IEMOP GEOP BULLETIN NO. 6, 31 October 2023
Last Resort Supply Events and Transfer to a Supplier of Last Resort
under the Green Energy Option Program (GEOP)
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 this, the Energy Regulatory Commission (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 last resort supply events and transfer to a Supplier of Last Resort (SOLR) are the following:
- The Renewable Energy (RE) Supplier shall inform the Central Registration Body (CRB) of the occurrence of any Last Resort Supply Events enumerated in ERC GEOP Rules Section 25 and listed also in Part I of this Bulletin.
- The Network Service Provider shall be the default Supplier of Last Resort (SOLR) in case of occurrence and subsistence of any of the Last Resort Supply Events under ERC GEOP Rules Section 25.
- The GEOP End-User may revert to being a captive end-user upon the occurrence of any of the Last Resort Supply Events under ERC GEOP Rules Section 25.
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 matters involving the Central Registration Body under the GEOP:
a. Grounds for transferring to a SOLR
b. Procedure on transferring to a SOLR
c. SOLR maximum service period
This Bulletin and subsequent bulletins to be issued by the CRB are for guidance only and relate only to 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, and other relevant market manuals.
I. CONDITIONS FOR RESORTING TO SOLR
The GEOP End-User, who opts to remain a GEOP End-User, may avail of the services of the SOLR if both conditions below are satisfied:
- Upon the occurrence of any of the following Last Resort Supply Events (LRSE):[1]
a. The RE Supplier has ceased to operate;
b. The RE Supplier’s RES license has expired or been revoked by the ERC;
c. The RE Supplier’s GEOP Operating Permit has been revoked by the DOE;
d. The Distribution Wheeling Services Agreement (DWSA) between the RE Supplier and the DU has been terminated;
e. The Transmission Service Agreement (TSA) between the RE Supplier/GEOP End-User and TransCo or its successors-in interest or concessionaire has been terminated;
f. The RE Supplier is no longer permitted to trade electric energy through the WESM;
g. Failure to renew or secure a new GEOP Supply Contract; or
h. Any other analogous event that the ERC may deem as a Last Resort Supply Event.
- The host Distribution Utility of the GEOP End-User is a registered Supplier of Last Resort under GEOP with the IEMOP-CRB. [2] For DUs that are yet to register as a GEOP SOLR, please refer to GEOP Bulletin 1.1 for guidance.
II. PROCEDURE ON TRANSFERRING TO A SOLR
1. Determination of the last resort supply event RE Supplier 1. The RE Supplier shall notify IEMOP-CRB and GEOP End-User upon the occurrence of any last resort supply events listed in Part I and submit relevant documents to the CRB as proof.
Within the hour of discovery of the occurrence of the last resort supply event.[3] ERC GEOP Rules Section 26.1
RCOA-GEOPP Manual Section 3.9.2
GEOP End-User 2. The GEOP End-User shall inform IEMOP-CRB that it will avail of the SOLR service. Within two (2) working days after being notified by the RE Supplier of the occurrence of the last resort supply event.[4] ERC GEOP Rules Section 26.2
RCOA-GEOPP Manual Section 3.9.3
IEMOP-CRB 3. IEMOP-CRB shall send notices to the GEOP End-User and Supplier of Last Resort of the effective date of the GEOP End-User’s transfer to SOLR service Within one (1) working day upon the receipt of the notice from the GEOP End-User and determination of the occurrence of the last resort supply event.[5]
ERC GEOP Rules Section 26.3a
RCOA-GEOPP Manual Section 3.9.4
2. Preparation for the commencement of SOLR service SOLR 1. The SOLR shall inform the GEOP End-User the following:
a. The SOLR service shall commence on the effective date of transfer;
b. The details of the terms and conditions of the SOLR contract and the applicable rates;[6]
c. The GEOP End-User’s right to transfer to an RE Supplier, revert to the captive market, or, if GEOP End-User is a DCC, purchase its energy from the WESM; and,
d. Information on other RE Suppliers and where and how to obtain such information.Within one (1) working day upon receipt of the notice from the IEMOP-CRB.[7] ERC GEOP Rules Section 26.3b
RCOA-GEOPP Manual Section 3.9.5
GEOP End-User 2. If GEOP End-User agrees on the terms and conditions of the SOLR contract, they shall:
a. Sign the SOLR contract; and,
b. Pay the corresponding deposit, which is equivalent to one (1) month total estimated billing based on the average of previous or forecasted six (6) months’ demand and energy usage. [8]ERC GEOP Rules Section 26.3(c-d)
RCOA-GEOPP Manual Section 3.9.6
3. Transfer to SOLR RE Supplier 1. The SOLR submits a switch request[9] to the CRB for evaluation[10] accompanied by the following documentary requirements:
a. An accomplished Switch Request Form
b. Copy of the SOLR contract
c. Copy of valid Distribution Wheeling Services Agreement (DWSA)
d. Copy of valid Metering Service Agreement (MSA)
e. Connection Agreement between a GEOP End-User and its Network Service Provider
f. Prudential Requirements
g. Proofs of authority of relevant parties
2. The SOLR conducts a special meter reading, subject to special meter reading charges, of the GEOP End-User’s usage to delineate the consumption between the RE Supplier and the SOLR.
3. The date of the final meter reading shall be the commencement date of SOLR service.Immediately, within one (1) working day upon signing of the SOLR contract and payment of deposit, and no later than two (2) working days after being notified of the occurrence of the Last Resort Supply Event.[11] ERC GEOP Rules Section 26.3(e-g) and Section 27
RCOA-GEOPP Manual Section 3.9.6 and 3.9.7
A GEOP End User who opts not to avail or fails to transfer to SOLR service shall revert to being a Captive End-User, subject to conditions and procedures set out in ERC GEOP Rules Section 24 and RCOA-GEOPP Section 3.5. For the specific requirements and timeline, kindly also refer to IEMOP GEOP Bulletin No. 5.
GEOP Transfer to SOLR timeline
III. SOLR MAXIMUM SERVICE PERIOD
Please be informed that the SOLR contract can only be renewed up to a maximum of two (2) more billing cycles[12]. Upon the end of the SOLR service term, the GEOP End-User may:
- Switch to another RE Supplier; or
- Revert to the Captive Market
IV. TRANSACTIONS WITH THE CRB
Please be reminded that the CRB shall only transact and recognize formal submissions for the foregoing process through 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, DC2023-01-0004, and DOE DC2018-07-0019 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.
Download references here:
ERC GEOP Rules
RCOA-GEOP Manual
DC2023-01-0004
DOE DC2018-07-0019
[1] ERC Resolution No. 8 Series of 2021, “ERC GEOP Rules” Section 25, Retail Manual on the Green Energy Option Program Procedures (RCOA-GEOPP) Issue 1.0 Section 3.9.1
[2] Retail Manual on the Green Energy Option Program Procedures (RCOA-GEOPP) Issue 1.0 Section 2.7.1
[3] ERC Resolution No. 8 Series of 2021, “ERC GEOP Rules” Section 26.1, Retail Manual on the Green Energy Option Program Procedures (RCOA-GEOPP) Issue 1.0 Section 3.9.2
[4] ERC Resolution No. 8 Series of 2021, “ERC GEOP Rules” Section 26.2, Retail Manual on the Green Energy Option Program Procedures (RCOA-GEOPP) Issue 1.0 Section 3.9.3
[5] ERC Resolution No. 8 Series of 2021, “ERC GEOP Rules” Section 26.3a, Retail Manual on the Green Energy Option Program Procedures (RCOA-GEOPP) Issue 1.0 Section 3.9.4
[6] Retail Manual on the Green Energy Option Program Procedures (RCOA-GEOPP) Issue 1.0 Section 3.9.5
[7] ERC Resolution No. 8 Series of 2021, “ERC GEOP Rules” Section 26.3b
[8] ERC Resolution No. 8 Series of 2021, “ERC GEOP Rules” Section 26.3(c-d)
[9] The Switch Request will follow the same seven (7) working-day timeline as indicated in GEOP Bulletin 3.2.
[10] Retail Manual on the Green Energy Option Program Procedures (RCOA-GEOPP) Issue 1.0 Section 3.9.7
[11] ERC Resolution No. 8 Series of 2021, “ERC GEOP Rules” Section 26.3(e-g), Section 27, Retail Manual on the Green Energy Option Program Procedures (RCOA-GEOPP) Issue 1.0 Section 3.9.6
[12] ERC Resolution No. 8 Series of 2021, “ERC GEOP Rules” Section 29
