Promulgating the Renewable Energy Market Rules

December 4, 2019

DOE DEPARTMENT CIRCULAR NO. DC2019-12-0016

PROMULGATING THE RENEWABLE ENERGY MARKET RULES

WHEREAS, Republic Act (RA) No. 7638, otherwise known as the "Department of Energy (DOE) Act of 1992," declares as a policy of the State to, among others, ensure the continuous, adequate and economic supply of energy through the integrated and intensive exploration, production, management and development of the country's indigenous energy resources;

WHEREAS, Republic Act No. 9136 otherwise known as the "Electric Power Industry Reform Act of 2001," or "EPIRA" requires the State to, among others, promote the utilization of indigenous, new, and renewable energy resources in power generation in order to reduce dependence on imported energy;

WHEREAS, RA No. 9513, otherwise known as the "Renewable Energy Act of 2008" or the "RE Act," declares as a policy of the State to increase the utilization of renewable energy (RE) by institutionalizing the development of national and local capabilities in the use of RE systems, and promoting their efficient and cost-effective commercial application by providing fiscal and non-fiscal incentives;

WHEREAS, Section 6, Chapter III of the RE Act provides a Renewable Portfolio Standard (RPS) whereby all stakeholders in the electric power industry shall contribute to the growth of the RE industry in the country and mandates the National Renewable Energy Board (NREB) to set a minimum percentage of generation from Eligible RE resources and determine to which sector the RPS shall be imposed on a per grid basis, within one (1) year from effectivity of the RE Act;

WHEREAS, Section 4, Rule 2, Part II of the Implementing Rules and Regulations of the RE Act (RE Act IRR) provides that the RPS, as a policy mechanism, shall oblige electric power industry participants such as Generation Companies, in so far as their directly-connected customers are concerned, Distribution Utilities (DUs) for their Captive Market, and Retail Electricity Suppliers (RES) for their Contestable Customers, to source or produce a fraction of their electricity requirements from Eligible RE resources;

WHEREAS, Department Circular Nos. DC2017-12-0015 and DC2018-08-0024 were promulgated by the DOE, prescribing the rules and guidelines governing the establishment of the Renewable Portfolio Standards for On-Grid and Off-Grid Areas (RPS Rules), respectively; HTcADC

WHEREAS, pursuant to Section 8 of the RE Act, a Renewable Energy Market (REM) shall be stablished by the DOE to facilitate the compliance of the Mandated Participants with the RPS;

WHEREAS, Section 8 of the RE Act further requires the Philippine Electricity Market Corporation (PEMC) to, under the supervision of the DOE, establish a Renewable Energy Registrar(RER) within one (1) year from the effectivity of the RE Act and the RER shall issue, keep and verify RE Certificates (RECs) corresponding to energy generated from eligible RE facilities, which will be used for compliance with the RPS;

WHEREAS, the DOE and the National Renewable Energy Board (NREB) conducted a series of public consultations on the draft REM Rules on various dates and in different parts of the country:

 

Date/s	Place/s
05 December 2017	Davao City
14 December 2017	Makati City
20 December 2017	Cebu City
18 January 2018	Davao City
08 November 2018	Zamboanga City
22 November 2018	Iloilo City
27 November 2018	Baguio City

 

NOW, THEREFORE, after due consultations with the NREB and all concerned stakeholders in the Government and private sector, the DOE hereby issues, adopts and promulgates the REM Rules, herein attached as "Annex A," and is therefore made an integral part of this Circular.

SECTION 1. Short Title. — This Circular shall be known as the "Renewable Energy Market Rules" or "REM Rules."

SECTION 2. Scope of Application. — The REM Rules shall apply to all electric power industry participants in Luzon, Visayas, and Mindanao, both in the On-Grid and Off-Grid Areas:

(a) All Mandated Participants under the RPS Rules, both for On-Grid and Off-Grid areas:

(i) For On-Grid Areas:

(1) All DUs for their Captive Customers;

(2) All Suppliers of Electricity for the Contestable Market, as defined in the EPIRA and pursuant to Retail Competition and Open Access (RCOA);

(3) Generating Companies only to the extent of their actual supply to their directly connected customers; and

(4) Other entities as may be recommended by NREB and approved by the DOE.

(ii) For Off-Grid Areas:

(1) Generation Companies including National Power Corporation's Small Power Utility Group (NPC-SPUG), New Private Power Providers (NPPs), and Qualified Third Parties (QTPs); and

(2) DUs and Local Government-Operated Electric Systems with respect to their own embedded generation facilities.

(b) RE Generation Companies registered in the Wholesale Electricity Spot Market (WESM);

(c) Net Metering for RE Participants; and

(d) Green Energy Option Program (GEOP) Participants.

The PEMC for the establishment of the REM and the development of the Philippine Renewable Energy Market System (PREMS) shall perform the RER functions: Provided, That no later than one (1) year from the start of commercial operations of the REM, the functions, assets and liabilities of PEMC in performing the RER functions shall be transferred to the entity performing market operations.

SECTION 3. Governance of the REM. — To establish and ensure a culture of compliance by the Mandated Participants with the RPS Rules and the REM Rules, a REM Governance Committee (RGC) is hereby created. The RGC shall be under the supervision of Philippine Electricity Market Board (PEM Board) and the composition of which is defined under the REM Rules.

SECTION 4. Responsibilities of the RGC. — The RGC shall, among others, oversee and monitor the activities of the RER with regard to the REM processes to ensure that the REM participants and Mandated Participants comply with the REM Rules, and shall regularly report to the PEM Board. The governance structure, responsibilities, and other activities of the RER and the RGC are detailed in Chapters 1.2 and 1.3 of the REM Rules.

SECTION 5. Transitory Provisions. — The following transitory provisions are prescribed to ensure the smooth transition from the current regime to the full implementation/operationalization of the REM and the REM Rules:

(a) PEMC is hereby directed to submit for approval to the DOE, the following: aScITE

(i) Within thirty (30) days from issuance of this Circular, the proposed Readiness Criteria consisting of the activities and scenarios necessary to enable the effective implementation of the REM. Accordingly, PEMC shall regularly report to DOE the status of all activities being undertaken until the Readiness Criteria have been met.

(ii) Within six (6) months from the issuance of this Circular, a Certification on the level of compliance of all REM Participants and Mandated Participants in the Readiness Criteria for the commencement/operationalization of the REM, including a recommendation as to whether or not the Readiness Criteria have been met.

 Once validated and verified by the DOE, the REM shall start its commercial operations.

(b) Feed-In Tariff Allowance (FIT-All) Data Provision Requirements. Prior to the establishment of the REM, the FIT-All Fund Administrator shall commence providing the DOE and PEMC, all data necessary to facilitate the RER's allocation of electricity generated from Feed-In Tariff (FIT) Eligible RE Plants to the Mandated Participants;

(c) Prior to the commencement/operationalization of the REM, the RER shall ensure that it has the appropriate procedures, tools and systems in place to implement its duties and responsibilities under these REM Rules;

(d) Prior to the commencement/operationalization of the REM, corresponding changes to the WESM Rules shall have been implemented by the PEMC to facilitate the operation of the REM in relation to the WESM;

(e) Prior to the commencement of the full commercial operations of the WESM in Mindanao, the Meter Quantity Reconciliation Agent designated under Department Circular No. DC2017-05-0009, entitled "Declaring the Launch of the Wholesale Electricity Spot Market (WESM) in Mindanao and Providing for Transition Guidelines," shall submit to the RER on a monthly basis, the relevant data for the reconciliation on Nominations, Actual Schedules, Metered Quantities, System Losses and Imbalances of the generators and customers;

(f) All REM Participants shall submit and comply with the registration requirements prescribed in the REM Rules and the REM Registration Manual that shall be issued by the DOE in a subsequent issuance, no later than the target commercial operations date;

(g) The PEMC may recommend to the DOE other matters of interest to ensure the timely and successful commencement of the REM; and

(h) All other transitory activities herein provided including those under Section 26 (Transitory and Other Provisions) of the RPS Rules shall apply to ensure the orderly, efficient and effective imposition of the REM Rules.

SECTION 6. Specific Provision for Mindanao and Off-Grid Areas. — All Mandated Participants in Mindanao, in the absence of the commercial operation of the WESM, and in missionary areas served by NPC or its successors-in-interest, as well as NPPs and QTPs, shall submit relevant data as may be required by the RER to perform of its mandate under the RE Act, RE Act IRR and the REM Rules.

SECTION 7. Authority to File the Structure and Level of Transaction Fees. — The PEMC, with the endorsement of the PEM Board is hereby authorized to file before the Energy Regulatory Commission (ERC), the structure and level of transaction fees that it may impose in accordance with Section 8 of the RE Act.

SECTION 8. RE Certificate Pricing. — PEMC shall develop the RE Certificate (REC) Price Cap, which shall be approved by the ERC.

SECTION 9. Regulatory Support. — Pursuant to its mandates under the Electric Power Industry Reform Act of 2001, the ERC shall provide all the necessary regulatory support for the implementation of the REM, including but not limited to RE price mitigation and resulting electricity prices arising from compliance of the Mandated Participants with the On-Grid and Off-Grid RPS Rules and the REM Rules.

SECTION 10. Reportorial Requirements. — Every end of June following the year being reviewed, PEMC shall submit to the DOE its annual reports on the status and performance of the REM, and identify the gaps and policies needed to ensure the effective and efficient operation of the REM.

The DOE, however, may, at any time when the need arises, require updates and information from PEMC on the status and performance of the REM.

SECTION 11. Prohibited Acts. — Pursuant to Section 35 (e) of the RE Act, non-compliance with or violation of the REM Rules shall be subject to the administrative and/or criminal penalties herein provided.

SECTION 12. Penalty Clause. — Consistent with Section 36 of the RE Act and its IRR, the DOE may impose the corresponding criminal and administrative liabilities for such acts, after notice and hearing, as are provided for under Section 11 hereof and in analogous cases. HEITAD

SECTION 13. Information, Education and Communication (IEC) Activities. — Pursuant to Section 31, Rule 10 of the RE Act IRR, the DOE, together with NREB and PEMC or its successors-in-interest, shall develop and implement a comprehensive IEC campaign for all Mandated Participants as well as for the electricity end-users and other stakeholders to ensure complete understanding and public awareness of the REM and these Rules.

SECTION 15. Separability Clause. — If any provision of this Circular is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

SECTION 16. Repealing Clause. — All previous issuances, rules and regulations inconsistent with this Circular are hereby repealed, amended or modified accordingly.

SECTION 17. Effectivity. — This Circular shall take effect fifteen (15) days after publication in at least two (2) newspapers of general circulation. Copies of this Circular shall be filed with the University of the Philippines Law Center-Office of the National Administrative Register.

Issued on ________________, at Energy Center, Rizal Drive, Bonifacio Global City, Taguig City.

 

(SGD.) ALFONSO G. CUSISecretary

 

ANNEX A

REM Rules

CHAPTER 1

Introduction

1.1 OVERVIEW

1.1.1  About the REM Rules

1.1.1.1  This document shall be known as the Renewable Energy Market Rules ("REM Rules") or the REM Implementing Rules.

1.1.1.2  The REM Rules establish the basic rules, requirements and procedures that govern the operation of the Renewable Energy Market("REM"), which seeks to:

(a) Facilitate the efficient operation of the REM;

(b) Specify the terms and conditions to which entities may be authorized to participate in the REM;

(c) Specify the authority and governance framework for the REM;

(d) Provide for adequate sanctions in cases of breaches of the REM Rules; and

(e) Provide a timely and cost-effective framework for resolution of disputes among REM Members and the Renewable Energy Registrar ("Registrar ").

1.1.1.3  The REM Rules were formulated in consultation with electric power industry participants and Renewable Energy (RE) stakeholders.

1.1.1.4  The REM Rules shall be interpreted in accordance with the provisions of Chapter 8 hereof, with the objectives of the Renewable Energy Act of 2008("RE Act"), and with other provisions of law.

1.1.1.5  Under this REM Rules, words and phrases that are capitalized and italicized are defined in Chapter 10.

1.1.2  The Regulatory Framework

1.1.2.1  The Department of Energy("DOE") is mandated under Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 ("EPIRA"), to exercise supervision and control over all government activities relative to energy projects to attain the goals provided for in Republic Act No. 7638, as amended, otherwise known as the Department of Energy Act of 1992. It is likewise mandated to formulate rules and regulations as may be necessary to implement the objectives set forth in Republic Act No. 7638.

1.1.2.2  The DOE is mandated under Republic Act No. 9513, otherwise known as the Renewable Energy Act of 2008("Act"), to implement policies, plans and programs related to the accelerated development, transformation, utilization, and commercialization of RE resources and technologies. Accordingly, the DOE is mandated to establish Renewable Portfolio Standards("RPS") for On-Grid Systems and Off-Grid Systems that require Mandated Participants to source a minimum percentage of their electricity requirements from RE generation resources and to establish a REM as a submarket under the Wholesale Electricity Spot Market("WESM") to facilitate the compliance of Mandated Participants with their RPS requirements. ATICcS

1.1.2.3  DOE Circular No. DC2017-12-0015 promulgates the rules and guidelines governing the establishment of the RPS for On-Grid Systems. As such, any amendments in the RPS Rules for On-Grid Systems shall be automatically adopted in the REM Rules. As part of its mandate, the REM Governance Committee shall initiate and ensure that the REM Rules shall be updated and amended accordingly to ensure consistency of the REM Rules with that of the DOE policies.

1.1.2.4  DOE Circular No. DC2018-08-0024 promulgates the rules and guidelines governing the establishment of the RPS for Off-Grid Systems. As such, any amendments in the RPS Rules for Off-Grid Systems for shall be automatically adopted in the REM Rules. As part of its mandate, the REM Governance Committee shall initiate and ensure that the REM Rules shall be updated and amended accordingly to ensure consistency of the REM Rules with that of the DOE policies.

1.1.2.5  DOE Circular No. DC2018-07-0019 promulgates the rules and guidelines governing the establishment of the Green Energy Option Program(GEOP). Any amendments in the Green Energy Option Program Rules shall be automatically adopted in the REM Rules and the REM Governance Committee shall initiate the REM Rule Change process to incorporate such amendments.

1.1.2.6  Under Section 36 of the RE Act, the DOE is further empowered to impose administrative fines and penalties for any violation of the provisions of the Act, its implementing rules and regulations and other issuances relative to the Act.

1.1.2.7  Pursuant to their other respective functions and authorities, the DOE through the Renewable Energy Management Bureau (REMB) approves, and promulgates the REMRules and REM Manuals, and any amendments of the same, pursuant to Section 8 of the RE Act.

1.1.3  Description of the REM

1.1.3.1  The REM is a market for the trading of Renewable Energy Certificates("RECs") pursuant to Section 8 of the RE Act.

1.1.3.2  The REM is intended as a venue for Mandated Participants obligated by Renewable Portfolio Standards ("RPS") to comply with their RPS requirements.

1.1.3.3  Registration in the REM is mandatory for:

(a) Mandated Participants obligated by Renewable Portfolio Standards("RPS") to comply with their RPS requirements;

(b) Entities with RE Generation Facilities that are registered in the Wholesale Electricity Spot Market("WESM"). In the case of Mindanao Grid which is not yet connected to Luzon and Visayas Grids, includes RE Generation Facilities that are connected to the main grid;

(c) Entities with RE Generation Facilities who are operating in Off-Grid Systems obligated to comply with RPS requirements.

1.1.3.4  Registration in the REM is voluntary for:

(a) Entities with Embedded RE Generation Facilities in On-Grid Systems who are not registered in the WESM; and

(b) Entities with Net-Metered RE Generation Facilities.

(c) Entities identified by the GEOP Rules to provide for the RE generation requirements of the GEOP end-users, consistent with the GEOP Rules.

1.1.4  Objectives of the REM

The objectives of the REM (collectively the "REM Objectives") are:

(a) To establish a competitive, efficient and transparent market for the trading of RECs;

(b) To facilitate the compliance of Mandated Participants with their RPS requirements through the surrendering of RECs;

(c) To ensure a level playing field for all REM participants;

(d) To ensure that prices of RECs are governed as far as practicable by the fundamentals of demand and supply;

(e) To ensure that the prices of RECs are, in the long-term, reflective of the benefits of bringing an additional Megawatt-hour of RE generation into the Philippine electricity system; and

(f) To issue RECs only based on actual RE generation from eligible RE generation capacities.

1.2 RENEWABLE ENERGY REGISTRAR

1.2.1  Renewable Energy Registrar's responsibilities

1.2.1.1  The REM will be administered and operated by the Renewable Energy Registrar (the Registrar).

1.2.1.2  The Registrar shall generally and non-restrictively:

(a) Administer the operation of the REM in accordance with the REM Rules and REM Manuals; TIADCc

(b) Maintain, operate and administer the REC Registry (the "Registry") in accordance with the REM Rules and REM Manuals;

(c) Allocate resources to enable it to operate and administer the REM and the Registry on a non-profit basis;

(d) Carry out the development, improvement and maintenance of systems, processes and procedures to be used in the operation of the REM and the Registry;

(e) Administer the registration and de-registration of REM Members;

(f) Maintain and publish an up-to-date register of all REM Members;

(g) Issue, keep and verify RECs corresponding to the energy generated from eligible RE generators;

(h) Publish and make available to the REM Members with relevant information on REC issuances, REC transactions and RPS compliance information for On-Grid Mandated Participants and Off-grid Mandated Participants in accordance with Chapter 3 and Chapter 4 of the REM Rules;

(i) Monitor and report to the RGC, PEM Board, DOE and ERC the purchases of RECs by Mandatory Participants in compliance with their RPS Obligations; and

(j) Comply with each of the requirements and obligations imposed on it under the REM Rules, REM Manuals and other applicable laws or regulations.

1.2.1.3  In exercising its discretions and performing its obligations under the REM Rules, the Registrar shall:

(a) Act in accordance with any standard of performance provided for by any statute, regulation or authorization condition to which the Registrar is subject;

(b) Act in a reasonable, ethical and prudent manner;

(c) Act in good faith;

(d) Take into consideration, act consistently with, and use its reasonable endeavors to contribute towards the achievement of the REM Objectives; and

(e) Ensure an audit trail of documentation that is fully adequate to substantiate and reconstruct all relevant actions performed.

1.3 GOVERNANCE OF THE RENEWABLE ENERGY MARKET

1.3.1  Definitions and responsibilities

1.3.1.1  The REM governance is the process by which decisions are made and implemented within the market to ensure attainment of the REM Objectives under Clause 1.1.4.

1.3.1.2  The ultimate governance of the REM is the responsibility of the PEM Board. The majority of governance functions will be carried out by the REM Governance Committee("RGC") under the oversight of the PEM Board.

1.3.2  Composition of the REM Governance Committee

1.3.2.1  The RGC shall be made up of five (5) members, consisting of:

(a) One representative from the Registrar;

(b) One (1) independent member who shall be selected from the independent members of the PEM Board;

(c) One representative from the Private DU;

(d) One representative from the Electric Cooperatives; and

(e) One representative from the REM Generators and Retail Electricity Suppliers.

1.3.2.2  The members of the RGC shall be appointed by the PEM Board, in accordance with the required composition of the RGC as set out in Clause 1.3.2.1, having regard to the expertise necessary for the RGC to carry out its functions.

1.3.2.3  The independent member of the RGC shall act as the RGC Chairperson.

1.3.2.4  The REM Generators and Retail Electricity Suppliers shall jointly nominate their sole representative in the RGC. AIDSTE

1.3.3  Voting rights and meetings

1.3.3.1  A majority of the total number of members, each having one vote shall constitute a quorum for the transaction of business of the RGC.

1.3.3.2  Every decision of at least a majority of votes of all members at any meeting shall be valid as an RGC act. If voting is equal, the RGC Chairperson has a casting vote.

1.3.3.3  Members may attend by proxy at RGC meetings but cannot cast proxy votes.

1.3.3.4  A duly-appointed DOE representative may attend meetings of the RGC as a non-voting observer.

1.3.4  Activities and obligations of the RGC

1.3.4.1  The RGC shall, generally and non-restrictively:

(a) Oversee and monitor the activities of the Registrar with regard to REM processes to ensure that they fulfil their responsibilities under the REM Rules;

(b) Oversee and monitor the activities of REM Members to ascertain and determine compliance or non-compliance with the REM Rules;

(c) Impose penalties or exempt the imposition of the same for breaches of the REM Rules or REM Manuals based on the investigation findings of the Enforcement and Compliance Officer in accordance with Clause 6.1;

(d) Approve or disapprove Rule ChangeProposals and refer approved Rule Change Proposals to the PEM Board for endorsement to the DOE for final approval and promulgation in accordance with Chapter 7;

(e) Approve or disapprove Manual Change Proposals and refer approved REM Manual changes to the PEM Board for endorsement to the DOE for final approval and promulgation in accordance with Chapter 7; and

(f) Issue resolutions or advisories on any matter related to the REM.

1.3.4.2  The RGC shall perform the functions set out in Clause 1.3.4.1 under the oversight of the PEM Board, regularly reporting to the PEM Board in all matters and abiding by all legal and valid directions issued to them by the PEM Board.

1.3.4.3  In exercising its discretions and performing its obligations under the REM Rules, the RGC shall:

(a) Act in accordance with any standard of performance provided for by any statute, regulation or authorization condition to which the RGC is subject;

(b) Act in a reasonable, ethical and prudent manner;

(c) Act in good faith;

(d) Take into consideration, act consistently with and use its reasonable endeavors to contribute towards the achievement of the REM Objectives; and

(e) Ensure an audit trail of documentation that is fully adequate to substantiate and reconstruct all relevant actions performed.

1.3.4.4  The RGC may seek the assistance of the WESM Governance Committees to:

(a) Monitor activities conducted by REM Members in the REM;

(b) Monitor technical matters relating to the operation of the REM;

(c) Report to the RGC on the activities of REM Members in the REM, and matters concerning the operation of the REM generally;

(d) Report to the RGC on any matter of a technical nature which causes or appears to cause unintended or distortionary effects to the operation of the REM; and

(e) Propose, assess and prepare for DOE approval any changes to these REM Rules in accordance with Chapter 7.

1.3.4.5  The RGC shall propose performance standards to be endorsed by the PEM Board to the DOE for approval. The performance standard shall monitor and provide an indication of the Registrar's performance with respect to: AaCTcI

(a) The Registrar's responsibilities under these REM Rules in relation to relevant provisions of the Act, its Implementing Rules and Regulations, the WESM Rules and Manuals, DOE Circular DC 2017-12-0015 other applicable laws, rules and regulations; and

(b) The achievements of the objectives of the Act.

1.3.4.6  The PEM Board, RGC or their respective members shall not be liable for any damage or loss suffered by any REM Member, or any other entity or person, if the same was due to bad faith, manifest partiality or gross negligence.

1.4 TRANSACTION FEES

1.4.1  Basis for fees

1.4.1.1  The cost of administering and operating the REM shall be recovered by the Registrar through a charge imposed on REM Members and/or REM transactions.

1.4.1.2  To the extent practicable, the structure of Transaction Fees shall be transparent.

1.4.1.3  To the extent practicable, Transaction Fees shall consider the budgeted revenue requirements for the Registrar and the RGC.

1.4.1.4  To the extent practicable, the structure and level of Transaction Fees should not favor or discriminate against a category or categories of REM Members.

1.4.1.5  The components of Transaction Fees shall take into consideration all costs necessary for the Registrar to perform their functions under the REM Rules.

1.4.2  Preparation and publication of structure and level of market fees

1.4.2.1  The Registrar shall develop the structure and level of Transaction Fees.

1.4.2.2  The Registrar shall submit to the PEM Board the structure and level of Transaction Fees for endorsement to the ERC for approval.

1.4.2.3  Upon the approval of the ERC, the Registrar shall publish the structure and level of Transaction Fees and the methods used in determining the structure.

CHAPTER 2

Membership and Registration

2.1 PARTICIPATION IN THE REM

2.1.1  Mandatory REM Trading Participants

2.1.1.1  MandatedParticipants who are obliged to comply with RPS requirements in On-GridSystems and Off-Grid Systems shall register in the REM under Clause 2.2.1.1.

2.1.1.2  Entities with RE Generation Facilities that are registered in the WESM shall register in the REM under Clause 2.2.2.

2.1.2  Mandatory REM Generators

2.1.2.1  The Renewable Electricity generated from RE Generation Facilities in On-Grid Systems and Off-Grid Systems in the Philippines will not be eligible to receive RECs unless the entities who own those RE Generation Facilities register their facilities in the REM.

2.1.2.2  Entities with RE Generation Facilities that are registered in the WESM or are connected to the main grid shall register their facilities in the REM under one of the REM Generator categories in Clause 2.2.2.

2.1.2.3  Entities with RE Generation Facilities who are operating in Off-Grid Systems serving Mandated Participants obligated to comply with RPS requirements shall register their facilities in the REM by the Registrar under Clause 2.2.2.

2.1.3  Voluntary REM Generators

2.1.3.1  Net-Metered RE Generation Facilities in On-Grid Systems may be registered by their host Distribution Utility in the REM and shall be registered by the Registrar under one of the REM Generator categories in Clause 2.2.2.

2.1.3.2  Entities with Embedded RE Generation Facilities wherein its total capacity is under a Power Supply Agreement with their host Distribution Utility may be registered by their host Distribution Utility in the REM and shall be registered by the Registrar under one of the REM Generator categories in Clause 2.2.2.

2.1.3.3  Entities with RE Generation Facilities installed in the end-user's premises for own-use may be registered by their host Distribution Utility in the REM and shall be registered by the Registrar under one of the REM Generator categories in Clause 2.2.2. EcTCAD

2.1.3.4  Entities with RE Generation Facilities accredited under the GEOP to provide for the RE generation requirements of the GEOP end-users may be registered by their host Distribution Utility in the REM and shall be registered by the Registrar under one of the REM Generator categories in Clause 2.2.2.

2.1.4  Registration of REM Members

2.1.4.1  Facilities and entities identified in Clauses 2.1.1 and 2.1.2 shall register or be registered with the Registrar under the categories listed under Clause 2.2.

2.1.4.2  If a person or entity undertakes activities in two or more of the categories listed under Clause 2.2 and registration in each of those categories does not violate any provision of the EPIRA or the RE Act, that person or entity shall register or be registered in each of those categories in accordance with the procedures in Clause 2.6.

2.1.4.3  The Registrar shall maintain and publish an updated list of registered REM Members indicating the categories in which they are registered and their membership status, as well as the status of pending applications in accordance with the provisions of Chapter 5.

2.2 REM MEMBER CATEGORIES

2.2.1  REM Trading Participants

2.2.1.1  A Mandated Participant who is obliged to comply with RPS requirements shall be registered under one of the following REM Trading Participant sub-categories:

(a) On-Grid Mandated Participant; or

(b) Off-Grid Mandated Participant.

2.2.1.2  Entities with RE Generation Facilities that are registered in the WESM and generate Renewable Electricity into the WESM pool may be registered under the REM Trading Participant sub-category Generation Company, subject to Clause 2.2.2.1.

2.2.2  REM Generators

2.2.2.1  Entities with RE Generation Facilities in On-Grid Systems shall register each of its facilities under one of the following REM Generator sub-categories:

(a) WESM RE Generator; or

(b) Distribution Utilities hosting Net-Metered RE Generation Facilities, Embedded Non-WESM RE Generators, end-users with RE Generation Facilities for its own use, and RE Generation Facilities accredited under the GEOP, with concurrence of the owner of the generating facilities.

2.2.2.2  Host Distribution Utilities with registered Net-Metered RE Generation Facilities, Embedded Non-WESM RE Generators, end-users with RE Generation Facilities for its own use and RE Generation Facilities accredited under the GEOP shall assume the obligations under the REM Rules and Manuals of such registered Net-metered RE Generator, Embedded Non-WESM RE Generator, end-user with RE Generation Facilities and RE Generation Facilities accredited under the GEOP.

2.2.2.3  Entities with RE Generation Facilities in Off-Grid Systems shall register each of its facilities under the REM Generator sub-category Off-Grid RE Generator.

2.2.3  Data Providers

2.2.3.1  The entity or entities designated as being the metering services provider for embedded FiT Eligible Facilities shall be automatically registered in the Data Provider category and shall be responsible for providing the Registrar with Metered Quantities pertaining to FiT Eligible Facilities.

2.2.3.2  The entity designated as the FiT-All Fund Administrator shall be responsible for providing the Registrarwith information pertaining to the FiT-All Tariff as set out in Clause 3.2.1.

2.3 QUALIFICATIONS OF REM

2.4 MEMBERS

2.4.1  General qualifications

To qualify as a REM Member, an entity must:

(a) Be a resident in, or is permanently established in, the Philippines; HSAcaE

(b) Not be under liquidation, receivership or corporate rehabilitation under Republic Act No. 10142 otherwise known as the Financial Rehabilitation and Insolvency Act of 2010, or under a similar form of administration under any laws applicable to that person or entity in any jurisdiction;

(c) Not be immune from suit in respect of the obligations of an REM Member under these REM Rules;

(d) Be capable of being sued in its own name in a court of the Philippines;

(e) Be qualified to be registered under no less than one (1) REM Member category; and

(f) Be able to meet any other requirements as specified in the relevant REM Manual.

2.4.2  Qualifications of Trading Participants

2.4.2.1  The following entities connected to On-Grid Systems shall register as On-Grid Mandated Participants:

(a) On-Grid Distribution Utilities serving Captive Customers, including Privately-Owned, Electric Cooperative, LGU-owned and Controlled, and Economic Zone Utility;

(b) All Suppliers of Electricity for the Contestable Market, as defined in the EPIRA and pursuant to Retail Competition and Open Access (RCOA); and

(c) Generation Companies who serve Directly Connected Customers registered in a WESM.

2.4.2.2  The following entities connected to Off-Grid Systems shall register as Off-Grid Mandated Participants:

(a) NPC-SPUG and NPPs/QTPs as defined in the RPS for Off-grid Areas;

(b) Off-Grid Distribution Utilities with respect to their own generation facilities;

(c) Entities that generate electricity and serve off-grid areas as may be determined and approved by the DOE; and

(d) Entities that meet the requirements set forth in relevant legislation pertaining to the application of a renewable portfolio standards instrument in Off-Grid Systems and in the relevant REM Manual.

2.4.2.3  The following entities shall register as a Generation Company:

(a) Entities with RE Generation Facilities that are registered in the WESM and generate Renewable Electricity into the WESM pool.

(b) Entities with RE Generation Facilities that meet the requirements set forth in the relevant REM Manual.

2.4.3  Eligible REM Generators and their Classification

2.4.3.1  A REM Generator must belong to one of the following renewable technology categories, in accordance with Section 9 of the RPS Rules:

(a) Biomass;

(b) Waste to energy;

(c) Wind energy;

(d) Solar energy;

(e) Ocean energy;

(f) Run of river hydropower;

(g) Impounding hydropower systems meeting internationally acceptable standards;

(h) Geothermal;

(i) Hybrid Systems as defined in the RE Act; and

(j) Other renewable energy technologies that may be officially classified by the DOE.

2.4.3.2  A REM Generator's facilities must be certified by the DOE as falling under one of the following categories to be eligible to create RECs for RPS compliance from its Renewable Electricity generation:

(a) Existing and New RE Generation Facilities;

(b) Incremental capacity resulting from the expansion, retrofitting, refurbishing or repowering on existing RE Generation Facilities;

(c) New RE Generation Facilities resulting from converting a Non-Renewable Generation Facility to a renewable technology;

(d) Facilities participating under the Net-Metering Program, and renewable energy self-generating facilities; HESIcT

(e) Mothballed RE Generation Facilities restored into operation; and

(f) Other RE Generation Facilities as may be later defined by the DOE.

Provided that in order to be an eligible RE Facility for RPS compliance, the RE Facility falling under any of the categories mentioned above have come into commercial operations after the effectivity of the RE Act, as provided in Section 10 of the RPSRules.

2.4.3.3  A Hybrid System must meet the following requirements:

(a) The Hybrid System must meet the requirements prescribed by the DOE pursuant to guidelines on to be promulgated by the DOE for hybrid systems.

(b) The Hybrid System must meet the requirements set forth in relevant REM Manual.

2.4.3.4  A WESM RE Generator must meet the following requirements:

(a) Be registered in the WESM; and

(b) Meet the requirements set forth in the relevant REM Manual.

2.4.3.5  A Net-Metered RE Generator must meet the following requirements:

(a) The entity who owns the Net-Metered RE Generation Facility shall have a valid Net-Metering Agreement with their host Distribution Utility governing the commercial and inter-connection arrangement between the two parties; and

(b) The entity who owns the Net-Metered RE Generation Facility shall meet the requirements set forth in the relevant REM Manual.

2.4.3.6  Off-Grid RE Generators must meet the requirements set forth in relevant legislation pertaining to the application of a renewable portfolio standards instrument in Off-Grid Systems and in the relevant REM Manual.

2.4.3.7  RE Generators providing the RE requirements of GEOP end-users through the host Distribution Utility must meet the requirements set forth in the GEOP Rules.

2.5 RESPONSIBILITIES OF REM MEMBERS

Each REM Member:

(a) Shall perform all its rights, duties and obligations under the REM Rules, and other relevant issuances, decisions and resolutions of the DOE and ERC, in good faith and with the degree of care and to the standard expected of a prudent public utility, End-User or generator;

(b) Shall at all times procure compliance with and maintain all consents, permissions and licenses required to be obtained and maintained to participate in the REM for each category in which it is registered under;

(c) Shall promptly pay all fees, charges and other payments arising under the REM Rules as they become due;

(d) Shall ensure that, any information or data it is required to submit to the Registrar or any other entity or to maintain, as required by virtue of being an REMMember, shall, to the best of its knowledge and belief, be true, valid, correct, complete and accurate at the time it is given and, while it is maintained and where appropriate, it shall keep the Registrar informed of any mistakes or omissions in and corrections or updates to any information or data which it has submitted to the Registrar or any other entity under the REM Rules;

(e) Shall ensure that any information or data it is required to submit to the Registrar, or any person as required by under the REM Rules will be submitted in a timely manner to enable the Registrar or such other person to perform their obligations and functions arising under the REM Rules; and

(f) Shall co-operate with and provide all reasonable assistance to the Registrar on request for the purposes of the Registrar performing its functions and obligations under the REM Rules.

(g) Shall delegate to the WESM Compliance Officer the monitoring and reporting of the obligation and compliance to the REM Rules of the REM Member that the WESM Compliance Officer represents.

2.6 APPLICATION AND REGISTRATION OF REM MEMBERS

2.6.1  Registration process

2.6.1.1  Intending REM Members shall register with the Registrar pursuant to Clause 2.1 through the submission of an application form and registration requirements specified in the relevant REM Manual. caITAC

2.6.1.2  Entities who intend to register their embedded and/or net-metered Renewable Electricity facilities may opt to elect their host Distribution Utility as a registration agent, pursuant to Clause 2.1.3.

2.6.1.3  If elected by the entity as a registration agent under Clause 2.6.1.2, the host Distribution Utility shall be responsible for registering the same with the Registrar pursuant to Clause 2.6 and the relevant REM Manual.

2.6.1.4  The Registrar shall maintain and publish a REM Manual which shall set out the requirements and procedures which will guide the applicants in the registration process in the REM.

2.6.2  Assessment

2.6.2.1  Within five (5) Working Days of receiving an application for registration, the Registrar shall advise the applicant of any further information which the Registrar reasonably considers to be required to enable the Registrar to assess the application.

2.6.2.2  If the applicant does not provide the information requested under Clause 2.6.2.1 within fifteen (15) Working Days of the request then the Registrar may treat the application as withdrawn.

2.6.2.3  If the Registrar incurs additional costs as a result of requesting and assessing any further information required under Clause 2.6.2.1, the Registrar may require the applicant to pay the actual amount incurred to cover the additional costs.

2.6.3  Approval or disapproval of application

2.6.3.1  For those who will apply for registration, if after assessment, the Registrar determines that the applicant meets all the qualifications and the requirements, the Registrar shall approve the application within ten (10) Working Days of receipt of all requirements from the applicant. The applicant shall be notified of the approval in writing. The date of effectivity of the registration shall be stated in the notice. The Registrar shall provide a copy of the notice to both the DOE and ERC within five (5) Working Days from notice issuance to the applicant.

2.6.3.2  If after assessment, the Registrar determines that the applicant cannot meet the qualifications and requirements, the Registrar shall disapprove the application and shall, within fifteen (15) Working Days of receipt of all requirements from the applicant, provide written notice to the applicant, stating the reasons for the disapproval. The Registrar shall provide a copy of the notice to both the DOE and ERC within five (5) Working Days of issuance to the applicant.

2.7 CESSATION, DEREGISTRATION, SUSPENSION, TRANSFER OF MEMBERSHIP CATEGORY AND NON-PAYMENT OF TRANSACTION FEES

2.7.1  Cessation of Registration

2.7.1.1  An entity that ceases its operations related to any REM Member category for which it is registered shall send written notice to the Registrar to cease its registration under that category.

2.7.1.2  Such notice sent to the Registrar under Clause 2.7.1.1 shall include:

(a) The date upon which it wishes to cease to be registered, which date should not be less than thirty (30) Working Days from the Registrar's receipt of the said notice; and

(b) The category or categories in which the REM Member no longer wishes to be registered.

2.7.1.3  On said effective date, the entity shall be deregistered in accordance with Clause 2.7.2.

2.7.2  Deregistration of REM Members

2.7.2.1  The Registrar shall deregister a REM Member only if:

(a) The REM Member has provided a notice of cessation of registration under Clause 2.7.1; or

(b) The REM Member has been sanctioned for a breach of the REM Rules in accordance with Clause 6.1 and the relevant REM Manual.

2.7.2.2  Any REM Member that is deregistered shall no longer be allowed to participate in the REM in the category from which they were deregistered, provided however that such entity shall continue to be liable for any obligations incurred prior to its deregistration.

2.7.3  Suspension of REM Members

2.7.3.1  The Registrar may suspend a REM Member if:

(a) The REM Member has failed to pay transaction fees pursuant to Clause 2.7.5.2; or ICHDca

(b) The REM Member has been sanctioned for a breach of the REM Rules in accordance with Clause 6.1.2 and the relevant REM Manual.

2.7.3.2  Any REM Member that is suspended shall no longer be allowed to participate in the REM in the category from which it was suspended until the suspension is revoked, provided however that such entity shall continue to be liable for any obligations incurred prior to its suspension.

2.7.4  Transfer of Membership Category

2.7.4.1  The Registrar, as soon as applicable, shall transfer membership of REM Members from Off-Grid to On-Grid if the On-Grid system is already interconnected with the Off-Grid system where the REM Members are situated.

2.7.4.2  The Registrar shall inform the REM Members on the transfer of category and on the new obligations and responsibilities, and shall require the submission by the REMMembers of relevant documents pursuant to the relevant REM Manual.

2.7.5  Non-Payment of Transaction Fees

2.7.5.1  If the REM Trading Participant fails to make payment of any amount payable by it when due, the REM Trading Participant shall pay interest on such unpaid amounts from the due date until the date of payment in full, at the rate per annum equal to the lending rate published by the Bangko Sentral ng Pilipinas at the time of payment plus three percent (3%), not later than three (3) months.

2.7.5.2  In the event of failure to a REM Trading Participant to pay any fees to the Registrar under Clause 1.4 within three (3) months from due date, the Registrar may suspend the REM Trading Participant by issuing a Notice of Suspension to the REM Trading Participant. Such suspension shall not be revoked until payment has been made inclusive of any interest incurred.

CHAPTER 3

Market Operations

3.1 CERTIFICATE CREATION

3.1.1  Issuance

3.1.1.1  The Registrar shall issue one REC for every mega-watt hour (MWH) of Renewable Electricity generated by REM Generators.

3.1.1.2  The Registrar shall issue RECs to eligible REM Trading Participants pursuant to this Clause 3.1 and in accordance with the REC Issuance Timetable.

3.1.1.3  If a REM Generator is a Partially Eligible Facility, then for any Renewable Electricity generated by that REM Generator, the Registrar shall only issue RECs for the Eligible Capacity.

3.1.1.4  With consideration of Clause 3.1.4, if the Renewable Electricity generated by a REM Generator is covered by a Power Supply Agreement then the Registrar shall issue any RECs created thereof to the On-Grid Mandated Participants or Off-Grid MandatedParticipants who are the counterparties to such Power Supply Agreements.

3.1.1.5  If the Renewable Electricity generated by a REM Generator is covered by a Power Supply Agreement where the consuming counterparty is a Directly Connected Customer, then the Registrarshall issue any RECs created thereof to the MandatedParticipant who is the generating counterparty.

3.1.1.6  If the Renewable Electricity generated by a REM Generator is under the FiT, then the Registrar shall issue any RECs created thereof to the Mandated Participants pursuant to allocation methodology provided in Clause 3.2.

3.1.1.7  If the Renewable Electricity is generated by a Net-Metered RE Generator or by a RE Generation Facility for the end-user's own-use then the Registrar shall issue any RECs created thereof to the On-Grid Mandated Participant who is the host Distribution Utility of such facility. Provided, that for the Net-Metered RE Generator, the host Distribution Utility is also the counterparty to the relevant Net-Metering Agreement.

3.1.1.8  If the Renewable Electricity generated by a WESM RE Generator is not covered by a Power Supply Agreement and is generated into the WESMpool, then the Registrar shall:

(a) If the entity who has registered the WESM RE Generator is also registered as a Generation Company, issue any RECs created thereof to that Generation Company; and TCAScE

(b) If the entity who has registered the WESM RE Generator is not also registered as a Generation Company, not issue any RECs created thereof.

3.1.1.9  If the Renewable Electricity is generated by a REM Generator registered under the GEOP, then the Registrar shall issue any RECs created thereof to the host DistributionUtility that registered the REM Generator in the Registrar, in accordance with the GEOP Rules.

3.1.2  Information to be included on a REC

RECs issued under this Clause 3.1 shall include the following information:

(a) Then name, vintage and technology type of the REM Generator whose RenewableElectricity generation is the source of the REC;

(b) The start date and end date of the WESMBilling Period or REM Quarter for which the REC was issued;

(c) The date on which the REC was issued;

(d) The expiry date of the REC;

(e) A serial number uniquely identifying the REC; and

(f) Any other information as set out in the relevant REM Manual.

3.1.3  REC Issuance Timetable

3.1.3.1  The Market Operator shall submit to the Registrar the information set out in Clause 3.1.4.1 no later than the third (3rd) Working Day after the Market Operator issues a Final Settlement Statement for that WESM Billing Period.

3.1.3.2  The Registrar shall issue RECs created through Renewable Electricity generated by WESM RE Generators that are not Multi-Fuel Hybrid Systems, in respect of a WESM Billing Period no later than Thirty (30) calendar days after the end of that WESMBillingPeriod in accordance with Clause 3.1.6.

3.1.3.3  If a REM Trading Participant determines that there is an error or a discrepancy in respect of RECs issued under Clause 3.1.6 then it shall notify the Registrar no later than Fifteen (15) calendar days after the date on which the REC was issued.

3.1.3.4  On-Grid Mandated Participants and Off-Grid Mandated Participants shall apply to the Registrar for RECs created in respect of Renewable Electricity generated by Embedded Non-WESM RE Generators and Off-Grid RE Generators that are not Multi-Fuel Hybrid Systems and with whom they have Power Supply Agreements no later than Ten (10) Working Days after the end of a REM Quarter in accordance with the REC calculations provided Clause 3.1.8.

3.1.3.5  If the On-Grid Mandated Participant or Off-Grid Participant fails to apply for RECs within the period specified in Clause 3.1.3.4 then that On-Grid Mandated Participant or Off-Grid Participant shall forgo any RECs created through Renewable Electricity generated by the relevant Embedded Non-WESM RE Generators and Off-Grid RE Generators in respect of that REM Quarter.

3.1.3.6  The Registrar shall issue RECs created in respect of Renewable Electricity generated by Embedded Non-WESM RE Generators and Off-Grid RE Generators that are not Multi-Fuel Hybrid Systems no later than Thirty (30) calendar days after the end of a REM Quarter in accordance with Clause 3.1.9.

3.1.3.7  On-Grid Mandated Participants who are also the host Distribution Utilities for registered Net-Metered RE Generators and entities with RE Generation Facilities for own-use in their Franchise Areas or for the GEOP, shall apply to the Registrar for RECs created through Renewable Electricity generated by such entities no later than the twentieth (20th) day of the month following the applicable REM Quarter in accordance with Clause 3.1.8.

3.1.3.8  If the On-Grid Mandated Participant fails to apply for RECs within the period specified in Clause 3.1.3.7 then that On-Grid Mandated Participant shall forgo any RECs created through Renewable Electricity generated by the relevant Net-Metered RE Generator or entity with RE Generation Facilities for own-use or for the GEOP in respect of that REM Quarter.

3.1.3.9  The Registrar shall issue RECs created through Renewable Electricity generated by Net-Metered RE Generators entities with RE Generation Facilities for own-use no later than Thirty (30) calendar days after the end of a REM Quarter in accordance with Clause 3.1.9.

3.1.3.10 If a Mandated Participant determines that there is an error or a discrepancy in respect of RECs issued under Clause 3.1.9 then it shall notify the Registrar no later than Fifteen (15) calendar days after the date on which the REC was issued. cTDaEH

3.1.3.11 REM Trading Participants shall apply to the Registrar for RECs created in respect of Renewable Electricity generated by REM Generators that are Multi-Fuel Hybrid Systems by submitting the information set out in Clause 3.1.5.2 or Clause 3.1.8.1 (b), as applicable, no later than Ten (10) Working Days after the end of a REM Quarter.

3.1.3.12 If the REM Trading Participant fails to apply for RECs within the period specified in Clause 3.1.3.11 then that REM Trading Participant shall forgo any RECs created through Renewable Electricity generated by the relevant REM Generator in respect of that REM Quarter.

3.1.3.13 The Market Operator shall submit to the Registrar the information for REM Generators that are Multi-Fuel Hybrid Systems set out in Clause 3.1.5.1 no later than Ten (10) Working Days after the end of a REM Quarter.

3.1.3.14 The Registrar shall issue RECs created through Renewable Electricity generated by Multi-Fuel Hybrid Systems no later than Thirty (30) calendar days after the end of a REM Quarter in accordance with Clause 3.1.6 or 3.1.9 as applicable.

3.1.3.15 If a REM Trading Participant determines that there is an error or a discrepancy in respect of RECs issued under Clause 3.1.6 or 3.1.9 in respect of Renewable Electricity generated from a Multi-Fuel Hybrid System then it shall notify the Registrar no later than Fifteen (15) calendar days after the date on which the REC was issued.

3.1.4  REC calculations for Renewable Electricity generated from WESM RE Generators that are not Multi-Fuel Hybrid Systems

3.1.4.1  The Market Operator shall submit to the Registrar the following information in respect of a WESM Billing Period for each RE Generator that is registered in the WESM that they operate within the timeframe specified in Clause 3.1.3.1:

(a) If the WESM RE Generator is not a Multi-Fuel Hybrid System and is a Partially Eligible Facility:

(i) The hourly MWH Metered Quantity used by the Market Operator to calculate the WESM RE Generator's Final Settlement Quantities;

(ii) The hourly MWH Bilateral Contract Quantity Declarations at the WESM RE Generator's Injection Point used by the Market Operator to calculate the WESM RE Generator's Final Settlement Quantities; and

(iii) Each On-Grid Mandated Participant's hourly MWH share of the Bilateral Contract Quantity Declarations submitted under paragraph (ii).

(b) If the WESM RE Generator a Separately Metered Hybrid System:

(i) The monthly MWH Metered Quantity in respect of only the Renewable Electricity generated by the facility;

(ii) The total monthly MWH Metered Quantity used by the Market Operator to calculate the WESM RE Generator's Final Settlement Quantities;

(iii) The monthly MWH Bilateral Contract Quantity Declarations at the WESM RE Generator's Injection Point used by the Market Operator to calculate the WESM RE Generator's Final Settlement Quantities; and

(iv) Each On-Grid Mandated Participant's monthly MWH share of the Bilateral Contract Quantity Declarations submitted under paragraph (iii).

(c) Otherwise:

(i) The monthly MWH Metered Quantity used by the Market Operator to calculate the WESM RE Generator's Final Settlement Quantities;

(ii) The monthly MWH Bilateral Contract Quantity Declarations at the WESM RE Generator's Injection Point used by the Market Operator to calculate the WESM RE Generator's Final Settlement Quantities; and

(iii) Each On-Grid Mandated Participant's monthly MWH share of the Bilateral Contract Quantity Declarations submitted under paragraph (ii). cSaATC

3.1.4.2  The Registrar shall determine the following quantities for each WESM RE Generator that is not a Multi-Fuel Hybrid System as follows:

(a) If the WESM RE Generator is a Partially Eligible Facility, the Hourly Eligible Metered Quantity as the maximum of:

(i) Zero; and

(ii) The product of the hourly Metered Quantity submitted under Clause 3.1.4.1 (a) (i) and the Eligible Capacity of the WESM RE Generator divided by the WESM RE Generator's registered capacity.

(b) If the WESM RE Generator a Separately Metered Hybrid System the Monthly Eligible Metered Quantity as the monthly Metered Quantity representing the facility's Renewable Electricity generation submitted under Clause 3.1.4.1 (b) (i);

(c) Otherwise, the Monthly Eligible Metered Quantity as the monthly Metered Quantity submitted under Clause 3.1.4.1 (c) (i).

3.1.4.3  The Registrar shall determine the following quantities for each WESM RE Generator that is not a Multi-Fuel Hybrid System as follows:

(a) If the WESM RE Generator is a Partially Eligible Facility, the Hourly Eligible Bilateral Contract Quantity Declarations as the minimum of:

(i) The Hourly EligibleMetered Quantities calculated under Clause 3.1.4.2 (a); and

(ii) The product of:

• The hourly Bilateral Contract Quantity Declarations submitted under Clause 3.1.4.1 (a) (ii); and

• The Hourly Eligible Metered Quantity calculated under Clause 3.1.4.2 (a) divided by the hourly Metered Quantity submitted under Clause 3.1.4.1 (a) (i).

(b) If the WESM RE Generator a Separately Metered Hybrid System, the Monthly Eligible Bilateral Contract Quantity Declarations as the minimum of:

(i) The Monthly EligibleMetered Quantity calculated under Clause 3.1.4.2 (b); and

(ii) The product of the monthly Bilateral Contract Quantity Declarations submitted under Clause 3.1.4.1 (b) (iii) and Monthly Eligible Metered Quantity calculated under Clause 3.1.4.2 (b) divided by total monthly MWH Metered Quantity submitted under Clause 3.1.4.1 (b) (ii).

(c) Otherwise, the Monthly Eligible Bilateral Contract Quantity Declarations as the minimum of:

(i) The Monthly Eligible Metered Quantity calculated under Clause 3.1.4.2 (c); and

(ii) The monthly Bilateral Contract Quantity Declarations submitted under Clause 3.1.4.1 (c) (ii).

3.1.4.4  The Registrar shall determine for each WESM RE Generator that is not a Multi-Fuel Hybrid System, the following quantities in respect of each On-Grid Mandated Participant as follows:

(a) If the WESM RE Generator is a Partially Eligible Facility, the Hourly Attributable Bundled WESM Generation as the sum of the product of:

(i) The Hourly Eligible Bilateral Contract Quantity Declarations calculated under Clause 3.1.4.3 (a); and

(ii) The On-Grid Mandated Participant's hourly share of the Bilateral Contract Quantity Declaration submitted under Clause 3.1.4.1 (a) (iii) divided by the hourly Bilateral Contract Quantity Declaration submitted under Clause 3.1.4.1 (a) (ii).

(b) If the WESM RE Generator a Separately Metered Hybrid System, the Monthly Attributable Bundled WESM Generation as the product of: cHDAIS

(i) The Monthly Eligible Bilateral Contract Quantity Declarations calculated under Clause 3.1.4.3 (b); and

(ii) The On-Grid Mandated Participant's monthly share of the Bilateral Contract Quantity Declaration submitted under Clause 3.1.4.1 (b) (iv) divided by the total monthly Bilateral Contract Quantity Declaration submitted under Clause 3.1.4.1 (b) (iii).

(c) Otherwise, the Monthly Attributable Bundled WESM Generation as the product of:

(i) The Monthly Eligible Bilateral Contract Quantity Declarations calculated under Clause 3.1.4.3 (c); and

(ii) The On-Grid Mandated Participant's monthly share of the Bilateral Contract Quantity Declaration submitted under Clause 3.1.4.1 (c) (iii) divided by the total monthly Bilateral Contract Quantity Declaration submitted under Clause 3.1.4.1 (c) (ii).

3.1.4.5  The Registrar shall determine the following quantities for each WESM RE Generator that is not a Multi-Fuel Hybrid System:

(a) The Eligible Metered Quantity as:

(i) If the WESM RE Generator is a Partially Eligible Facility, as the sum of the Hourly Eligible Metered Quantities calculated under Clause 3.1.4.2 (a);

(ii) If the WESM RE Generator a Separately Metered Hybrid System, as the Monthly Eligible Metered Quantity calculated under Clause 3.1.4.2 (b);

(iii) Otherwise as the Monthly Eligible Metered Quantity calculated under Clause 3.1.4.2 (c).

(b) The Eligible Bilateral Contract Quantity Declarations as:

(i) If the WESM RE Generator is a Partially Eligible Facility, as the sum of the Hourly Eligible Bilateral Contract Quantity Declarations calculated under Clause 3.1.4.3 (a);

(ii) If the WESM RE Generator a Separately Metered Hybrid System, as the Monthly Bilateral Contract Quantity Declarations calculated under Clause 3.1.4.3 (b);

(iii) Otherwise as the Monthly Bilateral Contract Quantity Declarations calculated under Clause 3.1.4.3 (c).

(c) The Attributable Bundled WESM Generation of each On-Grid Mandated Participant as:

(i) If the WESM RE Generator is a Partially Eligible Facility, as the sum of the Hourly Attributable Bundled WESM Generation calculated under Clause 3.1.4.4 (a);

(ii) If the WESM RE Generator a Separately Metered Hybrid System, as the Monthly Attributable Bundled WESM Generation calculated under Clause 3.1.4.4 (b);

(iii) Otherwise as the Monthly Attributable Bundled WESM Generation calculated under Clause 3.1.4.4 (c).

3.1.4.6  The Registrar shall determine the following quantities for each WESM RE Generator that is not a Multi-Fuel Hybrid System in respect of a WESM Billing Period:

(a) The Total Unbundled WESM Quantity as the difference between:

(i) The WESM RE Generator's total monthly Eligible Metered Quantity calculated under Clause 3.1.4.5 (a); and

(ii) The sum of the Eligible Bilateral Contract Quantity Declarations calculated under Clause 3.1.4.5 (b).

(b) The Total Adjusted Unbundled WESM Quantity as the sum of:

(i) The Total Unbundled WESM Quantity calculated for the WESM RE Generator under paragraph (a);

(ii) The Carry-Over WESM Quantity calculated for the WESM RE Generator in respect of previous WESM Billing Periods; and

(iii) Any adjustments calculated under Clause 3.1.7.

(c) The Monthly Unbundled WESM RECs as the smallest integer quantity that represents the nearest whole MWH value to the Total Adjusted Unbundled WESM Quantity determined under paragraph (b).

(d) The Carry-Over WESM Quantity as:

(i) The Total Adjusted Unbundled WESM Quantity calculated under paragraph (b); minus

(ii) The Monthly Unbundled WESM RECs calculated under paragraph (c).

3.1.4.7  The Registrar shall determine the following quantities in respect of a WESM Billing Period for each WESM RE Generator that is not a Multi-Fuel Hybrid System and for each On-Grid Mandated Participant that has a Power Supply Agreement with that WESM RE Generator:

(a) The Total Bundled WESM Quantity as the On-Grid Mandated Participant's Attributable Bundled WESM Generation in respect of the WESM RE Generator calculated under Clause 3.1.4.5 (c).

(b) The Total Adjusted Bundled WESM Quantity as the sum of:

(i) The Total Bundled WESM Quantity calculated for the On-Grid Mandated Participant under paragraph (a);

(ii) The Carry-Over Quantity for the On-Grid Mandated Participant calculated in respect of the WESM RE Generator for previous WESM Billing Periods; and

(iii) Any adjustments calculated under Clause 3.1.7.

(c) The Monthly Bundled WESM RECs as the smallest integer quantity that represents the nearest whole MWH value to the Total Adjusted Bundled WESM Quantity determined under paragraph (b).

(d) The Carry-Over Quantity as:

(i) The Total Adjusted Bundled WESM Quantity calculated under paragraph (b); minus

(ii) The Monthly Bundled WESM RECs calculated under paragraph (c).

3.1.5  REC calculations for Renewable Electricity generated from WESM RE Generators that are Multi-Fuel Hybrid Systems

3.1.5.1  The Market Operator shall submit to the Registrar the following information in respect of each WESM Billing Period in the relevant REM Quarter for each WESM RE Generator that is registered in the WESM that they operate within the timeframe specified in Clause 3.1.3.13:

(a) The monthly MWH Metered Quantity used by the Market Operator to calculate the WESM RE Generator's Final Settlement Quantities for all WESM Billing Periods in the relevant REM Quarter;

(b) The monthly MWH Bilateral Contract Quantity Declarations at the WESM RE Generator's Injection Point used by the Market Operator to calculate the WESM RE Generator's Final Settlement Quantities for all WESMBilling Periods in the relevant REM Quarter; and

(c) Each On-Grid Mandated Participant's monthly MWH share of the Bilateral Contract Quantity Declarations submitted under paragraph (b).

3.1.5.2  Generation Companies shall submit the following data in respect of each of their WESM registered Multi-Fuel Hybrid Systems within the timeframe specified in Clause 3.1.3.11:

(a) The total monthly MWH Metered Quantity for all WESMBilling Periods in the relevant REM Quarter; CAacTH

(b) The total monthly Renewable Metered Quantity which represents the renewable component of the total monthly MWH Metered Quantity submitted under paragraph (a) for all WESM Billing Periods in the relevant REM Quarter;

(c) Certification that the Renewable Metered Quantity submitted under paragraph (b) has been calculated in accordance with the requirements prescribed by the DOE pursuant to Clause 9.2.1.

3.1.5.3  If the Registrar notifies a Generation Company that there is an error in the data submitted under Clause 3.1.5.2, the Generation Company shall submit the corrected data within five (5) Working Days of the notification.

3.1.5.4  If the Registrar does not receive the corrected data under Clause 3.1.5.3 within the timeframe specified in Clause 3.1.5.3, the Registrar shall not issue any RECs in respect of the relevant Multi-Fuel Hybrid System(s).

3.1.5.5  The Registrar shall determine the Monthly Renewable Bilateral Contract Quantity for each WESM RE Generator that is a Multi-Fuel Hybrid System as the minimum of:

(a) The monthly Renewable Metered Quantities submitted under Clause 3.1.5.2 (b); and

(b) The product of:

(i) The monthly MWH Bilateral Contract Quantity Declarations submitted under Clause 3.1.5.1 (b); and

(ii) The monthly Renewable Metered Quantities submitted under Clause 3.1.5.2 (b) divided by the total monthly MWH Metered Quantity submitted under Clause 3.1.5.2 (a).

3.1.5.6  The Registrar shall determine for each WESM RE Generator that is a Multi-Fuel Hybrid System, the Monthly Attributable Bundled WESM Generation of each On-Grid Mandated Participant as the product of:

(a) The Monthly Renewable Bilateral Contract Quantity calculated under Clause 3.1.5.5; and

(b) The On-Grid Mandated Participant's monthly share of the Bilateral Contract Quantity Declarations submitted Clause 3.1.5.1 (c) divided by the total monthly Bilateral Contract Quantity Declarations submitted under Clause 3.1.5.1 (b).

3.1.5.7  The Registrar shall determine the following quantities for each WESM RE Generator that is a Multi-Fuel Hybrid System in respect of the relevant REM Quarter:

(a) The Eligible Metered Quantities as the sum of the monthly Renewable Metered Quantities submitted under Clause 3.1.5.2 (b);

(b) The EligibleBilateral Contract Quantity Declarations as the sum of the MonthlyRenewable Bilateral Contract Quantities calculated under Clause 3.1.5.5;

(c) The Attributable Bundled WESM Generation of each On-Grid Mandated Participant as the sum of the Monthly Attributable Bundled WESM Generation calculated under Clause 3.1.5.6.

3.1.5.8  The Registrar shall determine the following quantities for each WESM RE Generator that is a Multi-Fuel Hybrid System in respect of the relevant REM Quarter:

(a) The Total Unbundled WESM Quantity as the difference between:

(i) The WESM RE Generator'sEligibleMetered Quantity calculated under Clause 3.1.5.7 (a); and

(ii) The EligibleBilateral Contract Quantity Declarations calculated under Clause 3.1.5.7 (b).

(b) The Total Adjusted Unbundled WESM Quantity as the sum of:

(i) The Total Unbundled WESM Quantity calculated for the WESM RE Generator under paragraph (a);

(ii) The Carry-Over WESM Quantity calculated for the WESM RE Generator in respect of previous REM Quarters; and

(iii) Any adjustments calculated under Clause 3.1.7. IAETDc

(c) The Monthly Unbundled WESM RECs as the smallest integer quantity that represents the nearest whole MWH value to the Total Adjusted Unbundled WESM Quantity determined under paragraph (b).

(d) The Carry-Over WESM Quantity as:

(i) The Total Adjusted Unbundled WESM Quantity calculated under paragraph (b); minus

(ii) The Monthly Unbundled WESM RECs calculated under paragraph (c).

3.1.5.9  The Registrar shall determine the following quantities in respect of the relevant REM Quarter for each WESM RE Generator that is a Multi-Fuel Hybrid System and for each On-Grid Mandated Participant that has a Power Supply Agreement with that WESM RE Generator:

(a) The Total Bundled WESM Quantity as the On-Grid Mandated Participant's Attributable Bundled WESM Generation in respect of the WESM RE Generator calculated under Clause 3.1.5.7 (c).

(b) The Total Adjusted Bundled WESM Quantity as the sum of:

(i) The Total Bundled WESM Quantity calculated for the On-Grid Mandated Participant under paragraph (a);

(ii) The Carry-Over Quantity for the On-Grid Mandated Participant calculated in respect of the WESM RE Generator for previous REM Quarters; and

(iii) Any adjustments calculated under Clause 3.1.7.

(c) The Monthly Bundled WESM RECs as the smallest integer quantity that represents the nearest whole MWH value to the Total Adjusted Bundled WESM Quantity determined under paragraph (b).

(d) The Carry-Over Quantity as:

(i) The Total Adjusted Bundled WESM Quantity calculated under paragraph (b); minus

(ii) The Monthly Bundled WESM RECs calculated under paragraph (c).

3.1.6  REC issuance for Renewable Electricity generated from WESM RE Generators

3.1.6.1  The Registrar shall issue and deposit RECs for a WESM Billing Period within the period specified in Clause 3.1.3.2 as follows:

(a) For each On-Grid Mandated Participant eligible to receive RECs in respect of the Renewable Electricity generated in the WESM in accordance with Clause 3.1.4, issue and deposit into the On-Grid Mandated Participant's Registry Account a number of RECs equal to the sum of the Monthly Bundled WESM RECs calculated under Clause 3.1.4.7 (c) for all WESM RE Generators that are not Multi-Fuel Hybrid Systems and that the On-Grid Mandated Participant has a Power Supply Agreement with.

(b) For each Generation Company eligible to receive RECs in respect of the Renewable Electricity generated in a WESM in accordance with Clause 3.1.4 and Clause 3.1.1.8, issue and deposit into the Generation Company's Registry Account a number of RECs equal to the sum of the Monthly Unbundled WESM RECs calculated under Clause 3.1.4.6 (c) for all WESM RE Generators that are not Multi-Fuel Hybrid Systems and are registered by the Generation Company.

3.1.6.2  The Registrar shall issue and deposit RECs for a REM Quarter within the period specified in Clause 3.1.3.14 as follows: DcHSEa

(a) For each On-Grid Mandated Participant eligible to receive RECs in respect of the Renewable Electricity generated in a WESM in accordance with Clause 3.1.5, issue and deposit into the On-Grid Mandated Participant's Registry Account a number of RECs equal to the sum of the Monthly Bundled WESM RECs calculated under Clause 3.1.5.9 (c) for all WESM RE Generators that are Multi-Fuel Hybrid Systems and that the On-Grid Mandated Participant has a Power Supply Agreement with.

(b) For each Generation Company eligible to receive RECs in respect of the Renewable Electricity generated in a WESM in accordance with Clause 3.1.5 and Clause 3.1.1.8, issue and deposit into the Generation Company's Registry Account a number of RECs equal to the sum of the sum of the Monthly Unbundled WESM RECs calculated under Clause 3.1.5.8 (c) for all WESM RE Generators that are Multi-Fuel Hybrid Systems and are registered by the Generation Company.

3.1.6.3  For avoidance of doubt:

(a) If the sum of the Monthly Bundled WESM RECs referenced in Clause 3.1.6.1 (a) or Clause 3.1.6.2 (a) is:

(i) A positive number then the Registrar shall deposit that number of RECs into the relevant On-Grid Mandated Participant's Registry Account

(ii) A negative number then the Registrar shall deduct that number of RECs from the relevant On-Grid Mandated Participant's Registry Account

(b) If the sum of the Monthly Unbundled WESM RECs referenced in Clause 3.1.6.1 (b) or Clause 3.1.6.2 (b) is:

(i) A positive number then the Registrar shall deposit that number of RECs into the relevant Generation Company's Registry Account

(ii) A negative number then the Registrar shall deduct that number of RECs from the relevant Generation Company's Registry Account

3.1.7  Adjustments to RECs issued in respect of Renewable Electricity generated from WESM RE Generators

3.1.7.1  Subject to Clause 3.1.7.3 (c), if the Registrar determines that there is an error or discrepancy in the number of RECs issued to REM Trading Participants under Clause 3.1.6 then it shall ensure that the correction is reflected in the REC issuance for the next WESM Billing Period or REM Quarter as applicable.

3.1.7.2  If the Metered Quantity submitted under Clause 3.1.4.1 contains estimated values then the Market Operator shall:

(a) Indicate the same to the Registrar in their submission under Clause 3.1.4.1; and

(b) Submit the corrected Metered Quantities as soon as practicably possible.

3.1.7.3  If the Market Operator determines that there is an error in the Metered Quantity or, Bilateral Contract Quantity Declarations submitted under Clauses 3.1.4.1 and 3.1.5.1, then the Market Operator shall:

(a) Immediately notify the Registrar; and

(b) Submit the corrected Metered Quantity as soon as practicably possible within twelve (12) months after the REC issuance deadline under Clause 3.1.3.2 for the WESM Billing Period to which the erroneous data pertains.

(c) If the Market Operator submits the corrected data under Clause 3.1.7.2 and Clause 3.1.7.3 within two (2) Working Days of the monthly REC issuance deadline in Clause 3.1.3.2, the Registrar shall ensure that the correction is reflected in the monthly REC issuance for the current WESM Billing Period. Otherwise, the correction shall be reflected in the monthly REC issuance for the following WESM Billing Period.

3.1.8  REC calculations for Renewable Electricity generated from REM Generators that are not WESM RE Generators

3.1.8.1  On-Grid Mandated Participants and Off-Grid Mandated Participants shall submit the following data to the Registrar in respect of Embedded Non-WESM RE Generators and Off-Grid RE Generators and with whom they have Power Supply Agreements for each REM Quarter within the period specified in Clause 3.1.3.4 or Clause 3.1.3.11 (as applicable):

(a) If the Embedded Non-WESM RE Generator is a Separately Metered Hybrid System:

(i) The monthly MWH Metered Quantities in respect of only the Renewable Electricity generated by the facility in that REM Quarter;

(ii) The total monthly MWH Metered Quantities pertaining to that REM Quarter;

(b) If the Embedded Non-WESM RE Generator is a Multi-Fuel Hybrid System:

(i) The total monthly MWH Metered Quantities for the relevant REM Quarter;

(ii) The total monthly Renewable Metered Quantities which represents the renewable component of the total monthly MWH Metered Quantity submitted under paragraph (i) for the relevant REM Quarter;

(iii) Certification that the Renewable Metered Quantities submitted under paragraph (ii) has been calculated in accordance with the requirements prescribed by the DOE pursuant to Clause 9.2.1.

(c) Otherwise, the monthly MWH Metered Quantities pertaining to that REM Quarter.

3.1.8.2  On-Grid Mandated Participants who are also the host Distribution Utilities for registered Net-Metered RE Generators and entities with RE Generation Facilities for own-use in their Franchise Areas or for the GEOP shall submit the monthly MWH Metered Quantity pertaining to that REM Quarter to the Registrar in respect of each Net Metered RE Generators with whom they have a Net-Metering Agreement, and entity with RE Generation Facilities for own-use within the period specified in Clause 3.1.3.7. The data submitted under this Clause 3.1.8.2 shall represent the Net Metered RE Generator's net injection into the distribution network.

3.1.8.3  Mandated Participants submitting data under Clause 3.1.8.1 or Clause 3.1.8.2 shall ensure that the data is validated, accurate and uncorrupted.

3.1.8.4  If the Registrar notifies a Mandated Participant that there is an error in the data submitted under Clause 3.1.8.1 or Clause 3.1.8.2, the Mandated Participant shall submit the corrected data within five (5) Working Days of the notification or forfeit any RECs that would have been issued in respect of that submission.

3.1.8.5  The Registrar shall determine the following quantities for each Embedded Non-WESM RE Generator, each Off-Grid RE Generator, Net-Metered RE Generator or each entity with RE Generation Facilities for own-use as follows:

(a) If the Embedded Non-WESM RE Generator is a Separately Metered Hybrid System, the Monthly Eligible Metered Quantities as the monthly Metered Quantities submitted under Clause 3.1.8.1 (a) (i);

(b) If the Embedded Non-WESM RE Generator is a Multi-Fuel Metered Hybrid System the MonthlyEligibleMetered Quantities as the monthly Renewable Metered Quantities submitted under Clause 3.1.8.1 (b);

(c) Otherwise, the MonthlyEligibleMetered Quantities as the monthly Metered Quantities submitted under Clause 3.1.8.1 (c) or Clause 3.1.8.2 as relevant.

3.1.8.6  The Registrar shall determine the Eligible Metered Quantities for each Embedded Non-WESM RE Generator, each Off-Grid RE Generator or each Net-Metered RE Generator, or each entity with RE Generation Facilities for own-use as the sum of the Monthly Eligible Metered Quantities calculated under Clause 3.1.8.5 (a), Clause 3.1.8.5 (b) or Clause 3.1.8.5 (c) as relevant.

3.1.8.7  The Registrar shall determine the following quantities in respect of a REM Quarter for each Embedded Non-WESM RE Generator, each Off-Grid RE Generator and each Net-Metered RE Generator, or each entity with RE Generation Facilities for own-use and for each Mandated Participant that has a Power Supply Agreement or Net-Metering Agreement with that Embedded Non-WESM RE Generator, Off-Grid RE Generator or Net-Metered RE Generator, or is the host of an entity with RE Generation Facilities for own-use: aTHCSE

(a) The Total Bundled Non-WESM Quantity of each Mandated Participant as the total Eligible Metered Quantities in respect of the Embedded Non-WESM RE Generator, Off-Grid RE Generator or Net-Metered RE Generator (as calculated under Clause 3.1.8.6) with whom the Mandated Participant has a Power Supply Agreement or Net-Metering Agreement;

(b) The Total Adjusted Bundled Non-WESM Quantity as the sum of:

(i) The Total Bundled Non-WESM Quantity calculated under paragraph (a);

(ii) The Carry-Over Quantity for the Mandated Participant in respect of the Embedded Non-WESM RE Generator, Off-Grid RE Generator or Net-Metered RE Generator calculated in for previous REM Quarters; and

(iii) Any adjustments calculated under Clause 3.1.10.

(c) The Quarterly Bundled Non-WESM RECs as the smallest integer quantity that represents the nearest whole MWH value to the Total Adjusted Bundled Non-WESMQuantity determined under paragraph (b).

(d) The Carry-Over Quantity as:

(i) The Total Adjusted Bundled Non-WESM Quantity calculated under paragraph (b); minus

(ii) The Quarterly Bundled Non-WESM RECs calculated under paragraph (c).

3.1.9  REC issuance for Renewable Electricity generated from REM Generators that are not WESM RE Generators

3.1.9.1  For each Mandated Participant eligible to receive RECs in respect of the Renewable Electricity generated by an Embedded Non-WESM RE Generator, Off-Grid RE Generator or Net-Metered RE Generator or entity with RE Generation Facilities for own-use in accordance with Clause 3.1.8, the Registrar shall issue and deposit into the Mandated Participant's Registry Account for that REM Quarter within the period specified in Clause 3.1.3.9 or Clause 3.1.3.14 (as applicable) a number of RECs equal to the sum of the Quarterly Bundled Non-WESM RECs calculated under Clause 3.1.8.7 (c) over all:

(a) Embedded Non-WESM RE Generators;

(b) Off-Grid RE Generators; and

(c) Net-Metered RE Generators

(d) Entities with RE Generation Facilities for own-use

(e) Entities with RE Generation Facilities accredited for the GEOP

with whom the Mandated Participant has a Power Supply Agreement or Net-Metering Agreement, or is the host Distribution Utility for entities with RE Generation Facilities for own-use.

3.1.9.2  For avoidance of doubt, if the sum of the Quarterly Bundled Non-WESM RECs referenced in Clause 3.1.9.1 is:

(a) A positive number then the Registrar shall deposit that number of RECs into the relevant Grid Mandated Participant's Registry Account.

(b) A negative number then the Registrar shall deduct that number of RECs from the relevant Mandated Participant's Registry Account.

3.1.10 Adjustments to RECs issued in respect of Renewable Electricity generated from REM Generators that are not WESM RE Generators

3.1.10.1 Subject to Clause 3.1.10.2 (b), if the Registrar determines that there is an error or discrepancy in the number of RECs issued to REM Trading Participants under Clause 3.1.9.1 then it shall ensure that the correction is reflected in the quarterly REC issuance for the next REM Quarter.

3.1.10.2 If the relevant Mandated Participant determines that there is an error in the Metered Quantity submitted under Clause 3.1.8.1 or Clause 3.1.8.2, then that Mandated Participant shall:

(a) Immediately notify the Registrar; and

(b) Submit the corrected Metered Quantity as soon as practicably possible, but no later than 30 days after the REC issuance deadline under Clause 3.1.3.9 for the REM Quarter to which the erroneous data pertains. cAaDHT

3.1.10.3 If a Mandated Participant fails to submit corrected Metered Quantities under Clause 3.1.10.2 within the period prescribed in Clause 3.1.10.2 (b), then the Registrar shall not issue any further error corrections or adjustments to the relevant REC issuances.

3.1.10.4 The Registrar shall issue revisions on the RECs issued to the Mandated Participant for the REM Quarter not later than 15 days upon receipt of the corrected Metered Quantities within the period prescribed in Clause 3.1.10.2 (b).

3.2 ALLOCATION OF RENEWABLE ELECTRICITY GENERATION FROM FiT ELIGIBLE FACILITIES

3.2.1  Provision of data to enable FiT Allocation

The Market Operator shall provide for each FiTEligibleFacility that is registered in the WESM the monthly MWH Metered Quantities in respect of a WESM Billing Period no later than the third (3rd) Working Day after the Market Operator issues a Final Settlement Statement for that WESM Billing Period.

3.2.1.1  The Market Operator shall submit to the Registrar the following information in respect of a WESM Billing Period for each Directly Connected Customer that has a Power Supply Agreement with a Generation Company that is registered in the WESM that they operate and in the REM as an On-Grid Mandated Participant no later than the third (3rd) Working Day after the Market Operator issues a Final Settlement Statement for that WESM Billing Period:

(a) The monthly MWH Metered Quantities used by the Market Operator to calculate the Directly Connected Customer's Final Settlement Amounts; and

(b) The monthly MWH Bilateral Contract Quantity Declarations with respect to each WESM Generator with whom the Directly Connected Customer has a Power Supply Agreement (declared at the WESM RE Generator's Injection Point), used by the Market Operator to calculate the Directly Connected Customer'sFinal Settlement Amounts.

3.2.1.2  The FiT-All Fund Administrator shall submit to the Registrar the following data in respect of a WESM Billing Period no later than Fifty (50) calendar days after the end of the WESM Billing Period:

(a) The FiT-All Tariff remitted to the FiT-All Fund Administrator by each FiT-All Collection Agent that is an On-Grid Mandated Participant and is not a Generation Company.

(b) The FiT-All Tariff remitted to the FiT-All Fund Administrator by the relevant FiT-All Collection Agent in respect of Directly Connected Customers.

3.2.2  Allocation of FiT generation to Mandated Participants

3.2.2.1  The Registrar shall determine each Mandated Participant's Monthly FiT GenerationShare and shall issue the corresponding RECs to the aggregated monthly MWh Metered Quantities of all the FiT-eligible Facilities in accordance with the following:

(a) The allocation of the monthly FiT Generation for each Mandated Participant will be in the proportion of their monthly metered energy quantities to the total monthly metered energy quantities of all the Mandated Participants and percentage level of FiT All payment for the corresponding month;

(b) The Monthly FiT Generation Share shall be the smallest integer quantity that represents the nearest whole MWH value based on the allocation described in (a);

(c) The Incremental MWh in relation to (b) shall be carried over to the following month's REC issuance.

3.2.2.2  The Incremental MWh in relation to partial payment by the Mandated Participant shall be issued with RECs based on the following:

(a) Regarding the corresponding MWh of the unpaid FiT-All by the Mandated Participant due to its failure to remit the collected FiT All payment from its end users, it shall be carried over to the month when the FiT-All obligation is fully paid for REC issuance, and HCaDIS

(b) Regarding the corresponding MWh of the unpaid FiT All by the Mandated Participant due to non-payment of the FiT All by its end users, the RECs shall be apportioned again to the Mandated Participants based on their monthly metered energy quantities.

3.2.2.3  The Registrar shall notify each On-Grid Mandated Participant of their Monthly FiT Generation Share and issue the corresponding RECs in respect of a WESM Billing Period no later than Sixty (60) calendar days after the end of the WESM Billing Period.

3.2.2.4  The Registrarshall publish a REM Manual that sets out the:

(a) The methodology that it shall use to determine a Mandated Participant's Monthly FiT Generation Share under Clause 3.2.2.1; and

(b) The data and information that Data Providers shall provide to the Registrar to enable it to calculate the Monthly FiT Generation Share under Clause 3.2.2.1.

3.2.3  Adjustment for errors

3.2.3.1  If an On-Grid Mandated Participant determines that there is an error or a discrepancy in respect of their Monthly FiT Generation Share notified under Clause 3.2.2.3 then it shall notify the Registrar no later than Fifteen (15) calendar days after the date on which they were notified under Clause 3.2.2.3.

3.2.3.2  Subject to Clause 3.2.3.4, if the Registrar determines that there is an error or discrepancy in the Monthly FiT Generation Share notified under Clause 3.2.2.3 then it shall ensure that the correction is reflected in the Monthly FiT Generation Share calculation for the next WESM Billing Period.

3.2.3.3  If a Data Provider becomes aware of any error or discrepancy in data submitted under Clause 3.2.2.4 (b), it shall:

(a) Immediately notify the Registrar; and

(b) Submit the corrected data as soon as practicably possible.

3.2.3.4  If a Data Provider submits the corrected data under Clause 3.2.3.3 within two (2) Working Days of the Monthly FiT Generation Share notification deadline in Clause 3.2.2.3, the Registrar shall ensure that the correction is reflected in the Monthly FiT Generation Share calculation for the current WESM Billing Period. Otherwise, the correction shall be reflected in the Monthly FiT Generation Share calculation for the following WESM Billing Period.

3.2.4  Disputes related to FiT allocations

3.2.4.1  If an On-Grid Mandated Participant determines that there is an error or a discrepancy in respect of the Monthly FiT Generation Share calculations under Clause 3.2.3, and despite notice to the Registrar the same has not been corrected in accordance with Clause 3.2.3.2 or Clause 3.2.3.4, the On-Grid Mandated Participant may lodge a Dispute with the Registrar.

3.2.4.2  Disputes lodged under Clause 3.2.4.1 must be lodged no later than Sixty (60) calendar days after the date on which the Monthly FiT Generation Share was notified under Clause 3.2.2.3. The failure to lodge a dispute within the prescribed timeline already constitutes a waiver for effecting corrections on the Monthly FiT Generation Share.

3.3 CERTIFICATE TRANSACTIONS

3.3.1  Certificate transfers

3.3.1.1  A REM Trading Participant may transfer a REC to another REM Trading Participant's Registry Account in accordance with the procedures set forth in the relevant REM Manual.

3.3.1.2  A REM Trading Participant may transfer a REC under Clause 3.3.1.1 through:

(a) One-off REC transfer; or

(b) Standing Order.

3.3.1.3  If a REM Trading Participant opts to transfer RECs through a Standing Order, it shall ensure that it has sufficient RECs in its Registry Account to meet the requirements of all of its Standing Orders prior to the scheduled date of transfer.

3.3.1.4  The Registrar shall not permit any transfer that does not meet the requirement set forth in Clause 3.3.1.3.

3.3.1.5  REM Trading Participants shall disclose the price and volume of each REC transfer executed under Clause 3.3.1.1 in accordance with the relevant REM Manual.

3.3.1.6  REM Trading Participants shall follow the procedures set forth in the relevant REM Manual when transferring RECs. AHCETa

3.3.2  Banking of RECs

3.3.2.1  A REM Trading Participant may bank a REC for up to three (3) years from the date the REC was issued, subject to further issuances by the DOE.

3.3.2.2  Subject to Clause 3.5.1.9, a REC that is banked under Clause 3.3.2.1 shall expire three (3) years from the date the REC was issued.

3.3.2.3  A REC that has expired under Clause 3.3.2.2 shall be considered invalid and cannot be transferred to another REM Trading Participant or surrendered for compliance with a Mandated Participant's RPS requirement.

3.3.3  Surrendering of RECs for RPS compliance

3.3.3.1  A Mandated Participant may surrender a REC generated by a REM Generator eligible for RPS compliance that has not been retired or has not expired under Clause 3.3.4 for compliance with their Annual RPS Obligation in respect of a particular RPS Compliance Period until the deadline set in the RPS Rules.

3.3.3.2  RECs surrendered under Clause 3.3.3.1 shall only count towards a Mandated Participant's Annual RPS Obligation in the RPS Compliance Period referenced in Clause 3.3.3.1.

3.3.3.3  If a Mandated Participant surrenders RECs in excess of its Annual RPS Obligation in respect of an RPS Compliance Period, then the Registrar shall retire those RECs in accordance with Clause 3.3.4.1.

3.3.4  Retirement of RECs

3.3.4.1  The Registrar shall retire a REC if a Mandated Participant surrenders the REC for compliance with their RPS requirement under Clause 3.3.3.1.

3.3.4.2  A REC that has been retired under Clause 3.3.4.1 may not be transferred to another REM Trading Participant or surrendered for compliance with a Mandated Participant's RPS requirement.

3.3.5  Pricing of RECs

3.3.5.1  The REC Price shall be in Philippine Pesos per REC (Php/REC) corresponding to one (1) megawatt-hour of actual RE generation and shall be in whole Philippine Pesos per REC.

3.3.5.2  The REC Price shall not be greater than any limit that shall be approved by the ERC upon endorsement by the DOE based on the difference of the cost of adding renewable generation, and of the cost of the generation that the latter replaces.

3.3.5.3  The limit to the REC Price shall be subject to regular review and adjustments by DOE, and will be approved by the ERC.

3.4 THE REGISTRY AND REGISTRY BUSINESS RULES

3.4.1  The Registry

The Registrar shall establish the Registry which shall be an electronic registry intended to create, track, transfer and retire RECs.

3.4.2  The Registry Business Rules

The Registrar shall publish a REM Manual that sets out:

(a) The Registrar's general responsibilities with respect to maintaining and operating the Registry;

(b) The account structure of the Registry;

(c) Access privileges to be granted to REM Trading Participants; and

(d) The terms of use of the Registry by the Registrar and REM Trading Participants.

3.5 DISPUTES

3.5.1.1  If a REM Trading Participant determines that there is an error or a discrepancy in respect of RECs issued under Clause 3.1, and despite notice to the Registrar the same has not been corrected in accordance with Clause 3.1.7.1 or Clause 3.1.10.1, the REM Trading Participant may lodge a Dispute with the Registrar.

3.5.1.2  Disputes lodged under Clause 3.5.1.1 must be lodged no later than Sixty (60) calendar days after the date on which the REC was issued.

3.5.1.3  Disputes lodged tinder Clause 3.5.1.1 must be settled through dispute resolution mechanism referred to in Clause 6.3.1.

3.5.1.4  REM Trading Participant may lodge a Dispute in respect of any transaction under Clause 3.3.

3.5.1.5  Disputes lodged under Clause 3.5.1.4 must be lodged no later than Sixty (60) calendar days after the date on which the transaction occurred. ScHADI

3.5.1.6  A Dispute raised under Clause 3.5.1.4 which involves a transfer executed under Clause 3.3.1 may be settled either through the dispute resolution mechanism referred to in Clause 6.3.1, or through such other means as may be agreed by the parties.

3.5.1.7  Matters that may be the subject of a Dispute under Clauses 3.5.1.1 and 3.5.1.4 may not be raised as a breach of the REM Rules.

3.5.1.8  A REC that is subject of a Dispute lodged under Clause 3.5.1.4 shall not be transferred under Clause 3.3.1 or surrendered for RPS compliance under Clause 3.3.3.

3.5.1.9  If a REC that is frozen under Clause 3.5.1.8 is still under dispute past its expiration date (as determined under Clause 3.3.2.2) the Registrar may, at its discretion, change the expiration date of said REC.

3.6 REM BULLETIN BOARD

3.6.1.1  The Registrar shall provide REM Trading Participants with a REM Bulletin Board to facilitate the trading of RECs.

3.6.1.2  The REM Bulletin Board shall provide a venue for REM Trading Participants to post information with respect to RECs available for sale or RECs required to be bought.

3.6.1.3  The REM Bulletin Board shall not be a trading platform.

3.6.1.4  REM Trading Participants shall provide to the Registrar the contact details of the relevant personnel at the REM Trading Participant's organization who is responsible for facilitating REC transactions in REM.

3.6.1.5  REM Trading Participants shall notify the Registrar of any changes to the information provided under Clause 3.6.1.4.

3.6.1.6  The Registrar shall maintain an up to date list of REM Trading Participants on the REM Bulletin Board which lists:

(a) All REM Trading Participants currently registered in the REM; and

(b) The contact details of each REM Trading Participant as provided under Clause 3.6.1.4 or Clause 3.6.1.5 as relevant.

3.6.1.7  REM Trading Participants may at any time:

(a) Advertise RECs available for sale on the REM Bulletin Board. In doing so the REM Trading Participant shall post the information prescribed in Clause 3.6.1.8.

(b) Advertise RECs required for purchase on the REM Bulletin Board. In doing so the REM Trading Participant shall post the information prescribed in Clause 3.6.1.9.

3.6.1.8  REM Trading Participants shall post the following information on the REM Bulletin Board in respect of each REC they wish to sell:

(a) The price that the REM Trading Participant shall sell the REC for;

(b) The vintage and technology type of the REM Generator whose Renewable Electricity generation is the source of the REC; and

(c) The expiry date of the REC.

3.6.1.9  REM Trading Participants shall post the following information on the REM Bulletin Board in respect of RECs they wish to purchase:

(a) The quantity of RECs the REM Trading Participant wishes to purchase;

(b) The price per REC that the REM Trading Participant is willing to pay; and

(c) If relevant, the vintage and technology type required.

3.6.1.10 The entity that is responsible for administering the renewable portfolio standards instrument in Off-Grid Systems shall provide the Registrar with the annual RPS obligation of each Off-Grid Mandated Participant no later than fifteen (15) Working Days before the start of the relevant RPS Compliance Period. aICcHA

CHAPTER 4

RPS Compliance and Reporting for On-Grid Mandated Participants

4.1 DEFINITIONS AND RESPONSIBILITIES

4.1.1  Annual RPS Obligation

4.1.1.1  The Baseline RPS Obligation shall be set by the DOE in accordance with DOE Circular DC 2017-12-0015.

4.1.1.2  Unless otherwise directed by the DOE, the Annual RPS Obligation for each RPS Compliance Period shall be calculated by incrementing the Annual RPS Obligation for the previous RPS Compliance Period in accordance with the methodology set by the DOE in accordance with DOE Circular DC 2017-12-0015.

4.1.2  RPS Compliance timelines

4.1.2.1  The RPS Compliance Period for On-Grid Mandated Participants subject to an Annual RPS Obligation under DOE Circular DC 2017-12-0015 shall be a twelve (12)-month period starting on December 26 of a calendar year and ending on December 25 of the following calendar year.

4.1.2.2  The Registrar shall issue a Preliminary REC Statement that sets out the quantities determined in Clause 4.2.1 to each On-Grid Mandated Participants no later than 45 calendar days after the end of an RPS Compliance Period.

4.1.2.3  On-Grid Mandated Participants shall demonstrate compliance with their Annual RPS Obligations in a given RPS Compliance Period in accordance with Clause 4.1.3 no later than the deadline set in the RPS Rules after the end of that RPS Compliance Period.

4.1.2.4  The Registrar shall issue a Final REC Statement to each On-Grid Mandated Participant for an RPS Compliance Period no later than Ten (10) Working Days after the deadline specified in Clause 4.1.2.3 that sets out the quantities determined under Clause 4.2.2.1.

4.1.2.5  The Registrar shall submit an Annual REC Report to the DOE no later than the deadline set in the RPS Rules.

4.1.3  RPS Compliance Mechanism

On-Grid Mandated Participants shall surrender unexpired RECs in accordance with Clause 3.3.4.1 to demonstrate compliance with their Annual RPS Obligations.

4.2 CALCULATION OF SHORTFALL AMOUNTS

4.2.1  Quantities to be included in the Preliminary REC Statement

4.2.1.1  The Registrarshall determine the following quantities in respect of each On-Grid Mandated Participant for an RPS Compliance Period:

(a) The Preliminary Surrendered RECs as the total number of RECs surrendered by the On-Grid Mandated Participant in respect of the RPS Compliance Period under Clause 3.3.3 as at the date specified in Clause 4.1.2.2;

(b) The Preliminary ShortfallAmount as the difference between:

(i) the On-Grid Mandated Participant's Annual RPS Obligation in respect of the RPS Compliance Period; and

(ii) The Preliminary Surrendered RECs calculated under paragraph (a).

4.2.1.2  If an On-Grid Mandated Participant believes that there is an error or discrepancy in respect of their Preliminary REC Statement they shall inform the Registrar no later than Ten (10) Working Days after receiving the notification under Clause 4.1.2.2.

4.2.1.3  If notified under Clause 4.2.1.2, the Registrar shall review its calculations to verify the error or discrepancy. If the Registrar determines there has been an error or discrepancy, it shall ensure the correction is reflected in Final REC Statement.

4.2.2  Calculation of Shortfall Amounts for the RPS Compliance Period

4.2.2.1  The Registrar shall determine the following quantities in respect of each On-Grid Mandated Participant for an RPS Compliance Period:

(a) The Total Surrendered RECs as the total number of RECs surrendered by the On-Grid Mandated Participant in respect of the RPS Compliance Period under Clause 3.3.3 as at the date specified in Clause 4.1.2.3;

(b) The Final Shortfall Amount as the difference between:

(i) the On-Grid Mandated Participant's Annual RPS Obligation in respect of the RPS Compliance Period; and

(ii) The Total Surrendered RECs calculated under paragraph (a).

4.2.2.2  If an On-Grid Mandated Participant believes that there is an error or discrepancy in respect of their Final REC Statement they shall inform the Registrar no later than Two (2) Working Days after receiving the notification under Clause 4.1.2.4.

4.2.2.3  If notified under Clause 4.2.2.2, the Registrar shall review its calculations to verify the error or discrepancy. If the Registrar determines there has been an error or discrepancy, it shall reissue a corrected Final REC Statement no later than Two (2) Working Days after being notified under Clause 4.2.2.2.

4.3 DISPUTES

Matters that may be the subject of a Dispute under this Clause 4.3 shall be settled only through the dispute resolution mechanism referred to in Clause 6.3.1 and may not be raised as a breach of the REM Rules.

4.3.1  Disputes related to compliance levels

4.3.1.1  If an On-Grid Mandated Participant determines that there is an error or a discrepancy in respect of Final REC Statement and despite notice to the Registrar the same has not been corrected in accordance with Clause 4.2.2.3, the On-Grid Mandated Participant may lodge a Dispute with the Registrar.

4.3.1.2  Disputes lodged under Clause 4.3.1.1 must be lodged no later than Sixty (60) calendar days after the date on which the Final REC Statement was issued.

4.3.2  Impact of Dispute on RPS compliance requirements

Disputes lodged under Clause 3.2.4.1 and Clause 4.3.1.1 shall not affect an On-Grid Mandated Participant's RPS obligations or under Clause 4.2.

4.4 ANNUAL REC REPORT

The Annual REC Report to be submitted by the Registrar to the DOE pursuant to the timeline provided in the RPS Rules shall contain the following information in respect of an RPS Compliance Period:

(a) For each On-Grid Mandated Participant:

(i) Its Annual RPS Obligation;

(ii) The RECs issued corresponding to the Annual FiT Generation Share as calculated under Clause 3.2.2.1 (a);

(iii) The Total Surrendered RECs as calculated under Clause 4.2.2.1 (a);

(iv) The Final Shortfall Amount as calculated under Clause 4.2.2.1 (b);

(v) The total number of RECs issued to the On-Grid Mandated Participant under Clause 3.1;

(vi) The total number of RECs banked by the On-Grid Mandated Participant at deadline specified in Clause 4.1.2.3; and

(vii) total number of expired RECs.

(b) For each REM Trading Participant that is a Generation Company or an Off-Grid Mandated Participant:

(i) The total number of RECs issued to the REM Trading Participant under Clause 3.1;

(ii) The total number of RECs banked by the REM Trading Participant as at deadline specified in Clause 4.1.2.3; and

(iii) total number of expired RECs.

(c) For each REM Trading Participant, the number of RECs transferred to its account for the GEOP, consistent with the GEOP Rules;

(d) For each REM Generator, the total number of RECs issued in respect of the REM Generator's Renewable Electricity generation under Clause 3.1; and

(e) Other information as required by the DOE.

CHAPTER 5

Information Confidentiality

5.1 MARKET INFORMATION

5.1.1  Provision of Information

5.1.1.1  The Registrar shall:

(a) Disseminate information which it acquires pursuant to the Registrar's functions in accordance with its rights, powers and obligations in a manner which promotes ease of entry into and the orderly operation of the REM; and

(b) Protect such information from any use or access contrary to the provisions of the REM Rules. DaIAcC

5.1.1.2  Pursuant to Clause 5.1.1.1, the Registrar shall publish a data catalogue, listing each type of market information and document produced or exchanged in accordance with the REM Rules, and setting out the timing and frequency of publication or transfer for each type of information and document and its confidentiality classification.

5.1.1.3  The Registrar and REM Members shall publish and transfer market information in accordance with the procedures and timetable described in Clause 5.1.1.2.

5.1.1.4  In addition to any specific obligation of the Registrar under the REM Rules to provide information, the Registrar shall, upon request, make available to REM Members any information concerning the operation of the REM provided that said information is not confidential or commercially sensitive. The Registrar may charge a fee reflecting the cost of providing such information.

5.1.1.5  The Registrar shall make available to the DOE all pertinent information which would help the latter effectively perform its energy policy-making function.

5.1.1.6  The Registrar shall provide the DOE all necessary facilities to effectively monitor the operation of the REM for review purposes.

5.1.1.7  The Registrar shall retain all information provided to it under the REM Rules for at least five (5) years in a form it deems appropriate for reasonable access as may be required by the DOE.

5.1.2  Electronic Information Exchange

5.1.2.1  Where these REM Rules specify, require or otherwise contemplate the regular and frequent transfer of information between the Registrar and REM Members, such transfer shall be provided by means of an electronic communication system unless the REM Rules specify otherwise.

5.1.2.2  The electronic communication system contemplated herein shall cover, but not be limited to, the following:

(a) Registry user interface for REM Trading Participants through installation of digital certificates;

(b) Bulletin Board user interface for REM Trading Participants through installation of digital certificates; and

(c) Electronic mail.

5.1.2.3  All automated data transfers as provided in the REM Rules shall be made via secured protocols.

5.1.2.4  All electronic mail containing Confidential Information shall be encrypted with a password available only to the intended recipient and the sender of such information.

5.1.2.5  Information transferred by means of an electronic communication system shall be in accordance with the templates included in the said electronic communication system and the electronic communication provisions set forth in this Clause 5.1.2.

5.1.2.6  As far as practicable, the Registrar shall incorporate a binding acknowledgement receipt in its electronic communication systems which would establish the time the pertinent information is actually received.

5.1.3  Market Information Website

5.1.3.1  The Registrar shall maintain a Market Information Website in which it will publish information for access by REM Members or for the general public.

5.1.3.2  Information is deemed to be published by the Registrar when the information is posted on the Market Information Website and made available to the general public.

5.1.3.3  The Registrar shall publish information on the volumes of RECs issued and RECs available for trade in the REM on the Market InformationWebsite and on the REM Bulletin Board subject to the confidentiality provision set forth in Clause 5.1.4.

5.1.3.4  The Registrar shall publish information on the prices of RECs traded in the REM on the Market Information Website and on the REM Bulletin Board on a monthly basis, subject to the provisions set forth in Clause 5.1.4.

5.1.3.5  The Registrar shall maintain and publish a list of all REM Members that identifies:

(a) Current, former and de-registered REM Members;

(b) Categories of REM Members; and

(c) Dates of registration de-registration and change of status. TAacHE

5.1.3.6  The Registrar shall provide hard copies of any information published under this Clause 5.1.3 upon request and reimbursement of cost to produce the same. The Registrar may further evaluate the necessity of reimbursement of cost from the requesting entity.

5.1.4  Publication of REC information

5.1.4.1  Pursuant to Clause 5.1.3.3 the Registrar shall, on a monthly basis, publish aggregated information on the number of RECs issued to REM Trading Participants and available for trade.

5.1.4.2  Pursuant to Clause 5.1.3.4 the Registrar shall, on a monthly basis, publish aggregated information on the price of REC transfers submitted by REM Trading Participants under Clause 3.3.1.5.

5.1.4.3  In publishing information under Clause 5.1.4.1 and Clause 5.1.4.2 the Registrar shall ensure that no information pertaining to a specific REMTrading Participant can be identified.

5.1.4.4  Pursuant to Clause 5.1.4.3 the Registrar shall:

(a) Only publish average volume weighted prices of REC transfers, subject to paragraph (c);

(b) Only publish total quantities of RECs issued and available for trade, subject to paragraph (d);

(c) If the sample used to calculate the average volume weighted price is less than Five (5), either:

(i) Not publish the price; or

(ii) Publish a rolling monthly price that incorporates REC transfers from previous months.

(d) If the sample used to calculate the total quantities of RECs issued and available for trade is less than Five (5), either:

(i) Not publish the volumes; or

(ii) Publish a rolling monthly total volume that incorporates REC issuance and availability data from previous months.

5.2 CONFIDENTIALITY OF INFORMATION

5.2.1  Confidentiality

5.2.1.1  Pursuant to Clause 5.1.1.2, the Registrar shall maintain and publish a record of the confidentiality status for each type of market information and document produced or exchanged in accordance with the REM Rules.

5.2.1.2  All REM Members and the Registrar:

(a) Shall not disclose or permit to be disclosed, directly or indirectly, Confidential Information to any person or entity except as permitted in the REM Rules, and shall not permit unauthorized persons to have access to Confidential Information.

(b) Shall only use or reproduce Confidential Information for the purpose for which it was disclosed or for a purpose consistent with the REM Rules.

(c) Shall only allow access to Confidential Information to those persons for whom access is necessary. Particularly, they shall:

(i) Disclose Confidential Information to their respective directors, officers, employees, representatives or agents only on a "need to know" basis, and

(ii) Shall inform their directors, officers, employees, representatives and agents that the information requested to be disclosed is confidential, and of their obligations under the REM Rules.

(d) Shall use all responsible endeavors to prevent unauthorized access to Confidential Information which is in its possession or control. If reasonably practicable, they shall mark as confidential all copies of Confidential Information and any other material derived from such information, whether in printed or electronic format, or other format in the hands of the recipient, or to properly identify information that is confidential.

(e) Shall ensure that any person or entity to whom it discloses Confidential Information observes the provisions of this Clause 7.2 in relation to that information. HDICSa

5.2.1.3  The Registrar and REM Members, and all other recipients of Confidential Information shall adopt procedures within their respective organizations to maintain the confidentiality of all Confidential Information as well as ensure their compliance with the above-listed obligations.

5.2.2  Permitted disclosure and exceptions

5.2.2.1  This Clause 5.2 does not prevent the disclosure of information (confidential or otherwise) by any persons or entities:

(a) If the relevant information is at that time generally and publicly available other than as a result of a breach of this Clause 5.2; or

(b) To the WESM Governance Committees pursuant to their functions under the REM Rules;

(c) With the written consent of the person or persons who provided the relevant information under the REM Rules; or

(d) To the ERC, DOE, Philippine Competition Commission, National Electrification Administration or any other government authority having jurisdiction over an REM Member, pursuant to the REM Rules or otherwise; or

(e) By or on behalf of an REM Member or the Registrar for the purposes of or in connection with:

(i) Complying with the REM Rules, audits, or advising an REM Member or the Registrar in relation to the REM Rules; or

(ii) Legal proceedings, arbitration, expert determination or other dispute resolution mechanisms relating to the REM, or advising an entity in relation thereto.

Provided that the person receiving the information undertakes in writing not to further disclose that information to any other person.

5.2.2.2  Any entity who receives information disclosed in accordance with Clause 5.2.2.1:

(a) Shall not disclose the information to any person, except as provided by the REM Rules; and

(b) Shall only use the information for the purposes for which it was disclosed under Clause 5.2.2.1.

5.2.2.3  In the case of a disclosure under Clause 5.2.2.1 (d), the disclosing party shall take appropriate precautions to ensure that the recipient keeps the information confidential in accordance with the provisions of this Clause 5.2 and only uses the information for the purposes for which it was disclosed.

5.2.3  Protection of permitted disclosures

5.2.3.1  To ensure protection of Confidential Information, the Registrar may agree with the recipients of permitted disclosures on certain protocols or procedures, including those relating to the manner of transfer or transmittal of information, and the security and maintenance of monitoring systems.

5.2.3.2  The Registrar shall require the recipient of permitted disclosures to execute confidentiality and non-disclosure agreements or undertaking with terms and conditions consistent with the REM Rules. Such terms and conditions will include shall include the undertaking to:

(a) Keep the information provided confidential, and not to disclose the same to any other person or entity; and

(b) Use the information only for the purpose for which it is provided or for purposes permitted by Clause 5.2.2.1.

5.2.4  Indemnity and Survival

5.2.4.1  Each REM Member indemnifies the Registrar against any claim, action, damage, loss, liability, expense or outgoing which the Registrar pays, suffers, incurs or is liable for in respect of any breach of this Clause 5.2 by that REM Member or any officer, agent or employee of that REM Member, provided that no REM Member shall be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct of the Registrar.

5.2.4.2  Notwithstanding any other provision of the REM Rules, a person shall continue to comply with this Clause 5.2 after that person has ceased to be an REM Member. ASTcaE

CHAPTER 6

REM Compliance, Audit and Dispute Resolution

6.1 REM COMPLIANCE

6.1.1  Breach by REM Members

6.1.1.1  A REM Member shall be liable for sanctions if, upon an investigation carried out in accordance with this REM Rules, it was found to have failed to comply with the following obligations —

(a) Compliance with registration and participation requirements set out in Chapter 2 and the relevant REM Manual;

(b) Application for issuance of REC in accordance with the procedures set out in Clause 3.1.3 of these REM Rules;

(c) Submission of data in accordance with Clauses 3.1.5, 3.1.8 and 3.1.10;

(d) Disclosure of the price and volume of each REC transfer executed under Clause 3.3.1.1, as required under Clause 3.3.1.5; and

(e) Confidentiality provisions set forth in Chapter 5 of these REM Rules.

6.1.1.2  Sanctions shall be imposed notwithstanding that the issuance of a REC has been forfeited or an issued REC was not corrected or adjusted by reason of the breach committed by a REM Member.

6.1.2  Sanctions

6.1.2.1  The RGC shall recommend to the PEM Board the imposition of sanctions on REM Members upon an investigation carried out by the Enforcement and Compliance Office. Sanctions to be imposed shall be asset out in the relevant REM Manual setting out the types and levels of penalties that can be imposed for each type of breach.

6.1.2.2  The types and levels of penalties shall be set out in a REM Manual to be adopted by the RGC and shall be established based on the following principles —

(a) Graduated levels of penalties may be set for each type of breach to take into consideration qualifying circumstances including, but not limited to, recurrence and severity of the breach.

(b) The minimum level of financial penalty shall be set at PhP5,000.00 for each count of breach.

(c) The penalties of suspension and deregistration under Clause 2.7 of these REM Rules may be imposed for repeated material breaches.

(d) Any other principles set forth in the relevant REM Manual.

6.1.2.3  The PEM Board shall provide report on the final decision on the imposition of penalties to the DOE and ERC.

6.1.3  Investigations

6.1.3.1  The Enforcement and Compliance Office created pursuant to the WESM Rules shall be designated to investigate non-compliances by REM Members of the obligations set out in Clause 6.1.1.1.

6.1.3.2  An investigation shall be carried out by the Enforcement and Compliance Office upon a report by the Registrar that a REM Member has failed to comply with any of the obligations specified in Clause 6.1.1.1.

6.1.3.3  Upon receiving the report from the Registrar, the Enforcementand Compliance Officer shall issue a written notice to the REM Member specifying the nature of the offense and require the REM Member to explain the alleged offense with supporting documents within fifteen (15) Working Days from receipt of the notice. A copy of the notice shall be furnished to the RGC and the DOE.

6.1.3.4  The Enforcement and Compliance Officer may request any additional information from the REM Member or any other party, as may be necessary to complete its investigation. Failure to provide such information within a reasonable time shall constitute a breach without need of further investigation and shall be subject to an applicable penalty. Failure of the party subject of the investigation to provide material information within a reasonable time shall render the party prima facie liable for the offense subject of the investigation.

6.1.3.5  In the conduct of its investigation, the Enforcement and Compliance Officer may request conferences or visits to the REM Member's facilities and shall be allowed entry after due notice. cDSAEI

6.1.3.6  Upon conclusion of its investigation, the Enforcement and ComplianceOfficer shall submit to the RGC a report on its findings on whether or not a breach of the REM Rules was committed.

6.1.3.7  Upon receipt of the investigation report, the RGC shall review the findings of the Enforcement and Compliance Officer and act on the investigation report, either approving or disapproving the report or returning the same to the Enforcement and Compliance Officer for further investigation. If the RGC confirms that there is a breach of the REM Rules, it shall impose the appropriate sanctions as set out in Clause 6.1.2 the relevant REM Manual.

6.1.3.8  As soon as practicable, the Enforcement and Compliance Officer shall provide the PEM Board and the DOE a report summarizing the final decision of the RGC on the investigation pursuant to Clause 6.1.3.7.

6.1.3.9  The Enforcement and Compliance Officer shall be responsible for implementing the decision of the RGC and shall develop procedures for the guidance of the REMMembers.

6.1.4  Breach by the Registrar, Market Operator and FiT-All Administrator

If any REM Member has reasonable grounds to believe that the Registrar, Market Operator, or the FiT-All FundAdministrator are in breach of the REMRules, the REM Member shall notify the DOE of the breach.

6.2 AUDIT

6.2.1  PEM Auditor

6.2.1.1  The PEM Auditor appointed pursuant to the WESM Rules shall be designated to conduct audits of the REM and of the Registrar in accordance with this Clause 6.2.

6.2.1.2  The PEM Auditor shall:

(a) Conduct annual audits of the Registrar pursuant to Clause 6.2.3;

(b) Review any procedures and practices which are covered by the REM Rules and REM Manuals at the direction of the RGC; and

(c) Recommend any changes to the REM Rules and REM Manuals where the PEM Auditor detects deficiencies as a consequence of an audit, review, test check or some other form of review.

6.2.1.3  The PEM Auditor may engage the services of qualified independent reviewers or technical experts in discharging their obligations under Clause 6.2.

6.2.2  Testing of REM Software

6.2.2.1  The PEM Auditor shall ensure that software specified in Clause 6.2.2.2 shall have been certified as correctly implementing the intent of the REM Rules by an independent reviewer appointed pursuant to Clause 6.2.1.3:

(a) No later than one (1) year from its deployment for commercial purposes; and

(b) If any changes to the software or the software specification have been made, before the change is deployed.

6.2.2.2  Software subject to audit under Clause 6.2.2.1 shall include but will not be limited to:

(a) The Registry set up pursuant to Clause 3.4.1;

(b) Tools, software and/or systems used to issue RECs under Clause 3.1 of these REM Rules;

(c) Tools, software and/or systems used to allocate FiT generation to Mandated Participants under Clause 3.2 of these REM Rules; and

(d) Tools, software and/or systems used to monitor and report on RPS Compliance under Clause 4.1 of these REM Rules.

6.2.2.3  The Registrar shall publish software certificates provided by the independent reviewer on the Market Information Website.

6.2.3  Audit of the Registrar

6.2.3.1  The PEM Auditor shall arrange for an audit of the Registrar and any other procedures, persons, systems or other matters relevant to the REM to be performed once a year, or such other period as determined by the PEM Auditor.

6.2.3.2  The audit of the Registrar shall cover and review, but not be limited to:

(a) The Registrar's compliance with the REM Rules and REM Manuals;

(b) The Registrar's compliance with its procedures; EDCcaS

(c) The effectiveness and appropriateness of systems and business processes utilized in the operation of the REM and the Registry.

6.2.3.3  The PEM Auditor shall prepare a report on the results of the audit of the Registrar and provide a copy of the report to the DOE and the Registrar.

6.2.3.4  The PEM Auditor shall publish a summary report of non-confidential findings on the Market Information Website.

6.2.4  Audit of Mandated Participants providing Metering Data for REC issuance

6.2.4.1  The PEM Auditor shall annually audit:

(a) The Metered Quantity provided by Mandated Participants in support of their REC issuance applications under Clause 3.1.8; and

(b) The Metering Installations associated with the Metered Quantity.

6.2.4.2  The PEM Auditor may appoint independent reviewers or technical experts pursuant to Clause 6.2.1.3 to undertake such metering audits.

6.2.4.3  REM Generators whose Metering Installations are subject to audit under Clause 6.2.4.1 (b), shall ensure that the PEM Auditor and any independent reviewers or technical experts appointed under Clause 6.2.4.2 are allowed access to the Metering Installation after due notice.

6.2.4.4  Where an audit under this Clause 6.2.4 finds that discrepancies in the Metered Quantity provided by Mandated Participants in support of their REC issuance applications under Clause 3.1.8 has resulted in the Registrar issuing more RECs to the relevant Mandated Participant than they would have had the Metered Quantity been accurate, the Registrar shall deduct the relevant number of RECs from the Mandated Participant'sRegistry Account and immediately retire those RECs.

6.2.4.5  For avoidance of doubt, where an audit under this Clause 6.2.4 finds that discrepancies in the Metered Quantity provided by Mandated Participants in support of their REC issuance applications under Clause 3.1.8 has resulted in the Registrar issuing less RECs to the relevant Mandated Participant than they would have had the Metered Quantity been accurate, the Registrar shall not be required to issue additional RECs to the relevant Mandated Participant.

6.2.4.6  The PEM Auditor shall publish a summary report of non-confidential findings on the Market Information Website.

6.2.4.7  Mandated Participants being audited shall bear the cost of any audits undertaken under this Clause 6.2.4.

6.3 DISPUTE RESOLUTION

6.3.1  Dispute Resolution Process

The Registrar shall prepare an alternative dispute resolution mechanism for use by REM Members and the Registrar in the resolution of Disputes.

6.3.2  Dispute Resolution Administrator

The Dispute Resolution Administrator appointed pursuant to the WESM Rules shall be designated to facilitate the resolution of Disputes between or among the parties pursuant to the dispute resolution mechanism under Clause 6.3.1.

CHAPTER 7

REM Rule and REM Manual Change Process

7.1 DEFINITIONS AND RESPONSIBILITIES

7.1.1  Role of the RGC

7.1.1.1  Pursuant to Clause 1.3.4.1 (d) and Clause 1.3.4.1 (e), the RGC shall:

(a) Oversee the REM Rule and REM Manual change process in consultation with the PEM Board;

(b) Approve or disapprove Rule Change Proposals and refer approved Rule ChangeProposals to the PEM Board for endorsement to the DOE for its promulgation in accordance with Clause 7.3; and

(c) Approve or disapprove Manual ChangeProposals and refer approved REMManual changes to the PEM Board for endorsement to the DOE for its promulgation in accordance with Clause 7.3.

7.1.1.2  The RGC shall meet and regulate its meetings and conduct its business (related to the REM Rule and REM Manual change process) in a manner that does not conflict with the REM Rules. ISHaCD

7.1.1.3  The RGC may obtain such advice and other assistance as it thinks appropriate including, without limitation, advice or assistance from persons with experience relevant to any change to the REM Rules or REM Manuals which the RGC is considering and from REM Members who are likely to be affected by any changes.

7.1.2  Secretariat for the change process

The RGC shall appoint a unit under PEMC to act as the secretariat for the REM Rule and REM Manual change process.

7.1.3  Promulgation of REM Rule and REM Manual Changes

The DOE shall review Rule Change Proposals and REM Manuals submitted by the RGC and may promulgate or disapprove the associated changes to the REM Rules and REM Manuals in accordance with Clause 7.4;

7.2 SUBMISSION OF RULE CHANGE PROPOSAL OR MANUAL CHANGE PROPOSAL

7.2.1  Rule Change Proposals and Manual Change Proposals

The Registrar, the DOE or any REMMember and other interested parties may submit proposals for changes to the REM Rules(Rule Change Proposal) or REM Manuals(Manual Change Proposal) to the RGC.

7.2.2  Form of submission

Rule Change Proposals and Manual Change Proposals shall:

(a) Be in writing and addressed to the RGC;

(b) Include the name and address of the applicant;

(c) Demonstrate that the change to the REM Rule or REM Manual is:

(i) Consistent with the REM Objectives;

(ii) Feasible;

(iii) Not unreasonably costly to implement; and

(iv) A more appropriate or better means of achieving the criteria set out in Clauses 7.2.2 (c) (i) to (c) (iii), where the effect of the change to the REM Rules or REM Manual will be to replace an existing provision of the REM Rules or REM Manual.

(d) Include a brief statement of the reasons why a change to the REM Rules or REM Manual is necessary or desirable; and

(e) Contain sufficient information to permit a proper consideration by the RGC of those reasons, including the public benefit (if any) of making the change to the REM Rules or REM Manual.

7.2.3  RGC Obligations

The RGC shall:

(a) Keep a register of all Rule Change Proposals and Manual Change Proposals submitted to it; and

(b) Give due course to the proposals within Five (5) Working Days from receipt thereof.

7.3 CONSIDERATION OF RULE CHANGE PROPOSALS AND MANUAL CHANGE PROPOSALS BY THE RGC

7.3.1  Assessment of proposed change

Within Ten (10) Working Days of deadline specified in Clause 7.2.3 (b), the RGC shall assess whether the Rule Change Proposal or Manual Change Proposal is:

(a) Consistent with the REM Objectives;

(b) Feasible;

(c) Not unreasonably costly to implement; and

(d) A more appropriate or better means of achieving the criteria set out in Clause 7.3.1 (a) to (c), where the effect of the change to the REM Rules or REM Manual will be to replace an existing provision of the REM Rules or REM Manual.

7.3.2  RGC discretions when assessing Rule Change Proposals and Manual Change Proposals

In considering whether a Rule ChangeProposal or Manual Change Proposal satisfies the criteria set out in Clause 7.3.1, the RGC may:

(a) Take into account any information and documents which the RGC reasonably considers to be relevant to its consideration of the Rule Change Proposal or Manual Change Proposal;

(b) Consult with such persons as the RGC reasonably considers will be likely to be affected by the Rule Change Proposal or Manual Change Proposal;

(c) Seek such information and views from any person in relation to the Rule Change Proposal or Manual Change Proposal as may be practicable under the circumstances; and cDTACE

(d) Refer the Rule Change Proposal or Manual ChangeProposal to a working group comprising of persons having such expertise as the RGC in its absolute discretion considers to be reasonable in all the circumstances for the purpose of delegating to that working group any obligation or task of the RGC set out in Clause 7.3.2, Clause 7.3.4, other than this Clause 7.3.2 (d).

7.3.3  Notification following failure to satisfy criteria

If the RGC concludes that a Rule Change Proposal or Manual Change Proposal does not satisfy the criteria set out in Clause 7.3.1, the RGC shall notify the proponent and the PEM Board within Ten (10) Working Days of deadline specified in Clause 7.2.3 (b) and shall include the reason for its decision.

7.3.4  Notification following satisfying criteria

If the RGC concludes that Rule Change Proposal or Manual Change Proposal satisfies the criteria out in Clause 7.3.1, the RGC shall within Ten (10) Working Days of deadline specified in Clause 7.2.3 (b):

(a) Notify the proponent and the PEM Board;

(b) Notify all REM Members and all other interested parties of the Rule Change Proposal or Manual Change Proposal; and

(c) Invite such parties to make written submissions regarding the Rule Change Proposal or Manual Change Proposal.

7.3.5  Submissions regarding Rule Change Proposal or Manual Change Proposal

To be validly considered, a written submission made in response to a Rule Change Proposal or Manual Change Proposal invited under Clause 7.3.4 (c) must be received by the RGC no later than Thirty (30) Working Days after the notice referred to in Clause 7.3.4 (a) and (b) is given.

7.3.6  Approval of Rule Change Proposal or Manual Change Proposal

7.3.6.1  If the RGC, after having considered all valid submissions, concludes that it is necessary or desirable to give effect to the Rule Change Proposal, the Rule Change Proposal shall be submitted to the DOE for approval, upon endorsement by the PEM Board.

7.3.6.2  If the RGC, after having considered all valid submissions, concludes that it is necessary or desirable to give effect to the Manual Change Proposal, the Manual Change Proposal shall be submitted to the DOE for approval, upon endorsement by the PEM Board.

7.4 CONSIDERATION OF RULE CHANGE PROPOSALS BY THE DOE

7.4.1  DOE assessment of Rule Change and Manual Change Proposals

If the RGC submits a Rule Change or Manual Change to the DOE, for approval in accordance with Clause 7.3.6, the DOE shall assess whether the Rule Change Proposal or the Manual Change Proposal satisfies the criteria which are set out in Clause 7.3.1.

7.4.2  DOE discretions when assessing Rule Change and Manual Change Proposals

In considering whether a RuleChange Proposal/Manual Change Proposal satisfy, the criteria, which are set out in Clause 7.3.1, the DOE, may:

(a) Take into account any information and documents which the DOE reasonably considers to be relevant to its consideration of the Rule Change Proposal/Manual Change Proposal;

(b) Consult with such persons as the DOE, reasonably considers will be likely to be affected by the Rule Change Proposal/Manual Change Proposal; and

(c) Seek such information and views from any person in relation to the Rule Change Proposal/Manual Change Proposal as may be practicable in the circumstances.

7.4.3  Notification following failure to satisfy criteria

If the DOE concludes that a Rule Change Proposal/Manual Change Proposal is inconsistent with the regulatory framework set out in Clause 1.1.2 and does not satisfy the criteria set out in Clause 7.3.1, the DOE, shall notify:

(a) The RGC;

(b) The proponent of the Rule Change Proposal/Manual Change Proposal; and

(c) Any party who made written submissions to the RGC under Clause 7.3.4, within Ten (10) Working Days of reaching that conclusion and shall provide reasons for its decision. cCHITA

7.4.4  Approval of proposed Rule Change or Manual Change

If the DOE concludes that a Rule Change Proposal or a Manual Change Proposal is consistent with the regulatory framework set out in Clause 1.1.2 and satisfies the criteria set out in Clause 7.3.1, it shall approve the amendment and cause its publication. The change to the REM Rules or REM Manual approved by the DOE will take effect within fifteen (15) calendar days from its publication or on such later date as the DOE, determines.

CHAPTER 8

Interpretation

8.1 INTERPRETATION OF THE REM RULES

8.1.1  Format Conventions

In the REM Rules, unless the context otherwise requires:

8.1.1.1  Headings are for convenience only and do not affect the interpretation of the REM Rules;

8.1.1.2  Words importing the singular include the plural and vice versa;

8.1.1.3  Words importing a gender include any gender;

8.1.1.4  Where italicized and capitalized, a word or phrase has the definition given to that word or phrase in Chapter 10; and

8.1.1.5  Other parts of speech and grammatical forms of a word or phrase defined in the REM Rules have a corresponding meaning.

8.1.2  Expressions and References

8.1.2.1  An expression importing a natural person includes any legal entity, company, partnership, joint venture, association, corporation or other body corporate and any government authority;

8.1.2.2  A reference to anything (including, but not limited to, any right) includes a part of that thing;

8.1.2.3  A reference to a Clause, paragraph, part, annexure, exhibit or schedule is a reference to a Clause and paragraph and part of, and an annexure, exhibit and schedule to the REM Rules and a reference to the REM Rules includes any annexure, exhibit and schedule;

8.1.2.4  A reference to a statute, rule, regulation, proclamation, order, or circular includes all statutes, rules, regulations, proclamations, orders or circulars, consolidating or replacing it, and a reference to a statute includes all rules, regulations, proclamations, orders, or circulars issued under that statute;

8.1.2.5  A reference to the REM Rules or to a document or a provision of a document includes an amendment or supplement to, or replacement of, the REM Rules or that document or that provision of that document;

8.1.2.6  A reference to a person includes that person's executors, administrators, successors, substitutes (including, without limitation, persons taking by novation) and permitted assignees;

8.1.2.7  A reference to a body other than an REM Member or the Registrar (including, without limitation, an institute, association or authority), whether statutory or not: (1) Which ceases to exist; or (2) Whose powers or functions are transferred to another body, is a reference to the body which replaces it or which substantially succeeds to its powers or functions; and

8.1.2.8  A reference in the context of any provision of the REM Rules to a "representative" of any person is a reference to any director, officer or employee of that person or any agent, consultant or contractor appointed or engaged by that person for purposes connected with the subject matter of the relevant provision of the REM Rules.

8.1.3  Times and Dates

8.1.3.1  A reference in the REM Rules to a calendar day (such as 1 January) or a day of the week (such as Sunday) is to the 24-hour period which begins right after 2400H of the previous day and until 2400H of that day.

8.1.3.2  A reference in the REM Rules to a week is to the period right after 2400H of the previous day of the first day specified or implied until 2400H of the seventh day following.

8.1.3.3  A reference in the REM Rules to a month (or a number of months) or a calendar month is to the period from 2400H of the previous day of a day in one month until 2400H of the previous day of the same day of the month which follows (or follows by the relevant number of months), or if there is no such day in that month, 2400H hours of the previous day of the first day of the next following month.

8.1.3.4  A reference in the REM Rules to a year is to the period from right after 2400H of the previous day of a day in one year until 2400H hours of the previous day of the same day (or where the day in the first year was 29 February, on 1 March) in the following year, and a reference to a calendar year (such as 2014) is to be construed accordingly. CScaDH

8.1.3.5  A reference in the REM Rules to a time of day is to Philippine Standard Time and abbreviated as PST.

8.1.3.6  A reference in the REM Rules to a period of time which dates from a given day, or the day of an act or event, is to be calculated exclusive of that day.

8.1.3.7  A reference in the REM Rules to a period of time which commences on a given day, or the day of an act or event, is to be calculated inclusive of that day.

8.1.3.8  Where under any provision of the REM Rules a person is required to provide any information by a certain date or time, the relevant provision is to be taken to include a requirement that the relevant information shall be given as soon as possible and no later than the date or time given.

8.1.4  Notices

8.1.4.1  A notice is properly given under the REM Rules to a person if:

(a) It is personally served;

(b) A letter containing the notice is sent by courier to the person at an address (if any) supplied by the person to the sender for service of notices or, where the person is an REM member, an address shown for that person in the register of REM Members maintained by the Registrar, or, where the addressee is the Registrar, the registered office of the Registrar;

(c) It is sent to the person by facsimile or electronic mail to a number or reference which corresponds with the address referred to in Clause 8.1.4.1 (b) or which is supplied by the person to the Registrar for service of notices and, if sent by electronic mail, the person sending the notice also sends a copy of the notice by letter or facsimile to the person on the same day; or

(d) The person actually receives the notice by any other means.

8.1.4.2  A notice is treated as being given to a person by the sender:

(a) Where sent by courier mail to an address in the central business district of a region in the Philippines, on the second Working Day after the day on which it is posted;

(b) Where sent by courier in accordance with Clause 8.1.4.1 (b) to any other address, on the third Working Day after the day on which it is posted;

(c) Where sent by facsimile in accordance with Clause 8.1.4.1 (c) and a complete and correct transmission report is received:

(i) Where the notice is of the type in relation to which the addressee is obliged under the REM Rules to monitor the receipt by facsimile outside of, as well as during, business hours, on the day of transmission; and

(ii) In all other cases, on the day of transmission if a Working Day or, if the transmission is on a day which is not a Working Day or is after 1600H (addressee's time), at 0900H on the following Working Day.

(d) Where sent by electronic mail in accordance with Clause 8.1.4.1 (c):

(i) Where the notice is of a type in relation to which the addressee is obliged under the REM Rules to monitor receipt by electronic mail outside of, as well as during, business hours, on the day when the notice is recorded as having been received at the electronic mail destination; and

(ii) In all other cases, on the day when the notice is recorded as having been first received at the electronic mail destination, if a Working Day or if that time is after 1600H (addressee's time), or the day is not a Working Day, at 0900H on the following Working Day; or

(e) In any other case, when the person actually receives the notice. aHSTID

8.1.4.3  Any notice to or by a person under the REM Rules:

(a) Shall be in legible writing and in English; and

(b) Where the sender is a company, shall be signed by a responsible employee or officer thereof or under the corporate or official seal of the sender (except where the notice is sent by electronic mail).

8.1.4.4  Where a specified period (including, without limitation, a particular number of days) is provided, for purposes of calculating the number of days indicated in the period, the first day shall be excluded while the last day is included in said computation.

8.2 APPLICABILITY OF THE REM RULES

8.2.1  Scope of Application

By their participation in the REM, the Registrar, the REM Service Providers and REM Members bind themselves to comply with:

(a) These REM Rules, and all other rules, regulations, issuances, decisions, resolutions that may be issued by the DOE relevant to the operations of the REM; and

(b) Guidelines and procedures set by the Registrar in the course of the operation of the REM.

8.2.2  Rights and Obligations

8.2.2.1  Unless otherwise expressly permitted by the REM Rules, an REM Member shall not assign or transfer and shall not purport to assign or transfer any of its rights or obligations under the REM Rules.

8.2.2.2  An entity does not waive its rights, powers and discretions under the REM Rules by:

(a) Failing to exercise its rights;

(b) Only exercising part of its rights; or

(c) Delaying the exercise of its rights.

8.2.3  Severability

Each part or all of a provision of the REM Rules:

(a) Will be construed so as to be valid and enforceable to the greatest extent possible; and

(b) May be so construed (or deleted if necessary) regardless of the effect which that may have on the provision in question or any other provision or the REM Rules as a whole.

CHAPTER 9

Transitory Provisions

9.1 TRANSITION PERIOD

9.1.1  RPS Transition Period

Year 0 referred to in Section 7 of the RPS Rules shall be the year 2018, the RPS Compliance Year 1 shall be the year 2020 and the intervening period shall be the Transition Period.

9.2 MARKET TRANSITION

9.2.1  Standards for Hybrid Systems for Policy Direction on the DOE

The DOE shall establish the policy, parameters and guidelines that Generation Companies intending to register Hybrid Systems in the REM must comply with. These standards and guidelines shall specify (but not be limited to) the following:

(a) The minimum Renewable Electricity generation output that a Multi-Fuel Hybrid System must have to be eligible to participate in the REM.

(b) The minimum metering standards that a HybridSystem that is a Separately Metered Hybrid System must be compliant with.

(c) The minimum fuel metering standards that a Multi-Fuel Hybrid System must be compliant with.

(d) Fuel metering audit requirements that Multi-Fuel Hybrid System must be compliant with.

(e) The certification and on-going monitoring requirements of heat rates and fuel heating values of Multi-Fuel Hybrid Systems.

(f) The procedures and certification requirements to be followed by Generation Companies who own Multi-Fuel Hybrid Systems or Mandated Participants who have Power Supply Agreements with a Multi-Fuel Hybrid Systems when submitting Renewable Metered Quantities to the Registrar under Clauses 3.1.5.2 and 3.1.8.1.

9.2.2  FiT-All data provision requirements

Prior to the establishment of the REM, the FiT-All Fund Administrator shall provide the data necessary to facilitate the Registrar's allocation of FiT generation to Mandated Participants under Clause 3.2.2 of these REM Rules. CDHaET

9.2.3  Establishment of the REM and the Registry

9.2.3.1  Within one (1) year from the promulgation of the RPS Rules, the DOE shall establish the REM.

9.2.3.2  Prior to REM commencement, the Registrar shall implement a Registry that is compliant with the requirements set forth in the REM Manual referenced in Clause 3.4.2.

9.2.3.3  Prior to REM commencement, the Registrar shall ensure it has appropriate procedures, tools and systems in place to implement its obligations under these REM Rules.

9.2.3.4  The Registrar shall ensure software and systems used to implement its obligations under these REM Rules shall be certified as correctly implementing the intent of the REM Rules and any relevant REM Manuals prior to REM commencement. Such software and systems shall include, but not be limited to:

(a) The Registry set up pursuant to Clause 3.4.1;

(b) Tools, software and/or systems used to issue RECs under Clause 3.1 of these REM Rules;

(c) Tools, software and/or systems used to allocate FiT generation to Mandated Participants; and

(d) Tools, software and/or systems used to monitor and report on RPS Compliance under Clause 4.4 of these REM Rules.

9.2.3.5  Prior to REM commencement, corresponding changes to the WESM Rules shall be implemented to facilitate the operation of the REM in relation to the WESM.

9.2.3.6  Prior to the commencement of the full commercial operations of the WESM in the Mindanao region, PEMC or its successors-in-interest as the designated MQ Reconciliation Agent for the duration of the implementation Interim Mindanao Dispatch the Protocol provided in DC 2017-05-0009 ("Declaring the Launch of the Wholesale Electricity Spot Market (WESM) in Mindanao and Providing for Transition Guidelines"), shall submit on a monthly basis to the Registrarthe relevant data for the reconciliation on Nominations, actual Schedules, Metered Quantities, System Losses and Imbalances of the generators and customers.

9.2.4  Establishment of Governance structure

Prior to REM commencement, the PEM Board shall formulate the by-laws of the RGC which shall set out, among others, the following:

(a) Conduct of meetings, including but not limited to the frequency of meetings, the quorum required to conduct a meeting, the manner in which a meeting may be conducted and the location of meetings;

(b) Appointments on the RGC;

(c) Tenure of members appointed to the RGC;

(d) Allowance, if any, to be made to members appointed to the RGC;

(e) Disclosure of information by and between members appointed to the RGC;

(f) Detailed procedures for voting;

(g) Appointment of a Chairperson to conduct the daily business of the RGC, if necessary and appropriate;

(h) Procedure to be followed by the RGC for amending the by-law; and

(i) Any other matter considered relevant by the PEM Board.

9.2.5  Registration and membership in the REM

9.2.5.1  Prior to REM commencement, On-Grid Mandated Participants and entities with RE Generation Facilities that meet the criteria in Clause 2.1.2.2 shall register with the Registrar in accordance with Clause 2.1 of these REM Rules.

9.2.5.2  Registration of Off-Grid Mandated Participants and entities with RE Generation Facilities shall be mandatory only upon the promulgation of the RPS for Off-Grid.

9.2.5.3  Intending REM Members registering under Clause 9.2.5.1 who are already registered in the WESM shall be deemed as being registered with the Registrar, subject to them meeting any additional requirements as set out in the relevant REM Manual.

9.2.5.4  Intending REM Members registering RE Generation Facilities under Clause 9.2.5.1 that are already registered in a WESM shall be deemed as being registered with the Registrar, subject to them meeting any additional requirements as set out in the relevant REM Manual. TaCEHA

CHAPTER 10

Glossary

Act: Refers to Republic Act No. 9513 also known as the "Renewable Energy Act of 2008."

Annual RPS Obligation: The annual MWh target set by the DOE in accordance with DOE Circular DC 2017-12-0015, and incremented by the Registrar under Clause 4.1.1, that an On-Grid Mandated Participant must demonstrate compliance with through the mechanisms set forth in Clause 4.1.3.

Attributable Bundled Generation: The quantity determined under Clause 3.1.4.5 (c) and Clause 3.1.5.7 (c) that represents the amount of a WESM RE Generator's Renewable Electricity generation in respect of a WESM Billing Period that is allocated to particular WESM registered Mandated Participant for REC issuance purposes.

Baseline RPS Obligation: The initial RPS obligation calculated by the DOE in accordance with DOE Circular DC 2017-12-0015 to determine a Mandated Participant's Annual RPS Obligation in the year preceding the first year of REM operations.

Bilateral Contract Quantity Declaration: The amount of Renewable Electricity generated by WESM RE Generators in a WESM Billing Period that is covered by Power Supply Agreements as used by the Market Operator for the purposes of WESM settlement.

Captive Customers: An electricity end user who does not have a choice of a supplier of electricity and whose electricity requirements are served by their local Distribution Utility.

Carry-Over Quantity: The quantity determined under Clauses 3.1.4.7 (b), 3.1.4.7 (d), 3.1.5.9 (b), 3.1.5.9 (d), 3.1.8.7 (b) or 3.1.8.7 (d) that represents the incremental MWH quantity for each REM Trading Participant eligible to receive RECs that is carried over into the next WESM Billing Period or REM Quarter'sREC issuance.

Confidential Information: Information which is or has been provided to, or by, an REM Member or the Registrar under, or in connection with, the REM Rules and is stated under the REM Rules to be, or is classified by the Registrar as, confidential information or is otherwise confidential or commercially sensitive information or information which is derived from any such information.

Contestable Customer: An electricity end user who has a choice of a supplier for electricity, and who is able to source their electricity requirements from Retail Electricity Suppliers and/or the WESM.

Data Provider: An entity defined in accordance with Clause 2.2.3 that is not a REM Trading Participant and is required to provide the Registrar with information under the REM Rules.

Department of Energy: The government agency created pursuant to Republic Act No. 7638 whose expanded functions are provided in the Act.

Directly Connected Customer: An electricity end user registered in the WESM that is directly connected to the high voltage transmission system in their region.

Dispute: Any dispute, controversy, claim or difference of any kind whatsoever arising out or in connection with the REM.

Dispute Resolution Administrator: The person tasked to facilitate the resolution of Disputes pursuant to Clause 6.3.

Distribution Utilities: An Electric Cooperative, private corporation, government-owned utility, or existing local government unit, that has an exclusive franchise to operate a distribution system in accordance with its franchise and the EPIRA.

DOE: See the Department of Energy and Clause 1.1.2.1.

Eligible Capacity for Partially Eligible Facility: The portion of the registered capacity eligible for REC issuance due to expansion of an existing RE plant, upgrading of an existing RE plant, change to RE technology, etc, consistent with Clause 2.4.3.2.

Eligible Bilateral Contract Quantity Declaration: The quantity determined under Clause 3.1.4.5 (b) or 3.1.5.7 (b) that represents the amount of a WESM RE Generator'sRenewable Electricity generation that will earn bundled RECs that accrue to the Mandated Participants who are the counterparties to any Power Supply Agreement with the WESM RE Generator.

Eligible MeteredQuantity: The quantity determined under Clause 3.1.4.5 (a), Clause 3.1.5.7 (a) or Clause 3.1.8.6 that represents the amount of a REM Generator'sMetered Quantity that is eligible to earn RECs.

Embedded RE Generation Facility: A RE GenerationFacility that is embedded within (connected to) to a distribution system.

Embedded Non-WESM RE Generator: An Embedded RE Generation Facility that operates in an On-Grid System and is not registered in the WESM, and is registered with the Registrar in that capacity under Chapter 2.

End User: Any person or entity requiring the supply and delivery of electricity for its own use.

Energy Regulatory Commission: The independent quasi-judicial regulatory body created under EPIRA.

Enforcement and Compliance Officer: A person tasked to perform compliance and enforcement functions pursuant to Clause 6.1. acHTIC

EPIRA: Refers to Republic Act No. 9136 also known as the "Electric Power Industry Reform Act of 2001."

ERC: See Energy Regulatory Commission.

Feed-in-Tariff: A uniform fixed tariff paid to eligible RE Generation Facilities in accordance with the RE Act.

Feed-In-Tariff ("FiT") Eligible Facility: An RE Generation Facility that is eligible to receive a Feed-in-Tariff.

Feed-In-Tariff ("FiT") Rules: Refers to the policy implemented by the ERC under Resolution No. 16, Series of 2010, Resolution Adopting the Feed-in-Tariff Rules.

Final REC Statement: The statement issued by the Registrar to On-Grid Mandated Participants under Clause 4.1.2.4 which reflects their final REC levels.

Final Settlement Quantity: A MWH quantity applicable to a WESM trading participant, used in WESM settlement to determine the monies owing from or payable to a WESM trading participant. This is the amount that is reflected in the WESM trading participant's final settlement statement.

Final Settlement Statement: A statement that is issued by the Market Operator to a WESM trading participant (under the WESM or IMEM rules as relevant) setting out the WESM trading participant's market transactions in respect of a WESM BillingPeriod.

Final Shortfall Amount: The amount defined in paragraph 4.2.2.1 (b) that reflects the final shortfall in the number of RECs that an On-Grid Mandated Participant must submit to demonstrate compliance with their Annual RPS Obligation. It is this quantity that the Registrar shall submit to the DOE when reporting on the RPS compliance levels of On-Grid Mandated Participants.

FiT: See in Feed-in-Tariff.

FiT-All Differential: Refers to the charge established pursuant to Clause 2.5 of the Feed-In-Tariff (FiT) Rules and defined further in the ERC issued Guidelines for the Collection and Disbursement of the Feed-in-Tariff Allowance ("FiT-All").

FiT-All-Fund Administrator: Means the National Transmission Corporation as administrator of the FiT-All Fund, as designated in ERC Resolution No. 16, series of 2012 amending the FIT Rules.

Franchise Area: The area covered by a local distribution system pertaining to a particular Distribution Utility.

Generating Plants: A facility, consisting of one or more generating units connected at a common connection point, where electric energy is produced from some other form of energy by means of a suitable apparatus.

Generation Company: An entity with RE Generation Facilities that are registered in a WESM and generate Renewable Electricity into a WESM pool and have registered with the Registrar in that capacity under WESM Rules: The detailed rules that govern the administration and operation of the WESM.

GEOP End-users: See Green-Energy Option End-users.

GEOP: See Green-Energy Option.

Green-Energy Option: The mechanism envisaged by Clause 9 of the RE Act to empower end-users to choose renewable energy in meeting their energy requirements.

Green-Energy Option End-users: An electricity end-user who has availed themselves of the Green-Energy Option provided for under the Green Energy Option Rules.

Green Energy Option Rules: The policy promulgated by DOE to implement the Green Energy Option.

Grid-connected RE Generation Facilities: An RE Generation Facility that is connected to the high voltage transmission grid in Luzon, Visayas or Mindanao.

Hourly Attributable Bundled Generation: The quantity determined under Clause 3.1.4.4 (a) or Clause 3.1.4.4 (b) that represents the amount of a WESM RE Generator's (that is a PartiallyEligibleFacility) hourly Renewable Electricity generation in respect of a WESM Billing Period that is allocated to particular WESM registered Mandated Participant for REC issuance purposes.

Hourly Eligible Bilateral Contract Quantity Declaration: The quantity determined under Clause 3.1.4.3 (a) or Clause 3.1.4.3 (b) that represents the amount of a WESM RE Generator's (that is a Partially eligible facility) hourly Renewable Electricity generation that will earn bundled RECs that accrue to the Mandated Participants who are the counterparties to any Power Supply Agreement with the WESM RE Generator.

Hourly Eligible Metered Quantity: The quantity determined under Clause 3.1.4.2 or Clause 3.1.8.5 that represents the amount of a REM Generator's (that is a Partially Eligible Facility) hourly Metered Quantity that is eligible to earn RECs.

Hybrid Systems: Refers to any power or energy generation facility which makes use of two or more types of technologies utilizing both conventional and/or renewable fuel sources, such as, but not limited to integrated solar/wind systems, biomass/fossil fuel systems, hydro/fossil fuel systems, integrated solar/biomass/systems, integrated wind/fossil fuel systems, with a minimum of 10 megawatts or ten percent of annual energy output provided by the Renewable Energy component. ScaCEH

Injection Point: Refers to the connection point of an RE Generation Facility which connects to the transmission or distribution network to which the facility is directly connected. It represents the point in the transmission or distribution network where the RE Generation Facility injects its generation and hence has no losses associated with it.

Local Retail Electricity Suppliers: Refers to the non-regulated business segment of a Distribution Utility catering to Contestable Customers only within its franchise area, or persons authorized by appropriate entities to supply electricity within their respective Economic Zones.

Mandated Participants: An electricity purchaser or load serving entity that is required to comply with an Annual RPS Obligation set by the DOE, and that is registered with the Registrarin that capacity under Chapter 2.

Manual Change Proposal: A proposal to change provisions contained within a REM Manual in accordance with Chapter 7.

Market Assessment Group: The group tasked to act as the secretariat for the REM Rules and REM Manual change process under Clause 7.1.2.

Market Information Website: A facility to be established by the Registrar on the electronic communication system on which it may publish information which is then available to and may be accessed by REM Members.

Market Operator: The entity responsible for the operation of the WESM, tasked with the performance of the market operation functions under Section 30 of the EPIRA, Section 6 Rule 9 of the EPIRA Implementing Rules and Regulations (IRR), and Clause 1.3 of the WESM Rules.

Meter: A device, which measures and records the consumption or production of electricity.

Metered Quantity: The data obtained or derived from a Metering Installation that is validated and may be edited in accordance with the WESM, and REM Rules.

Metering Installation: The Meter and associated equipment and installations installed or to be installed for the collection of metered data.

Monthly Attributable Bundled Generation: The quantity determined under Clause 3.1.4.4 (b), 3.1.4.4 (c) or 3.1.5.6 that represents the amount of a WESM RE Generator's (that is a not a PartiallyEligibleFacility) monthly Renewable Electricity generation in respect of a WESM Billing Period or REM Quarter that is allocated to particular WESM registered Mandated Participant for REC issuance purposes.

Monthly Bundled WESM RECs: The integer quantity determined under Clause 3.1.4.7 (c) or 3.1.5.9 (c) that represents the number of RECs issued to a WESM registered Mandated Participant in respect of all Renewable Electricity generation purchased by the Mandated Participant under a Power Supply Agreement and in respect of a WESM Billing Period or REM Quarter.

Monthly Eligible Bilateral Contract Quantity Declaration: The quantity determined under Clause 3.1.4.3 (b) and 3.1.4.3 (c) that represents the amount of a WESM RE Generator's (that is not a PartiallyEligibleFacility) monthly Renewable Electricity generation that will earn bundled RECs that accrue to the Mandated Participants who are the counterparties to any Power Supply Agreement with the WESM RE Generator.

Monthly Eligible Metered Quantity: The quantity determined under Clauses 3.1.4.2 or Clause 3.1.8.5 that that represents the amount of a REM Generator's (that is a not a PartiallyEligibleFacility) monthly Metered Quantity that is eligible to earn RECs.

Monthly FiT Generation Share: The quantity determined in Clause 3.2.2.1 and in accordance with the relevant REM Manual that represents the integer amount of FiT eligible RE Generation that the Registrar shall allocate to each On-Grid Mandated Participant in respect of a WESM Billing Period.

Monthly Renewable Bilateral Contract Quantity: The quantity determined in Clause 3.1.5.5 that denotes the contracted portion of a WESM registered Multi-Fuel Hybrid System'sRenewable Electricity generation.

Monthly Unbundled WESM RECs: The integer quantity determined under Clause 3.1.4.6 (c) or 3.1.5.8 (c) that represents the number of RECs issued to a Generation Company in respect of all Renewable Electricity generation generated by its WESM RE Generator facilities into a WESM pool.

Multi-Fuel Hybrid System: A Hybrid System that is able to generate electricity through the combustion of two or more fuel types in a single generator. Examples of Multi-Fuel Hybrid Systems include (but are not limited to) biofuel/natural gas, biofuel/oil, biomass/coal.

National Renewable Energy Program: Outlines the policy framework enshrined in the RE Act that sets out indicative interim targets for the delivery of renewable energy within the timeframe of 2011 to 2030.

Net-Metered RE Generation Facility: An RE Generation Facility embedded in a distribution system, that represents a system in which the distribution end-user has a two-way connected to the distribution network and is only charged for its net-electricity consumption and is credited for any overall contribution to the distribution network.

Net-Metered RE Generator: A Net-Metered RE Generation Facility that is registered with the Registrar in that capacity under Chapter 2. TIEHDC

Net-Metering Agreement: Refers to the agreement between the entity who owns/operates a Net-Metered RE Generation Facility and the host Distribution Utility governing the commercial and interconnection arrangements between the Net-Metered RE Generation Facility and the Distribution Utility.

Non-Renewable Generation Facility: An electricity generation facility that utilizes non-renewable energy.

Notice of Suspension: A notice issued by the RER under Clause 2.7.3.

NREP: See National Renewable Energy Program.

One-off REC Transfer: A REC transfer done only once by the REM Trading Participants.

Off-Grid Mandated Participant: A Mandated Participant who has an Annual RPS Obligation in respect of an Off-Grid System and is registered with the Registrar in that capacity under Chapter 2.

Off-Grid RE Generator: An RE Generation Facility that is connected to an Off-Grid System of the Philippines.

Off-Grid Systems: Refers to electrical systems not connected to the wires and related facilities of the On-Grid Systems of the Philippines.

On-Grid Mandated Participant: A Mandated Participant who has an Annual RPS Obligation in respect of an On-Grid System and is registered with the Registrar in that capacity under Chapter 2.

On-Grid Systems: Refers to electrical systems composed of interconnected transmission lines, distribution lines, substations and related facilities for the purpose of conveyance of bulk power on the grid of the Philippines.

Partially Eligible Facility: A grid-connected REM generator wherein a portion of its capacity is eligible for REC issuance due to any of the circumstances identified in Section 2.4.3.2 items (b), (c), (e) and (f).

PEM Auditor: The person tasked with REM auditing responsibilities under Clause 6.2.

PEM Board: The group of directors that is responsible for governing the Philippine Electricity Market Corporation, pursuant to the WESM Rules and Manuals.

Philippine Electricity Market Corporation: The company incorporated under the Securities and Exchange Commission (SEC) to function as the Autonomous Group Market Operator (AGMO) that will undertake the preparatory work and initial operation of the WESM pursuant to the EPIRA. With the completion on the transition to the Independent Market Operator (IMO), PEMC will be the governance arm of the WESM, pursuant to DOE Department Circular DC2018-01-002.

Power Supply Agreement: A contract (that is not a Net-Metering Agreement) between two parties governing the sale of electricity.

Preliminary REC Statement: The statement issued by the Registrar to On-Grid Mandated Participants under Clause 4.2.1 which reflects their preliminary REC levels.

Preliminary Shortfall Amount: The amount defined in Clause 4.2.1.1 (b) that reflects the preliminary shortfall in the number of RECs that an On-Grid Mandated Participant must submit to demonstrate compliance with their Annual RPS Obligation as indicated in the On-Grid Mandated Participant's Preliminary REC Statement.

Preliminary Surrendered RECs: The quantity determined under Clause 4.2.1.1 (a) which represents the number of RECs that an On-Grid Mandated Participant has surrendered in respect of an RPSCompliance Period to demonstrate compliance with its Annual RPS Obligation as at the end of the RPS Compliance Period.

Quarterly Bundled Non-WESM RECs: The integer quantity determined under Clause 3.1.8.7 (c) that represents the number of RECs issued to a Mandated Participant in respect of all Renewable Electricity generation purchased by the Mandated Participant under a Power Supply Agreement with a REM Generator not registered in a WESM and in respect of a REM Quarter.

RE Generation Facility: An electricity generation facility that utilizes eligible renewable energy technologies as defined by the REAct.

REC: See Renewable Energy Certificate.

REC issuance timetable: The timetable defined in Clause 3.1.3.

Registrar: See Renewable Energy Registrar.

Registry: The centralized system used by the Registrar to issue, track and manage Renewable Energy Certificates.

Registry Account: Refers to the set of accounts held by a REM Trading Participant in the Registry as defined in the relevant REM Manual.

REM: See Renewable Energy Market.

REM Bulletin Board: An electronic facility that will be provided by the Registrar under Clause 3.6 to facilitate the trading of RECs between REM Trading Participants.

REM Generator: An RE Generation Facility that meets the requirements set forth in DOE Circular DC 2017-12-0015 and is registered with the Registrar in that capacity under Chapter 2. ACcaET

REM Governance Committee: The committee whose composition, duties and obligations are defined under Clause 1.3.

REM Implementing Rules: The detailed rules that govern the administration and operation of the REM.

REM Manual: A manual of specific procedures, systems or protocols for the implementation of the REM Rules promulgated by the DOE.

REM Members: A person who is registered with the Registrar in accordance with Chapter 2.

REM Quarter: Four quarters running from: 26 Jun-25 Sep, 26 Sep-25 Dec, 26 Dec-25 Mar and 26 Mar-25 Jun.

REM Rules: See REM Implementing Rules.

REM Trading Participant: A Mandated Participant, Generation Company or Green-Energy OptionParticipant registered with the Registrar in that capacity under Chapter 2.

Renewable Electricity: Refers to electricity generated by the renewable component of a RE Generation Facility or using renewable fuels.

Renewable Energy Act of 2008 ("RE Act"): Refers to Republic Act No. 9513 also known as the "Renewable Energy Act of 2008."

Renewable Energy Certificates: Refers to a certificate (issued by the Registrar in accordance with Clause 3.1.1 representing all renewable and environmental attributes from one MWH of electricity generation sourced from an eligible RE Generation Facility.

Renewable Energy Market or REM: The market developed and implemented by PEMC where the trading of the RE certificates is made pursuant to Section 8 of the RE Act.

Renewable Energy Market Rules: See REM Implementing Rules.

Renewable Energy Registrar: Refers to the unit established in accordance with Republic Act No. 9513 to issue, keep and verify RE Certificates corresponding to energy generated from eligible RE facilities.

Renewable Metered Quantity: Represents the renewable component (in MWH) of a Multi-Fuel Hybrid System's total generation which must be calculated and certified in accordance with the rules set out by the DOE pursuant to Clause 9.2.1.

Renewable Portfolio Standards: refers to the policy implemented by the DOE under DOE Circular DC 2017-12-0015 requires electricity suppliers to source an agreed portion of their energy supply from eligible RE Generation Facilities.

Retail Electricity Suppliers: Refers to any person or entity authorized by the ERC to sell, broker, market or aggregate electricity to Contestable Customers.

Renewable Energy Suppliers or RE Suppliers: Refers to individuals or juridical entities created, registered or authorized to operate in the Philippines in accordance with existing Philippine laws and engaged in the provision of supply from RE Resources to End-User duly licensed by the ERC.

RGC: See REM Governance Committee.

RPS Compliance Period: Refers to the period defined in Clause 4.1.1.

Rule Change Proposal: A proposal to change provisions contained in the REM Rules in accordance with Chapter 7.

Separately Metered Hybrid System: A Hybrid System whose renewable component can be separately metered enabling the provision of Metered Quantities attributable solely to the Renewable Electricity generated by the facility.

Standing Order: A transaction involving the transfer of RECs made in accordance with Clause 3.3.1.2 (b) and the relevant REM Manual to transfer an agreed upon volume of RECs at an agreed upon price over an agreed upon period from one REM Trading Participant to another.

Supplier of Last Resort: An entity designated to serve Contestable Customers following a last resort supply event.

Total Adjusted Bundled Non-WESM Quantity: The quantity determined under Clause 3.1.8.7 (b) in respect of Renewable Electricity generated by REM Generators that are not Multi-Fuel Hybrid Systems and are not registered in a WESM and reflects the amount (including Carryover Quantities and adjustments for errors) which forms the basis on which the Registrar shall allocate RECs (in respect of a REM Quarter) to Mandated Participants who have Power Supply Agreements with those REM Generators.

Total Adjusted Bundled WESM Quantity: The quantity determined under Clause 3.1.4.7 (b) or 3.1.5.9 (b) in respect of Renewable Electricity generated by REM Generators that are registered in a WESM and reflects the amount (including Carryover Quantities and adjustments for errors) which forms the basis on which the Registrar shall allocate RECs (in respect of a WESM Billing Period) to Mandated Participants who have Power Supply Agreements with those REM Generators.

Total AdjustedUnbundled WESM Quantity: The quantity determined under Clause 3.1.4.6 (b) or 3.1.5.8 (b) in respect of Renewable Electricity generated by REM Generators that registered in a WESM and reflects the amount (including Carryover Quantities and adjustments for errors) which forms the basis on which the Registrar shall allocate RECs (in respect of a WESM Billing Period) to the Generation Company who registered those REM Generators. SaIEcA

Total Bundled Non-WESM Quantity: The quantity determined under Clause 3.1.8.7 (a) in respect of Renewable Electricity generated by REM Generators that are registered in a WESM and reflects the amount (excluding Carryover Quantities and adjustments for errors) which forms the basis on which the Registrar shall allocate RECs (in respect of a REM Quarter) to Mandated Participants who have Power Supply Agreements with those REM Generators.

Total Bundled WESM Quantity: The quantity determined under Clause 3.1.4.7 (a) or 3.1.5.9 (a) in respect of Renewable Electricity generated by REM Generators that are registered in a WESM and reflects the amount (excluding Carryover Quantities and adjustments for errors) which forms the basis on which the Registrar shall allocate RECs (in respect of a WESM Billing Period) to Mandated Participants who have Power Supply Agreements with those REM Generators.

Total Surrendered RECs: The quantity determined under Clause 4.2.2.1 (a) which represents the total number of RECs that an On-Grid Mandated Participants has surrendered in respect of an RPS Compliance Period to demonstrate compliance with its Annual RPS Obligation as at the end of the period defined in Clause 4.1.1.

Total Unbundled WESM Quantity: The quantity determined under Clause 3.1.4.6 (a) or 3.1.5.8 (a) in respect of Renewable Electricity generated by REM Generators that are registered in a WESM and reflects the amount (excluding Carryover Quantities and adjustments for errors) which forms the basis on which the Registrar shall allocate RECs (in respect of a WESM Billing Period) to the Generation Company who registered those REM Generators.

Transaction Fees: The charges imposed on REM Members by the Registrar to cover the cost of administering and operating the Registry and the REM, as approved by the ERC.

WESM: See Wholesale Electricity Spot Market.

WESM Billing Period: Refers to the billing period used by the Market Operator operating the WESM, which is a one-month period starting on the 26th day of a calendar month and ending on the 25th day of the following month.

WESM RE Generator: Refers to an RE Generation Facility that is registered in a WESM and that is registered with the Registrar in that capacity under Chapter 2.

WESM: See Wholesale Electricity Spot Market.

WESM Compliance Officer: The personnel designated pursuant to DC 2010-07-0008 by each WESM member, the Market Operator, the System Operator, Metering Service Provider and any other WESM Service Providers and are responsible for monitoring their own organization to ensure full compliance and for coordinating with the WESM Enforcement and Compliance Officer and governance committees on all matters pertaining to compliance.

WESM Rules: The detailed rules that govern the administration and operation of the WESM.

Wholesale Electricity Spot Market (WESM): The electricity market established by the DOE in accordance with Clause 30 of the EPIRA.

Working Day: A day (excluding Saturdays and Sundays) on which banks and financial institutions are open in the city or municipality where the principal offices of the Registrar are located. CcSTHI