=== rmu-pages-01.ppm === Republic of the Philippines DEPARTMENT OF EN ERGY DEPARTMENT CIRCULAR NO, 0¢ 2013~O7 ODL PROMULGATING THE RETAIL MARKET MANUALS FOR THE IMPLEMENTATION OF RETAIL COMPETITION AND OPEN ACCESS AND PROVIDING FOR TRANSITORY ARRANGEMENTS WHEREAS, in Section 37 of the Republic Act No. 9136, otherwise known as “The Electric Power Industry Reform Act of 2001” (the Act), the Department of Energy (DOE) is mandated, among others, to: (a) Supervise the restructuring of the electric power industry; (b) Formulate rules and regulations as may be necessary to implement the objectives of EPIRA; and (c) Exercise such other powers, as may be necessary or incidental to attain the objectives of the Act: WHEREAS, on 06 June 2011, the Energy Regulatory Commission (ERC) through Resolution No. 10 Series of 2011, certified that the five (5) pre- conditions for the implementation of Retail Competition and Open Access as provided in Section 31 of the EPIRA have already been met; WHEREAS, in preparation for the implementation of Retail Competition and Open Access (RCOA), the DOE: (a) Conducted a series of public consultations and focus group discussions with qualified customers in the Contestable Market, Suppliers, other relevant stakeholders of electric power industry and government agencies aimed at soliciting comments on the draft implementing rules and guidelines as well as identifying specific areas of concerns that requires formulation of policy; and (b) Following the public consultations and focus group discussions, promulgated the. prescribed policies (collectively “Prescribed Policies”) that will govern the implementation of Retail Competition and Open Access through Department Circular (DC) No. 2012-05-0005 dated 09 May 2012 entitled “Prescribing the General Policies for the Implementation of Retail : Energy Center, Merritt Rd., Fort Bonifacio, Taguig City, Metro Manila, Philippines a a Fax # 812-61-94 Tel.# 840-20-08 Fax # 840-21-38 Tel # 840-22-36 Fax # 840-17-31 Tel # 817-86-03 Trunkline 479-29-00 Website: www.doe.gov.ph, E-mail: info@doe.gov.ph === rmu-pages-02.ppm === Competition and Open Access” and DC No. 2012-11-0010 dated 28 November 2012, entitled “Providing for Additional Guidelines and Implementing Policies for Retail Competition and Open Access and Amending Department Circular No. (DC) 2012-05-0005 entitled “Prescribing the General Policies for the Implementation of the Retail Competition and Open Access””; WHEREAS, the ERC promulgated on 17 December 2012 the “Transitory Rules for the Initial Implementation of Open Access and Retail Competition” and published the same in the ERC website at w.1.ere ov.ph on 21 December 2012.; WHEREAS, consistent with the above cited policies and rules, the DOE spearheaded the formulation of the Rules for the Integration of Retail Competition and Open Access in the Wholesale Electricity Spot Market (the Retail Rules); WHEREAS, following the series of public consultations with stakeholders of the electric power industry, the DOE promulgated the Rules for the Integration of Retail Competition and Open Access in the Wholesale Electricity Spot Market or the Retail Rules through DC No. 2013-01-0002 dated 09 January 2013, entitled “Promulgating the Retail Rules for the Integration of Retail Competition and Open Access in the Wholesale Electricity Spot Market”; WHEREAS, pursuant to the Retail Rules, the Central Registration Body (CRB) drafted the necessary Market Manuals containing the criteria, guidelines and procedures for i) the registration of participants in the retail market; ii) market transactions procedures; iii) disclosure and confidentiality of Contestable Customer Information; and, iv) metering standards and procedures for the Retail Market. WHEREAS, the draft Market Manuals were published on 1-8 February 2013 in the DOE website at woeecoe.coy.oh to further solicit comments, views and suggestions from the stakeholders of the electric power industry; Said deadline was extended as requested by some stakeholders; WHEREAS, the DOE received comments and Suggestions from the following: * Distribution Management Committee * Manila Electric Company (MERALCO) ° Retail Electricity Suppliers Association of the Philippines * Batangas Electric Cooperative IL, Inc. === rmu-pages-03.ppm === * MPOWER (MERALCO Local RES) ¢ Kratos RES, Inc. * National Grid Corporation of the Philippines * National Power Corporation * Philippine National Bank * Aichi Forging Company WHEREAS, the proposed Market Manuals were then revised and finalized based on the comments, views and suggestions solicited from the stakeholders; NOW THEREFORE, pursuant to its mandate under the Act, the DOE hereby issues, adopts and promulgates the following: Section1. Approval and Adoption of Market Manuals. In consideration of the foregoing, the Manuals listed below and presented as Annexes to this Circular are hereby approved and adopted. a) Annex A ~ Retail Manual on Registration Criteria and Procedures b) Annex B - Retail Manual on Market Transactions Procedures c) Annex C ~ Retail Manual on Disclosure and Confidentiality of Contestable Customer Information d) Annex D - Retail Manual on Metering Standards and Procedures Section 2. Transitory Provision, Notwithstanding the timetables provided for in the Retail Manual on Registration Criteria and Procedures and the Retail Manual on Metering Standards and Procedures, it is hereby provided that - a) Contestable Customers that applied for registration or whose applications for registration were submitted prior to the commencement of the Commercial Operation of Retail Competition and Open Access on 26 June 2013 (“Commencement Date”) but were unable to submit any of the following: Retail Supply Contracts, Load Profile and Distribution Wheeling and Metering Services Agreement prior to said Commencement Date shall be registered by the Central Registration Body. It is provided, however, that the said requirement must be complied with to the satisfaction of the Central Registration Body no later than ninety (90) days from the promulgation of this Circular. In the event of non- compliance, the non-complying Contestable Customer shall be suspended by the Central Registration Body in accordance with the Retail Rules and the Retail Manual on Registration Criteria and Procedures. === rmu-pages-04.ppm === b) Pursuant to the Retail Manual on Metering Standards and Procedures, all Retail Metering Services Providers shall provide the Central Registration Body with the metering data of all Contestable Customers being served by them on the following trading day. It is provided, however, that in cases of incomplete or erroneous metering data, the relevant Retail Metering Services Provider shall be allowed to submit the completed or corrected meter data no later than three (3) days after the end of the relevant billing period. It is provided, furthermore, that this arrangement shall be allowed only for the first three (3) billing periods from the Commencement Date. Thereafter, all Retail Metering Services Providers shall strictly comply with the timetable and procedures for submission of metering data provided for in the Retail Manual on Metering Standards and Procedures. c) Bilateral contract quantities in favor of Contestable Customers that the contract counterparties wish to be accounted for in the settlements of the Wholesale Electricity Spot Market transactions shall be declared to the Market Operator after each trading day. It is provided, however, that the relevant Trading Participant that declared the bilateral contract quantities may review its daily declarations and submit corrected declarations no later than three (3) days from the end of each billing period. It is provided, furthermore, that this arrangement shall be allowed only for the first three (3) billing periods from the Commencement Date. Thereafter, all relevant Trading Participants shall strictly comply with the timetable for declaration of bilateral contract quantities. Section 3. Separability Clause. If for any reason, any section or provision of this Circular or the attached Manuals and Annexes is declared unconstitutional or invalid, such parts not affected shall remain in full force and effect. Section 4. _Effectivity. This Circular shall take effect immediately following its publication in at least two (2) newspapers of general circulation. Signed this ___ day of July in Fort Bonifacio, Taguig City, Metro Manila. CARLQS JERICHO L. PETILLA Secretary ‘SEE EA OF Bega IN REPLYING PLS CITE: ini)” ? 20 === rmu-pages-05.ppm === ANNEX “A” Retail Manual Registration Criteria and Procedures === rmu-pages-06.ppm === TABLE OF CONTENTS I. INTRODUCTION AND GENERAL GUIDELINES 1. PURPOSE & SCOPE OF APPLICATION .n.ccecccscssesssssssesssvsssuessesssucesucsssestsecssessuvessuessecssvecaees 2. DEFINITIONS, REFERENCES AND INTERPRETATION 3. GENERAL GUIDELINES 4. RESPONSIBILITIES 5 I]. REGISTRATION PROCEDURES TI. SUSPENSION, DISCONNECTION AND DE-REGISTRATION === rmu-pages-07.ppm === 1 INTRODUCTION AND GENERAL GUIDELINES 1. PURPOSE & SCOPE OF APPLICATION Pursuant to Clause 2.5 of the Retail Rules, the Central Registration Body shall prepare and publish a Manual that shall provide the requirements and procedures for the registration of Contestable Customers, Suppliers and Retail Metering Service Providers in the WESM. The criteria, guidelines and procedures for registration of metering installations are covered by the Retail Metering Manual. The suspension and de-registration procedures shall be governed by the WESM Manual on Registration, Suspension and De-Registration Criteria and Procedures.1 This Manual implements relevant provisions of Chapter 2 of the Rules for the Integration of Retail Competition in the Wholesale Electricity Spot Market ("Retail Rules"). 2. DEFINITIONS, REFERENCES AND INTERPRETATION 2.1. Definitions Unless otherwise defined or the context implies otherwise, the italicized terms used in this Manual which are defined in the WESM Rules and Retail Rules will bear the same meaning as defined in the WESM Rules and Retail Rules. 2.2. Giving of Notices The guidelines set forth in WESM Rules Clause 9.6.1 shall govern the giving of notices. required in this Manual. 2.3. References This Manual should be read in association with the - a) Republic Act No. 9136 b) Implementing Rules and Regulations of Republic Act No. 9136 c) ERC's Transitory Rules on the Implementation of OARC d) WESM Rules e) Retail Rules f) Philippine Grid Code g) Philippine Distribution Code h) Department of Energy Circular No. 2010-05-006 i) Department of Energy Circular No. 2010-08-0010 j) Department of Energy Circular No. 2012-011-0010 k) Department of Energy Circular No. 2013-01-0002 1) WESM Manual: Registration, Suspension and De-Registration Criteria and Procedures m) WESM Manual: Billing and Settlements n) Retail Metering Manual 24. Organization of the Manual/Interpretation ' Clause 2.6, Retail Rules Page 1 of 7 === rmu-pages-08.ppm === 3.1. 3.2. 4.1, 4.2, 2.4.1. This Manual is divided into three Chapters as follows - a) Chapter I - Introduction and Generation Guidelines b) Chapter II - Registration Procedures for Retail Market Participants c) Chapter III - Suspension, Disconnection and De-Registration 2.4.2. Any reference to a section or clause in any Chapter of this Manual shall refer to the particular section or clause of the same Chapter in which the reference is made, unless otherwise specified or the context provides otherwise. GENERAL GUIDELINES All Contestable Customers, Suppliers and Retail Metering Service Providers authorized by the Energy Regulatory Commission are eligible to become members of the WESM subject to compliance with set membership criteria.2 Pursuant to Republic Act No. 9136, the Energy Regulatory Commission is the agency mandated to authorize other persons or entities that can be eligible to become members of the WESM.3 Considering its implications, suspension and deregistration from the WESM shall be carried out in strict compliance with the procedures in WESM Manual on Registration, Suspension and De-Registration Criteria and Procedures. RESPONSIBILITIES Compliance and Implementation 4.1.1. Applicants. All Contestable Customers, Suppliers and Retail Metering Service Providers applying for registration in the WESM shall comply with the requirements and procedures set forth in this Manual and in the WESM Rules and the Retail Rules. 4.1.2. Central Registration Body. The Central Registration Body shall be responsible for implementing the pre-registration procedures and the handling of information exchange as set forth in this Manual. 4.1.3. Service Providers. The System Operator as well as the relevant Retail Metering Services Provider and Network Service Provider shall provide the information or document required of them to enable the timely assessment and action on applications for registration. 4.1.4. Market Operator. The Market Operator shall be responsible for assessing and evaluating applications for WESM membership in accordance with Chapter 2 of the WESM Rules and the WESM Manual: Registration, Suspension and De- Registration Criteria and Procedures. The Market Operator shall likewise be responsible for post-registration changes as set forth in the WESM Registration Manual. Amendments Amendments to this Manual shall be submitted to the WESM Rules Change Committee and shall be acted upon pursuant to Section 1.8 of the Retail Rules and relevant market manuals. * Republic Act No.9136, Section 30 * Republic Act No.9136, Section 30 Page 2 of 7 === rmu-pages-09.ppm === 5. EFFECTIVITY AND PUBLICATION This Manual shall take effect upon promulgation by the DOE. Thereafter, it shall be published in the market information website. II. REGISTRATION PROCEDURES 1. COVERAGE Pursuant to Chapter 2 of the Retail Rules, this Section: a) Describes the WESM membership categories and levels of participation; b) Prescribes the pre-requisites for applying for WESM re gistration; and c) Provides the procedures for pre-registration by Suppliers, Contestable Customers and Retail Metering Service Providers upon integration of retail competition in the WESM. The procedures and criteria for registering in the WESM as a WESM Member are covered by the WESM Manual on Registration, Suspension and De-Registration Criteria and Procedures. This section provides information requirements and procedures that will guide the Contestable Customers, Suppliers and Retail Metering Services Providers in applying for WESM membership. 2. REGISTRATION OF SUPPLIERS 2.1. Overview Suppliers shall register in the WESM as a Direct WESM Members under the Customer Trading Participant category and shall fulfill all such registration requirements as provided for in Chapter 2 of the WESM Rules. Distribution Utilities shall register as Direct WESM Members in their capacity as Local Suppliers> and Suppliers of Last Resort.6 Applications for registration shall be submitted to the Market Operator together with documents and information required by the Market Operator to prove compliance with membership criteria and requirements for registration.” Suppliers must have completed their registration as Direct WESM Members before they can transact in the WESM for their Contestable Customer counterparties. 8 2.2. Information Requirements “ Clause 2.4.1.2, Retail Rules ° Local Supplier refers to the non-regulated Supply business of a Distribution Utility catering to the Contestable Customers within its franchise area. (Section 4.2, DOE Circular No. 2012-010-001 1) ® Clause 2.4.6, Retail Rules ’ Clause 5.5.1, WESM Registration Manual 8 Clause 5.3.6, Retail Rules Page 3 of 7 === rmu-pages-10.ppm === 2.2.1. The Supplier shall submit to the Market Operator the specific documents and information required as posted in the market information website to prove its compliance with WESM membership criteria and qualifications. 2.2.2. Once an applicant submits an accomplished application form with supporting requirements, the Market Operator shall assess and evaluate the application in accordance with Chapter 2 of the WESM Rules and WESM Manual on Registration, Suspension and De-Registration Criteria and Procedures. 2.2.3. The Suppliers, Local Suppliers and Suppliers of Last Resort shall submit to the Central Registration Body for posting in the market website the contracting parameters including the general offer, terms and conditions such as indicative average contract price, offers and scope of services being offered by them.? 3. REGISTRATION OF CONTESTABLE CUSTOMERS 3.1. Overview Registration shall be in accordance with the certification of contestability issued by the Energy Regulatory Conimission which is on a “facility” basis in that each certificate is attached to a metering point. For registration purposes, entities who have more than one (1) registered facility shall have multiple registrations and, at their option, each registration may either be as Direct WESM Member or Indirect WESM Member. Directly-connected customers are required to register in the WESM pursuant to WESM Rules Clause 2.2.4.2 whether or not it is certified by the ERC as a Contestable Customer. 3.2. Pre-registration Procedures 3.2.1. Distribution Utilities shall notify the Central Registration Body within fifteen (15) working days from its validation that a customer has met all the requirements of contestability.! 3.2.2. The Central Registration Body, within five (5) working days from receipt of such notice, shall secure confirmation from the ERC if such customer has been certified as contestable. 3.2.3. Within thirty (30) working days from issuance of ERC's certification, the . Contestable Customer shall register in the WESM. If a Contestable Customer intends to participate in the WESM directly, it shall register as Direct WESM Member and shall fulfill all such registration requirements.12If a Contestable Customer intends to participate in the WESM indirectly, it shall elect a Supplier as its Direct WESM Member counterparty and said Supplier shall register the Contestable Customer as an Indirect WESM Memtber.3 3.2.4. Within five (5) working days from entering into a retail supply contract, the Supplier shall register its Contestable Customer counterparty as an Indirect WESM Meniber by submitting to the Central Registration Body a copy of its ° Section 4.8, ERC Resolution No. 16, series of 2012. "© Clause 2.2.1, Retail Rules "' Clause 2.2.2, Retail Rules "? Clause 2.4.2.2, Retail Rules 3 Clause 2.4.2.3, Retail Rules Page 4 of 7 === rmu-pages-11.ppm === 3.3. retail supply contract together with an accomplished application form and registration requirements as summarized in Section 3.3 of this Manual. Information Requirements 3.3.1. For Direct WESM Membership of Contestable Customers, the Contestable Customer (applying as a Direct WESM member) shall submit to the Market Operator the specific information and documents as posted in the market information website. 3.3.2. For Indirect WESM Membership of Contestable Customers, the Supplier (applying on behalf of a Contestable Customer who wishes to be an Indirect WESM member) shall submit to the Market Operator the specific information and documents as posted in the market information website. 3.3.3. A Contestable Customer registered as Direct WESM Member or a Supplier elected as Direct WESM Member counterparty on behalf of its Contestable Customer counterparty shall furnish the Central Registration Body with a copy of their retail electricity supply contract at least thirty (30) days prior to the effective date of their contract.!4 3.3.4. A Contestable Customer that is registered as Direct WESM Member shall be responsible for providing the Central Registration Body with information on their connection and metering details by submitting a metering installation registration form in accordance with the Retail Metering Manual.15 3.3.5. A Supplier elected as Direct WESM Member counterparty shall provide information on the connection and metering details of its Contestable Customer registered as Indirect WESM Member by submitting a metering installation registration form in accordance with the Retail Metering Manual.16 3.3.6, Suppliers that wish their bilateral power supply contracts with Generation Companies be accounted for in the WESM settlements shall enroll those contracts in the Market Operator in accordance with the customer enrolment procedures not later than thirty (30) days before the effectivity of their contracts.!7 _ 3.3.7. The enrolment shall provide the following details- a) duration of the supply contract; b) desired effective date on which the bilateral contract transactions are to be accounted for in the WESM settlements which shall coincide with the start of the billing period; c) identification of the Trading Participant that shall be responsible for the payment of line rental trading amounts and for the net settlement surplus/ deficit allocations; d) copy of the supply contract; and e) written confirmation by the Supplier and the Generation Company of the foregoing information. 3.3.8. Once an applicant submits an accomplished application form with supporting requirements, the Market Operator shall assess and evaluate the application in * Clause 2.3.3.2, Retail Rules © Clause 2.4.3.2; Retail Rules '® Clause 2.4.4.2, Retail Rules v Clause-2.3.3.1, Retail Rules; Chapter 5, Section 2, WESM Registration Manual Page 5 of 7 === rmu-pages-12.ppm === accordance with Chapter 2 of the WESM Rules and WESM Registration Manual. 4. REGISTRATION OF METERING SERVICE PROVIDERS 4.1. Overview Persons or entities wishing to register with the Central Registration Body as a Retail Metering Services Provider must have been authorized and issued the pertinent license or authorization to operate as Retail Metering Services Provider by the ERC and shall re gister in the WESM asa Retail Metering Services Provider and shall fulfill all such registration requirements as set out in Chapter 2 of the WESM Rules. Upon the commencement of retail competition, Distribution Utilities shall serve as the default Retail Metering Services Provider for Contestable Customers with service addresses located within their franchise area and are deemed registered in the WESM without need of complying with registration requirements.18 4.2. Information Requirements 4.2.1. At the commencement of retail competition, the Distribution Utilities acting as default Retail Metering Services Providers shall submit the following to the Market Operator: a. Accomplished application form; and b. Signed Market Participation Agreement. 19 4.2.2. Upon declaration by the Energy Regulatory Commission that the provision of retail metering services is competitive and open, a qualified entity shall submit the specific information and documents as posted in the market information website. 4.2.3. Once an applicant submits an accomplished application form with supporting requirements, the Market Operator shall assess and evaluate the application in accordance with Chapter 2 of the WESM Rules and WESM Registration Manual. 5. ESTABLISHMENT OF CONTESTABLE CUSTOMER INFORMATION 5.1. Prior to the commencement of retail competition and at any time thereafter, the Distribution Utility shall submit information as may be required by the Central Registration Body on all end users within its franchise area that it deems to have already met the required demand threshold.29 5.2. The Central Registration Body shall, from time to time, publish the list of information that it requires and the timetable and procedures for submission.2! '® Clause 2.4.8, Retail Rules * By virtue of the designation of Distribution Utilities as default Metering Services Providers under DOE Circular No. DC 2012-05-005, the Distribution Utilities having Contestable Customers within their Franchise Area will be required only to submit an accomplished form and signed Market 20 Participation Agreement. Clause 2.3.1.1, Retail Rules " Clause 2.3.1.2, Retail Rules Page 6 of 7 === rmu-pages-13.ppm === III. | SUSPENSION, DISCONNECTION AND DE-REGISTRATION The suspension, de-registration and cessation of the membership of the Suppliers and Contestable Customers in the WESM shall be governed by the WESM Rules.22 22 Clause 2.6, Retail Rules Page 7 of 7 === rmu-pages-14.ppm === ANNEX “B” Retail Manual Market Transactions Procedures === rmu-pages-15.ppm === Table of Contents I. INTRODUCTION AND GENERAL GUIDELINES veececcccccseseecccccc sessesecsesvestsneensarsarsavsececenses 1 TL. PURPOSE,....-scsssssssssesnsseesssessnsesensssttsssssissssiiassisssetunartnsarsiuassiuasisiuiseeeeec 1 2, SCOPE OF APPLICATION. ....cssssssssssssssssssesssssssssssessisssssuusissssuussiseestieeece 1 3. DEFINITIONS, REFERENCES AND INTERPRETATION occcccccssseecseecece 1 4. GENERAL GUIDELINES and SCOPE w..scscssesssnsssustunsninsnistiusisiteeeecc 2 5. RESPONSIBILITIES .....ssssccsssssssssssnssesssssesssesisnestisanstnnnatsnssasinnssiusieeeeeecc 2 6. EPFECTIVITY AND PUBLICATION .....ssssssssscssiesstissstuntisssisstussisseeeeee 3 IL CUSTOMER SWITCHING ..sesssnnninnnniviinet cece eens 3 1. COVERAGE wsscsesssssenseessseesssstisnsstinnstssnstsssnttssnssiuanteuatsniussississieeesecc 3 2, OVERVIEW .ssssssssssessssseessstesssssstnsttinsssssssninessusnsstiusattnsttissstssieeeseeec 3 3. SWITCHING PROCEDURES |....sssssssssssssssnstssssssssnsettissssiisasiassssseeesee 4 IIL. CUSTOMER RELOCATION. .u..sssssssssssssssssssssussssisssninstiiastisssiatteeeecc 6 1. COVERAGE ..sssessssssseesssssssesesssssssesssttnnateesisestsinassssiunnnttnniasisssustitussiteeeee 6 2. OVERVIEW uu. .sssssseessssssseesenesssseseusnnnsseetuissssesstusnssestssunnnastesivasestisititteeeeeee 6 3B. PrOCdUreS .....cseessesnsssstessesennssestinnsetinsesssiuusertiunsentiinastinititsisisevec 7 IV. ‘TERMINATION OF RETAIL SUPPLY CONTRACTS vcsssssssccssssseseecseeeeeee 7 L. COVERAGE on... sesesssssessssecsssssssnsstinssotsnstssssssiusasisiasatinsattnasinsssssestesieee 7 2. OVERVIEW. csesecsesseestessssseenssesssansnesuassssesesssssusassisetasarsntuisessiassisieatseeeeee 7 3. PROCEDURES ....sssessssssostenstesstinsessetsstiestinsinstuasinsstisstissttuntiuseeec 8 V. TRANSFER TO A SUPPLIER OF LAST RESORT (SOLR) .eecescescecsestecssssessessessessesesestessseseeeees 9 T. COVERAGE onnsscssscssssesssssssessssssseusenestnsassnusssrinusnsntsunsasetassistessasisetteeeeecc 9 2. OVERVIEW .sssssssssseessesssessnsesssssssnntinsstssttussiousstianntnastiissstssiiteiee 9 3. PROCEDURES === rmu-pages-16.ppm === L INTRODUCTION AND GENERAL GUIDELINES 1. PURPOSE Pursuant to Clause 3.2.6 of the Retail Rules, the Central Registration Body shall prepare and publish a Market Manual that sets out in more detail the relevant timelines, requirements, and procedures for carrying out Contestable Customer's transactions. This Manual presents the criteria, guidelines, and procedures for the Customer Switching requests from Suppliers, Contestable Customer Relocation, and termination of supply contracts that will be administered by the Central Registration Body. This Manual implements relevant provisions of Chapters 3 and 5 of the Retail Rules. 2. SCOPE OF APPLICATION This Manual covers the criteria, guidelines, and procedures for the Customer Switching requests from Suppliers, Contestable Customer relocation provided in Section 3.2.3 of the Retail Rules, termination of Retail Supply Contracts, and for the Failure of Suppliers in the implementation of retail competition in the WESM. 3. DEFINITIONS, REFERENCES AND INTERPRETATION 3.1. Definitions Unless otherwise defined or the context implies otherwise, the italicized terms used in this Manual which are defined in the Retail Rules will bear the same meaning as defined in the Retail Rules. 3.2. References This Manual should be read in association with the - a) Republic Act No. 9136 b) Implementing Rules and Regulations of Republic Act No. 9136 Cc) WESM Rules d) Retail Rules ; e) WESM Manual on Registration, Suspension and De-Registration Criteria and Procedures f) Retail Manual: Registration Criteria and Procedures g) Department of Energy Circular No. 2012-05-0005 h) Department of Energy Circular No. 2012-011-0010 i) Department of Energy Circular NO. 2013-01-0002 3.3. Organization of the Manual/Interpretation 3.3.1. This Manual is divided into four Chapters as follows - a) Chapter I - Introduction and Generation Guidelines b) Chapter II ~ Customer Switching c) Chapter ITI- Customer Relocation d) Chapter IV -Termination of Retail Supply Contracts Page 1 of 11 === rmu-pages-17.ppm === 4.1. 4.2. 4.3. 4.4, 5.1. 3.3.2. Any reference to a section or clause in any Chapter of this Manual shall refer to the particular section or clause of the same Chapter in which the reference is made, unless otherwise specified or the context provides otherwise. GENERAL GUIDELINES and SCOPE The integration of retail competition in the WESM aims to promote competition, customer choice and empowerment and greater efficiency in the power industry and to reflect the true cost of electricity.! Upon commencement of retail competition, Suppliers and Contestable Customers shall be permitted to transact in the WESM in accordance with Chapter 3 of the Retail Rules? The Philippine Electricity Market Corporation (PEMC) as the appointed Central Registration Body shall administer retail competition in the WESM and its operations in accordance with the Retail Rules. It shall also facilitate Customer Switching between Suppliers.4 The procedures set forth in this Manual shall take effect only after six (6) months from the Open Access Commencement Date of the integration of retail competition in the WESM. This means that no transfers of Suppliers and Customer Switching shall take place during the Initial Commercial Operations and any transfer or Customer Switching shall take effect after the end of the Initial Commercial Operations.° If a Contestable Customer wishes to transfer to another Supplier or perform Customer Switching that will become effective by the end of the Initial Commercial Operations, the pertinent Switch Request in accordance with Chapter 3 of these Retail Rules shall be submitted to the Central Registration Body not later than thirty (30) days before the end of Initial Commercial Operations.” RESPONSIBILITIES Compliance and Implementation 9.1.1. Suppliers. All persons or entities who are duly licensed by the Energy Regulatory Commission as Suppliers to Contestable Customers shall comply with the requirements and procedures set forth in this Manual, in the WESM Rules, and Retail Rules. 9.1.2. Contestable Customers. All persons or entities who are certified by the Energy Regulatory Contntission as a Contestable Customer shall comply with the requirements and procedures set forth in this Manual, in the WESM Rules, and Retail Rules. 9.1.3. Central Registration Body. The Central Registration Body shall be responsible for implementing the guidelines and procedures set forth in this Manual. "Clause 1.3.2, Retail Rules ? Clause 1.3.3, Retail Rules > Clause 1.4.1.1.a, Retail Rules “Clause 1.4.1.1.d, Retail Rules > DOE Circutar No. DC 2012-05-0005, Section 12 ® Clause 5.6.4, Retail Rules 7 Clause 5.6.5, Retail Rules Page 2 of 11 === rmu-pages-18.ppm === 9.14. Service Providers. The relevant Network Service Provider and Retail Metering Services Provider shall provide the information or document required of them to enable the timely assessment and action on Customer Switching and relocation requests. 5.2. Amendments Amendments to this Manual shall be submitted to the WESM Rules Change Committee and shall be acted upon pursuant to Section 1.8 of the Retail Rules and relevant market manuals. 6. EFFECTIVITY AND PUBLICATION This Manual shall take effect upon approval by the Department of Energy. Thereafter, it shall be published in the market information website’, Il. CUSTOMER SWITCHING 1. COVERAGE This Section describes the requirements and procedures that Suppliers, Contestable Customers and the Central Registration Body must meet and follow when submitting and processing a request to switch Suppliers. 2. OVERVIEW 2.1. Customer Switching shall apply to all transfers in Retail Supply Contracts of Contestable Customers from one Supplier to another. These commercial transfers do not involve transfer to a Supplier of Last Resort (SOLR) in case of a Last Resort Supply Event.9 2.2. Customer Switching is only applied to Retail Supply Contracts between Suppliers and Contestable Customers. Bilateral supply contracts of Directly Connected Customers or Suppliers with Generation, Companies are covered by the customer enrolment procedures as provided for in the WESM Manual on Registration, Suspension, and De-Registration Criteria and Procedures. 10 2.3. Before a Switch Request can be submitted by a Supplier, the following must be present: 2.3.1. A valid Retail Supply Contract between a Supplier and the Contestable Customer for which the request is made; and 2.3.2. An existing and valid wheeling service agreement with the relevant Distribution Utility or Network Service Provider and a metering services agreement with a registered Retail Metering Services Provider covering the Contestable Customer!) 2.3.3. Switching shall take effect at the start of a billing period except in case of transfer from Supplier of Last Resort to a regular Supplier which may take effect within a Billing Period.12 ® www.wesm.ph * Clause 3.2.1.1, Retail Rules © Clause 3.2.1.2, Retail Rules and WESM Manual: Registration, Suspension and Deregistration Criteria and Procedures Section 3.5 " Clause 3.2.1.3, Retail Rules ” Clause 3.2.1.4, Retail Rules Page 3 of 11 === rmu-pages-19.ppm === 3. 3.1. SWITCHING PROCEDURES Submission and Processing of Switch Request 3.1.1. 3.1.2, 3.1.3. Once all requirements are met, an accomplished switch request form shall be submitted by the new Supplier to the Central Registration Body not later than thirty (30) working days before the proposed effective date!3. The request shall be accompanied by the following documentary requirements: Switch Request Form Copy of Retail Supply Contract Copy of valid Wheeling Service Agreement Copy of valid Metering Services Agreement ao oP Initial Assessment - Within three (3) working days from receipt of the switch request, the Central Registration Body shall evaluate the switch application for completeness of requirements. In case of an incomplete application, the Central Registration Body shall immediately notify the requesting Supplier to furnish the lacking or additional requirements. The Central Registration Body shall not proceed with the processing of application in case there is a failure of the requesting Supplier to complete the switching requirements. The Supplier shall remedy the shortcoming or submit the incomplete requirements within ten (10) working days from Central Registration Body's notice. Otherwise, the Central Registration Body will no longer process the request and consider it as disapproval of the switch request. Approval of Switch Request - The Central Registration Body shall verify that all conditions set out in Retail Rule 3.2.1.3 are met and verify the membership type of the Contestable Customer whether it is registered as a Direct WESM Member or an Indirect WESM Member. Based on the foregoing and subject to compliance with Prudential Requirements, the Central Registration Body will be able to confirm whether the switch is to take effect and when it will take effect.14 3.1.3.1. Contestable Customer is registered as Direct WESM Member: a. The Central Registration Body shall inform the Contestable Customer of their updated Prudential Requirements within three (3) working days from confirming that the switch request meets the conditions in Retail Rule 3.2.1.3. b. The Contestable Customer shall update its Prudential Requirements if so required by the Market Operator to ensure that it fully satisfies the Prudential Requirements as set out in the WESM Rules.5 The Contestable Customer shall post the Prudential Requirements within ten (10) business days from CRB notification. 8 Clause 3.2.2.1, Retail Rules. Date should coincide with the end of the billing period. "4 Clause 3.2.2.2, Retail Rules ® Clause 3.2.2.2 a, Retail Rules Page 4 of 11 === rmu-pages-20.ppm === c. Within two (2) working days from confirming that the Contestable Customer has complied with the Prudential Requirements, the Central Registration Body shall notify the new Supplier, the incumbent Supplier, the Contestable Customer and the relevant Distribution Utility or Network Service Provider of the confirmation and approval of the Switch Request and the effective date of the switch.16 . The Contestable Customer shall be responsible for ensuring that it has fully complied with its obligations to the incumbent Supplier and the new Supplier, including but not limited to the payment of outstanding obligations and posting of security deposits.17 Compliance with such requirements will not be verified by the Central Registration Body and are not pre-requisites to its confirmation of the switch. Thus, the contracting parties should be responsible for ensuring that conditions set out in their contracts affected by the switch are fulfilled. 3.1.3.2. Contestable Customer is registered as Indirect WESM Member: a. The Central Registration Body shall inform the new and incumbent Suppliers of their updated Prudential Requirements within three (3) working days of confirming that the switch request meets the conditions in Retail Rule 3.2.1.3. . The new Supplier shall submit the additional securities required by the Market Operator to fully satisfy the prudential requirement as set out in the WESM Rules.18 - Within two (2) working days from confirmation that the Prudential Requirements are satisfied, the Central Registration Body shall notify the new Supplier, the incumbent Supplier and Direct WESM Member counterparty, the Contestable Customer and the relevant Distribution Utili ty or Network Service Provider of the confirmation and approval of the switch request and the effective date of the switch.!° . The Contestable Customer shall be responsible for ensuring that it has fully complied with its obligations to the incumbent Supplier and Direct WESM Member counterparty, and the new Supplier, including but not limited to the payment of outstanding obligations and posting of security deposits,20 Compliance with such requirements will not be verified by the Central Registration Body and are not pre-requisites to its confirmation of the switch. 3.2. Disapproval of Customer Switch and Remedies 3.2.1, 3.2.2. The Central Registration Body shall approve the switch request upon submission by the Supplier of all the requirements for the customer switch. Notice. Within two (2) working days from verification that the switching requirements set forth in Retail Rule 3.2.1.3 have not been met or that Prudential Requirements have not been satisfied, the Central Registration Body shall issue a notice of switch failure to the Contestable Customer, the Supplier "© Clause 3.2.2.2 b, Retail Rules ” Clause 3.2.2.2 c, Retail Rules '® Clause 3.2.2.3 a, Retail Rules "? Clause 3.2.2.3 c, Retail Rules *° Clause 3.2.2.3 d, Retail Rules Page 5 of 11