Question & AnswerQ&A (DEPARTMENT CIRCULAR NO. DC 2018-07-0019)
The circular is titled as the "Rules Governing the Establishment of the Green Energy Option Program (GEOP) in the Philippines."
The purpose of the GEOP Rules is to set the general rules and procedures to guide End-Users, RE Suppliers, and Network Service Providers in facilitating End-Users' option to choose Renewable Energy (RE) Resources as energy sources in a least-cost and sustainable manner.
End-Users refer to any person or entity requiring the supply and delivery of electricity for their own use, specifically those who choose Renewable Energy Resources as their sources of energy.
End-Users with an average monthly peak demand of 100 kW and above may opt to participate. For new connections, those with estimated average monthly peak demand of 300 kW or above may participate, while those between 100 kW and below 300 kW must have a historical monthly peak demand of at least 100 kW for three consecutive months.
No, the GEOP Supply Contract is a non-regulated activity and does not require approval from the ERC as stated under Section 3(e) of Rule 1.
RE Suppliers must secure an operating permit from DOE, register with the Central Registration Body (CRB) and RE Registrar, incorporate mechanisms in the supply contract for Replacement Power, ensure transparency in billing, and comply with DOE, ERC, CRB and RE Registrar reportorial requirements.
Administrative penalties range from ₱100,000 to ₱500,000, including possible revocation of licenses. Criminal penalties include imprisonment from one to five years, fines from ₱100,000 to ₱100 million or twice the cost of damages, or both, as provided under the Renewable Energy Act.
The Oversight Committee is chaired by the DOE Undersecretary for the Renewable Energy Management Bureau (REMB) and includes representatives from DOE-REMB, DOE Electric Power Industry Management Bureau, DOE Legal Services, and the Central Registration Body.
A dual billing system may be adopted where the End-User receives separate bills from the RE Supplier for electricity supply and from the Distribution Utility or Transmission Corporation for wires services and charges. All charges must be itemized and unbundled.
Failure to comply with or violation of the GEOP Rules is subject to administrative penalties, including fines and revocation of licenses, and criminal penalties of imprisonment and fines. Those who willfully aid or abet violations are likewise liable.