Manila: The Department of Energy (DOE) is set to finance nearly two-thirds of its PHP5.58-billion spending plan next year through automatic appropriations backed by energy-sector collections, reducing its reliance on fresh appropriations from Congress.
According to Philippines News Agency, during the Senate hearing on DOE's proposed 2027 budget Thursday, officials revealed that PHP3.55 billion, or 63.6 percent of the department's recommended budget, will come from automatic appropriations. In contrast, only PHP2.03 billion will be sourced from new appropriations. Senate finance subcommittee chair Pia Cayetano noted this marks a significant shift, indicating the DOE's increasing capability to support its requirements through energy sector collections.
DOE Undersecretary Alexander Bacordo emphasized that new appropriations will decrease by approximately PHP935 million from their 2026 level, reversing the trend of previous years where new appropriations formed the larger portion of the budget. Bacordo highlighted that the department's budgetary needs will be largely supported by the Special Account in the General Fund (SAGF), which is derived from revenues from energy service contracts and other department collections.
The DOE anticipates a significant increase in total revenues, reaching approximately PHP23 billion in 2027, compared to a projected PHP6.06 billion this year. This increase is primarily attributed to a recovery in Malampaya Gas Fund collections, with Malampaya revenues expected to rise to about PHP20.01 billion next year from PHP4.22 billion in 2026.
Energy Secretary Sharon Garin expressed optimism about continued improvements beyond 2027, citing additional indigenous gas discoveries. The Malampaya East-1 and Camago-3 wells have yielded estimated reserves of 222 billion cubic feet of natural gas, potentially extending field operations to 2034 and bolstering the domestic fuel supply.
Despite requiring fewer new appropriations, the DOE's overall recommended budget will increase by 25.7 percent from PHP4.43 billion this year to PHP5.58 billion in 2027. The change is largely driven by automatic appropriations, which will see their share of the DOE budget rise from 33.17 percent this year to 63.62 percent next year.
DOE officials noted that energy-sector collections have consistently exceeded the department's annual approved budget, with Malampaya historically providing the largest contribution. The enhanced revenue base is expected to support DOE programs focusing on energy security, electrification, resource development, and digitalization, while reducing the need for new annual appropriations.
