Philippine Energy Policy Wiki

DC2022-06-0019 (REM Interim Commercial Operations)

Status
operative
Confidence
high
Effective date
2022-07
Parent law
ra-9513

Document: Department Circular No. DC2022-06-0019 Title: Declaring the Interim Commercial Operations of the Renewable Energy Market Issued: June 10, 2022 Issuing authority: DOE Secretary Alfonso G. Cusi Pages: 7 (image-based PDF; OCR via tesseract)

What This Document Does

Declares the commencement of the Interim Commercial Operations (I-COP) of the Renewable Energy Market (REM), activating the RE Registrar’s functions for REC issuance and participant registration while deferring financial transactions pending three pending ERC approvals.

Key Provisions

Section 2 — REM I-COP commencement. The I-COP is declared operative. Financial transactions remain suspended until full commercial operations are declared. The I-COP was triggered because PEMC certified that critical Readiness Criteria activities were substantially complete (letter dated 15 September 2021), while three regulatory items remained outstanding.

Section 3 — RE Registrar responsibilities. During I-COP, PEMC (as RE Registrar) performs: participant registration; REM awareness activities (≥2 trainings/month); RPS mandate computations; REC data submission/validation; REC issuance (FIT and Non-FIT); REC reporting; PREMS operability (99.5% availability target); support to the REM Governance Committee (RGC); and determination/filing of market transaction fees with ERC.

Section 4 — RPS compliance guidance. Compliance Year 1 = 2020; compliance periods run 26 December to 25 December annually. All Mandated Participants deemed compliant for Compliance Years 1–3 (2020–2022). Compliance shortfalls may be carried over up to 3 years under five conditions (inadequate RE supply, inadequate RECs, network congestion, force majeure, other DOE-determined circumstances). Off-grid RPS (Compliance Year 1) suspended until further notice.

Section 5 — ERC directed (120 working days) to:

  1. Determine and approve the REC Price Cap and Methodology
  2. Establish Rules on the Recovery Mechanism for RPS Compliance costs by regulated entities
  3. Determine the Structure and Level of Market Transaction Fees

Section 6–8 — Standard clauses. Separability; repealing; effectivity 15 days after publication in 2 newspapers.

Policy Significance

This is the foundational circular activating the REM, enabling RECs to be issued and tracked. It bridges the gap between the 2019 REM Rules (DC2019-12-0016) and the eventual full commercial operations. The I-COP was designed so that Mandated Participants could begin complying with RPS without waiting for all financial infrastructure to be in place.

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