Philippine Energy Policy Wiki

DC2018-07-0019: Promulgating the Rules and Guidelines Governing the Establishment of the Green Energy Option Program

Status
operative
Confidence
high
Effective date
2018-07-18
Parent law
ra-9513

Department Circular No. DC2018-07-0019, signed 18 July 2018 by DOE Secretary Alfonso G. Cusi. Promulgates the original implementing rules for the Green Energy Option Program (GEOP) under Section 9 of RA 9513 (RE Act of 2008).

NREB endorsed proposed rules on 1 November 2017. DOE conducted public consultations in Mandaluyong City (13 December 2017) and Davao City (18 January 2018) before finalizing.

Key Provisions

Non-regulated status: GEOP Supply Contracts do not require ERC approval [DC2018-07-0019, §3(d), 2018-07-18].

Eligibility thresholds [DC2018-07-0019, §§6–7, 2018-07-18]:

  • ≥100 kW average monthly peak demand for past 12 months → eligible immediately
  • New connection ≥300 kW estimated demand → eligible immediately
  • New connection 100–<300 kW → needs 3 consecutive months of ≥100 kW historical demand
  • <100 kW → eligible after DOE determines technical readiness
  • Geographic scope: Luzon and Visayas only until Mindanao WESM + RCOA declared

Automatic RE Supplier qualification: Existing RES and Local RES licensed under RCOA automatically qualify as RE Suppliers if they own/operate an RE Facility or procure competitively-priced RE for RPS compliance [DC2018-07-0019, §11(a), 2018-07-18].

GEOP Supply Contract minimum terms: contract period; party names and location; RE source; guaranteed demand and energy; contract price; payment terms; Replacement Power provision; default provision; other charges [DC2018-07-0019, §5(d), 2018-07-18].

Dual billing: RE Supplier bills for RE generation and Replacement Power; DU/TRANSCO bills for wires services and other charges — all unbundled [DC2018-07-0019, §15(g), 2018-07-18].

REC attribution: RECs from GEOP supply credited to DU’s account; energy counts toward DU’s RPS compliance requirement [DC2018-07-0019, §15(b), 2018-07-18].

SOLR: DU acts as SOLR for GEOP end-users; default rate = WESM nodal price + premium pending ERC approval [DC2018-07-0019, §11(b), 2018-07-18].

End-user notice requirements: Notify DU 3 months before signing GEOP Supply Contract; notify DU of signed contract at least 1 month before effectivity [DC2018-07-0019, §10(b), 2018-07-18].

GEOP Oversight Committee: Chaired by DOE Undersecretary for REMB; members include REMB Director, EPIMB Director, DOE Legal Services Director, CRB representative [DC2018-07-0019, §14, 2018-07-18].

Penalties: Administrative P100K–P500K; Criminal 1–5 years imprisonment or P100K–P100M fine (or 2× damages, whichever is higher) [DC2018-07-0019, §17, 2018-07-18].

Subsequent Amendments

  • DC2020-04-0009 — Guidelines on issuance of operating permits to RE Suppliers under GEOP
  • ERC Resolution No. 8 s.2021 — GEOP Rules defining obligations, commercial arrangements, interconnection, and switching/billing procedures

Full text: Cleaned copy