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

SACONG PILIPINAS

DEPARTMENT CIRCULAR NO. DC Lo2zy -9>— L0G
On

ADOPTING FURTHER AMENDMENTS TO THE WHOLESALE ELECTRICITY SPOT
MARKET (WESM) MANUAL ON DISPATCH PROTOCOL RELATIVE TO THE
VALIDATION PROCESS OF REPORTED DISCREPANCIES IN THE DISPATCH
INSTRUCTION REPORT (DIR)

WHEREAS, Sections 30 and 37(f) of Republic Act (RA) No. 9136 or the Electric Power
Industry Reform Act (EPIRA) provide that the Department of Energy (DOE), jointly with
the electric power industry participants, shall formulate the detailed rules for the WESM,
and for governing its operations;

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

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

WHEREAS, on 15 January 2025, the National Grid Corporation of the Philippines
(NGCP) submitted to the Rules Change Committee (RCC) proposed amendments to the
Dispatch Protocol Manual to:

1. Enhance the validation process of reported discrepancies in the DIR; and

2. Amend the prescribed timeline to provide the System Operator (SO), Market
Operator (MO), and Generation Companies (GenCos) a sufficient period to
assess and validate reported discrepancies thoroughly.

WHEREAS, the amendments aim to address instances where a Trading Participant (TP)
requests further validation for DIR discrepancy claims already validated by the SO in
relation to additional compensation claims filed by the TP with the MO;

WHEREAS, on 21 February 2025, the RCC approved the publication of the proposed
amendments on the WESM Governance Arm website to solicit comments from
Stakeholders during its 243" RCC Regular Meeting;

WHEREAS, on 18 July 2025, the NGCP presented the criteria for the validation of
reported discrepancies, including the eligibility of revalidation requests, submission
requirements, timeliness, materiality threshold, and limitations and exceptions during the
248th RCC Regular Meeting;

WHEREAS, on 15 August 2025, the RCC approved the proposal to have a revalidation
process for the reported discrepancies in the DIR during the 249th RCC Regular
Meeting. The RCC also approved the proposed criteria for both the validation and
revalidation processes, with the exclusion of the materiality threshold, given the
Philippine Electricity Market Corporation — Legal opinion that the WESM Rules and
Manuals do not permit the imposition of a revalidation fee;
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DC on Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Manual on Dispatch Protocol
relative to the Validation Process of Reported Discrepancies in the Dispatch Instruction Report (DIR)

WHEREAS, on 19 September 2025, the RCC approved and finalized the proposed
amendments for endorsement to the Philippine Electricity Market Board of Directors
(PEM Board) during the 250th RCC Regular Meeting with several key changes:

1. Insertion of the proposed criteria into Section 14.5.2 for validation requests and
Section 14.5.5 for revalidation requests;

2. Addition of a requirement for a certification on the veracity of the documents and
information submitted as part of the criteria under Section 14.5.2; and

3. Rewording Section 14.5.4 to state that the SO shall validate the reported
discrepancy instead of verifying it with the GenCos:

WHEREAS, on 17 October 2025, after due evaluation and deliberation, the PEM Board
approved for endorsement to the DOE the above-stated RCC-approved proposal;

WHEREAS, on 29 October 2025, the PEM Board submitted for the final approval of the
DOE the proposed amendments to the WESM Manual on Dispatch Protocol:

WHEREAS, the DOE, to ensure transparency and consistency with the objectives of the
EPIRA and the WESM, conducted public consultations on the proposed amendments
on various dates as follows:

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|__tuzon | 03 February 2026 | Taguig City _

NOW THEREFORE, after review and consideration of the proposed amendments and
the comments and recommendations of stakeholders, the DOE, pursuant to its authority
under the EPIRA and the WESM Rules, hereby adopts, issues, and promulgates the
following amendments to the WESM Manual on Dispatch Protocol:

Section 1. Amendments to the WESM Manual on Dispatch Protocol. The following
provisions in the WESM Market Manual on Dispatch Protocol are hereby amended:

SECTION 14 POST-DISPATCH DATA AND OPERATIONS REPORTS
14.1 XXX XXX XXX
14.2 XxX XXX XXX
14.3 XXX XXX XXX
14.4 Xxx XXX XXX
14.4.1 XxX Xxx Xxx
14.4.2 Xxx Xxx XXX

14.4.3 xxx Xxx Xxx
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DC on Adopting Further Amendments to the Wholesale Electricity Spot Market ( WESM) Manual on Dispatch Protocol
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14.4.4 xxx XxX Xxx
14.4.5 xxx XXX XXX
14.5 Reporting and Publication

14.5.1 Reports prepared pursuant to Sections 14.4.1 and 14.4.2 shall be
published in the market information website in accordance with the Market
Operator Information Disclosure and Confidentiality Manual. Reports
prepared pursuant to Section 14.4.5 shall be published by the Market
Operator in the market information website no later than one (1) week
from the relevant trading day in accordance with WESM Rules Clause
3.5. Reports on market intervention, in accordance with Section 14.4.3,
may be provided to the Trading Participants upon request in accordance
with WESM Rules Clause 6.9.4.2.

14.5.2 Each Generation Company shall validate all the data in the Dispatch
Instruction Report as published by the Market Operator on the market
information website. Any discrepancies shall be reported by the
Generation Company to the Market Operator within fourteen (14)
calendar days after the Market Operator's publication of the Dispatch
Instruction Report.

a. Discrepancies may pertain to inconsistencies between the
published Dispatch Instruction Report and the Generation
Company’s data on the relevant dispatch instruction, including the
dispatch quantity (MW), the nature or category of dispatch
instructions, and/or the dispatch intervals, among others.

b. These discrepancies must be reported and submitted with
complete supporting documents, including but not limited to, logs,
screenshots, correspondences, and voice recordings, along with
an accompanying certification, duly notarized by a corporate
lawyer of the Generation Company, attesting to the veracity and
authenticity of the submitted documents.

Failure by the Generation Company to report to the Market Operator any
discrepancy in the manner as stated shall render the data in the report as
final.

14.5.3 Within two (2) working days from receipt of a report, the Market Operator
shall determine whether the report has been submitted within the required
period and is accompanied by supporting documents and certification in
accordance with Section 14.5.2 of this Manual. If these are met, the Market
Operator shall request the System Operator to validate the discrepancy
reported by the Generation Company.

14.5.4 The System Operator shall validate the reported discrepancy and provide
the results of its validation to the Market Operator within seven (7) working
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DC on Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Manual on Dispatch Protocol
relative to the Validation Process of Reported Discrepancies in the Dispatch Instruction Report (DIR)

days from the receipt of the request. Upon receipt of the validation report,
the Market Operator shall immediately provide a copy to the Generation
Company. \f the Market Operator has not received any validation within the
prescribed timeline, the published data from the Dispatch Instruction
Report shall be maintained.

When market data is not submitted within the prescribed timeline due to
communication failure between the meter and the meter data retrieval
system, the Wholesale Metering Service Provider shall retrieve the
metering data from the meter manually through a meter reader handheld
device or laptop. The metering data shall then be uploaded to the meter
data retrieval system of the Wholesale Metering Service Provider for export
to the Meter Data Collection System of the Market Operator.

14.5.5 If the Generation Company finds further discrepancies in the results of the
validation report, the Generation Company may request further validation,
provided that the request for revalidation:

a. Pertains to the same dispatch intervals covered in the original
discrepancy report. No new data or issues not covered by the
Original discrepancy report will be considered:

b. Is submitted within three (3) working days from the receipt of the first
validation results from the Market Operator;

c. Is accompanied by new or newly discovered evidence and
supporting documents that were not available at the time of the
validation request despite the exercise of reasonable diligence,
together with a sworn explanation detailing such unavailability; and

d. Is accompanied by a certification, duly notarized by a corporate
lawyer of the Generation Company, attesting to the veracity and
authenticity of the submitted additional supporting documents.

A request for revalidation may only be made once. Failure by the
Generation Company to submit a request for revalidation to the Market
Operator in the manner stated above shall render the data in the first
validation report as final.

14.5.6 Within two (2) working days from the receipt of the request for revalidation,
the Market Operator shall determine if the request is submitted within the
required period and accompanied by supporting documents and
certification in accordance with Section 14.5.5 of this Manual. If these are
met, the Market Operator shall then request the System Operator to
revalidate the reported discrepancies. The System Operator shall then
provide the results of its revalidation to the Market Operator within seven
(7) working days from receiving the request. Upon receipt of the
revalidation report, the Market Operator shall immediately provide a copy
to the Generation Company.

If the System Operator does not provide any revalidation results within the
prescribed period, the first validation results shall be deemed final. No
further revalidation requests shall be considered. The Market Operator
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DC on Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Manual on Dispatch Protocol
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shall inform the Generation Company of the finality of the results of the first
validation.

14.5.7 The Market Operator shall publish the System Operator's final validation
results on the market information website.

14.5.8 If the Generation Company claims additional compensation related to the
reported discrepancies that were not validated within the prescribed
timeline, the Generation Company may subject the said claim to the WESM
dispute resolution process.

SECTION 17 MANAGEMENT OF MUST-RUN UNITS
17.1 XXX XXX XXX
17.2 XXX XXX XXX
17.3 XXX XXX XXX
17.4 XXX XXX XXX
17.5 Reporting and Publication
Each Generation Company shall validate all the data related to MRU
contained in the Dispatch Instruction Report as published by the Market
Operator on the market information website. A Generation Company may
request validation of any discrepancy in these reports in accordance with
requirements and procedures set out under Section 14.5 of this Manual.
17.6 xxx XXX XXX
Section 2. Repealing Clause. The provisions of other circulars, orders, issuances, rules,
and regulations that are inconsistent with the provisions of this Circular are hereby
repealed, amended, modified, or superseded accordingly.
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 fifteen (15) days after its publication
in at least two (2) newspapers of general circulation. A copy of this Circular shall be filed
with the University of the Philippines Law Center — Office of the National Administrative
Register.

Issued this 12 MAR 2026 at the DOE, Energy Center, Rizal Drive, Bonifacio
City, Taguig City, Metro Manila. geen — eS aoe

nian S. GARIN

Secretary