Designation of Default Wholesale Suppliers (DWS)
- DOE Circular No. 2006-06-009 designated the National Power Corporation (NPC) and the Power Sector Assets and Liabilities Management Corporation (PSALM) as Default Wholesale Suppliers for the WESM.
- This designation was initially for one (1) year from the start of WESM commercial operations in Luzon and Visayas.
Extensions and Amendments to DWS Arrangements
- ERC Resolution No. 18, Series of 2007 extended the DWS designation until June 26, 2007, or until superseded by a new ERC resolution.
- On June 25, 2008, ERC promulgated Resolution No. 11, Series of 2008, providing amended Rules for the Default Wholesale Supplier Arrangements (DWSA) for the WESM.
Need for Clarification of Rule Effectivity
- The amendment was necessitated to clarify the period and effectivity of the DWS Rules established by the DOE Circular.
Amendment to Period of Effectivity (Section 6.1, Article 6)
- The amended provision specifies that the Rules shall be implemented in Luzon starting June 26, 2008.
- The implementation will last until one (1) year after the start of open access and retail competition.
- The arrangements may be discontinued earlier if directed by the DOE.
Dissemination and Effectivity
- Copies of the resolution are to be furnished to the University of the Philippines Law Center-Office of the National Administrative Register and all electricity transmission and distribution entities.
- The resolution takes effect fifteen (15) days after its publication in a newspaper of general circulation.
Legal and Regulatory Context
- The resolution represents regulatory oversight by the Energy Regulatory Commission (ERC) over the operational and administrative aspects of the WESM's default wholesale supply arrangements.
- It reaffirmed compliance with the EPIRA law and aligned rules with evolving market and policy conditions.
Important Legal Concepts
- Default Wholesale Supplier (DWS): Entities designated to supply electricity by default to ensure market stability.
- Wholesale Electricity Spot Market (WESM): A competitive market platform for trading electricity.
- Open Access and Retail Competition: Phased market reforms allowing end-users choice and competition in electricity supply.
- Regulatory Oversight: ERC’s authority to promulgate, amend, and enforce rules governing the electricity market.
- Effectivity and Publication: Legal requirement for promulgated rules to be published and for effectivity to be clearly defined to ensure transparency and legal certainty.