Title, Scope, and Purpose
- Officially titled as the "Rules Governing the Establishment of the Green Energy Option Program (GEOP) in the Philippines."
- It sets general rules governing participation of End-Users, Renewable Energy (RE) Suppliers, and Network Service Providers (NSP).
- Emphasizes least-cost, sustainable means for end-users to contribute to RE development.
Guiding Principles
- End-Users must inform their Distribution Utilities (DUs) if opting into GEOP.
- DUs and RE Suppliers must provide full disclosure of technical, commercial, and legal arrangements.
- Network Service Providers must ensure open, non-discriminatory access and reliable service even if contracts are canceled, contingent on settlement of unpaid obligations.
- All rates and charges must be unbundled and itemized, covering generation, transmission, distribution, and supply.
- GEOP is a non-regulated activity; contracts between End-Users and RE Suppliers do not require Energy Regulatory Commission (ERC) approval.
Scope of Application and Stakeholders
- Applies to End-Users, RE Suppliers, Distribution Utilities, Economic Zone Developers, National Transmission Corporation (TRANSCO), Philippine Electricity Market Corporation (PEMC)/Independent Market Operator (IMO), Supplier of Last Resort (SOLR), Central Registration Body (CRB), and RE Registrar.
Key Definitions
- Defines terms such as Distribution Utilities (DUs), End-Users, Generation Facility, GEOP Supply Contract, RE Suppliers, Network Service Providers, Renewable Energy Certificates (RECs), and others relevant to the operation of GEOP.
Eligibility and Participation Criteria for End-Users
- End-Users with average peak demand of 100 kW and above may voluntarily participate immediately.
- New connections with estimated monthly average peak demands of 300 kW and above may also participate; those estimated between 100 kW and 300 kW must meet historical demand requirements.
- End-Users below 100 kW average demand may participate after DOE confirms technical requirements are met.
- Participation is governed by a GEOP Supply Contract, which is exempt from ERC approval.
- End-Users may revert to Distribution Utilities provided they fulfill contractual obligations.
- GEOP initially limited to Luzon and Visayas pending readiness of Mindanao market.
Eligible Renewable Energy Facilities and Suppliers
- All renewable energy generation facilities may participate, provided they have DOE operating permits and ERC Certificates of Compliance.
- Distributed energy resources and generation facilities must comply with ERC standards.
- RE Suppliers must register and comply with DOE permit procedures; certain entities licensed as Retail Electricity Suppliers (RES) are automatically qualified.
Mandated Activities and Responsibilities
- Transmission and distribution utilities (TRANSCO, DUs), PEMC/IMO, and RE Suppliers must ensure physical and commercial arrangements for GEOP.
- End-Users must notify DUs of participation intent and pay obligations; failure may lead to disconnection or other sanctions.
- RE Suppliers must ensure transparency of billing, address intermittency with Replacement Power, and comply with reporting requirements.
- DUs acting as Supplier of Last Resort must offer backup supply and comply with rate regulations pending ERC approval.
- TRANSCO must provide open access, ensure system reliability, maintain transparent charges, and serve as default metering provider for certain users.
- DUs must provide non-discriminatory access, maintain reliable distribution, update development plans, and serve as Retail Metering Service Providers.
- CRB and RE Registrar handle registration and facilitate market rule amendments.
Contractual and Billing Provisions
- RE Suppliers must provide transparent offer sheets detailing all charges and replacement power sourced from RE.
- Dual billing system may be adopted: separate bills from RE Supplier and DU/TRANSCO reflecting itemized charges.
DOE Oversight and Compliance
- DOE's Renewable Energy Management Bureau (REMB) evaluates applications for RE Supplier permits.
- An Oversight Committee, chaired by DOE REMB Undersecretary, administers GEOP guidelines and eligibility.
- DOE, in cooperation with ERC and other agencies, regularly reviews GEOP implementation.
Renewable Energy Certificates and Market Integration
- RECs generated under GEOP belong to the Distribution Utilities and count toward Renewable Portfolio Standards compliance.
- Eligibility for RECs follows the RPS Rules for On-Grid Areas.
- DOE coordinates with ERC on information campaigns to educate stakeholders.
Prohibited Acts and Penalties
- Non-compliance with these rules subjects offenders to administrative penalties (P100,000 - P500,000) or recommendation for license revocation.
- Criminal penalties include imprisonment (1-5 years) and fines up to P100 million or twice the damages caused.
- Aids and abets in violations are equally liable; corporate officers may be punished for corporate violations.
- Penalties imposed on utilities or RE providers cannot be passed on to End-Users nor substitute compliance.
Transitory and General Provisions
- Existing rights and contracts remain unaffected.
- Annual reporting obligations for DUs, RE Suppliers, and TRANSCO to DOE.
- DOE, ERC, CRB, and RE Registrar maintain necessary databases.
- Separability and repealing clauses secure validity of unaffected provisions and revoke conflicting prior issuances.
- Circular becomes effective 15 days post-publication in newspapers and filing with the University of the Philippines Law Center.
This comprehensive set of rules establishes the framework, roles, responsibilities, and mechanisms to realize the Green Energy Option Program, promoting renewable energy adoption among electricity consumers and supporting the Philippines’ energy policies on sustainability and indigenous energy development.