Protocol for Scheduling Energy in WESM Reserve Market

DOE promulgated WESM Rules initially on June 28, 2002, following endorsement from industry participants.
The WESM Rules under Section 10.3.2.3 authorize DOE to declare the commencement of ancillary services spot market when feasible.
DOE declared the Commercial Launch Date for the WESM Reserve Market initially set for March 26, 2014, subject to fulfillment of conditions including certification by the Philippine Electricity Market Corporation (PEMC).
PEMC later reported that the Reserve Market was not ready to operate commercially on March 26, 2014, pending regulatory approval of the Pricing and Cost Recovery Mechanism (PCRM) and ancillary service provider registrations.
The Commercial Launch Date was then rescheduled to May 26, 2014, subject to approval from the Energy Regulatory Commission (ERC).

To enhance monitoring and preparation for the Reserve Market, DOE directed the implementation of Central Scheduling and Dispatch of Energy and Contracted Reserves via Department Circular No. DC2014-03-0009.
Central Scheduling and Dispatch allows DOE to monitor available generation capacity comprehensively for both energy supply and reserves.
PEMC and the National Grid Corporation of the Philippines (NGCP) jointly formulated the Protocol for Central Scheduling and Dispatch through consultations with Ancillary Service Providers under NGCP contracts.
On April 22, 2014, PEMC submitted the Protocol to DOE for approval.

The DOE formally approved and adopted the Protocol for Central Scheduling and Dispatch as detailed in the WESM Market Manual (Annex "A" to the Circular).
The Protocol's implementation is temporary and will cease upon the commercial operation or formal cessation of the WESM Reserve Market declared by DOE.

PEMC, as the Market Operator, is responsible for implementing and reporting on the Protocol’s execution.
NGCP, as the System Operator, must also ensure compliance alongside all affected Trading Participants.
All involved parties are mandated to adhere strictly to the Circular and Protocol to achieve the policy’s objectives effectively.

The Circular contains a Separability Clause ensuring that invalidation of any section will not affect the validity of the remaining provisions.
The Circular becomes effective fifteen (15) days after publication in two newspapers of general circulation and online by PEMC.

Mandate from EPIRA for DOE to ensure stable, reliable electric power supply and develop markets.
Strategic phased implementation approach with conditions precedent before commercial operation of Reserve Market.
Adoption of a regulatory protocol for centralized scheduling and dispatch to enhance system monitoring.
Defined roles for PEMC and NGCP as operators with reporting and compliance duties.
Temporary nature of the Protocol pending full market commercial launch.
Legal safeguard via Separability Clause to uphold the Circular’s enforceability.
Compliance and transparency ensured through mandatory publication and reporting requirements.