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IEMOP RCC Form 1 - Indirect Membership Final Rev1 (Published)
IEMOP RCC Form 1 - Indirect Membership Final Rev1 (Published)
IEMOP RCC Form 1 - Indirect Membership Final Rev1 (Published)
Proposals made only under this prescribed form shall be accepted and considered as
submitted.
This request for amendments are be submitted to:
I. Proponent’s Information
Changes to the WESM Rules and Market Manuals on Registration, Suspension and
De-Registration Criteria and Procedures, Metering Standards and Procedures, and
Billing and Settlement are proposed to align the transactions and responsibilities of
Direct and Indirect WESM Members with WESM Rules Clause 2.4. Under this
clause, a person or an entity who wishes to indirectly trade in the spot market may
only transact through a Direct WESM member.
IV. BACKGROUND
Under WESM Rules Clause 2.2.4.2, it is provided that “no person or entity shall be
allowed to inject or withdraw electricity from the grid unless that entity or person is a
registered member of the WESM”. As of September 2020, IEMOP has observed that
there are eight (8) grid customers that are not yet registered in the WESM. These
grid customers were initially served by NPC/PSALM under the default wholesale
supplier (DWS) arrangement but with the termination of the arrangement by the
DOE in 2010, they should have registered in the WESM individually. Although
unregistered, these grid customers have been withdrawing power from the grid since
the termination of the DWS arrangement. In order to account their withdrawals for
settlement, IEMOP has been constrained to assign their consumption to generation
companies with whom they currently have bilateral contracts. Once these bilateral
contract expire however, accounting and settlement of their transactions may pose
to be an issue.
To address the non-registration of the grid customers, IEMOP has communicated
with and encouraged them to register in the WESM. Subsequently, IEMOP also
communicated to their generator counterparties to request for assistance in
encouraging the unregistered grid customers to apply in the WESM. IEMOP has
also reported the non-registration of the grid customers to the WESM Governing
Body (PEMC). Despite these efforts, the eight grid customers have not registered in
the WESM and have also not provided any official reasons as to their non-
compliance.
In view of this, IEMOP initiated a review of the WESM Rules to identify possible
changes that could better facilitate the registration of all grid customers in the
WESM. Based on the review, we assessed that the current procedures for
registering as Indirect WESM Members may be streamlined to make it easier to
register under that level of participation. We believe that this change will better
In view of the above observations, it is proposed to amend the WESM Rules and
Market Manuals on Registration, Suspension and De-Registration Criteria and
Procedures, Metering Standards and Procedures, Billing and Settlement manuals.
Highlights of the proposed changes are as follows:
• Require the Direct WESM member counterparty to register and transact for the
Indirect WESM Member in the WESM
• Oblige the Direct WESM Member to enter into the Market Participation
Agreement (MPA) on behalf of the Indirect WESM Member
• Allow optional access to the Market Participant Interface (MPI) access for
Wholesale and Retail Indirect WESM Members
• Reflect the practice wherein Indirect WESM Members enter into Metering
Services Agreement (MSA) with the Metering Services Providers
• Clarify that bilateral quantity confirmation of an Indirect WESM Member will be
conducted by its Direct WESM Member counterparty
• Clarify that the billing and settlement of the Indirect WESM Member shall be
through its Direct WESM Member
• Propose that the Direct WESM Member shall be responsible for all payments
including adjustments during the relevant billing periods when the Direct WESM
Member transacted on behalf of the Indirect WESM Member
The proponent is the Independent Electricity Market Operator of the Philippines, Inc.
IEMOP acts as the market operator of the WESM.
Top Officers:
Richard J. Nethercott – President and CEO
The proposed changes will better align the transactions and responsibilities of Direct
and Indirect WESM Members with WESM Rules Clause 2.4. Hence, it is
recommended that the proposal be adopted.
VIII. REFERENCES
1. WESM Rules
2. WESM Manual on Registration, Suspension and De-Registration Criteria and
Procedures Issue 5.2
3. WESM Manual on Metering Standards and Procedures Issue 12.0
4. WESM Manual on Billing and Settlement Issue 6.1
A. WESM Rules
WESM Rules
Revised Wording Proponent’s
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general comments here,
if any.
REGISTRATION 2.2.2.1 Trading Participants: Trading Participants: It is proposed that
(a) Shall register with the (a) Shall register with entities that would
Market Operator the Market Operator prefer to trade
under clauses 2.3.1, under clauses 2.3.1, indirectly in the
2.3.2 or 2.4 as either 2.3.2 or 2.4 as either WESM be
a Direct WESM a Direct WESM registered by their
member or an Indirect member or be Direct WESM
WESM member, and registered by its Members instead
(b) XXX Direct WESM of registering by
Member themselves since
counterparty as an they would be
Indirect WESM transacting
member, and through that
(b) XXX Direct WESM
Member.
REGISTRATION 2.2.2.3 Ancillary Services Ancillary Services It is proposed that
Providers: Providers: entities that would
(a) Shall register with the (a) Shall register with prefer to trade
Market Operator the Market indirectly in the
under clauses 2.3.5 Operator under WESM be
or 2.4 as either a clauses 2.3.5 or 2.4 registered by their
Direct WESM as either a Direct Direct WESM
member or an Indirect WESM member or Members instead
WESM member, and be registered by of registering by
(b) XXX its Direct WESM themselves since
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Member they would be
counterparty as transacting
an Indirect WESM through that
member and Direct WESM
(b) XXX Member.
INDIRECT 2.4 A person or an entity who A person or an entity It is proposed that
WESM wishes to indirectly trade who wishes to indirectly entities that would
MEMBERS in the spot market shall trade in the spot market prefer to trade
register with the Market shall be registered with indirectly in the
Operator as an Indirect the Market Operator as WESM be
WESM member. an Indirect WESM registered by their
However, an Indirect member by its Direct Direct WESM
WESM member may only WESM Member Members instead
transact through a direct counterparty. However, of registering by
WESM member. aAn Indirect WESM themselves since
member may only they would be
transact through a Direct transacting
WESM Member. through that
Direct WESM
Member.
APPLICATION 2.5.2 If an applicant applies for If an applicant applies It is proposed that
FOR registration either as a for registration either as entities that would
REGISTRATION Direct WESM member or a Direct WESM member prefer to trade
as an Indirect WESM or on behalf of as an indirectly in the
member that applicant Indirect WESM member, WESM be
shall: that applicant or the registered by their
XXX person or entity that it Direct WESM
is applying for shall: Members instead
of registering by
XXX themselves since
they would be
transacting
through that
Direct WESM
Member.
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APPLICATION 2.5.4 If an application for If an application for Since it is
FOR registration has been registration has been proposed that the
REGISTRATION received by the Market received by the Market Indirect WESM
Operator and: Operator and: Member will not
(a) All relevant (a) All relevant apply for
prerequisites have been prerequisites have been registration, use
satisfied; satisfied; of applicant as
reference to that
(b) The applicant is (b) The applicant entity is not
eligible to be registered in person or entity being appropriate.
the category or categories registered is eligible to
in which registration is be registered in the
sought; and category or categories in
which registration is
(c) The Market Operator sought; and
reasonably considers that
the applicant will be able (c) The Market Operator
to comply and maintain reasonably considers
compliance with the that the applicant will be
WESM Rules, able to comply and
Then subject to clause maintain compliance
2.5.5, the Market with the WESM Rules,
Operator shall approve
the application and Then subject to clause
register the applicant in 2.5.5, the Market
that category or Operator shall approve
categories. the application and
register the applicant
person or entity being
registered in that
category or categories.
SETTLEMENT 3.14.4.1 Within 7 days after the Within 7 days after the For consistency
PROCESS - end of each billing period, end of each billing with WESM Rules
Preliminary the Market Operator shall period, the Market Clause 2.4 that
Statements give each WESM member Operator shall give each Indirect WESM
who has engaged in Direct WESM member Members will
market transactions in who has engaged in transact through a
that billing period a market transactions in Direct WESM
preliminary statement that billing period a Member, the
which sets out the market preliminary statement settlement
transactions of that which sets out the transactions of
WESM member in that market transactions of Indirect WESM
billing period and the that Direct WESM Members will only
settlement amount member and its be reflected in the
payable by or to that Indirect WESM settlement
WESM member. members, if any, in that statements of the
If the seventh day falls on billing period and the Direct WESM
a Non-Working Day, the settlement amount Members.
issuance of the payable by or to that
preliminary statements WESM member.
shall be made during the If the seventh day falls
next immediate Working on a Non-Working Day,
Day. the issuance of the
preliminary statements
shall be made during the
next immediate Working
Day.
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SETTLEMENT 3.14.4.3 If the WESM member If the WESM member For consistency
PROCESS - reasonably believes there reasonably believes with WESM Rules
Preliminary was an error or there was an error or Clause 2.4 that
Statements discrepancy in the discrepancy in the Indirect WESM
preliminary statement preliminary statement Members will
given to the WESM given to the Direct transact through a
Member by the Market WESM Member by the Direct WESM
Operator under this Market Operator under Member, only
clause 3.14.4, the WESM this clause 3.14.4, the Direct WESM
member shall notify the Direct WESM member Members may
Market Operator as soon shall notify the Market report errors in
as practicable of that error Operator as soon as the settlement
or discrepancy and the practicable of that error statements.
Market Operators hall or discrepancy and the
review the preliminary Market Operators shall
statement. review the preliminary
statement.
SETTLEMENT 3.14.4.4 If the Market Operator If the Market Operator For consistency
PROCESS - considers that a considers that a with the proposed
Preliminary preliminary statement preliminary statement revision in Clause
Statements contains an error or contains an error or 3.14.4.3
discrepancy after discrepancy after
reviewing the preliminary reviewing the
statement as notified by a preliminary statement as
WESM member pursuant notified by a Direct
to clause 3.14.4.3 or as WESM member
independently identified pursuant to clause
by the Market Operator, 3.14.4.3 or as
the Market Operator shall independently identified
ensure that correction of by the Market Operator,
any error or discrepancy the Market Operator
is reflected in the relevant shall ensure that
final statements, provided correction of any error or
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that corrections requiring discrepancy is reflected
the input of an external in the relevant final
party are received by the statements, provided
Market Operator at least that corrections
two Working Days before requiring the input of an
the deadline of the external party are
issuance of the final received by the Market
statements. If the Market Operator at least two
Operator receives notice Working Days before
of an error, discrepancy or the deadline of the
correction of an earlier issuance of the final
identified error after their statements. If the
relevant deadlines, clause Market Operator
3.14.9.2 shall apply. receives notice of an
error, discrepancy or
correction of an earlier
identified error after their
relevant deadlines,
clause 3.14.9.2 shall
apply.
SETTLEMENT 3.14.5.1 No later than eighteen No later than eighteen For consistency
PROCESS – days after the end of each days after the end of with WESM Rules
Final Statements billing period, the Market each billing period, the Clause 2.4 that
Operator shall give to Market Operator shall Indirect WESM
each WESM member who give to each Direct Members will
has engaged in market WESM member who transact through a
transactions in that billing has engaged in market Direct WESM
period a final statement transactions in that Member, the
stating the amounts billing period a final settlement
payable by the WESM statement stating the transactions of
member to the Market amounts payable by the Indirect WESM
Operator or payable by Direct WESM member, Members will only
the Market Operator to including the be reflected in the
the WESM member in transactions of its settlement
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respect of the relevant Indirect WESM statements of the
billing period. members, if any, to the Direct WESM
If the eighteenth day falls Market Operator or Members.
on a Non-Working Day, payable by the Market
the issuance of the final Operator to the Direct
statements shall be made WESM member,
during the next immediate including the
Working Day. transactions of its
Indirect WESM
members, if any, in
respect of the relevant
billing period.
SETTLEMENT 3.14.6 No later than 3.00 pm on No later than 3.00 pm Consistent with
PROCESS – the twenty-fifth day of the on the twenty-fifth day of the proposal that
Payment by calendar month following the calendar month only Direct WESM
Trading the billing period, each following the billing Members will
Participant WESM member shall pay period, each Direct receive settlement
to the Market Operator in WESM member shall statements, the
cleared funds the pay to the Market revision is
settlement amount (if any) Operator in cleared proposed to
stated to be payable to funds the settlement clarify that Direct
the Market Operator by amount (if any) stated to WESM Members
that WESM member in be payable to the are required to
that WESM member's Market Operator by that settle their
final statement, whether Direct WESM member obligations in the
or not the WESM member in that Direct WESM WESM.
disputes, or continues to member's final
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dispute, the amount statement, whether or
payable. not the Direct WESM
If the twenty-fifth day of member disputes, or
the calendar month continues to dispute, the
following the billing period amount payable.
falls on a Non-Working If the twenty-fifth day of
Day, the payment due the calendar month
date shall be moved to following the billing
the next immediate period falls on a Non-
Working Day. Working Day, the
payment due date shall
be moved to the next
immediate Working Day.
XXX
SETTLEMENT 3.14.10.2 By no later than the time By no later than the time Consistent with
PROCESS – and date specified by the and date specified by the proposal that
Payment of Market Operator pursuant the Market Operator only Direct WESM
Adjustments to clause 3.14.10.1, each pursuant to clause Members will
WESM member shall pay 3.14.10.1, each Direct receive settlement
to the Market Operator in WESM member shall statements, the
cleared funds the net pay to the Market revision is
amount (if any) stated to Operator in cleared proposed to
be payable by that WESM funds the net amount (if clarify that Direct
member in the revised any) stated to be WESM Members
statement issued to it payable by that Direct are required to
under clause 3.14.9. WESM member in the settle their
revised statement obligations in the
issued to it under clause WESM.
3.14.9.
PRUDENTIAL 3.15.2.2 The Market Operator may The Market Operator For consistency
REQUIREMENTS exempt WESM members may exempt Direct with WESM Rules
– Provision of from the requirement to WESM members from Clause 2.4 that
Security provide a security under the requirement to Indirect WESM
clause 3.15.2.1,if: provide a security under Members will
clause 3.15.2.1,if: transact through a
(a) the Market Operator Direct WESM
believes it is likely that the (a) the Market Operator Member, it is
amount payable by the believes it is likely that proposed to
Market Operator to that the amount payable by clarify that only
WESM Member under the the Market Operator to Direct WESM
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WESM Rules will that Direct WESM Members are
consistently exceed the Member under the assessed for
amount payable to the WESM Rules will prudential
Market Operator by that consistently exceed the requirements.
WESM member under the amount payable to the
WESM Rules in respect of Market Operator by that
that period; or Direct WESM member
under the WESM Rules
(b) the Market Operator in respect of that period;
believes it is unlikely that or
the WESM member will
be required to pay any (b) the Market Operator
amounts to the Market believes it is unlikely
Operator; or that the Direct WESM
member will be required
(c) Deleted to pay any amounts to
the Market Operator; or
(c) Deleted
PRUDENTIAL 3.15.10.1 The Market Operator shall The Market Operator For consistency
REQUIREMENTS review, on a monthly shall review, on a with the proposed
– Monitoring basis, its actual exposure monthly basis, its actual revisions that only
to each WESM member in exposure to each Direct Direct WESM
respect of previous billing WESM member in Members will
periods in accordance respect of previous receive settlement
with the WESM Rules. billing periods in statements and
accordance with the pay to the WESM
WESM Rules.
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PRUDENTIAL 3.15.11.1 If the Market Operator If the Market Operator The revision is
REQUIREMENTS calculates that its calculates that its being proposed to
– Margin Calls exposure to a WESM exposure to a Direct clarify that only
member exceeds the WESM member Direct WESM
WESM member's trading exceeds the Direct Members are
limit, then the Market WESM member's monitored for
Operator shall make a trading limit, then the compliance with
Margin Call on that Market Operator shall prudential
WESM member by notice make a Margin Call on requirements.
to the WESM member in that Direct WESM
writing (Margin Call member by notice to the
Notice). Direct WESM member
in writing (Margin Call
Notice).
METERING - 4.3.1.1 Before a Trading Before a Trading Requirement to
OBLIGATIONS Participant who is a Direct Participant who is a have a meter
OF TRADING WESM Member will be Direct WESM Member applies to both
PARTICIPANTS permitted by the Market will be permitted by the Direct and Indirect
Operator to participate in Market Operator to WESM Members
the spot market in respect participate in the spot
of a market trading node, market in respect of a
the Trading Participant market trading node, the
shall ensure that: Trading Participant shall
(a) Each of its assigned ensure that:
market trading node has a (a) Each of its assigned
metering installation; market trading node has
(b) Each metering a metering installation;
installation has been (b) Each metering
installed in accordance installation has been
with this chapter4 and in installed in accordance
accordance with the Grid with this chapter4 and in
Code and Distribution accordance with the
Code; and Grid Code and
(c) Each metering Distribution Code; and
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installation is registered (c) Each metering
with the Market Operator. installation is registered
with the Market
Operator.
METERING - 4.3.1.2 The Market Operator may The Market Operator Requirement to
OBLIGATIONS refuse to permit a Trading may refuse to permit a have WESM-
OF TRADING Participant who is a Direct Trading Participant who compliant meters
PARTICIPANTS WESM member to is a Direct WESM applies to both
participate in the spot member to participate in Direct and Indirect
market in respect of any the spot market in WESM Members
assigned market trading respect of any assigned
node if the metering market trading node if
installation associated the metering installation
with that market trading associated with that
node does not comply market trading node
with the provisions of this does not comply with
chapter 4, the Grid Code the provisions of this
and Distribution Code. chapter 4, the Grid Code
and Distribution Code.
ELECTION OF 4.3.2.1 A Trading Participant who A Trading Participant An Indirect
METERING is a Direct WESM who is a Direct WESM WESM Member
SERVICES member shall: member shall: may opt to sign
PROVIDER BY A the Metering
TRADING (a) Elect a Metering (a) Elect a Metering Services
PARTICIPANT Services Provider who will Services Provider who Agreement so
have responsibility for will have responsibility that the same
arranging for the for arranging for the arrangement may
provision, installation, provision, installation, be used when it
testing, calibration and testing, calibration and changes its Direct
maintenance of each maintenance of each WESM Member
metering installation for metering installation for counterparty.
which that Trading which that Trading
Participant is financially Participant is financially
responsible; responsible;
WESM Manual on Registration, Suspension and De-Registration Criteria and Procedures Issue 5.2
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LEVEL OF 2.3.1 A Trading Participant A Trading Participant or It is proposed that
PARTICIPATI or an Ancillary an Ancillary Services entities that would
ON AND Services Provider Provider may be prefer to trade
INDIRECT may be registered in registered in the WESM indirectly in the
WESM the WESM as either as either a Direct WESM WESM be
MEMBERSHIP a Direct WESM Member or Indirect registered by their
Member or Indirect WESM Member - Direct WESM
WESM Member - Members instead
2.3.1.1. XXX of registering by
2.3.1.1. XXX themselves since
2.3.1.2. A person or entity they would be
2.3.1.2. A person or that wishes to indirectly transacting
entity that wishes to trade in the WESM shall through that Direct
indirectly trade in the elect a Direct WESM WESM Member.
WESM shall register Member as its
with the Market counterparty which, on
Operator as an its behalf, shall register
Indirect WESM that person or entity
Member, provided, with the Market Operator
however, that an as an Indirect WESM
Indirect WESM Member, and provided,
Member can only however, that
transact through a an Indirect WESM
Direct WESM Member, can only
Member. transact through that a
Direct WESM Member.
CHANGE IN 3.4.1 3.4.1 A Direct WESM 3.4.1 A Direct WESM For consistency
LEVEL OF 3.4.3.1 member that member that with WESM Rules
PARTICIPATI 3.4.3.2 wishes to wishes to become Clause 2.4 that
ON AND become an an Indirect WESM Indirect WESM
CHANGE OF Indirect WESM member shall elect Members will
COUNTERPA member shall a Direct WESM transact through a
RTY OF file a new Member which Direct WESM
INDIRECT application and shall file a new Member, the
WESM be approved by application on its incoming Direct
MEMBERS the Market behalf and be WESM Member
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Operator as approved by the should notify the
such in Market Operator as Market Operator
accordance such in accordance of the change in
with the with the level of
requirements requirements and participation of the
and procedures procedures for incoming Indirect
for Indirect Indirect WESM WESM Member.
WESM members set forth
members set in this Manual.
forth in this
Manual. 3.4.2 XXX
XXX
GOVERNING APPENDI 4.3.2.1 A Trading 4.3.2.1 A Trading The revision is
PROVISIONS XC Participant who Participant who is proposed to reflect
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WESM Manual on Metering Standards and Procedures Issue 12.0
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OF THE is a Direct a Direct WESM the proposed
WESM RULES WESM member member shall: change in the
shall: (a) Elect a WESM Rules.
(a) Elect a Metering Services
Metering Services Provider who will
Provider who will have responsibility
have for arranging for
responsibility for the provision,
arranging for the installation, testing,
provision, calibration and
installation, maintenance of
testing, calibration each metering
and maintenance installation for
of each metering which that Trading
installation for Participant is
which that Trading financially
Participant is responsible;
financially
responsible; (b) Enter or
ensure the entry
of its Indirect
WESM Member
into an agreement
with the Metering
Services
Provider(s) which
includes the
terms and
conditions for the
provision,
installation and
maintenance of
the relevant
metering
installation by the
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Metering Services
Provider, and
1
WESM Rules Clause 3.14.4.1
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amount payable by amount payable by or
or to that WESM to that WESM
member2. member2.
4
WESM Rules Clause 3.14.4.4
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Issuance of 4.2.2 4.2.2 Issuance of Final 4.2.2 Issuance of Final For consistency with
Final Statements Statements WESM Rules Clauses
Statements 3.14.5.1, and 3.14.5.2
a. No later than a. No later than that Indirect WESM
eighteen (18) days eighteen (18) days Members will transact
after the end of after the end of through a Direct
each billing period, each billing period, WESM Member, the
the Market Operator the Market Operator settlement
shall give to each shall give to each transactions of Indirect
WESM member Direct WESM WESM Members will
who has engaged member who has only be reflected in the
in market engaged in market settlement statements
transactions in that transactions in that of the Direct WESM
billing period a final billing period a final Members, and only
statement stating statement stating Direct WESM
the amounts the amounts Members may report
payable by the payable by the errors in the
WESM member to Direct WESM settlement statements.
the Market Operator member, including
or payable by the the transactions of
Market Operator to its Indirect WESM
the WESM member members, if any, to
in respect of the the Market Operator
relevant billing or payable by the
period. If the Market Operator to
eighteenth day falls the Direct WESM
on a Non-Working member, including
Day, the issuance the transactions of
of the final its Indirect WESM
statements shall be members, if any, in
made during the respect of the
next immediate relevant billing
Working Day5. period. If the
b. The final statements eighteenth day falls
issued shall include on a Non-Working
supporting data for Day, the issuance of
all amounts payable the final statements
which shall be shall be made
sufficient to enable during the next
each WESM immediate Working
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member to audit the Day5.
calculation of the
amount payable by b. The final statements
or to that WESM issued shall include
member6. supporting data for
all amounts payable
c. XXX which shall be
sufficient to enable
each WESM
member to audit the
calculation of the
amount payable by
or to that WESM
member6.
c. XXX
c. XXX
Payment of 5.2.1 Where the settlement Where the settlement Consistent with the
Settlement amount for a WESM amount for a Direct proposal that only
Amount member is a negative WESM member is a Direct WESM
amount, the WESM negative amount, the Members will receive
member shall pay that Direct WESM member settlement statements,
amount to Market shall pay that amount to the revision is
Operators accordance Market Operators in
proposed to clarify that
with Section 5.3.1of this accordance with Section
7
WESM Rules Clause 3.14.9.2
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Manual. Where the 5.3.1 of this Manual. Direct WESM
settlement amount for a Where the settlement Members are required
WESM member is a amount for a Direct to settle their
positive amount, Market WESM member is a obligations in the
Operator shall pay that positive amount, Market WESM and will
amount to the WESM Operator shall pay that receive payments from
Member in accordance amount to the Direct
the WESM.
with Section 5.3.2of this WESM Member in
Manual. accordance with Section
5.3.2 of this Manual.
Payment of 5.2.2 The maximum total The maximum total Consistent with the
Settlement payment which the payment which the proposal that only
Amount Market Operator is Market Operator is Direct WESM
required to pay in required to pay in respect Members will receive
respect of any billing of any billing period is settlement statements,
period is equal to the equal to the aggregate of; the revision is
aggregate of;
proposed to clarify that
a. the total payments
Direct WESM
a. the total payments actually received from
actually received Direct WESM Members are required
from WESM Members in to settle their
Members in accordance with obligations in the
accordance with Section 5.3.1of this WESM and will
Section 5.3.1of this Manual; plus receive payments from
Manual; plus the WESM.
b. the total amount that
b. the total amount that the Market Operator
the Market Operator is able to actually
is able to actually draw from the
draw from the prudential security of
prudential security of the defaulting Direct
the defaulting WESM WESM Members in
Members in accordance with f) of
accordance with f) of this Manual, if one or
this Manual, if one or more WESM
more WESM Members is in default;
Members is in plus
default; plus
c. other sources of funds
Payment of 5.2.4 If the total payments If the total payments Consistent with the
Settlement actually received or actually received or proposal that only
Amount drawn from the drawn from the prudential Direct WESM
prudential security by security by the Market Members will receive
the Market Operator for Operator for a particular settlement statements,
a particular billing period billing period is
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is insufficient to pay for insufficient to pay for the the revision is
the total amounts total amounts payable to proposed to clarify that
payable to the WESM the WESM Members, the Direct WESM
Members, the total total payments received Members are required
payments received and and drawn shall be to settle their
drawn shall be distributed and paid to obligations in the
distributed and paid to the relevant Direct
WESM and will
the relevant WESM WESM Members in
receive payments from
Members in proportion proportion to the amount
to the amount payable payable to them for that the WESM.
to them for that billing billing period. Prior to the
period. Prior to the interconnection of the
interconnection of the Mindanao grid with the
Mindanao grid with the Luzon and Visayas grids,
Luzon and Visayas total payments actually
grids, total payments received or drawn from
actually received or the prudential security
drawn from the shall be determined and
prudential security shall distributed separately for
be determined and each settlement region.
distributed separately for For this purpose, the
each settlement region. Luzon and Visayas grids
For this purpose, the shall be considered as
Luzon and Visayas grids one settlement region
shall be considered as and the Mindanao grid as
one settlement region another settlement
and the Mindanao grid region.
as another settlement
region.
Payment by 5.3.1 5.3.1 Payment by 5.3.1 Payment by Trading Consistent with the
Trading Trading Participant Participant proposal that only
Participant Direct WESM
a. Subject to Section a. Subject to Section Members will receive
5.3.4, each WESM 5.3.4, each Direct settlement statements,
Member shall pay WESM Member the revision is
to the Market shall pay to the proposed to clarify that
Operator in cleared Market Operator in Direct WESM
funds, the cleared funds, the Members are required
settlement amount settlement amount to settle their
(if any) stated to be (if any) stated to be obligations in the
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payable to the payable to the WESM.
Market Operator by Market Operator by
that WESM that Direct WESM
member in that member in that
WESM member's Direct WESM
final statement no member's final
later than 3.00 pm statement no later
on the twenty-fifth than 3.00 pm on the
day of the calendar twenty-fifth day of
month following the the calendar month
billing period, following the billing
whether or not the period, whether or
WESM member not the Direct
disputes, or WESM member
continues to disputes, or
dispute, the amount continues to
payable. dispute, the amount
payable.
If the twenty-fifth
(25th) day of the If the twenty-fifth
calendar month (25th) day of the
following the billing calendar month
period falls on a following the billing
Non-Working Day, period falls on a
the payment due Non-Working Day,
date shall be the payment due
moved to the next date shall be moved
immediate Working to the next
Day. immediate Working
Day.
b. After receiving
payment from the b. After receiving
WESM Member, payment from the
the Market Operator Direct WESM
shall validate and Member, the Market
determine any Operator shall
discrepancy validate and
between the determine any
amount billed and discrepancy between
the amount the amount billed
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collected. and the amount
collected.
c. XXX
c. XXX
d. XXX
d. XXX
Payment to the 5.3.2 Subject to Section 5.3.4, Subject to Section 5.3.4, Consistent with the
Trading the Market Operator the Market Operator shall proposal that only
Participants shall pay to each WESM pay to each Direct Direct WESM
Member in cleared WESM Member in Members will receive
funds the settlement cleared funds the settlement statements,
amount (if any) stated to settlement amount (if the revision is
be payable in that any) stated to be payable proposed to clarify that
WESM member's final in that Direct WESM Direct WESM
statement on the member's final statement Members will receive
following Working Day on the following Working payments from the
after the Market Day after the Market WESM.
Operator is to be paid Operator is to be paid
under Section 5.3.1 of under Section 5.3.1 of
this Manual, and in this Manual, and in
accordance with the accordance with the
schedule set in the schedule set in the
Appendix A of this Appendix A of this
Manual. Manual.
Payment of 5.3.3 5.3.3 Payment of 5.3.3 Payment of Consistent with the
Adjustment Adjustment Adjustment proposal that only
Direct WESM
a. Subject to Section a. Subject to Section Members will receive
5.3.4, each WESM 5.3.4, each Direct settlement statements,
Member shall pay to WESM Member shall the revision is
the Market Operator pay to the Market
proposed to clarify that
in cleared funds the Operator in cleared
Direct WESM
net amount (if any) funds the net amount
stated to be payable (if any) stated to be Members are required
by that WESM payable by that to settle their
member in the Direct WESM obligations in the
revised statement member in the WESM and will
issued to it under revised statement receive payments from
Section 4.2.4 of this issued to it under the WESM.
Manual, no later than Section 4.2.4 of this
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the time and date Manual, no later than
specified by the the time and date
Market Operator specified by the
pursuant to Section Market Operator
4.2.4c) of this pursuant to Section
Manual. 4.2.4c) of this
Manual.
b. Subject to Section b. Subject to Section
5.3.4, the Market 5.3.4, the Market
Operator shall pay to Operator shall pay to
each WESM each Direct WESM
Member in cleared Member in cleared
funds the net amount funds the net amount
(if any) stated to be (if any) stated to be
payable to that payable to that
WESM member in Direct WESM
the revised member in the
statement issued to revised statement
it under Section issued to it under
4.2.4 of this Manual, Section 4.2.4 of this
on the following Manual, on the
Working Day on following Working
which the Market Day on which the
Operator is to be Market Operator is to
paid under Section be paid under
5.3.3(a) of this Section 5.3.3(a) of
Manual. this Manual.
Provisions of 7.2.1 Subject to Section 7.2.2 Subject to Section 7.2.2 For consistency with
Security of this manual, a WESM of this manual, a Direct WESM Rules Clause
member wishing to WESM member wishing 2.4 that Indirect
participate in Market to participate in Market WESM Members will
Transactions shall Transactions for its own transact through a
provide and maintain a facilities or for its Direct WESM
security complying with Indirect WESM Member, the revision
the requirements of Members, if any, shall is being proposed to
Section 7.2 of this provide and maintain a clarify that the
manual. security complying with prudential
the requirements of requirements of Direct
Section 7.2 of this WESM Members will
manual. include assessment of
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its sales and the
exposure of its Indirect
WESM Members.
Provisions of 7.2.2 The Market Operator The Market Operator may For consistency with
Security may exempt a WESM exempt a Direct WESM WESM Rules Clause
Member from the Member from the 2.4 that Indirect
requirement to provide a requirement to provide a WESM Members will
security, if: security, if: transact through a
Direct WESM
a) The Market Operator a) The Market Operator Member, it is
believes it is likely believes it is likely proposed to clarify that
that the amount that the amount only Direct WESM
payable by the payable by the Members are
Market Operator to Market Operator to assessed for
that WESM that Direct WESM prudential
Member under the Member under the requirements.
WESM Rules will WESM Rules will
consistently exceed consistently exceed
the amount payable the amount payable
to the Market to the Market
Operator by that Operator by that
WESM Member Direct WESM
under the WESM Member under the
Rules in respect of WESM Rules in
that period; or respect of that
period; or
b) The Market Operator
believes it is b) The Market Operator
unlikely that the believes it is unlikely
WESM Member will that the Direct
be required to pay WESM Member will
any amounts to the be required to pay
Market Operator any amounts to the
Market Operator
Provisions of 7.2.3 The Market Operator The Market Operator may For consistency with
Security may vary or cancel the vary or cancel the WESM Rules Clause
exemption given exemption given pursuant 2.4 that Indirect
pursuant to Sections to Sections 7.2.1 and WESM Members will
7.2.1 and 7.2.2 of this 7.2.2 of this Manual, at transact through a
Manual, at any time, by any time, by giving Direct WESM
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giving written notice of written notice of the Member, it is
the variation or variation or cancellation proposed to clarify that
cancellation of the of the exemption to the only Direct WESM
exemption to the WESM Direct WESM member. Members are
member. assessed for
prudential
requirements.
Provisions of 7.2.4 If, under Section 7.2.2of If, under Section 7.2.2of For consistency with
Security this Manual, the Market this Manual, the Market WESM Rules Clause
Operator has exempted Operator has exempted a 2.4 that Indirect
a Trading Participant Trading Participant from WESM Members will
from the requirement to the requirement to transact through a
provide a security for a provide a security for a Direct WESM
period; then the Market period; then the Market Member, it is
Operator shall not set a Operator shall not set a proposed to clarify that
Trading Limit for that Trading Limit for that only Direct WESM
WESM Member for that Direct WESM Member Members are
period during which that for that period during assessed for
exemption applies. which that exemption prudential
applies. requirements.
Provisions of 7.2.5 A WESM Member who A Direct WESM Member For consistency with
Security is exempt from providing who is exempt from WESM Rules Clause
a security deposit shall providing a security 2.4 that Indirect
be required to pay the deposit shall be required WESM Members will
total negative settlement to pay the total negative transact through a
amount due, if any, settlement amount due, if Direct WESM
within three (3) working any, within three (3) Member, it is
days before the due working days before the proposed to clarify that
date as provided under due date as provided only Direct WESM
Section 5.3.1 of this under Section 5.3.1 of Members are
Manual this Manual assessed for
prudential
requirements.
Provisions of 7.2.6 Failure to comply with Failure to comply with For consistency with
Security Section 7.2.5 of this Section 7.2.5 of this WESM Rules Clause
Manual shall be a Manual shall be a ground 2.4 that Indirect
ground for the for the cancellation of WESM Members will
cancellation of exemption and said transact through a
exemption and said failure shall cause the Direct WESM
failure shall cause the WESM Member to be Member, it is
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WESM Member to be assessed and be proposed to clarify that
assessed and be required to put up only Direct WESM
required to put up prudential requirement. Members are
prudential requirement. Upon written request of assessed for
Upon written request of the Direct WESM prudential
the WESM Member, the Member, the Market requirements.
Market Operator may lift Operator may lift the
the cancellation of cancellation of exemption
exemption from from prudential
prudential requirement, requirement, provided
provided that the WESM that the WESM Member;
Member;
XXX XXX
Provisions of 7.2.7 If a WESM Member that If a Direct WESM For consistency with
Security is exempt from Member that is exempt WESM Rules Clause
Prudential Requirement from Prudential 2.4 that Indirect
under Section 7.2.2 of Requirement under WESM Members will
this Manual becomes a Section 7.2.2 of this transact through a
net buyer and fails to Manual becomes a net Direct WESM
pay its obligations, the buyer and fails to pay its Member, it is
prudential security that obligations, the prudential proposed to clarify that
shall be imposed security that shall be only Direct WESM
pursuant to Section imposed pursuant to Members are
7.2.6 of this Manual Section 7.2.6 of this assessed for
shall be computed Manual shall be prudential
based on: computed based on: requirements.
XXX XXX
Forms of 7.3.1 The security provided by The security provided by For consistency with
Security a WESM Member under a Direct WESM Member WESM Rules Clause
f) of this manual shall under f) of this manual 2.4 that Indirect
either be in accordance shall either be in WESM Members will
with the following accordance with the transact through a
hierarchy of preferred following hierarchy of Direct WESM
forms of security: preferred forms of Member, it is
security: proposed to clarify that
XXX only Direct WESM
XXX Members shall provide
the prudential
requirements.
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Initial 7.4.1 a. The initial prudential The amount of security For consistency with
Assessment of requirement of a shall be assessed per WESM Rules Clause
Prudential WESM Member shall Direct WESM Member. 2.4 that Indirect
Requirement be calculated as the The prudential WESM Members will
average of the requirements of a Direct transact through a
projected settlement WESM Member shall Direct WESM
amount for each include its own Member, it is
complete billing transactions and the proposed to clarify that
period covered transactions of its only Direct WESM
considering the Indirect WESM Members are
following: Members. assessed for
(i). if the WESM prudential
Member aims to If the new WESM requirements.
begin trading in Member is an Indirect
the WESM before WESM Member, its
August 26 of the calculated initial
current year, the Prudential
initial prudential Requirements shall be
requirement shall considered in the
be calculated assessment of the
using the data of prudential
complete billing requirements of its
periods within Direct WESM Member.
March 26 to
September 25 of a. The initial prudential
the same year; or requirement of a
(ii) XXX WESM Member shall
be calculated as the
b. The projected average of the
settlement amount for projected settlement
each billing period of amount for each
a WESM Member complete billing period
shall be calculated covered considering
using the following the following:
formula: (i). if the WESM
Member aims to
XXX begin trading in the
WESM before
c. The WESM Member August 26 of the
shall submit the current year, the
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following information initial prudential
to the Market requirement shall
Operator for each be calculated using
dispatch interval in the data of
the period defined in complete billing
Section 7.4.1(a): periods within
March 26 to
d. The WESM Member September 25 of
shall submit to the the same year; or
Market Operator its (ii) XXX
assumptions for
determining its b. The projected
projected gross settlement amount for
energy settlement each billing period of a
quantities. The WESM Member shall
Market Operator may be calculated using the
require the WESM following formula:
Member to submit
supporting documents XXX
if necessary. The
Market Operator shall c. The Direct WESM
assist the WESM Member, for its own
Member in assessment and on
determining the behalf of its Indirect
projected gross WESM Member, if
energy settlement any, shall submit the
quantities. following information to
the Market Operator
e. XXX for each dispatch
interval in the period
f. The projected final defined in Section
energy dispatch price 7.4.1(a):
of a WESM Member
for a dispatch interval d. The Direct WESM
shall be equal to the Member shall submit to
final energy dispatch the Market Operator its
price of the assumptions for
geographically determining its own or
nearest market in behalf of its
trading node from the Indirect WESM
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connection point of Member’s, if any,
the WESM Member at projected gross energy
the same dispatch settlement quantities.
interval and most The Market Operator
recent same date. may require the Direct
WESM Member to
g. XXX submit supporting
documents if
h. Subject to 7.2.4 of this necessary. The Market
Manual, the Market Operator shall assist
Operator shall set a the Direct WESM
trading limit for each Member in determining
WESM member who the projected gross
participates in market energy settlement
transactions.48 quantities.
Assessment of 7.4.2 a. The Market Operator a. The Market Operator For consistency with
Actual shall review, on a shall review, on a the proposed revisions
Exposure and monthly basis, its monthly basis, its that only Direct WESM
Margin Call actual exposure to actual exposure to Members will receive
each WESM member each Direct WESM settlement statements
in respect of previous member in respect of and pay to the WESM.
billing periods in previous billing periods
accordance with the in accordance with the
WESM Rules. WESM Rules.
The revision is being
b. In calculating the b. In calculating the proposed to clarify that
Market Operator's Market Operator's only Direct WESM
actual exposure to a actual exposure to a Members are
WESM member Direct WESM member monitored for
under Section 7.4.2 c) under Section 7.4.2 c) compliance with
of this Manual, the of this Manual, the
prudential
Market Operator shall Market Operator shall
requirements.
take into account: take into account:
i. Outstanding i. Outstanding
settlement amounts settlement
for the WESM amounts for the
member in respect of Direct WESM
previous billing member in respect
periods; and of previous billing
periods; and
ii. Settlement amounts ii. Settlement
for the WESM amounts for the
member for the billing Direct WESM
period that will be due member for the
on the period in which billing period that
the review occurs will be due on the
based on the period in which the
available settlement review occurs
statement. based on the
available
settlement
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statement.
i. Providing to the
Market Operator
an additional
security or
securities
complying with
the requirements
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of the WESM
Rule Clause 3.15,
or
f) If a Direct WESM
member fails to satisfy
a margin call by
providing additional
security or making a
prepayment under
Section 7.4.2 d) of this
Manual, then the
Market Operator shall
issue the Direct
WESM member a
Suspension Notice in
writing in accordance
with WESM Rule
3.15.8 and 0 of this
Manual
Assessment of 7.4.3 a. Prior to the end of a. Prior to the end of For consistency with
Maximum each Financial Year, each Financial Year, WESM Rules Clause
Exposure the Market Operator the Market Operator 2.4 that Indirect
shall determine and shall determine and WESM Members will
provide written provide written transact through a
confirmation to each confirmation to each Direct WESM
WESM member of its Direct WESM Member, it is
Maximum Exposure member of its proposed to clarify that
to the Market Maximum Exposure to only Direct WESM
Operator in respect the Market Operator Members are
of a billing period in in respect of a billing assessed for
the following period in the following prudential
Financial Year. The Financial Year. The requirements.
amount of security to amount of security to
be provided by each be provided by each For consistency with
WESM member Direct WESM WESM Rules Clause
pursuant to Section member pursuant to 2.4 that Indirect
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7.2.1 and 7.2.2 of Section 7.2.1 and WESM Members will
this Manual shall be 7.2.2 of this Manual transact through a
equivalent to the shall be equivalent to Direct WESM
Maximum Exposure the Maximum Member, it is
Exposure. proposed to clarify that
b. The Market Operator only Direct WESM
may review its b. The Market Operator Members shall provide
method of may review its method the prudential
determination of a of determination of a requirements.
WESM member's Direct WESM
Maximum Exposure member's Maximum
at any time, provided Exposure at any time,
that any change to a provided that any
WESM member's change to a Direct
Maximum Exposure WESM member's
will apply no earlier Maximum Exposure
than thirty (30) days will apply no earlier
following receipt of than thirty (30) days
written notification following receipt of
from the Market written notification
Operator by a from the Market
WESM member of Operator by a Direct
that change, or such WESM member of
earlier period agreed that change, or such
to in writing by the earlier period agreed
PEM Board. to in writing by the
PEM Board.
c. After receipt of the
written confirmation, c. After receipt of the
the WESM Member written confirmation,
shall determine if the the Direct WESM
calculated amount by Member shall
the Market Operator determine if the
is equivalent to its calculated amount by
expected Maximum the Market Operator is
Exposure in the equivalent to its
following financial expected Maximum
year. Exposure in the
following financial
d) The WESM Member year.
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shall provide
additional security to d) The Direct WESM
Market Operator to Member shall provide
cover its Maximum additional security to
Exposure. Market Operator to
cover its own and its
e) Each WESM member Indirect WESM
shall ensure that at Member’s, if any,
all times the Maximum Exposure
aggregate undrawn
and unclaimed e) Each Direct WESM
amounts of current member shall ensure
and valid security that at all times the
held by the Market aggregate undrawn
Operator in respect and unclaimed
of that WESM amounts of current
member is not less and valid security held
than that WESM by the Market
member's Maximum Operator in respect of
Exposure. that Direct WESM
member is not less
f) To diminish the than that Direct
possibility of WESM member's
incurring a Margin Maximum Exposure.
Call under Section
7.4.2a) of this f) To diminish the
Manual, a WESM possibility of incurring
member may provide a Margin Call under
a security or Section 7.4.2a) of this
securities in Manual, a Direct
accordance with WESM member may
Section 7.3 of this provide a security or
Manual for an securities in
aggregate amount accordance with
that exceeds its Section 7.3 of this
Maximum Exposure. Manual for an
aggregate amount
If said additional that exceeds its
security or securities Maximum Exposure.
is not in the form of
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Cash, the WESM If said additional
member shall secure security or securities
the prior written is not in the form of
determination and Cash, the Direct
approval of the WESM member shall
Market Operator. secure the prior
written determination
g) The WESM Member and approval of the
may request for a Market Operator.
recalculation of
Maximum Exposure g) The Direct WESM
if it disagrees with Member may request
the amount of for a recalculation of
Maximum Exposure Maximum Exposure if
calculated by the it disagrees with the
Market Operator. amount of Maximum
Exposure calculated
h) Upon the request of a by the Market
WESM Member, the Operator.
Market Operator may
consider a h) Upon the request of a
replacement month Direct WESM
within the 26th Member, the Market
March to 25th Operator may
September billing consider a
periods, having the replacement month
same number of within the 26th March
calendar days if: to 25th September
i. There is a billing periods, having
disagreement the same number of
between the calendar days if:
Market Operator i. There is a
and the WESM disagreement
Member on the between the Market
Final Statement Operator and the
during the months Direct WESM
covered in the Member on the
computation of the Final Statement
Maximum during the months
Exposure; or covered in the
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ii. XXX computation of the
Maximum
i) If there is a change in Exposure; or
the bilateral contract ii. XXX
of a WESM Member,
the Maximum i) If there is a change in
Exposure shall be the bilateral contract
computed based on of a Direct WESM
the settlement Member, the
amounts estimated Maximum Exposure
by the Market shall be computed
Operator using the based on the
Average Actual settlement amounts
Market Price based estimated by the
on the billing period Market Operator using
of 26th March to 25th the Average Actual
September. In no Market Price based
case shall the on the billing period of
Maximum Exposure 26th March to 25th
be less than ten September. In no
percent (10%) of the case shall the
total demand Maximum Exposure
multiplied by the be less than ten
Average Actual percent (10%) of the
Market Price. total demand
multiplied by the
j) If the Market Operator Average Actual
determines that the Market Price.
security provided by
a WESM member is j) If the Market Operator
below the assessed determines that the
Maximum Exposure, security provided by a
the Market Operator Direct WESM
shall require such member is below the
WESM member to assessed Maximum
increase its security Exposure, the Market
deposit up to the Operator shall require
level of its Maximum such Direct WESM
Exposure within member to increase
three (3) working its security deposit up
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days after the receipt to the level of its
of the written Maximum Exposure
notification of the within three (3)
annual assessment. working days after the
If the WESM receipt of the written
member fails to notification of the
comply within the annual assessment. If
prescribed date or the Direct WESM
any later date agreed member fails to
to in writing with the comply within the
Market Operator, prescribed date or any
then the Market later date agreed to in
Operator shall issue writing with the Market
a default notice in Operator, then the
accordance with 0 of Market Operator shall
this Manual. issue a default notice
in accordance with 0
Section 6.2 of this
Manual.
Note: Please underline and put in bold letters the proposed changes to the Market Rules or Manual.