QuestionsQuestions (DEPARTMENT CIRCULAR NO. DC 2018-07-0019)
The GEOP is established pursuant to the Renewable Energy Act of 2008 (RA 9513), particularly Section 9, which mandates the DOE (in consultation with the NREB) to promulgate implementing rules. The circular’s purpose is to provide general rules and procedures to guide End-Users, RE Suppliers, and Network Service Providers (NSPs) in facilitating the End-User option to choose renewable energy (RE) resources, in a least-cost and sustainable manner.
No. Participation is voluntary. Eligible End-Users may opt to participate in the GEOP by contracting with a duly authorized RE Supplier.
End-Users with a monthly average peak demand of 100 kW and above (for the past 12 months) may participate. New connections also have special criteria based on estimated average monthly peak demand for the next 12 months and/or historical monthly peak demand for three consecutive months.
A newly connected End-User with estimated average monthly peak demand from 100 kW to below 300 kW must have registered historical monthly peak demand of at least 100 kW for three (3) consecutive months to participate.
They may participate only after the DOE, in consultation with the NREB and industry stakeholders, determines that technical requirements and standards are met.
Yes. An End-User may revert subject to: (1) fulfillment of all contractual obligations to the RE Supplier, and (2) execution of relevant agreements for electricity supply by the DU, consistent with ERC rules and including a definite contract period.
Because the GEOP is a non-regulated activity intended to develop and promote RE through End-User empowerment to choose RE resources. As such, the GEOP Supply Contract does not require ERC approval under the circular’s statement in Rule 1, Section 3(e).
Until the DOE (in consultation with NREB and industry stakeholders) determines Mindanao market readiness—including WESM commercial operation and retail competition—GEOP may only be available to End-Users in Luzon and Visayas.
All RE Facilities are eligible, but entities supplying under the GEOP must secure a DOE operating permit as RE Suppliers and ensure the RE Facilities have the necessary ERC Certificates of Compliance (COC). Distributed energy resources/generation facilities must also conform with ERC-prescribed specifications and standards.
The RE Supplier must incorporate a mechanism to address intermittency/availability factors to ensure continuous power supply, including provision of Replacement Power and wheeling charges (if applicable).
They must: (i) be informed by the DU (via monthly bill) of consumption and generation charges; (ii) be informed by NSP/DU of segregated transmission/distribution charges; (iii) notify the DU of intention to participate 3 months prior to signing the GEOP Supply Contract; (iv) notify the DU of signed GEOP contract 1 month prior to effectivity; and (v) pay/settle financial obligations to the DU and/or RE Supplier.
Failure subjects the End-User to the DU’s disconnection policies and/or sanctions under the wheeling agreement and the GEOP Supply Contract.
It states NSPs shall continue to provide wheeling services if the GEOP Supply Contract is cancelled, revoked, or terminated for any reason, provided that any unpaid obligations of the End-User or RE Supplier are settled or paid.
The DU as SOLR: (1) imposes rates/charges under the GEOP, subject to ERC approval (with default rates pending approval being WESM nodal price plus a premium for admin/overhead in accordance with ERC rules); and (2) provides electricity to the End-User if the RE Supplier cannot perform, possibly via an alternative agreement for replacement power payments.
RECs generated from the energy supplied under GEOP shall be for the account of the DUs. The energy sales from GEOP form part of the DU’s Net Electricity Sales for RPS compliance.
A dual billing scheme may be adopted: the End-User is separately billed by the RE Supplier for supply (including replacement power), and by the DU/TRANSCO for wires services and charges (for directly-connected End-Users). Bills should reflect itemized and unbundled charges under the GEOP Supply Contract, plus other segregated transmission/distribution and pass-through charges.
Non-compliance/violation is subject to administrative and/or criminal penalties under the RE Act. DOE may impose an administrative penalty (P100,000 to P500,000) or recommend revocation of a DU/generation facility’s license/franchise/authority. Criminal liability includes imprisonment and fines under the RE Act’s penalty clauses for willful failure/violation, with imposition also on responsible officers in corporations. Fines/penalties cannot be charged to End-Users and do not substitute for compliance.