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Republic of the Philippines
DEPARTMENT OF ENERGY

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DEPARTMENT CIRCULAR NO. DC 2014- 03-001 cu

ADOPTING FURTHER AMENDMENTS TO THE WESM RULES
(Market Network Model)

WHEREAS, Section 37 of the Electric Power Industry Reform Act (EPIRA) provides that the
DOE, jointly with the electric power industry participants, shall establish the Wholesale
Electricity Spot Market (WESM) and formulate the detailed rules governing the operations

thereof;

WHEREAS, on 28 June 2002, the DOE, upon the joint endorsement of the electric power
industry participants, promulgated the WESM Rules through Department Circular No.

2002-06-003;

WHEREAS, any changes, amendments, and modifications to the WESM Rules shall be
undertaken in accordance with the provisions of Chapter 8 thereof;

WHEREAS, on 03 April 2014, the Philippine Electricity Market Corporation (PEMC)
submitted to the Rules Change Committee (RCC) its proposed amendments to the WESM
Rules, particularly on the approval of alterations to the Market Network Model (MNM)
adopting the recommendations from the 2012 Market Operations Audit to undergo the
highest level of approval on MNM changes considering the highly technical nature of the
said market model, and relative to the need to reduce the level of approvals required for

MNM changes;

WHEREAS, on 07 May 2014, the proposal was presented by PEMC to the RCC during its
7th RCC Meeting, which thereafter approved its posting in the WESM website to solicit
comments from market participants and other interested parties;

WHEREAS, on 02 July 2014, the RCC in its 89% RCC Meeting deliberated upon the proposal
with the advice of the DOE the need for Trading Participants to be informed in any modality
of the alteration made in the MNM for transparency, and after due course to the matter, the
RCC approved the proposal for endorsement to the PEM Board;

WHEREAS, on 31 July 2014, after due evaluation and deliberation, the PEM Board has
resolved to approve for endorsement to the DOE the above stated RCC proposed

amendments to the WESM Rules;

WHEREAS, on 05 August 2014, the above stated amendments was submitted to the DOE for
final approval, consistent with Chapter 8 of the WESM Rules;

WHEREAS, the DOE thoroughly reviewed the PEM Board-approved amendments to the
WESM Rules and considered it reasonable and consistent with the objectives of the WESM

Rules;

NOW THEREFORE, pursuant to its authority under the WESM Rules, the DOE hereby
adopts, issues, and promulgates the following amendment to the WESM Rules:

Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro Manila, Philippines
Tels.: (Trunks) 840-1401 to 40; Fax 840-2067; 840-2236; 840-2067 (Domestic); 632-840-2173; 632-840-2236; 632-840-2067
(International)
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Section 1. Amendment to the WESM Rules.
1.1 Clause 3.2.1.4 under Market Network Model is amended to read -

3.2.1.4 Where appropriate, the Market Operator in coordination with the System
Operator shall make alterations to the Market Network Model, so as to

maintain:
XXX XXX XXX
1.2 Clause 3.2.1.5 under Market Network Model is amended to read -

3.2.1.5 Any alteration under Clause 3.2.1.4 shall be implemented in accordance
with the established Information and Communications Technology Change
Management Process (ICMP) of the Market Operator. The Market Operator
shall regularly inform the PEM Board of any changes made to the Market
Network Model.

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 valid and

subsisting.

Section 3. Effectivity. This Circular shall take into effect fifteen (15) days from its
publication in at least two (2) newspapers of general circulation and shall remain in effect

until otherwise revoked.

Issued this August 2014 at the DOE, Energy Center, Rizal Drive, Bonifacio Global City,
Taguig City, Metro Manila.

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CAR JERICHO L. PETILLA
Secretary

Republic of the P}
DEPARTMENT OF ERE RIES

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AUG 22 2014

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