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INTRODUCTION TO PHILIPPINE RETAIL
ELECTRICITY MARKET
IIEE NORTHERN LAGUNA CHAPTER

02 February 2023 | Online Webinar

 ABOUT IEMOP
INDEPENDENT ELECTRICITY MARKET OPERATOR OF THE PHILIPPINES

MARKET OPERATOR OF WESM CENTRAL REGISTRATION BODY OF RETAIL MARKET

REGISTRATION REGISTRATION

PRICING AND SCHEDULING CUSTOMER SWITCHING

SETTLEMENTS SETTLEMENTS

✓ Independent Market Operator (IMO)

✓ Acts as the Market Operator (MO) that administers the operation of the WESM (Currently in Luzon and Visayas grids)
✓ Acts as the Central Registration Body for the implementation of the Retail Competition and Open Access (RCOA) and the Green
Energy Option Program (GEOP)
01 RETAIL COMPETITION AND
OPEN ACCESS OVERVIEW
 RETAIL MARKETS OVERVIEW 5

POWER INDUSTRY SECTORS

EPIRA Sec. 30
(Wholesale)
EPIRA Sec. 31
(Retail)

GENERATION TRANSMISSION DISTRIBUTION SUPPLY

 RETAIL MARKETS OVERVIEW 6

WHOLESALE AND RETAIL MARKET

WHOLESALE
Transmission Lines
Power Plant (NGCP)

Distribution Lines
RETAIL
(Distribution Utility)
Distribution Lines
(Distribution Utility)
Directly Connected
Customers

Embedded
Power Plants

End-Users End-Users
 RETAIL MARKETS OVERVIEW 7

BEFORE RETAIL COMPETITION

Distribution
Transmission All transactions
Charges go through the DUs

Transmission

Spot
Payment
Generation
Charges
All Customers

Spot
Generation Payment
 RETAIL MARKETS OVERVIEW 8

WITH RETAIL COMPETITION

Transmission
Charges

Distribution Customers
Transmission (Captive)

Spot
Payment
Generation
Charges
Transact in the WESM

Spot
Contestable
Generation Payment DU Charges
Customers

Spot
Generation Charges Payment

Transact through a Supplier

Retail Electricity Suppliers

 RETAIL MARKETS OVERVIEW 9

IMPACT ON ELECTRICITY COSTS

Primary impact of retail

competition is on the
generation charge in your
bills

Transmission and distribution

costs are regulated by the ERC
 RETAIL MARKETS OVERVIEW 10

POWER OF CHOICE

Without Retail Competition With Retail Competition

Electricity cost based on

negotiated terms with suppliers

Electricity cost
based on DU
contracts and supply
management – all
costs are pass-on
 RETAIL MARKETS OVERVIEW 11

SUPPLIER SWITCHING PROCESS

Enter into a Retail RES submits

Supply Contract switch request to › 7-day processing (DOE-DC-
(RSC) IEMOP 2021-06-0012)
› RES submits all required
documents to IEMOP
› IEMOP notifies parties on
completion of switch
IEMOP
› Switch Approval
(Central Registration
Body)
 RETAIL MARKETS OVERVIEW 12

SWITCH TIMELINE
Not rectified shortcomings within prescribed period, CRB notification
to Supplier that switch request will not be processed and reason thereof
SWITCH - Supplier to submit new switch request when all conditions are met. SWITCH
Notification DATE

WORKING DAYS
01 02 03 04 05 06 07 08

DEADLINE FOR DEADLINE FOR

SUBMISSION: 3PM SUBMISSION: 3PM
CRB notification to relevant parties CRB NOTIFICATION OF APPROVED
of further requirements SWITCH REQUESTS
(e.g., Prudential Requirement)
- With complete evaluated requirements
Deadline for Supplier to comply
CRB Assessment and rectify shortcomings
and Evaluation
Deadline for DU to provide to CRB
necessary lacking customer
With complete documentary requirements: information
› Signed attestations
› Total historical 12 months MQ and % projected spot exposure
› Metering requirements
› Applicable WESM requirements for CCs that intends to register in
the WESM NOTE: (If shortcoming pertains to metering requirements, DU as RMSP, to comply with standard metering
requirement and submit info to CRB within 15 WDs)
NOTE: As part of Pre-Switching Requirement:
• Supplier to submit Switch Monitoring Form for line up of CCs for switching (Supplier may send new effectivity date if original switch date is affected by metering installation)
• DUs/NSPs to provide SEIN of grid off-take metering points New effectivity date related to metering installation should not be less than three (3) WDs from 15WD deadline
 RETAIL MARKETS OVERVIEW 13

SETTLEMENT PRINCIPLES

OVERALL SETTLEMENT FRAMEWORK

Segregate Settlement Adopt WESM

• Bilateral Contracts Quantities among the Settlement
Quantity • Metered contestable customers Methodology
Quantities and the DU captive (ETA Formula)
customers
Issue WESM
Calculate WESM
Settlement Data to
Trading Amounts
WESM Members

Prices at the Market Determine prices at Grid

Prices Trading Node Off-Take Point
 RETAIL MARKETS OVERVIEW 14

BILATERAL CONTRACT DECLARATION

BCQ Nomination
Seller RES
(Generator) D-1

Supply Contract

CCs
Five-Minute BCQ
Declaration CRSS
D+1

Market
Operator
 RETAIL MARKETS OVERVIEW 15

BCQ DECLARATION PROTOCOL

Suppliers enters into a

CCs enters into a Power supply
supply contract with a agreement with a
Supplier Generator

CC1 RSC Supplier 1 PSA G1

50MWh
IEMOP
Generator
declares
BCQ to RES
CRB WESM
100MWh

CC2 RSC Supplier 2 PSA G2 Legend

Outside WESM

Through WESM
 RETAIL MARKETS OVERVIEW 16

SETTLEMENT FORMULAE
Per dispatch interval (5 minutes):
Energy Trading Amount Formula

Gross Energy Energy Trading Amount =

Settlement Quantity
(GESQ)
Gross Amount (Per Metering Point)
Gross trading amount of participant at its node
Final Energy ∑ (GESQ × FEDP)
Dispatch Price – ∑ (BCQ × FEDPS)
(FEDP)
Bilateral Amount (Per Counterparty)
Equivalent trading amount of its bilateral
contract at its specified reference node
Bilateral Contract
Quantities (BCQ)

Note: GESQ = MQ with Site Specific Loss Adjustment (SSLA)

 RETAIL MARKETS OVERVIEW 17

SAMPLE EXERCISE

2 CCs under 1 MTN

RTU

Distribution
System

MWM
Supplier

MCC1 MCC2

(CC1) (CC2) Distribution

Utility
(DU)
 RETAIL MARKETS OVERVIEW 18

RCOA SETTLEMENT ENERGY TRADING AMOUNT (RES LEVEL)

RETAIL
2 CCs under 1 MTN Assumptions: In MQ, 2 contestable customers (Registered Only to CRB)

WESM CC1 CC2 RES Captive Market

BCQ (8.00)
BCQ (As declared to RES) (4.00) (4.00)
FEDPs 4,500.00
MQ (12.00) FEDPs 4,500.00 4,500.00

FEDP 4,520.00 MQ (3.00) (2.00) (7.00)

ETA (18,240.00)
FEDP 4,520.00 4,520.00 4,520.00

Gross Trading Amount (13,560.00) (9,040.00) (31,640.00)

Equiv. TA of Bilateral
(18,000.00) (18,000.00)
Contract

Total Gross Trading Amount (22,600.00) Bilateral Amt (18,000.00)

RES Trading Amount (4,600.00) Captive TA (13,640.00)

02 GREEN ENERGY OPTION
PROGRAM
 TOPIC TITLE 20

Mechanism to empower
end-users to choose
renewable energy in meeting
their energy requirements
 21

CIRCULARS AND ISSUANCES

Department of Energy Energy Regulatory

Commission

DC2018-07-0019 ERC Resolution No. 08, Series of 2021

Promulgating the Rules and Guidelines “ERC GEOP Rules”
Governing the Establishment of the Green → Provides for the detailed rules for the
Energy Option Program Pursuant to the implementation of GEOP. The ERC GEOP
Renewable Energy Act of 2008 Rules took effect on 03 September 2021.

DC2020-04-009
Guidelines Governing the Issuance of
Operating Permits to Renewable Energy
Suppliers under Green Energy Option
Program
 22

WHEN DID THIS PROGRAM START?

03 DECEMBER 2021
START OF RE SUPPLIER REGISTRATION

03 JANUARY 2022
START OF ACCEPTANCE OF “SWITCH” REQUEST
 23

HOW DO I KNOW IF I AM QUALIFIED TO JOIN?

End-user in Criteria for eligibility

operation for

> 12 months Registered monthly average peak demand

≥ 100 kW for the past 12 months

< 12 months Estimated monthly average peak demand

≥ 300 kW for the next 12 months; or
≥ 100 kW if there is a historical monthly peak
demand of 100kW for 3 consecutive months

End-Users may verify their eligibility to the Green Energy Option Program via a notice on their
monthly electric bill indicating that they are a qualified GEOP End-User.
 24

HOW CAN I PARTICIPATE?

Renewable Energy (RE) CRB processes GEOP GEOP switch

Supplier enters into supply switch request application completed!
contract with GEOP End-Users

Renewable Energy Supplier Renewable Energy Supplier

registers with the Central submits switch request to
Registration Body (CRB) CRB
 WHAT IS THE TIMELINE TO PROCESS THE “SWITCH”? 25

PREPARATION FOR
TRANSITION PERIOD SWITCHING SWITCHING PROCESS
REQUIREMENTS

90 CD BEFORE 30 CD BEFORE SIGNING 30 CD BEFORE 7 WD BEFORE

SIGNING SUPPLY SIGNING SUPPLY OF SUPPLY EFFECTIVE EFFECTIVE EFFECTIVE
CONTRACT CONTRACT CONTRACT SWITCH DATE SWITCH DATE SWITCH DATE

SWITCH REQUEST
PROCESSING
End-User notifies Retail Metering • End-User and RE RE Supplier submits
Network Service Services Provider Supplier submits notice switch request together
Provider (NSP) of (MSPs) install of signed Supply with other requirements
intention to compliant meters Contract to NSP and CRB
participate in • End-User submits signed
GEOP Connection Agreement
(CA)/Transmission
Service Agreement (TSA)
and Metering Service
Agreement (MSA) to the
CRB
 GEOP REGISTRATION 26

SWITCH REQUEST PROCESSING TIMELINE:

Supplier shall submit Switch Notification to CRB not later than
seven (7) working days prior to the proposed effective date

𝑫𝑨𝒀 𝟏 𝑫𝑨𝒀 2 𝑫𝑨𝒀 3 𝑫𝑨𝒀 4 𝑫𝑨𝒀 5 𝑫𝑨𝒀 6 𝑫𝑨𝒀 7 𝑫𝑨𝒀 8

SWITCH DEADLINE FOR SWITCH

NOTIFICATION SUPPLIER TO EFFECTIVITY
CRB COMPLY AND CRB
with COMPLETE
NOTIFICATION RECTIFY NOTIFICATION
documentary
CRB INITIAL TO RELEVANT DEFICIENCIES OF APPROVED IF
requirements:
ASSESSMENT PARTIES OF SUPPLIER TO CRB TO SWITCH DEFICIENCIES
- Copies of AND FURTHER REQUESTS ARE NOT
START DEADLINE FOR EVALUATE
documents EVALUATION REQUIREMENTS RECTIFIED,
RECTIFYING DU TO PROVIDE RECTIFIED
- Switch Request DEFICIENCIES DEFICIENCIES CRB
TO CRB - With complete NOTIFICATION
Form with
- Deficiencies NECESSARY evaluated OF
complete requirements
LACKING DISAPPROVED
Attachments CUSTOMER SWITCH
- Metering INFORMATION REQUESTS
requirements
 GEOP REGISTRATION 33

WHO CAN I TALK TO?

The list of registered RE Suppliers are available in the IEMOP Website

https://www.iemop.ph/the-market/participants/geop-market-participants/
RE SUPPLIER
CONTRACT
PARAMETERS
• https://www.iemop.
ph/market-
reports/renewable-
energy-supplier-geop-
supplier-supply-
contract-parameters/

Note: Actual electricity rate will still depend on the contract agreement.
 RETAIL MARKETS OVERVIEW 35

WHAT IS THE IMPACT ON MY ELECTRICITY COSTS?

Primary impact of retail

competition is on the
generation charge in your
bills

Transmission and distribution

costs are regulated by the ERC
 TOPIC TITLE 37

Please browse IEMOP Website (www.iemop.ph) → GEOP for advisories,

procedures, and bulletins for GEOP
 TOPIC TITLE 38

Please browse IEMOP Website (www.iemop.ph) → MARKET INFORMATION >

Registration & Participants List to view registered RE Suppliers in GEOP.
 TALK TO US 39

TALK TO US

REGISTRATION & STAKEHOLDER CENTRAL TICKETING SYSTEM

SERVICES
https://cts.iemop.ph
registration@iemop.ph
rss.geop@iemop.ph

SOCIAL MEDIA PLATFORMS

IEMOP WEBSITE @IEMOPinfo
www.iemop.ph
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