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

DEPARTMENT CIRCULAR NO._ O06 202! -/0-0023

REPEALING SECTION 3 OF THE DOE DEPARTMENT CIRCULAR NO. DC2017-
04-0006 ENTITLED “ADOPTING FURTHER AMENDMENTS TO THE WESM
RULES AND MARKET MANUALS”

WHEREAS, Sections 30 and 37(f) of the Electric Power Industry Reform Act (EPIRA)
provides that the Department of Energy (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, Retail
Rules and their Market Manuals shall be undertaken in accordance with the provisions
of Chapter 8 of the WESM Rules;

WHEREAS, on 20 April 2017, the DOE issued Department Circular No. DC2017-04-
0006 adopting further amendments to the WESM Rules and Market Manual, Section
3 of which adopted the Market Manual on Administered Price Determination
Methodology as applicable to the one (1) — hour dispatch interval;

WHEREAS, on 21 February 2020, the Independent Electricity Market Operator of the
Philippines (IEMOP) submitted its proposal to the Rules Change Committee (RCC) to
abolish the aforementioned Market Manual, among others, as it is considered no
longer applicable or redundant upon the commencement of the implementation of the
enhanced WESM design and operations;

WHEREAS, it was clarified that the core provisions of the foregoing Market Manual
were consolidated and updated under the enhanced market design versions of the
Market Manual on Price Determination Methodology;

WHEREAS, on 26 February 2020, the proposal was published in the WESM
Governance Arm website to solicit further comments from industry stakeholders and
interested parties;

WHEREAS, on 24 April 2020, during its 164'" RCC Meeting, the RCC deliberated on
the proposal and found no objections for the abolition of the aforementioned Market
Manual;

WHEREAS, on 15 May 2020, during its 165" RCC Meeting, the RCC approved the
proposed abolition of the Market Manual on Administered Price Determination
Methodology, among others, for endorsement to the PEM Board;

Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro Manila, Philippines
Tel. No.: 8840-2267 * Trunkline: 8479-2900

Wehsite: www dae oav nh * Remail> infa@dnae onv nh

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WHEREAS, on 08 June 2020, the PEM Board formally endorsed the said proposal to
the DOE for approval.

WHEREAS, on 10 and 15 December 2020, the DOE conducted public consultations
on the proposed amendments to solicit further comments and recommendations from
the market participants and other interested parties;

WHEREAS, the DOE deems the proposed abolition is necessary to avoid confusion
in the implementation of the enhancements to the WESM design and operations;

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

Section 1. Repealing Clause. Section 3 of DOE Department Circular No. DC2017-
04-0006 adopting the Market Manual on Administered Price Determination
Methodology is hereby repealed. Provided, That, the other provisions of Department
Circular No. DC2017-04-0006 not affected by this Circular shall remain in effect.
Provided further, That the provisions of other circulars which are inconsistent with this
Circular are hereby repealed, amended, superseded or modified accordingly.

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 immediately following its
publication in two (2) newspapers of general circulation. Copies hereof shall be filed
with the University of the Philippines Law Center — Office of National Administrative
Register (UPLC-ONAR).

Issued on OCi 1 2 2021 at the Energy Center, Rizal Drive, Bonifacio Global City,
Taguig City.

FONSO G. CUSI
ecretary

wT

DC. — REPEALING SECTION 3 OF THE DOE DEPARTMENT CIRCULAR NO. DC2017-04-0006
ENTITLED “ADOPTING FURTHER AMENDMENTS TO THE WESM RULES AND MARKET MANUALS”

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