The Department of Energy (DOE) said it will clarify with the Department of Justice and the Office of the Solicitor General the extent of its mandate in relation to a Supreme Court (SC) ruling allowing government takeover of the oil industry during times of national emergency.
Earlier this week, the SC affirmed the constitutionality of Section 14 (e) of the Downstream Oil Industry Deregulation Act of 1998 which empowers the DOE to temporarily oversee the operations of the oil industry under specific circumstances, such as in times of emergencies.
“The DOE will also continue to consult and work with all stakeholders on maximizing and diversifying sources of energy supply, enhancing its distribution and availability to the public at reasonable prices, managing the prioritization of demand to avoid or minimize potential constraints and strengthening overall capacity to bounce back from interruptions,” the agency said in a statement yesterday.
The SC noted the President’s prerogative to determine national emergencies and the delegation of authority to the DOE in the ruling.
The SC cited Article XII, Section 17 of the 1987 Constitution which allows for the takeover of privately owned businesses with public interest by the President in times of national emergencies.
In times of national emergency, the Constitution also gives the legislature the authority to grant the President temporary emergency powers to address a threat the country is facing, the high court ruled.
“To be a valid delegation, the legislative enactment must authorize the president for a limited period and subject to such restrictions as it may prescribe,” the SC said.
The SC also explained the temporary control over oil industry entities does not involve the suspension of constitutionally protected liberties but the regulation of the operation of a public utility or private enterprise that affects public interest. – Jed Macapagal
