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Republic of the Philippines
DEPARTMENT OF ENERGY

DEPARTMENT CIRCULAR NO.__DC2022-03- 0011 _ Al

ADOPTING FURTHER AMENDMENTS TO THE WHOLESALE ELECTRICITY
SPOT MARKET (WESM) RULES AND ITS MARKET MANUAL ON INFORMATION
DISCLOSURE AND CONFIDENTIALITY
(Exceptions for Confidentiality Undertakings for DOE and ERC)

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 (WWESM) 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 WWESM 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 14 October 2019, the Independent Electricity Market Operator of the
Philippines (IEMOP) submitted a proposed amendment to the WESM Rules and
WESM Manual on Market Operator Information Disclosure and Confidentiality Issue
5.0 regarding Exceptions for Confidentiality Undertakings for Oversight Bodies;

WHEREAS, the proposal aims to facilitate a more efficient market data provisions to
the DOE and ERC by providing exceptions to them as oversight bodies in receiving
confidential market data and by exempting them from the requirement of non-
disclosure agreement with the Market Operator;

WHEREAS, on 24 January 2020, the RCC approved the revised proposal. On 25
March 2020, the PEM Board approved and endorsed the same to the DOE for
approval on 08 April 2020;

WHEREAS, on 29 June 2020, the DOE posted the proposed amendments in the DOE
website to solicit further comments from the market participants and other interested
parties;

WHEREAS, on 22 and 29 July 2020, the DOE conducted public consultations on the
abovementioned proposed amendments to solicit inputs and consider comments of
stakeholders in the finalization of the same;

WHEREAS, on 28 May 2021, the DOE remanded the proposal to PEMC raising
concern that the proposed exemption of the PEM Board from executing non-disclosure

“Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro I Manila, Philippines
Tel. No.: 8840-2267 * Trunkline: 8479-2900
Website: www.doe.gov.ph * E-mail: info@doe.gov.ph

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agreement may pose conflict of interest considering that the members of the
governance arm are electric power stakeholders;

WHEREAS, on 11 October 2021, the PEM Board-approved amendments to the
WESM Rules and Market Manual on Market Operator Information Disclosure and
Confidentiality Regarding Exceptions for Confidentiality Undertakings for DOE and
ERC were submitted to the DOE for approval, in compliance with Chapter 8 of the
WESM Rules;

NOW THEREFORE, after careful review of the PEM Board-approved proposal and
the comments and recommendations received on the same, the DOE, pursuant to its
authority under the EPIRA and the WESM Rules, hereby adopts, issues, and
promulgates the following amendments to the WESM Rules and various Market
Manuals:

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

a. Section 5.3.3.2 (Conditions) under Confidentiality is amended to read as —
“5.3.3.2 Conditions

In the case of a disclosure under Clause 5.3.2(c), or Clause 5.3.2(f), the
WESM Member or the Market Operator (as the case may be) who
wishes to make the disclosure, shall prior to making the disclosure,
inform the proposed recipient of the information that it is confidential
information and shall take appropriate precautions, including at the very
least securing a written undertaking from the recipient that such recipient
will keep the information confidential in accordance with the provisions
of this Clause 5.3 and does not use the information for any purpose other
than that permitted under Clause 5.3.2.”

Section 2. Amendments to the WESM Market Manual on Information Disclosure
and Confidentiality Issue 5.1. The following provisions in the WESM Manual on
Information Disclosure and Confidentiality Issue are hereby amended:

a. Section 5.4.2 under Protection of Permitted Disclosures is amended to read as —

“5.4.2 The Market Operator shall require the recipient, except for the DOE and
ERC, to execute confidentiality and non-disclosure agreements or
undertaking with terms and conditions consistent with this Manual and
the WESM Rules. Such terms and conditions will include the undertaking
to -

a) keep the information provided confidential, and not to disclose the
same to any other person or entity; )

b) to use the information only for the purpose for which it is provided or
for purposes permitted by the WESM Rules Clause 5.3.2.

DC — Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Its
Market Manual on Information Disclosure and Confidentiality (Exceptions for Confidentiality Undertakings for
Oversight Bodies )

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b. New Section 5.4.3 under Protection of Permitted Disclosures are added to read as:

“9.4.3 For all confidential information provided to PEMC, the Market Operator
and PEMC shall execute a general non-disclosure and confidentiality
agreement to facilitate information sharing.”

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. Repealing Clause. Except insofar as may be manifestly inconsistent
herewith, nothing in this Circular shall be construed as to repeal any mechanisms
already existing or responsibilities already provided for under existing rules.

Section 5. Effectivity. This Circular shall take effect fifteen (15) days 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 2022 at the Energy Center, Rizal Drive, Bonifacio Global City,
Taguig City.
Sot G. sete KV
ecretary

Republic of the Philippines
bed DEPARTMENT OF ENERGY

MAR 22 2022 aria
Sa,

DC — Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Its
Market Manual on Information Disclosure and Confidentiality (Exceptions for Confidentiality Undertakings for
Oversight Bodies )

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