DC2012-02-0002 — PEMC Designated as Central Registration Body (CRB)

Department Circular No. DC2012-02-0002, issued 24 February 2012 by DOE Secretary Jose Rene D. Almendras. Circular designating the Philippine Electricity Market Corporation (PEMC) as the Central Registration Body (CRB) to undertake development and management of systems and processes for Retail Competition and Open Access (RCOA) implementation.

Legal mandate and RCOA background

Implements EPIRA (RA 9136) Section 37 mandate to DOE to supervise electric power industry restructuring and formulate rules/regulations to implement EPIRA objectives [DC2012-02-0002, Whereas, 2012-02]. EPIRA Section 31 requires RCOA implementation not later than three (3) years upon EPIRA effectivity subject to fulfillment of five (5) pre-conditions [DC2012-02-0002, Whereas, 2012-02]. ERC Resolution No. 10, Series of 2011 (6 June 2011) declared fulfillment of prescribed RCOA pre-conditions per EPIRA §31 and EPIRA-IRR Section 3, Rule 12 [DC2012-02-0002, Whereas, 2012-02]. RCOA defined as Retail Competition—provision of electricity to contestable market by suppliers through Open Access—which is system allowing qualified persons to use transmission and/or distribution systems and associated facilities subject to ERC-approved transmission/distribution retail wheeling rates [DC2012-02-0002, Whereas, 2012-02].

RCOA Steering Committee (RCOA SC), created through DC2011-06-0006 (17 June 2011), recommended policies enhancing industry participant readiness, including deferment of RCOA implementation from 26 December 2011 to later date and integration of RCOA into Wholesale Electricity Spot Market (WESM) [DC2012-02-0002, Whereas, 2012-02]. ERC Order (24 October 2011, ERC Case No. 2011-009 RM) declared deferment of RCOA implementation in Luzon and Visayas while rules, systems, preparations, and infrastructure requirements remain incomplete [DC2012-02-0002, Whereas, 2012-02].

RCOA SC recommended that preparatory activities for RCOA commencement include establishment and management of system handling customer switching and information exchange among retail participants and settlement of transactions [DC2012-02-0002, Whereas, 2012-02]. RCOA SC further recommended Philippine Electricity Market Corporation (PEMC)—a non-stock non-profit corporation incorporated in 2003 to operate and govern WESM—to perform Central Registration Body (CRB) functions given expertise gained in WESM operation and governance [DC2012-02-0002, Whereas, 2012-02].

CRB designation and functions

Philippine Electricity Market Corporation is hereby designated Central Registration Body (CRB) assigned to undertake development and management of required systems, processes, and information technology infrastructure capable of handling customer switching and information exchange among retail electricity market participants and settlement of their transactions in the Wholesale Electricity Spot Market [DC2012-02-0002, §1, 2012-02].

PEMC responsibilities as CRB

For implementing CRB functions under RCOA regime under DOE supervision, PEMC is directed to [DC2012-02-0002, §2, 2012-02]:

(a.) Review of WESM Rules and Manuals: PEMC shall review and propose changes to WESM Rules and Manuals necessary to ensure seamless integration of WESM operations and RCOA. Changes shall cover revisions to registration, metering, billing, and settlement procedures in WESM addressing RCOA implementation [DC2012-02-0002, §2(a), 2012-02]. PEMC shall elevate issues and concerns arising to enable DOE formulation of appropriate policy directions ensuring efficient RCOA implementation [DC2012-02-0002, §2(a), 2012-02].

(b.) Develop market infrastructure, systems, and processes: PEMC shall undertake development of infrastructure capable of supporting registration, customer switching, information exchange among retail electricity market participants and PEMC/other service providers, and settlement of retail market participant transactions in WESM [DC2012-02-0002, §2(b), 2012-02]. PEMC shall implement necessary infrastructure, systems, and internal process changes carrying through WESM Rules and Manuals changes [DC2012-02-0002, §2(b), 2012-02]. For RCOA-WESM operations integration, all WESM Rules and Manuals changes require DOE approval [DC2012-02-0002, §2(b), 2012-02].

(c.) Conduct training for electric power industry participants: PEMC shall ensure readiness of all WESM members and service providers for RCOA by conducting trainings, stakeholder consultations, and information dissemination activities informing WESM members and service providers of WESM operations changes brought about by RCOA integration [DC2012-02-0002, §2(c), 2012-02].

(d.) Comply with DOE directives: PEMC shall comply with DOE directives on RCOA implementation and submit project implementation plan with cost estimates and timelines and periodic reports as required [DC2012-02-0002, §2(d), 2012-02].

(e.) Coordinate with relevant stakeholders and other government agencies: Where necessary, PEMC shall directly coordinate with relevant stakeholders and other government agencies ensuring smooth RCOA preparation [DC2012-02-0002, §2(e), 2012-02]. PEMC shall primarily coordinate and inform ERC on integration process progress ensuring regulatory support as necessary [DC2012-02-0002, §2(e), 2012-02].

(f.) Perform related functions: PEMC shall perform such other related functions as may be necessary in effective and efficient RCOA implementation [DC2012-02-0002, §2(f), 2012-02].

Regulatory support and final provisions

Energy Regulatory Commission shall ensure provision of support in regulatory requirements and cost recovery for RCOA-WESM integration in accordance with existing laws and procedures [DC2012-02-0002, §3, 2012-02].

Nothing in this Circular shall repeal mechanisms already existing or responsibilities already provided for under existing rules except insofar as manifestly inconsistent herewith [DC2012-02-0002, §4, 2012-02]. If any section or provision is declared invalid, other parts not affected thereby shall continue in full force and effect [DC2012-02-0002, §5, 2012-02].

Circular effective upon publication in two (2) newspapers of general circulation [DC2012-02-0002, §6, 2012-02]. PEMC directed to publish this Circular in the market information website [DC2012-02-0002, §6, 2012-02]. Remains in effect until otherwise revoked [DC2012-02-0002, §6, 2012-02].

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