Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals (Provisions on Registration)

April 20, 2017

DOE DEPARTMENT CIRCULAR NO. DC2017-04-0004

ADOPTING FURTHER AMENDMENTS TO THE WHOLESALE ELECTRICITY SPOT MARKET (WESM) RULES AND MARKET MANUALS (PROVISIONS ON REGISTRATION)

WHEREAS, Sections 30 and 37 (f) of the Electric Power Industry Reform Act (EPIRA)provides that the DOE, jointly with the electric power industry participants, shall establish the Wholesale Electricity Spot Market (WESM) and formulate the detailed rules governing the operations thereof;

WHEREAS, on 28 June 2002, the DOE, with the endorsement of the electric power industry participants, promulgated the WESM Rules through Department Circular No. DC2002-06-003;

WHEREAS, any changes, amendments, and modifications to the WESM Rules including its Market Manuals shall be undertaken in accordance with the provisions of Chapter 8 thereof;

WHEREAS, on 29 July 2016, the Rules Change Committee (RCC) received the Dispute Resolution Administrator's (DRA) proposed amendments to the WESM Rules and Market Manuals on Dispute Resolution and Registration, Suspension and De-Registration Criteria and Procedures;

WHEREAS, the DRA's proposal sought to align the relevant provisions of the WESM Rules and pertinent Market Manuals with the agreement-based or commercial arbitration framework, and it intended to enhance and clarify vague procedures in the WESM Dispute Resolution Process;

WHEREAS, on 03 August 2016, the Rules Change Committee (RCC) during its 117th RCC Meeting initially discussed the said proposal, which thereafter approved its publication in the WESM website to solicit comments from market participants and other interested parties;

WHEREAS, on 05 October 2016, the RCC during its 119th RCC Meeting deliberated on the proposal giving due course to the comments received from market participants and the DOE, and thereafter, it finalized and approved the proposal for endorsement to the PEM Board;

WHEREAS, on 29 November 2016, after due evaluation and deliberation, the PEM Board during its 121st PEM Board Meeting approved for endorsement to the DOE the above stated proposal, except for the proposed amendments concerning dispute resolution fees and administrative costs which requires further review and study of the RCC;

WHEREAS, on 09 December 2016, the above stated PEM Board-approved amendments to the WESM Rules and Market Manuals on Registration, Suspension and De-Registration Criteria and Procedures were submitted to the DOE for final approval, in compliance with Chapter 8 of the WESM Rules;

WHEREAS, the DOE reviewed the said PEM Board-approved proposal, and deems it appropriate and consistent with the WESM Rules and the objectives of the WESM; and

NOW THEREFORE, pursuant to its authority under the EPIRA and the WESM Rules, the DOE hereby adopts, issues, and promulgates the following amendments to the WESM Rules and relevant Market Manuals:

SECTION 1.  Amendments to the WESM Rules. — The following provisions in the WESM Rules are hereby amended:

Clause 2.5.6.3 under Notice of Non-approval of Application is amended to read as —

"2.5.6.3 The applicant, upon being notified by the Market Operator that its application has been disapproved under Clause 2.5.6.1 and the grounds therefor, may, at its option, rectify the defects and re-submit a corrected application."

SECTION 2.  Amendments to the WESM Market Manual on Registration, Suspension and De-Registration Criteria and Procedures. — The following provisions in the Registration, Suspension and De-Registration Criteria and Procedures are hereby amended:

Section 2.5.7 under Registration of Direct WESM Members and Trading Participants is amended to read as —

"2.5.7 Non-Approval of Applications/Remedies

xxx xxx xxx

c) The Applicant whose application is disapproved may rectify the shortcomings in the application and re-submit the same. If it elects to re-submit the application, the re-submitted application shall be acted upon by the Market Operator following the same timetable set forth in this Manual as if it were a new application."

SECTION 3.  Applicability. — In addition to the current WESM Rules and Market Manuals, these amendments in the WESM Rules and Market Manuals set forth in this Circular shall also apply to WESM Rules and Market Manuals for the implementation of the Enhancements to WESM Design and Operations, which were promulgated by the DOE through Department Circular No. DC2016-10-0016.

SECTION 4.  Separability Clause. — If for any reason, any section or provision of this Circular is declared unconstitutional or invalid, such parts not affected shall remain valid and subsisting.

SECTION 5.  Effectivity. — This Circular shall take effect after fifteen (15) days following the completion of its publication either in the Official Gazette or two (2) newspapers of general circulation in the Philippines, and shall remain in effect until otherwise revoked.

Issued this _____ April 2017 at the DOE, Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro Manila.

 

(SGD.) ALFONSO G. CUSISecretary