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DEPARTMENT CIRCULAR NO, 9C 20/9 -12 - OO!

ADOPTING FURTHER AMENDMENTS TO THE WHOLESALE ELECTRICITY
SPOT MARKET (WESM) RULES AND MARKET MANUAL ON GUIDELINES ON
SIGNIFICANT VARIATIONS IN AND BETWEEN TRADING INTERVALS TO
REFINE PUBLICATION PROCEDURES

WHEREAS, Sections 30 and 37(f) of the Electric Power Industry Reform Act (EPIRA)
provides that the DOE, jointly with the electric power industry participants, shail
establish the Wholesale Electricity Spot Market (WESM) and formulate the detailed
rules governing the operations thereof;

WHEREAS, on 28 June 2002, the DOE, with the endorsement of the electric power
industry participants, promulgated the WESM Rules through Department Circular No.
DC2002-06-003;

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

WHEREAS, on 28 November 2018, the Rules Change Committee (RCC) received
the Independent Electricity Market Operator’s proposed amendments to the WESM
Rules and WESM Manual on Guidelines on Significant Variations In and Between
Trading Intervals to Refine Publication Procedures;

WHEREAS, the proposal aimed to change the mode of transmittal of the monthly
summary of the Daily Significant Variations Report from hard copy printouts to
publication in the market information website for the public to access;

WHEREAS, on 06 December 2018, the RCC during its 147° RCC Meeting,
approved the publication of the proposal to solicit comments from participants and
interested parties within thirty (30) working days from the date of its publication in the
Philippine Electricity Market Corporation's website;

WHEREAS, on 22 February 2019, the RCC during its 149° RCC Meeting
deliberated on the proposal giving due course to the comments received from the
market participants, which thereafter approved its endorsement to the PEM Board;

WHEREAS, on 23 April 2019 (11° Regular PEM Board Meeting), after due
evaluation and deliberation, the PEM Board approved the above stated RCC-
approved proposal for endorsement to the DOE;

WHEREAS, on 15 May 2019 the PEM Board-approved amendments to the WESM
Rules and WESM Manual on Guidelines on Significant Variations In and Between

Energy Center, Merritt Rd., Fort Bonifacio, Taguig City, Metro Manila 1207 Philippines
Tel. Nos.: Trunkline (632)840-1401; Telefax (632} 840-2067; (632) 840-2138; (632) 840-4244; Fax (632) 840-1731; Hotline (632) 840-2130
Website: www.doe.gov.ph E-mail: info@doe.gov.ph
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Trading Intervals to Refine Publication Procedures were submitted to the DOE for
final approval, in compliance with Chapter 8 of the WESM Rules;

WHEREAS, the DOE finds the said proposal consistent with the objectives of the
WESM and will ensure transparency and efficiency thereof;

WHEREAS, on 27 August 2019 at Marquis Events Place, BGC, Taguig City, the
DOE conducted a public consultation on the said proposed amendments to ensure
transparency and consistency with the objectives of the EPIRA and the WESM;

NOW THEREFORE, pursuant to its authority under the EPIRA and the WESM Rules,
the DOE hereby adopts, issues, and promulgates the following amendments to the
WESM Rules and WESM Manual on Guidelines on Significant Variations In and
Between Trading Iniervals to Refine Publication Procedures:

Section 1. Amendments to the WESM Rules. Clause 1.3.1.5 of the WESM Rules
under Responsibilities of the Market Operator is amended to read as -

“1.3.1.5 The Market Operator shall publish a copy of the completed report
referred to in clause 1.3.1.4. in the market information website.”

Section 2. Amendments to the WESM Manual on Guidelines on Significant
Variations In and Between Trading Intervals. Sections 3.1.4 and 3.1.5 of the
Guidelines on Significant Variations In and Between Trading Intervals Issue 3.0 are
hereby amended as follows:

“3.1.4 Publish a daily report that contains information that will identify any
significant variation. It should be published within ten (10) business days from
cognizance of the event in the Market Information Website.

3.1.5 Publish a monthly summary of the significant variations report covering a
particular billing period in the Market Information Website.”

Section 3. 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 4. Effectivity. This Circular shall take effect 15 days following its complete
publication in at least two (2) newspapers of general circulation. Copies thereof shall
be filed with the University of the Philippines Law Center — Office of National
Administrative Register (UPLC-ONAR).

Issued this November 2019 at the DOE, Energy Center, Rizal Drive, Bonifacio
Global City, Taguig City, Metro Manila.

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DC_2019-12- a01-7-— Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and
Market Manual on Guidelines on Significant Variations In and Between Trading Intervals to Refine Publication
Procedures

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