Determination and Countermeasures for Energy Crises and Energy Emergencies

With the aim of securing the availability of energy to the public/consumers, the government has issued Presidential Regulation No. 41 of 2016 on Procedures for Determination and Countermeasures for Energy Crises and/or Energy Emergencies (“2016 Regulation”).The 2016 Regulation implements Article 6 and Article 12 of Law No. 30 of 2007 on Energy, which mandated that the government stipulate further procedures for the National Energy Council (Dewan Energy Nasional– “DEN”) [1] as regards the determination and surmounting of any energy crises and energy emergencies. [2] Furthermore, the 2016 Regulation also sets out the role of downstream oil-and-gas companies and power companies (“Energy Companies”) as regards assisting the government as it attempts to address any such crises or emergencies.The 2016 Regulation is of relevance to Energy Companies.Energy Crises and/or EmergenciesThe term “Energy Crises”refers to conditions of energy deficiency, while an “Energy Emergency” is defined as any disruption to the supply of energy due to damage being inflicted upon energy facilities and infrastructure. [3] Energy crises and/or energy emergencies can be the result of: 1) technical operational conditions; or 2) national conditions. [4] The Minister of Energy and Mineral Resources (“Minister”), as the official head of DEN, has the authority to declare an Energy Crises and/or Energy Emergency if it is caused by technical operational conditions. Indicators for the announcement of such crises and/or emergencies are detailed in the table below: [5]