Objectives of the Implementing Rules and Procedures
- Foster market discipline for competitive power generation and supply
- Define grounds, processes, and authorities for disconnection/reconnection from the grid
- Ensure compliance with financial obligations by electricity end-users
- Emphasize registration and compliance with WESM Rules
- Provide guidelines for restructuring outstanding financial obligations with PSALM/NPC
Key Definitions
- Connection Agreement (CA): Contract between users and Network Service Provider regarding grid connection terms
- DOE: Government agency implementing EPIRA mandates
- Direct/Indirect WESM Members: Entities registered or trading through direct members
- Distribution Utility (DU): Entities with franchise to operate electricity distribution systems
- Electric Power Customer (EPC): Entities directly connected to the grid purchasing power
- Electric Power Service Provider (EPSP): Entities providing industry-related services
- Market Operator (MO): PEMC responsible for operating WESM
- National Grid Corporation Philippines (NGCP): Transmission operator and system operator
- Power Sector Assets and Liabilities Management Corporation (PSALM): Manages financial aspects and assets of NPC
- Restructuring Agreement: Contract for payment plans of arrearages with PSALM
- Wholesale Electricity Spot Market (WESM): Market for electricity trading mandated by EPIRA
- Plus other key agency and contractual terms relevant to the electric power industry
Title and Scope
- Official title: Implementing Rules and Procedures for terminating DWS and disconnection policy (Circular DC2010-05-0006)
- Termination of the Default Wholesale Supplier arrangement upon effectivity
- Finalization of related settlements within 30 days directed for PEMC, NPC, PSALM
- Coverage includes a broad range of electric power customers, suppliers, service providers, market operators, and transmission entities
- Exemptions apply for Visayas and Mindanao stakeholders regarding WESM registration
- PSALM/NPC prohibited from issuing disconnection notices during a 90-day transition period
Grounds and Conditions for Disconnection
- Non-registration with WESM after transition period
- Suspension or deregistration from WESM
- Non-compliance with financial or technical obligations under contracts with NGCP or NSPs
- Breach or expiration of contracts with Generation Companies, IPP Administrators, or Wholesale Aggregators
- Failure to enter or comply with restructuring agreements or payment obligations with PSALM/NPC
- Disconnection notices issued based on these grounds by MO, NGCP, or other EPS/EPSPs
Disconnection Procedure
- Disconnection as last resort after exhausting remedies
- Issuance of Notice of Disconnection and submission of letter-request to NGCP for execution
- Verification of compliance with Circular, WESM Rules, and existing contracts mandatory prior to disconnection
- NGCP to implement actual disconnection within five working days, scheduling and reporting to IRC and involved parties
- Technical constraints may delay disconnection, with required prior notice
- Indemnity clauses protecting NGCP from legal suits related to disconnection execution
Deferral or Stay of Disconnection
- Payment or settlement of outstanding amounts within five days before scheduled disconnection
- Execution of Restructuring Agreement within five days
- Recall of disconnection notice due to new payment agreements
- Proof of non-receipt of disconnection notice allows deferral up to five days
- Successful WESM registration before disconnection date can defer disconnection
- Private entities may negotiate restructuring, subject to contracts
Reconnection Process
- Conditions for reconnection include fulfillment of registration, payment, contract compliance, and lifting of suspensions
- Reconnection requests must be submitted with appropriate notices and letters to NGCP and IRC
- NGCP shall effect reconnection within two working days and inform concerned parties
- Technical limitations may delay reconnection with prior notice
- Indemnity protections for NGCP against claims related to reconnection
- Reconnection fee payable to NGCP or NSPs prior to service restoration
WESM Registration, Suspension and Deregistration
- Governed strictly by WESM Rules
- Detailed guidelines for registration status covered in Appendix E of the implementing procedures
Restructuring of Financial Obligations with PSALM and NPC
- Subject to PSALM's Restructuring Policy and Guidelines for negotiation
- Procedures detailed in Appendix F
- Aims to facilitate settlement of arrearages and continuation of service
Separability Clause
- Invalidity of any provision does not affect the rest of the Implementing Rules and Procedures
Effectivity and Publication
- Takes effect 15 days after newspaper publication
- PEMC directed to publish on market information website
- Remains effective until revoked by competent authority