS, Republic Act No. 7638 or the "Department of Energy Act of 1992" Section 5(e) empowers DOE to regulate private sector activities as provided under existing laws: Provided, that the Department shall endeavor to provide for an environment conducive to free and active private sector participation and investment in all energy activities.