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aN Republic of the Philippines

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DEPARTMENT OF ENERGY i mil

DEPARTMENT CIRCULARNO. Dt 2O[{-1Q- 00] La

ADOPTING FURTHER AMENDMENTS TO THE WESM RULES
(WESM RULES SECTION 5.2.6 MARKET AUDIT)

WHEREAS, Rule 8.6 of the Wholesale Electricity Spot Market (WESM) Rules provides for
the approval by the Department of Energy (DOE) of proposals for any WESM Rules
changes upon endorsement by the Philippine Electricity Market (PEM) Board;

WHEREAS, the Philippine Electricity Market Corporation (PEMC) developed an IT
Change Management process for the proper and adequate review, approval,
accountability and monitoring of software changes by the PEMC management;

WHEREAS, on 23 March 2009, the PEMC proposed to revise the WESM Rules to cover the
PEMC IT Change Management process to emphasize the requirement for post audit to
ensure proper verification of new or modified software including its management
processes;

WHEREAS, on 04 August 2010, the Rules Change Committee (RCC) approved for
submission to the PEM Board changes in the WESM Rules pertaining to the software
changes which intended to implement software changes through the Information and
Communication Technology (ICT) change management process; and

WHEREAS, after discussion, the PEM Board resolved on 05 October 2010 approved for
endorsement to the DOE the proposed changes to the WESM Rules.

NOW, THEREFORE, pursuant to its authority under’ the WESM Rules, the DOE hereby

issues, adopts and promulgates the following amendments to the WESM Rules.
Section 1. Amendments to the WESM Rules.
1.1 Clause 5.2.6.2 is amended to read -
5.2.6.2 The spot market audit shall cover and review compliance by the
Market Operator with its procedures and the effectiveness and
appropriateness of systems utilized in the operation of the spot

niarket, including but not limited to:

(a) Valid audit certificates for the current revisions of all numeric
software;

(b) The calculations and allocations performed by the metering and
settlements systems;
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(c) Billing and information systems;
(d) The scheduling and dispatch processes;

(ec) The processes for software management including the
Information and Communications Technology Change
Management Process or “ICMP” instituted by the Market
Operator subject to the conduct of regular audits as may be
determined under the WESM Rules;

(f) The Market Operator's compliance with the WESM Rules.

The said market audit shall also cover all new software and
modifications to the existing software implemented through the

ICMP.

1.2 A new definition is hereby added to Chapter 11: Glossary after Indirect WESM
Participant, as follows:

ICT Change Management Process or “ICMP”. The process instituted by the
Market Operator that ensures proper and timely review. approval,
implementation, monitoring and documentation of all ICT changes requirements
of the Market Operator.

Section 2. Separability Clause. If for any reason, any section or provision of this
Circular is declared unconstitutional or invalid, such parts not affected shall remain in
full force and effect.

Section 3. Effectivity. ‘his Circular shall take into effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation and shall remain in effect
until otherwise revoked.

Issued this in Fort Bonifacio, Taguig City, Metro Manila.

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JOSE RENE D. ALMENDRAS
Secretary gy estsaurePiane |

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