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Republic of the Philippines
DEPARTMENT OF ENERGY
(Kagawaran ng Enerhiya)

DEPARTMENT CIRCULAR NO. 2062020 -i0-DO2Q/]
Av

ADOPTING FURTHER AMENDMENTS TO THE WHOLESALE ELECTRICITY SPOT
MARKET (WESM) RULES
(Provisions for the Implementation of Independent Market Operator)

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, shall 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 17 January 2018, the DOE promulgated Department Circular No.
DC2018-01-0002, which sets out the formation and structure of the Independent Market
Operator (IMO}, the resulting WESM governance structure and the manner by which
transition to the IMO shall be accomplished;

WHEREAS, on 03 February 2018, the Philippine Electricity Market Board or PEM Board
approved the “The Plan for Transition to the Independent Market Operator of the
Wholesale Electricity Spot Market" or the Transition Plan which was ratified by majority of
the members of the electric industry participants constituted by the Philippine Electricity
Market Corporation (PEMC) on 06 February 2018;

WHEREAS, on even date, the DOE Secretary declared the joint endorsement of the
TRANSITION PLAN by the DOE and the electric power industry participants as required
by the EPIRA;

WHEREAS, in accordance with Section 6.4 of DC2018-01-0002, PEMC submitted the
“Guidelines Governing the Nomination and Selection Process of the Board of Directors of
the Independent Market Operator of the Philippines, Inc.” which provided for a detailed
nomination and selection process for the election of the initial and subsequent members
of the Board of Directors of the IMO;

WHEREAS, Section 8 of DC2018-01-0002 provides that one of the conditions for
transition is the amendment of the WESM Rules and Market Manuals to implement the
policy directives on the transition to the IMO as provided therein;

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tel. No. (Trunkline) (632) 8479-2900:
Website: hitp: www.decgov.ph; E-mail: into'@.doe.gev ph

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WHEREAS, on 09 May 2018, the PEM Board-approved amendments to the WESM Rules
were submitted to the DOE for final approval, in compliance with Chapter 8 of the WESM
Rules;

WHEREAS, the DOE and PEMC discussed the proposed amendments on 25 August
2020:

WHEREAS, stakeholders were notified and asked to submit their comments to the
proposed WESM amendments including inviting to a meeting and consultation process
duly called for that purpose on 04 September 2020;

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 its Market Manuals:

Section 1. Amendments to the WESM Rules. The following provisions in the WESM
Rules are hereby amended:

(a) Foreword is amended to reflect the market structure as provided under DC2018-01-
0002 whereby PEMC shall remain the Governance Arm of the WESM while market
operations functions are transferred to the IMO. Thus:

“The Wholesale Electricity Spot Market (WESM) Rules establishes the basic rules,
requirements and procedures that govern the operation of the Philippine electricity
market. The WESM Rules identifies and recognizes and sets the responsibilities of
the Market Operator, System Operator, WESM Participants, and the Governance
Arm of the WESM. These groups shall comply with and are bound by all the
provisions of the WESM Rules. The WESM Rules are intended to be complimentary
with the Grid Code and Distribution Code, all of which are meant to ensure the
development of an appropriate, equitable and transparent electricity market, along
with a safe, reliable, and efficient operation of the power system.

XXX XXK XKXK

The WESM is the market where trading of electricity will be made.

The PEMC, which is a private, non-stock, non-profit corporation whose functions
shall be performed through its Board of Directors, which shall hereafter be referred
to as the PEM Board, shall be the Governance Arm of the WESM and shall provide
the policies and guidelines of the WESM contained in the implementing Rules and
Regulations of the Act, WESM Rules, and such other relevant laws, rules and
regulations.

The Independent Market Operator (IMO), which is a private, non-stock, non-profit
organization, shall administer the operations of the WESM in accordance with the
EPIRA and its Implementing Rules and Regulations, the WESM Rules and Market
Manuals, and such other relevant laws, rules and regulations.
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(b)

For this purpose, all references to the Market Operator in these Rules shall be
understood to refer to the /MO. Likewise, all references to the Governance Arm of
the WESM shall be understood to refer to the PEMC.”

XXX XXX XXX”

Clause 1.1 under Introduction is amended to include the Market Operator and the
criteria for its BOD in the Scope of Chapter 1 thereof as well as the renaming of the
PEM Auditor to PEM Audit Committee. Thus:

“1.1 Scope of Chapter 1

(a) Purpose of the WESM Rules;

(bp) Parties bound by the WESM Rules;

(c) Responsibilities of the Market Operator, composition, functions and selection of
its Board of Directors;

(d) Responsibilities of the System Operator,

(e} Responsibilities of PEMC as Governance Arm of the WESM, and the
composition, functions and selection its BOD, the PEM Board:

(f) Responsibilities of the PEM Audit Committee,

(g) Responsibilities of the Market Surveillance Committee;

(h) Responsibilities of the Technical Committee;

(i) Responsibilities of the Compliance Committee; and

(j) Public consultation procedures.”

Clause 1.2.2 (d) and (h) under Purpose and Application of Rules is amended to
include resolution of disputes between the WESM Participants and the Governance
Arm. Thus:

“1.2.2 Purpose of the WESM Rules
The WESM Rules are promulgated to implement the provisions of the Act, its
XXX XXX XXX

(d) Provide a cost-effective framework for resolution of disputes among WESM
Participants, and between WESM Participants and the Market Operator, and between
the WESM Participants and the Governance Arm.

XXX XXX XXX

(h) Provide the authority and governance framework of the Governance Arm and the
PEM Board; and

XXX XXX XXX”
Clause 1.2.3.2 under the Regulatory Framework is amended to include the System

Operator within the authority of the ERC for the enforcement of the rules and
regulations governing the operations of the WESM. Thus:
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“1.2.3.2 To ensure a greater supply and rational pricing of electricity, the Act provides
ERC the authority to enforce the rules and regulations governing the operations of
the electricity spot market and the activities of the Market Operator, the System
Operator and other participants in the spot market.”

(e) Clause 1.2.4 under Purpose and Application of Rules is amended to include the
Market Operator and System Operator in the coverage of the WESM Rules. Thus:

“1.2.4 Scope of Application

Pursuant to Section 30 of the Act, all WESM Participants, the System Operator, the
Market Operator, and the Governance Arm of the WESM shall comply with the
WESM Rules and applicable laws or regulations of the Philippines.”

(f) Clause 1.3.1.2 under Responsibilities of the Market Operator is amended to require
the Market Operator to report to the ERC, DOE and the Governance Arm any non-
compliance to the WESM Rules and Market Manuals and commission of other acts
by any WESM Member, provided for as follows, thus:

“XXX XXX XXX

(c} Identify and report to the ERC, DOE, PCC and the Governance Arm, any
apparent or possible factually established incidents of non-compliance with the
WESM Rules and Market Manuals by any WESM Member.” including any
suspected/potential incidents of anti-competitive behavior as defined by relevant
laws.”

(g) Clause 1.3.1.5 under Responsibilities of the Market Operator is amended to
incorporate the amended Clause 1.3.1.2, thus:

“The Market Operator shall provide a printed copy or a soft copy thereof as may be
requested by the party concerned of the completed report referred to in Clauses
1.3.1.2 and 1.3.1.4 to:

(a) The DOE and the ERC;

(b) The Governance Arm;

(c) The Philippine Competition Commission (PCC) with respect to anti-competitive
behavior as maybe applicable,”

(h) Clause 1.3.2.3 under Market Operator Performance is amended to include the bases
to measure the performance of the Market Operator, thus:

“4.3.2.3 In consultation with the Market Operator, the Governance Arm shall develop
performance standards which monitor and provide an indication of the Market
Operator's performance with respect to:

(a) The Market Operator's responsibilities under the Act, its Implementing Rules and
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(i)

0)

Regulations (IRR), the WESM Rules, applicable provisions of the Philippine Grid
Code (the Grid Code) and all other applicable laws, rules and regulations;

(b) The performance standards, service !evel agreements, and other conditions set
out in the operating agreement between the Market Operator and the
Governance Arm; and

(c) The achievement of the objectives of the Act and the WESM.

The Market Operator shall comply with the implementation of the approved
performance standards.”

Clause 1.3.2.4 under Market Operator Performance is amended to include the
necessity of DOE approval to the Market Operator performance standards, thus:

“1.3.2.4 The Market Operator performance standards shall be reviewed and approved
by the DOE.”

Clause 1.3.2.5 under Market Operator Performance is amended to read as:

“1.3.2.5 Every year, the Governance Arm shall publish a performance report setting out
the results of its monitoring of the performance of the Market Operator in accordance
with herein Clause.”

New Clause 1.3.3 and its sub-clauses under Market Operator and System Operator
are added to include the composition of the Board of Directors of the Market Operator
in accordance with DC2018-01-0002 and the Transition Plan or applicable policy
parameters, as the case maybe. Thus:

“1.3.3. Composition of the Market Operator Board

1.3.3.1. The Market Operator Board shall be composed of at least 5 members who
are independent from the electric power industry participants and from government.

1.3.3.2. A member of the Market Operator Board is deemed independent if that
person:

a) is not a director, officer, employee, contractor, consultant, agent, adviser, legal
counsel, manager, or shareholder of a WESM Member or System Operator,

b) is not a spouse or relative of a person within the fourth civil degree of
consanguinity or affinity, of a director, officer, manager, or shareholder of a
WESM Member or System Operator, as well as those in the foregoing paragraph;

c) is not an officer, manager, director, shareholder, agent, employee, consultant,
adviser, legal counsel, or contractor of, or is not a person directly or indirectly
through one or more intermediaries controls, is controlled by a company, affiliate,
or any other entity related to or associated with a WESM Member or System
Operator where:

i. a related company or body is a parent, holding company, subsidiary or
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affiliate of the WESM Member or System Operator, and

ji.an associate is a person who is a director, officer, manager or shareholder of
that related company or entity or a relative of such a person within the fourth
civil degree of affinity or consanguinity; and

iil. an affiliate is any person that, alone or together with any other person,
directly or indirectly through one or more intermediaries controls or is
controlled by, or is under the common contro! with another person;

The term shareholder shall exclude a member of an electric cooperative who is
not involved in its operation and management and an end-user required to
subscribe to or purchase a share in a distribution utility as an incident to the
provision of service by the same distribution utility, and provided the interest of
the end-user is not more than the minimum required to avail of the distribution
utility's service;

d) is not an official or employee of the Philippine government, or its agencies or
instrumentalities, but this will not apply to members of the academe in public
schools and universities;

e) has not been employed as an officer, or in a Supervisory or managerial capacity,
by any electric power industry participant, or a company within one (1) year prior
to the nomination date; and

f) agrees not to be employed and does not accept any employment with a
company, affiliate, or any other entity related to or associated with a WESM
Member or the System Operator within one(1) year after the person ceases to be
a member of the Market Operator Board.

1.3.3.3. The Market Operator Board, whether the initial transitory or regular board,
shall be selected and nominated in accordance with the guidelines provided by the
Governance Arm following the applicable provisions of DC 2018-01-0002 and the
Transition Plan and approved by the DOE. Any existing guideline already provided
by the Governance Arm and approved by DOE shall be made applicable, unless
amended by these rules.

The first regular board shail be selected as scheduled unless sooner called and
selected without prejudice to the pre-established term of office of the board and
insofar as it is consistent with the rules.

1.3.3.4 The Market Operator Board shall be elected in accordance with the Market
Operator By-Laws, from the short list of nominees provided by the Governance Arm
and any validation process as may be performed by DOE. The Market Operator By-
Laws and any amendment thereof shall be subject to the approval of the DOE prior
to filing with the Securities and Exchange Commission.”

Original Clause 1.3.3 under Market Operator and System Operator is renumbered to
read as:

“1.3.4 Responsibilities of the System Operator

Under these Rules, the System Operator shall have the following functions and
responsibilities:
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XXX XXX XXX”

(m) Clause 1.4 and its sub-clauses under Introduction are amended to read as:

“4.4 Governance of the Market

The WESM governance is the process by which decisions are made and
implemented within the market to ensure attainment of the WESM objectives under
Clause 1.2.5. PEMC which is composed of electric power industry participants shall

serve as the Governance Arm of the WESM.

1.4.1. The Governance Arm

1.4.1.1. The WESM shall be governed and its power and functions exercised by
the Governance Arm.

1.4.1.2. In addition to the powers of a corporation under the Revised
Corporation Code and those stated therein, the Governance Arm shall have all
powers necessary, convenient and incidental to the performance of its functions
and responsibilities in accordance with the WESM Rules as the governance
arm.

1.4.1.3. In performing its functions, the Governance Arm shall act in a
reasonable, ethical and prudent manner, consistent with the WESM objectives,
which is to facilitate an efficient, competitive, transparent and reliable
governance.

1.4.1.4. The Governance Arm or thru the PEM Board as the case may be,
may delegate any of its functions, obligations and powers to a committee or
other entity within the bounds of their authority and responsibilities in
circumstances when it is reasonable to do so.

1.4.1.5. The Governance Arm shall conduct its business activity in
accordance with its Articles of Incorporation and By-Laws and other
applicable laws, rules and regulation. The Articles of Incorporation and By-
Laws, including amendments and revisions thereto, are subject to the
approval of the DOE prior to filing with the Securities and Exchange
Commission;

1.4.1.6. PEM Board is the governing board of the Governance Arm and shall
have all the powers, functions and responsibilities as provided for by the
Revised Corporation Code;”

(n} Clause 1.4.2.4 under Composition of the PEM Board is amended to read as:

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(0)

“The PEM Board shall consist of:

(a} One (1) Director representing the Market Operator,
(b) One (1) Director representing the System Operator;

XXX XXX XXX

(g) A Chairperson who is one of the Directors of the PEM Board and who is elected by
a majority of all members of the PEM Board.

(h) The Governance Arm President who is one of the four independent Directors and
who is elected by a majority of all members of the PEM Board. The Chairperson
and the Governance Arm President shall not be the same person.

All of the above representatives shall formally be elected in accordance with Clause
1.4.3.”

Clause 1.4.2.7 under Composition of the PEM Board is amended to read as:

“For the purposes of this Clause 1.4.2, a person is deemed to be independent of the
Philippine electric power industry and qualified to become an independent director if
that person:

(a) Is not a director, officer, employee, contractor, agent, adviser, consultant, legal
counsel, manager, or shareholder of a WESM Member including their spouses;

(b) Is not a spouse or relative of a person, within the fourth civil degree of
consanguinity or affinity of a director, officer, manager, shareholder of a WESM
Member, as well as those in the foregoing paragraph;

(c) Is not an officer, manager, director or shareholder, agent, employee consultant,
adviser, legal counsel or contractor of, or is not a person directly or indirectly,
through one or more intermediaries controls, is controlled by a company, affiliate
or any other entity related to or associated with a WESM Member, where:

XXX XXX XXXK

iii, An affiliate is any person that, alone or together with any other person,
directly or indirectly through one or more intermediaries controls or is
controlled by, or is under the common contro! with another person;

(d) is not an official or employee of the Philippine government, or its agencies or
instrumentalities, but this will not apply to members of the academe in public
schools and universities;

(e) Has not been employed as an officer, or any supervisory or managerial capacity,
by any electric power industry participant, or a company within one year prior to
the nomination date; and

(f) Agrees not to be employed by and does not accept employment with any electric
power industry participant, or a company or body related to or associated with a
WESM Member (as defined in Clause 1.4.2.7 (c)) within one year after the
person ceases to be a Director.

XXX XXX XXX”
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(p} Clause 1.4.3 and its sub-clauses under Governance of the Market are amended to
read as:

“1.4.3 Nomination and Election to the PEM Board

1.4.3.1. The directors of the PEM Board shall be nominated and elected in
accordance with the Governance Arm By-Laws, provided that the required
composition of the PEM Board as set out in Clause 1.4.2 is observed, having
regard to the expertise necessary for the PEM Board to carry out its functions
and any relevant provisions of the Revised Corporation Code of the
Philippines in relation to the election of directors. Except only for the
representative of the Market Operator, which sits at the PEM Board in an ex-
officio capacity, no person can become a member of the PEM Board and the
Market Operator Board of Directors at the same time.

1.4.3.2. With effect from the date on which the IMO assumes the duties,
functions and responsibilities of the AGMO, all Directors, the Governance
Arm President, and the Chairperson of the PEM Board are to be elected in
accordance with the required composition of the PEM Board and
qualifications as set out in Clause1.4.2.”

(q) Clause 1.4.4.1 under Voting Rights is amended to read as:

| “1.4.4.1 Unless, expressly stated herein, provisions of the Revised Corporation Code
: shall apply, provided that:

XXX XXX XOOX

(b) Every decision of at least a majority of votes of Directors present shall be valid as
a PEM Board act, except the election of the Chairperson and the President which
requires vote of the majority of all the Directors. lf voting is equal, the
Chairperson has a casting vote.

XXX XXX XXX”

(r} Clause 1.4.5 and its sub-clauses under Governance of the Market are amended to
read as:

“41.4.5. Obligations of the PEM Board
1.4.5.1. The PEM Board shall at all times:

(a) Protect the public interest and ensure the transparency and efficiency of
the WESM,;

(b) Fulfill its obligations under the WESM Rules:

(c) Act in a manner that is consistent with the WESM Rules;

(d) Perform ali things reasonably necessary to contribute toward the
achievement of the WESM and the Act's objectives;

(e) Duly consider and take into account the provisions of the WESM Rules,
when deciding whether or not to approve any matter for which the PEM
Board's approva! or agreement is required under the WESM Rules.
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(f) Cause notification to the ERC of all relevant information relating to any
action it has taken in accordance with Clause 7.2 in relation to a breach by
any WESM Member, the Market Operator or the System Operator, and

(g) Perform ail other things that the PEM Board considers reasonably
necessary to promote the WESM objectives and improve the operation of
the WESM as well as the WESM Rules.

1.4.5.2. The Governance Arm, through the PEM Board shall have the
following powers and duties:

XXX XXX XXX

(d) In conjunction with the Compliance Committee and the Enforcement and
Compliance Office, enforce the WESM Rules and Market Manuals in
accordance with Clause 7.2:

XXX XXX XXX”

(s) Clause 1.4.6 under Governance Arm of the Market is amended to read as:

(t)

“1.4.6 Formation of Committees

The Governance Arm, through the PEM Board, shall form committees and
appoint qualified personnel who shall act as the following:

XXX XXX XKXK

(d)A Rules Change Committee to assist the Governance Arm and/or PEM
Board and the DOE in relation to the revision and amendment of the
WESM Rules in accordance with Chapter 8, and the formulation, revision
and amendment of Market Manuals, procedures and guidelines;

(e)A Dispute Resolution Administrator to facilitate the resolution of the
dispute between and/or among the parties within a specified period of time
in accordance with the dispute resolution process under Clause 7.3; and

(f) A Compliance Committee to monitor compliance to and oversee the
investigation of breach of the WESM Rules and Market Manuals by
WESM Members, the System Operator and the Market Operator, and to
perform the functions set out in Clause 1.8.

Clause 1.4.7 and its sub-clauses under Governance of the Market are amended to
read as:

“1.4.7.1 The Governance Arm, through the PEM Board shall establish such unit
or units within the Governance Arm which shall have the following powers and
functions:

(a) a market assessment unit that will:

(i) Serve as the primary support unit of the Market Surveillance
Committee;
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(ii) Carry out market monitoring functions, including but not limited to,
regularly collect and process market monitoring data and indices;

(iii) Carry out market assessment functions, and prepare periodic
assessment reports on overall market performance and
competitiveness;

(b) support units that will:

{i} Provide technical and secretariat support to the other WESM
Governance Committees formed in accordance with Clause 1.4.6;
and, accordingly provide such support and assistance as may be
required and, in a manner as deemed necessary by the respective
Committee Chairpersons; and

(ii) Perform such other tasks as assigned by the Governance Arm
and/or the PEM Board, the WESM Governance Committees or the
Governance Arm President.

1.4.7.2. The units that shall be established by the Governance Arm, through the
PEM Board pursuant to Clause 1.4.7.1 shall be composed of an adequate
number of personnel with the appropriate knowledge, experience and
qualifications necessary to carry out the functions stated in Clause1.4.7.1.”

(u) Clause 1.4.8 under Governance of the Market is amended to read as:

“The Governance Arm, through the PEM Board, shall create an Enforcement and

Compliance Office which shall be headed by an Enforcement and Compliance

Officer appointed in accordance with Clause 7.2.8.1.

The Enforcement and Compliance Office perform the following functions:

(a) Administer the enforcement and compliance processes in the WESM _ in
accordance with Clause 7.2 and serve as a technical support unit of the PEM
Board on matters concerning enforcement and compliance;

XXX XXX XXX

(b) Serve as the primary support unit of the Compliance Committee.”

(v) New Clause 1.8 and its sub-clauses under Introduction are added to read as:

“1.8 Compliance Committee

1.8.1 Appointment to the Compliance Committee

1.8.1.1 The Governance Arm, through the PEM Board, shall appoint persons
to form a Compliance Committee in such number and with such skills and
expertise, and on such terms and conditions, as the PEM Board reasonably
deems to be appropriate, taking into consideration the nature of the
obligations and functions of the Compliance Committee, as set out in Clause
4.8.2.
=== dc2020-10-0021-pages-12.ppm ===
1.8.1.2 The members of the Compliance Committee shall be independent of
the Philippine electric power industry and the Government.

1.8.2 Responsibilities of the Compliance Committee

The Compliance Committee shall from time to time as necessary and as
appropriate, or whenever the Governance Arm, through the PEM Board,
directs:

(a) Review reports of investigation of breaches of the WESM Rules and
Market Manuals carried out by the Enforcement and Compliance Office
and, based on the results of such investigation, decide on the outcomes of
the investigation and recommend imposition of sanctions or penalties if
warranted;

(b) Review and monitor the compliance of Enforcement and Compliance
Office with the reportorial requirements pursuant to the WESM Rules,
Market Manuals, and other applicable laws, rules, regulations, or
issuances;

(c) Review and monitor the compliance by the Market Operator and the
System Operator with their obligations pursuant to the WESM Rules and
Market Manuals, or any coordinating or operating agreements, or
protocols which may be established governing the performance of their
functions and obligations under the WESM Rules and Market Manuals.

(d) Propose amendments to the WESM Rules or Market Manuals in
accordance with Chapter 8 with a view of:

(i) Improving the efficiency and the effectiveness of the operation
of the WESM,; and
(ji) Improving or enhancing the prospects for the achievement of
the WESM objectives;
(e) Assist the Rules Change Committee in relation to its assessment of
proposals to amend the WESM Rules or Market Manuals under Chapter
8.

1.8.3 Transitory Provisions
Pending the creation of the Compliance Committee and the appointment of its
members by the Governance Arm, through the PEM Board, pursuant to

Clause 1.8.1, the responsibilities set forth in Clause 1.8.2 shall be discharged
by the Market Surveillance Committee.”

(w) Original Clause 1.8 and its sub-clauses under Introduction are renumbered and
amended to read as:

“41.9 Enforceability And Amendment Of These Rules
1.9.1 Enforceability

Unless otherwise provided in its other provisions, the WESM Rules are
enforceable in accordance with Chapter 7.
=== dc2020-10-0021-pages-13.ppm ===
(x)

1.9.2 Changes to the WESM Rules

XXX XXX XXX”

Original Clause 1.9 under Introduction is renumbered and amended to read as:

“1.10 Public Consultation Procedures

Where the WESM Rules identify matters that are subject to review or consultation in
accordance with the public consultation procedures, the Governance Arm shall
ensure that, as a minimum, the following procedures are followed:

(a) The Governance Arm shall publish in the market information website the
particulars of the matter for the information of the Market Operator, WESM
Participants and other interested persons, inviting written submissions
concerning the matter to be made by a specified date:

(b) Where, in the reasonable opinion of the Governance Arm, there is a diversity of
views expressed in the written submissions received under Clause 1.9(a), the
Governance Arm through the PEM Board, shall invite the Market Operator,
WESM Participants and other interested persons to a meeting or meetings at
which those views may be presented and discussed. Non-members, who may be
deemed interested persons may be invited to attend subject to the discretion of
the PEM Board;

XXX XXX XXX

(d) The Governance Arm shall provide a copy of the report referred to in
Clause1.9(c) to:

(i) The DOE and the ERC on completion of the report; and
(ii) The Market Operator, WESM Participants and interested persons on
request.”

New terms are hereby added under Glossary Chapter 11, as follows—

“Compliance Committee. The committee formed under Clause 1.4.6 to undertake
the functions as set out in Clause 1.8.2 and Clause7.2.;

Market Operator Board. The Board of Directors of the /MO;

Philippine Competition Commission. An independent quasi judicial body created
pursuant to Republic Act No. 10667.

Transition Committee. The committee created pursuant to DOE Department Order
(DO) No. 2017-07-0010 entitled "Creating the Transition Committee for the Interim
Management of the Philippine Electricity Market Corporation and the Wholesale
Electricity Spot Market" with the task to review the WESM structure of the market and
make recommendations.”

=== dc2020-10-0021-pages-14.ppm ===
(z) The definitions of the following terms under Glossary Chapter 11 are amended to
read as:

“Director. A member of the PEM Board or IMO Board, as the case may be;

Independent Market Operator (IMO). The Independent Market Operator referred to
by Sec. 30 of the EPIRA, referred herein as the Market Operator;

Philippine Electricity Market Corporation or the Governance Arm. The corporation
previously incorporated upon the initiative of the DOE composed of all direct WESM
Members and whose Board of Directors will be the PEM Board.

PEM Board. The governing board of directors of the Governance Arm;”

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 effect 15 days following its complete

publication in at least two (2) newspapers of general circulation and shail remain in
effect until otherwise revoked.

Issued this October 2020 at the DOE, Energy Center, Rizal Drive, Bonifacio

Global City, Taguig City, Metro Manila.
Node. van

cretary

LA 2 CJ Republic of the Philinpires
beg 4 OEPARTMENT OF ENERGY
ge In REPLYING PLS. CITE:

1108 ETT

OCT 22 2098