DOE may take over oil industry during emergency — SC

The Supreme Court ruled that the Department of Energy (DOE) may take over the operations of private entities in the oil industry in times of emergency upon the directive of the President of the Philippines.

In a 37-page decision promulgated in February 2023, the SC En Banc reversed and set aside a ruling of the Court of Appeals that found Section 14(e) of Republic Act (RA) 8479 unconstitutional.

Under the law, Section 14(e) states that “in times of national emergency,  when the public interest so requires, the DOE may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any person or entity engaged in the Industry.”

“All told, Section 14(e) of RA 8479 is a proper delegation of takeover power to the DOE. Absent any actual proof from respondents that the exercise of this provision has caused harm or injury, we hold that the challenge claiming the provision unconstitutional must fail,” the SC said.

“The Court of Appeals, therefore, incorrectly declared Section 14(e) of RA 8479 unconstitutional,” it added.

The case stemmed from the petition filed by Pilipinas Shell Petroleum Corporation which assailed the validity of an Executive Order and Section 14(e) of RA 8479, asserting that these formed an unreasonable, oppressive, and invalid delegation of emergency powers.

The SC, however, cited Section 17 of the Constitution that provides for the takeover of operations of privately owned public utilities or businesses affected with public interest.

Meanwhile, the high court said that Section 23 provides limitations on the takeover power.

“In line with this constitutional provision is a well-established doctrine of qualified political agency. The doctrine recognizes the multifarious responsibilities a president faces, which calls for the delegation of certain responsibilities to cabinet members,” it said.

“It posits that the heads of the various executive departments stand as the president’s alter egos permitted to act on behalf of the president,” it added.

However, the Court said that if the energy secretary acts in contrast with the president’s intent or instruction, the act will be deemed ultra vires (acting or done beyond one’s legal power or authority) and an unconstitutional usurpation of executive power.

“Moreover, it must first be demonstrated that the president withheld approval or repudiated the delegation or the actions of the delegated authority,” the SC added.—RF, GMA Integrated News