[Link] | INFO@IEMOP.
PH | @IEMOPINFO
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 Lines
(Distribution Utility) (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
[Link]
RE SUPPLIER
CONTRACT
PARAMETERS
• [Link]
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 ([Link]) → GEOP for advisories,
procedures, and bulletins for GEOP
TOPIC TITLE 38
Please browse IEMOP Website ([Link]) → 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
[Link]
registration@[Link]
[Link]@[Link]
SOCIAL MEDIA PLATFORMS
IEMOP WEBSITE @IEMOPinfo
[Link]
[Link] | INFO@[Link] | @IEMOPINFO
