Question & AnswerQ&A (DEPARTMENT CIRCULAR NO. DC2018-05-0016)
The primary legal basis is the Electric Power Industry Reform Act (EPIRA), specifically Sections 30 and 37(f), which authorize the Department of Energy (DOE) jointly with electric power industry participants to establish the WESM and formulate detailed rules governing its operations.
The Dispute Resolution Administrator (DRA) is responsible for the administration of disputes under the WESM, assisted by the DRA Secretariat and WESM-accredited ADR Support Service Centers (ASSC).
Disputes covered include those arising between the PEM Board and its working groups, WESM Members, intending WESM Members involving: acts inconsistent with WESM Rules, payment obligations, contracts incorporating WESM dispute resolution procedures, related ERC and DOE rules, or transactions in the WESM.
If parties decide to dispense with mediation, and the DRA determines within 90 calendar days that the dispute is a WESM dispute, they may proceed directly to arbitration, subject to issuance of a certification by the DRA that mediation is no longer viable.
The 'DRA Secretariat' refers to the Market Assessment Group tasked to assist the Dispute Resolution Administrator in the performance of his/her responsibilities under the WESM Rules.
An Emergency Arbitrator may be appointed upon receipt of an Application for Emergency Measures by a party needing urgent interim or conservatory measures that cannot await the constitution of the arbitral tribunal, and before the file is transmitted to the arbitral tribunal.
An advance fee of PHP 50,000 must be paid with the Request for Mediation for fees and costs of processing. Administrative expenses by the Secretariat are fixed at the DRA's discretion not to exceed PHP 150,000.
Arbitration fees are calculated based on the scale set in Annex E, taking into account the sum in dispute, with fixed fees for disputes up to PHP 100 million and percentage-based increments for higher sums.
Mediators and arbitrators must sign statements of acceptance, impartiality, independence, and availability. They must disclose any circumstances that might affect their impartiality or independence to the DRA and the parties.
The arbitral tribunal must render its final award within six (6) months from the last signature of the Terms of Reference or from notification of approval of the Terms of Reference by the DRA, whichever is later.