IEMOP GEOP BULLETIN NO. 5, 31 October 2023
Non-Renewal or Pre-termination of GEOP Supply Contract, Cessation, Disconnection, and
Reversion to Captive Market from the Green Energy Option Program
RATIONALE
Pursuant to the Renewable Energy Act of 2008, the Department of Energy (DOE) established the Green Energy Option Program (GEOP) which provides a mechanism for electricity end-users to source their electricity supply from renewable energy resources. To operationalize the GEOP, the DOE issued Department Circular Nos. DC2018-07-0019, entitled “Promulgating the Rules and Guidelines Governing the Establishment of the Green Energy Option Program Pursuant to the Renewable Energy Act of 2008” and DC2020-04-0009, entitled “Guidelines Governing the Issuance of Operating Permits to Renewable Energy Suppliers under Green Energy Option Program”. Further to these, the ERC issued ERC Resolution No. 08, Series of 2021 promulgating the Rules for the Green Energy Option Program (GEOP) (the “ERC GEOP Rules”) which set out the detailed rules for the implementation of GEOP. The ERC GEOP Rules took effect on 03 September 2021.
Among the salient provisions of the ERC GEOP Rules in respect to registration and customer switching are the following:
- End-Users with average peak demand equal to or greater than 100kW are eligible to participate in the GEOP and may contract with duly licensed Renewable Energy Suppliers (RE Suppliers).
- The Central Registration Body (CRB) shall process registration of GEOP participants such as RE Suppliers, GEOP End-Users, Retail Metering Service Providers and Suppliers of Last Resort.
- Similar to the handling of transactions of retail market participants, the CRB shall facilitate transactions among GEOP participants such as switching, customer relocation, termination of supply contracts and transfer to a Supplier of Last Resort.
- End-users who opted in into GEOP may voluntarily revert to being a captive customer of their Distribution Utility (DU) subject to conditions and procedures set out in Section 24 of the ERC GEOP Rules.
In its Department Circular No. DC2023-01-0004, entitled “Adopting Amendments to the WESM Rules, Retail Rules and Various Market Manuals, and Promulgation of the Retail Manual on the Procedures for the Implementation of the GEOP”, the DOE adopted the provisions for the implementation of the GEOP.
PURPOSE AND APPLICATION
This is being issued to provide guidance on the following processes involving the Central Registration Body under the GEOP:
a. Non-renewal or termination of GEOP supply contract
b. cessation
c. disconnection
d. reversion to captive market
This Bulletin and subsequent bulletins to be issued by the CRB are for guidance only and relates only to the processes involving the CRB. Readers are encouraged to refer to the relevant issuances, as listed above, as well as to related provisions of the ERC GEOP Rules, WESM Rules, Retail Rules, the WESM Registration Manual and other relevant market manuals, their GEOP supply contracts, connection agreements, distribution and wheeling services agreements and other relevant agreements.
I. NON-RENEWAL OR PRE-TERMINATION OF SUPPLY CONTRACT
Below is the summary of requirements and timeline for non-renewal or pre-termination of GEOP supply contract.
1. Non-renewal RE Supplier / GEOP End-User Notice of non-renewal to the:
a. GEOP End-User / RE Supplier
b. CRB
At least thirty (30) business days prior to the expiration of such contract. [1]
CRB Forward the notice of Non-Renewal to the Network Service Provider (NSP) Within one (1) working day from receipt thereof.[1]
NSP Update or terminate relevant wheeling services agreement, as applicable Within three (3) working days [2]
2. Pre-termination GEOP End-User Inform the RE Supplier As provided in their GEOP supply contract [3]
RE Supplier Submit Notice of Termination to the CRB
Note: If RE Supplier intends to pre-terminate the contract instead, the supplier shall send a Notice of Termination to the GEOP End-User, CRB, and to the relevant NSP and MSP. [5]Within one (1) working day from the effectivity of the pre-termination. [4]
CRB Forward the notice of pre-termination to the NSP Within one (1) working day from receipt thereof. [6]
NSP Update or terminate relevant wheeling services agreement, as applicable Within three (3) working days [6]
In case of non-renewal or pre-termination, a GEOP end-user may exercise either of its following options:
a. Switch to another supplier (Please see Bulletin No. 3.3 for reference.)
b. Transfer to a Supplier of Last Resort (Please see Bulletin Nos. 6 and 3.3 for reference on the procedures.)
c. Revert to being a captive end-user (Please see Item II.2. of this Bulletin.)
Exercise of these processes is subject to their respective timelines.
II. CESSATION
Below is the summary of requirements and timeline for cessation.
1. Disconnection from its network Incumbent RE Supplier; or
Supplier of Last ResortNotice of Cessation to the CRB with the following:
a. the cessation is due to disconnection;
b. date of cessation;
c. proof of disconnection of the GEOP end-user
d. notice of cessation to the NSP
e. proof of NSP’s receipt of notices of cessation
f. [If the End-User is Indirect WESM member] Notice of cessation to System Operator (SO) and proof of receipt by SO;Effective date of cessation shall not be less than thirty (30) business days after the RE supplier or Supplier of Last Resort sends notice [7]
2. Reversion to the Captive Market Incumbent RE Supplier; or
Supplier of Last ResortExisting of any of the following conditions or circumstances:
a. The GEOP end-user has fulfilled its contractual obligations to the RE Supplier
b. It has executed an agreement for the supply of electricity through the Distribution Utility, in accordance with the Distribution Services and Open Access Rules (DSOAR);
c. Its average peak demand has decreased below 75% of 100kW for the immediately preceding six (6) consecutive months and the same is not attributable to seasonal demand as confirmed by the CRB and MSP, upon written request of the RE Supplier to the DU
d. Any of the last resort supply events (Please see IEMOP Bulletin Nos. 6 and 3.3 for the process);
e. Its contract with a Supplier of Last Resort has exceeded the maximum period.Effective date of cessation shall not be less than thirty (30) business days after the RE supplier or Supplier of Last Resort sends notice [8]
Notice of Cessation to the CRB with the following:
a. the cessation is due to reversion to the captive market;
b. Proof of receipt of notice of reversion from the GEOP end-user to its incumbent RE Supplier and NSP;
c. NSP’s confirmation that the GEOP end-user has met the conditions for reversion which must be specified in such confirmation, as applicable;
d. Confirmation from the incumbent RE Supplier or Supplier of Last Resort has fulfilled all contractual obligations;
e. Specific ground for reversion to the Captive Market
GEOP end-user The GEOP end-user has not previously exercised its option to revert to the captive market Past twelve (12) months [9]
III. DISCONNECTION AND RECONNECTION
Below is the summary of the process for disconnection and disconnection due to non-payment by a GEOP end-user.
1. Disconnection RE Supplier 1. Send notice of disconnection due to non-payment to the following:
a. GEOP end-user
b. CRB
Forty-eight (48) hours prior to disconnection.
Note: Notices of disconnection to the CRB will be deemed received if sent during working hours and days – i.e. 8AM-5PM, Mondays-Fridays, excluding non-working holidays. If a notice is sent outside the working hours and days, it shall be deemed received the next working day.
CRB 2. Forward the notice of disconnection to the NSP. Within twenty-four (24) hours from such receipt.
RE Supplier 3. Send a request for disconnection to the CRB upon determination that the GEOP end-user has not settled its obligation Within forty-eight (48) hours prior to disconnection.
Note: Notices of disconnection to the CRB will be deemed received if sent during working hours and days – i.e. 8AM-5PM, Mondays-Fridays, excluding non-working holidays. If a notice is sent outside the working hours and days, it shall be deemed received the next working day.
CRB 4. Forward the request for disconnection to the NSP. Within twenty-four (24) hours from such receipt.
NSP 5. Disconnect and notify the CRB of such disconnection Within twenty-four (24) hours from receipt of request.
2. Reconnection RE Supplier 1. Submit a request for reconnection to the CRB upon determination that the grounds for disconnection has been remedied Immediately.
Note: Notices of disconnection to the CRB will be deemed received if sent during working hours and days – i.e. 8AM-5PM, Mondays-Fridays, excluding non-working holidays. If a notice is sent outside the working hours and days, it shall be deemed received the next working day.
CRB 2. Forward the request for reconnection to the NSP Within twenty-four (24) hours from such receipt.
IV. TRANSACTIONS WITH THE CRB
Please be reminded that the CRB shall only transact and recognize formal submissions for the foregoing process thru the parties’ designated contact persons to the CRB.
Communications relating to the foregoing processes may be sent to rss.geop@iemop.ph.
V. REFERENCES AND INQUIRIES
a. References
Copies of ERC GEOP Rules, RCOA-GEOPP Manual, DOE DC2018-07-0019, DOE DC2020-04-0009, and DOE DC2023-01-0004 are attached to this Bulletin.
b. Data Privacy Policy
IEMOP processes relevant personal information in accordance with its data privacy policy. IEMOP’s Privacy Notice may be viewed or downloaded via https://www.iemop.ph/about/legal-and-privacy/.
c. Inquiries
Should you have any questions, please feel free to get in touch with us through our IEMOP Central Ticketing System at https://cts.iemop.ph/.
Download references here:
ERC GEOP Rules
RCOA-GEOP Manual
DC2023-01-0004
DOE DC2018-07-0019
DOE DC2020-04-0009
[1] ERC Resolution No. 08 Series of 2021, “ERC GEOP Rules” Clause 23.1, Retail Manual on Green Energy Option Program Procedures (RCOA-GEOPP) Clause 3.8.4
[2] ERC Resolution No. 08 Series of 2021, “ERC GEOP Rules” Clause 23.2, Retail Manual on Green Energy Option Program Procedures (RCOA-GEOPP) Clause 3.8.4
[3] ERC Resolution No. 08 Series of 2021, “ERC GEOP Rules” Clause 22.1, Retail Manual on Green Energy Option Program Procedures (RCOA-GEOPP) Clause 3.8.1
[4] ERC Resolution No. 08 Series of 2021, “ERC GEOP Rules” Clause 22.2, Retail Manual on Green Energy Option Program Procedures (RCOA-GEOPP) Clause 3.8.1
[5] ERC Resolution No. 08 Series of 2021, “ERC GEOP Rules” Clause 22.5
[6] ERC Resolution No. 08 Series of 2021, “ERC GEOP Rules” Clause 22.3
[7] Retail Manual on Green Energy Option Program Procedures (RCOA-GEOPP) Clause 2.5.5b
[8] Retail Manual on Green Energy Option Program Procedures (RCOA-GEOPP) Clause 2.5.5e
[9] ERC Resolution No. 08 Series of 2021, “ERC GEOP Rules” Clause 24.2
