For Posting 0917. Resolution No. 13 S024 With Annexes

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Republic of the Philippines

ENERGY REGULATORY COMMISSION


Pasig City

RESOLUTION NO. 13 , SERIES OF


2024

A RESOLUTION ADOPTING THE OMNIBUS RULES FOR


CUSTOMER CHOICE PROGRAMS IN THE RETAIL
MARKET

WHEREAS, pursuant to Sections 2 and 43 of Republic Act No. 9136,


otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA)
and its Implementing Rules and Regulations (IRR), the Energy Regulatory
Commission (ERC) is mandated to promulgate rules and regulations, and
perform regulatory functions appropriate and necessary to ensure the
successful restructuring of the Philippine Electric Power Industry;
WHEREAS, Section 31 of the EPIRA and Section 1, Rule 12 of its IRR,
mandate the implementation of Retail Competition and Open Access
(RCOA);
WHEREAS, in 2013, the ERC implemented Phase I of RCOA in Luzon
and Visayas, upon meeting all the conditions set forth by the EPIRA, allowing
electricity End-users with at least one megawatt (1MW) average monthly
peak demand to be a Contestable Customer;
WHEREAS, the EPIRA envisions that the threshold level for the
contestable market shall be gradually reduced and eventually reach
household demand level;
WHEREAS, the ERC issued Resolution No. 12, Series of 2020 titled,
Providing Policies on the Implementation of Retail Competition and Open Access
(RCOA) for Contestable Customers in the Philippines Electric Power Industry,
expanded the coverage of RCOA to include End-users with an average
monthly peak demand of at least 5ookW;
WHEREAS, Section 9 of the Republic Act No. 9513 or the Renewable
Energy Act of 2008 (RE Law), mandates the establishment of the Green
Energy Option Program (GEOP) which provides End-users the option to
choose renewable energy resources as their sources of energy;
WHEREAS, Section 6, Rule II of the IRR of the RE Law and Section
15(e) of Department of Energy (DOE) Department Circular No. (DC)
2018-07-0019 titled, Promulgating the Rules and Guidelines Governing the
Establishment of the Green Energy Option Program, mandated the ERC to issue
the necessary regulatory framework to operationalize the GEOP;
WHEREAS, the ERC issued Resolution No. 08, Series of 2021, titled, A
Resolution Adopting the Rules for the Green Energy Option Program, providing
detailed guidelines on GEOP implementation;
WHEREAS, on 02 March 2021, the Supreme Court in its Decision on the
three (3) consolidated petitions under G.R. Nos. 228588, 229143, and 229453,
directed the ERC to promulgate the supporting guidelines to Department
Circulars No. Dc2017-12-0013 and DC2017-12-0014, and likewise voided
the following ERC Resolutions: (i) Resolution No. 05, Series of 2016, titled,
A Resolution Adopting the 2016 Rules Governing the Issuance
of Licenses to Retail Electricity Suppliers (RES) and Prescribing the Requirements
and Conditions Therefor; (ii) Resolution No. 10, Series of 2016 titled A
Resolution Adopting the Revised Rules for Contestability; (iii) Resolution No. 11,
Series of 2016 titled A Resolution Imposing Restrictions on the Operations of
Distribution Utilities and Retail Electricity Suppliers in the Competitive Retail Electricity
Market; and (iv) Resolution No. 28, Series of 2016 titled Revised
Timeframe For Mandatory Contestability, Amending Resolution No. 10, Series of 2016
Entitled Revised Rules For Contestability;

WHEREAS, pursuant to Section 31 of the EPIRA providing that


demand aggregation shall be allowed within a contiguous area at a lowered
threshold, the ERC issued Resolution No. 04, Series of 2022 titled, A
Resolution Adopting the Rules for the Electric Retail Aggregation Program;
WHEREAS, beginning May 2022, ERC received inquiries and letter
complaints regarding the implementation of Retail Supply Contracts between
Contestable Customers and Retail Electricity Suppliers (RES), particularly
on the issue on Fuel Cost Recovery Adjustments (FCRA);
WHEREAS, Section 41 of the EPIRA mandates the ERC to handle
consumer complaints and ensure the adequate promotion of consumer
interests;
WHEREAS, on 23 December 2022, the DOE issued an advisory on the
commercial operation of Wholesale Electricity Spot Market (WESM) in
Mindanao effective 26 January 2023 through Department Circular No.
DC2022-12-0039;
WHEREAS, with the current developments in the market and the
implementation of the different Customer Choice Programs in Mindanao, the
ERC deemed it necessary to revise and update existing rules to address
implementation gaps, ensure adherence to policy objectives, and
strengthen consumer protection, particularly against abuse of market
power and other discriminatory and anti-competitive behaviors;
WHEREAS, the ERC, through the Market Operations Service conducted a
series of Focus Group Discussions (FGD) on 29 May, 08 June, and 15 June
2023 to gather inputs from Retail Suppliers, Eligible Customers, and
Distribution Utilities (DU) in the drafting of the Omnibus Rules on Customer
Choice Programs in the Retail Market;

WHEREAS, pursuant to Section 1, Rule 21 of ERC Resolution No. 01,


Series of 2021 titled, A Resolution Adopting the Revised Rules of Practice and
Procedure, the ERC initiated a rule making case motu proprio, thus, on 17
November 2023, the ERC posted for comments the draft Omnibus Rules for
Customer Choice Programs in the Retail Market;

WHEREAS, the ERC received comments from the following, based on the
time of receipt and thus, are the parties of record: (1) Kratos RES, Inc.;
(2) Alluma Energy Management Solution; (3) Global Energy Solutions Corp.;
(4) Cagayan Electric Power and Light Company; (5) Manila Water
Corporation; (6) First Gen Corporation; (7) Retail Electricity Suppliers
Association (RESA); (8) Manila Electric Company; (9) ACEN
Corporation; and (10) Aboitiz Power Corporation;
WHEREAS, based on inputs gathered from stakeholders and other
entities through public consultations held on 7 and 11 December 2023 for
Mindanao and Visayas, and 12 and 13 December 2023 for Luzon, and after
careful consideration of the various views and comments submitted by the
electric power industry participants, players and other interested
parties, the ERC deems it appropriate to consolidate all the directives
and issuances governing the various Customer Choice Programs in the
Retail Market;
NOW, THEREFORE, the ERC hereby RESOLVES to APPROVE and
ADOPT,
the Omnibus Rules for Customer Choice Programs in the Retail Market, hereto
attached, together with its Annexes A to J-4, all of which are made an
integral part hereof.

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3
Annex “A”

Republic of the Philippines


ENERGY REGULATORY COMMISSION
Pasig City

OMNIBUS RULES FOR


CUSTOMER CHOICE PROGRAMS
IN THE RETAIL MARKET

14 August 2024
TABLE OF CONTENTS

Module Description

Page MODULE A

..................................................................................................................

GENERAL PROVISIONS............................................................................1
A1. Short Title..............................................................................................1
A2. Objectives of the Omnibus Rules for Customer Choice Programs in the
Retail Market
................................................................................................................
1
A3. Scope of Application...............................................................................1
A4. Participation of the Eligible End-user in the Customer Choice
Programs in the Retail Market
................................................................................................................
1
A5. License to Operate in the Retail Market...............................................2
A6. Regulated Supply Service in the Retail Market.....................................2
A7. Aggregating Electricity Requirement....................................................2
A8. References.............................................................................................2
A9. Cross-References...................................................................................3
A10. Definitions.............................................................................................3
A11. Table of Contents and Titles................................................................3
A12. Mandatory Provisions...........................................................................3
A13. Singularity and Plurality.......................................................................3
A14. Gender..................................................................................................3
A15. “Include” and “Including”.......................................................................................3
A16. “Written” and “In Writing”.....................................................................................3
A17. Term “Retail Supplier”.............................................................................................4

MODULE B............................................................................................... 4

DEFINITION OF TERMS...........................................................................4
B1. Definitions..............................................................................................4

MODULE C.............................................................................................. 12

RETAIL ELECTRICITY SUPPLIERS (RES) LICENSE...............................12


C1. Issuance of a RES License....................................................................12
C2. Exempted from Securing a RES License..............................................12
C3. Eligibility for RES Application..............................................................12
C4. Processing Timeline..............................................................................12
C5. Requirements for New RES License Applications................................13

i
C6. Requirements for RES License Renewal Applications.........................15
C7. Requirements for Local RES Applications............................................17
C8. Documents Previously Submitted........................................................18
C9. RE Suppliers License............................................................................18
C10. Grounds for Suspension or Revocation of RES License/Letter-Authority 18
C11. Basic Obligations of Retail Suppliers.................................................19
C12. Ownership Limitations and Other Restrictions for Retail Suppliers. .21
C13. Payment of Fees..................................................................................21
C14. Term of License..................................................................................22
MODULE D.............................................................................................. 22

PARTICIPATION OF ELIGIBLE END-USERS UNDER THE CUSTOMER


CHOICE PROGRAMS
.........................................................................................................
22
D1. Voluntary Participation Under the Customer Choice Programs..........22
D2. Eligibility Requirements of End-users for CREM................................22
D3. Eligibility Requirements of End-users for GEOP................................23
D4. Eligibility Requirements of End-users for RAP...................................23
D5. Procedures in Informing Eligibility of End-Users in the Retail Market 24
D6. Metering Requirements for Retail Customers....................................25

MODULE E.............................................................................................. 26

SWITCHING PROCESS FOR RETAIL CUSTOMERS................................26


E1. Basic Conditions for Switching............................................................26
E2. Eligible End-user or Retail Customer Obligations...............................27
E3. Retail Supplier Obligations..................................................................28
E4. Network Service Provider Obligations................................................28
E5. Different Contracts Necessary for Switching......................................29
E6. Switching Procedures..........................................................................29
E7. Customer Relocation within DU’s Franchise Area.......................................30
E8. Customer Relocation to Another Franchise Area................................32
E9. Prohibited Commercial Transfers........................................................32

MODULE F.............................................................................................. 32

BILLING AND PAYMENTS......................................................................32


F1. Bill Content..........................................................................................32
F2. Billing Scheme.....................................................................................33
F3. Payment Processing and Remittance...................................................34

MODULE G.............................................................................................. 35

SUPPLIER OF LAST RESORT (SOLR).....................................................35


G1. Entities Allowed to Act as a SOLR.......................................................35
G2. General Requirements and Qualifications of a SOLR.........................35
G3. Last Resort Supply Events (LRSE)......................................................35
G4. Procedures for the Assumption of Last Resort Supply.......................36

ii
G5. Disconnection After Notification of Non-availment of SOLR..............37
G6. Provision of Information by the CRB..................................................38
G7. Cash Security Deposit..........................................................................38
G8. Switch Request and Meter Reading....................................................38
G9. SOLR Billing........................................................................................39
G10. Violation of SOLR Contract.................................................................39
G11. Disconnection in Dangerous and Hazardous Condition.....................40
G12. SOLR Obligations...............................................................................40
G13. Term of SOLR Contract......................................................................40
G14. Termination of SOLR Contract within the Billing Cycle....................40
G15. SOLR Rate and Premium....................................................................41
G16. System Loss Charges..........................................................................41
MODULE H............................................................................................. 42

DISCONNECTION AND RECONNECTION PROCESS.............................42


H1. Retail Customer’s Failure to Pay its Retail Supplier..................................42
H2. Failure of Retail Supplier to Pay NSP.................................................42
H3. Reconnection of Retail Supply............................................................42
H4. Disconnection and Reconnection of SOLR Service.............................43
H5. Deferment of Disconnection...............................................................43

MODULE I.............................................................................................. 44

RETAIL AGGREGATION PROGRAM.......................................................44


I1. General Procedures for Retail Aggregation........................................44
I2. Billing and Payment.............................................................................45
I3. Rights and Obligations of Aggregated Group/Member.......................45
I4. Disconnection of Aggregated Group/Member.....................................46

MODULE J.............................................................................................. 46

REDISTRIBUTION IN THE RETAIL MARKET........................................46


J1. Guiding Principles for Redistribution in the Retail Market.................46
J2. General Conditions for Redistribution.................................................47
J3. Additional Conditions for Redistribution with Substations.................48
J4. Rights of Unit-Owners/Users for Condominium/Residential Buildings49
J5. Obligations of Unit-Owners/Users for Condominium/Residential Buildings
49

MODULE K............................................................................................. 50

REVERSION OF A RETAIL CUSTOMER TO THE CAPTIVE MARKET.....50


K1. Conditions for Reversion under the CREM.........................................50
K2. Conditions for Reversion under the GEOP..........................................50
K3. Conditions for Reversion under the RAP.............................................50

MODULE L.............................................................................................. 51

CODE OF CONDUCT FOR RETAIL MARKET PARTICIPANTS.................51

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L1. General Responsibilities of a Retail Supplier......................................51
L2. Marketing Conduct..............................................................................52
L3. Time of Contact/Transaction................................................................52
L4. Retail Supplier’s Identification and Contact Details...................................53
L5. Marketing in Person............................................................................53
L6. Refusal or Termination of Marketing Contacts...................................53
L7. Training and Product Knowledge........................................................54
L8. Advertising...........................................................................................54
L9. Customer Information..........................................................................55
L10. Record Keeping Standards.................................................................55
L11. Market Information............................................................................56
L12. Offer Sheet and Retail Supply Contract (RSC)..................................56
L13. Cooling-Off.........................................................................................59
L14. Responsibilities of the DU, its Local RES, and its Affiliate RES........59
L15. Complaint Handling Procedures.........................................................61

MODULE M............................................................................................. 62

MAGNA CARTA FOR RETAIL CUSTOMERS............................................62


M1. Right to Choose its Supplier of Electricity.........................................62
M2. Right to Non-Discriminatory and Non-Preferential Services..............62
M3. Right to Dispute its Retail Supply Contract, Electricity Bills, and File
for a Complaint Before the ERC
.............................................................................................................
62
M4. Right to Transparent Billing................................................................62
M5. Right to Negotiate the Terms and Conditions of its RSC...................63
M6. Right to Refuse a Marketing Contact..................................................63
M7. Right to Information............................................................................63
M8. Right to Protection Against Premature Termination by Retail Supplier
of Contracts under Dispute
.............................................................................................................
63
M9. Right to Due Process Prior to Disconnection of Electricity Service. . .63
M10.Right to Confidential Treatment of Customer Information.................64
M11. Right to Return of Security Deposits.................................................64
M12. Right to Payment Under Protest........................................................64
M13. Right to Switch to Another Retail Supplier........................................64
M14. Obligation to Pay its Electricity Bills Promptly..................................64
M15. Obligations to Receive Monthly Bills.................................................65
M16. Obligation to Review and Understand its RSC..................................65
M17. Obligation to Allow Inspection, Installation and Removal of
Electricity Meters .65 M18. Obligation Not to Commit Any Illegal Use of
Electricity
.....................................................................................................................
65

MODULE N.............................................................................................. 65

REPORTORIAL REQUIREMENTS FOR RETAIL MARKET PARTICIPANTS 65

iv
N1. Guiding Principle.................................................................................66
N2. Network Service Provider...................................................................66
N3. Supplier of Last Resort.......................................................................66
N4. Retail Suppliers...................................................................................67
N5. Central Registration Body (CRB)........................................................69

MODULE O..............................................................................................69

DETERMINATION OF RETAIL SUPPLIER IN GOOD STANDING............69


O1. Parameters to Determine a Retail Supplier in Good Standing............69
O2. Retail Supplier Scorecard Rating.......................................................70
O3. Compliance with Reportorial Requirements.......................................70
O4. Number of Show-Cause Order(s) issued by the ERC Against the Retail
Supplier
.............................................................................................................70
O5. Number of Consumer Complaints Filed Against the Retail Supplier..71
O6. Number of ERC Decision Ruled Against the Retail Supplier..............71
O7. Criteria for Determination of Retail Supplier Standing.......................71
O8. Interpretation of Retail Supplier Total Rating....................................72

MODULE P.............................................................................................. 72

MISCELLANEOUS PROVISIONS.............................................................72
P1. Separability Clause..............................................................................72
P2. Repealing Clause..................................................................................72
P3. Exceptions............................................................................................73
P4. Notification...........................................................................................74
P5. Confidentiality and Treatment of Data.................................................74
P6. Sanctions..............................................................................................74
P7. Dispute Resolution...............................................................................74
P8. Effectivity.............................................................................................75

MODULE Q.............................................................................................. 75

TRANSITORY PROVISIONS.....................................................................75
Q1. Applicability of the Omnibus Rules for Customer Choice Programs in
the Retail Market
..............................................................................................................
75
Q2. Occurrence of Displaced Contract Capacity/Energy...........................77
Q3. Collection of Over/Under Recoveries of Pass-Through Charges from
Retail Customers
..............................................................................................................
77

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Annex “A”

MODULE A
GENERAL PROVISIONS

A1. Short Title

A1.1 These Rules shall be known as the Omnibus Rules for Customer
Choice Programs in the Retail Market. It shall be hereinafter
referred to as the Omnibus Rules.

A2. Objectives of the Omnibus Rules for Customer Choice


Programs in the Retail Market

A2.1 These Omnibus Rules are promulgated to achieve the following:

(a) Consolidate the rules that will henceforth govern the


implementation of all the Customer Choice Programs and all
participants in the Retail Market;
(b)Amend, modify, repeal and/or supersede various ERC issuances
related to the Retail Competition and Open Access (RCOA), Green
Energy Option Program (GEOP) and Retail Aggregation Program
(RAP);
(c) Provide a set of rules that are responsive to current market and
technological developments, and anticipate evolution of markets;
(d)Streamline application process for license applications and
renewals for Retail Suppliers; and
(e) Ensure and strengthen consumer protection, particularly against
abuse of market power, and other discriminatory and anti-
competitive behaviors.

A3. Scope of Application

A3.1 The Omnibus Rules shall be applicable to the following, unless


otherwise specifically stated in a provision:

(a) Retail Customers;


(b)Retail Suppliers;
(c) Suppliers of Last Resort (SOLR);
(d)Network Service Providers (NSP);
(e) Retail Metering Service Providers (RMSP);
(f) Central Registration Body (CRB); and
(g)Eligible End-users.

A4. Participation of the Eligible End-user in the Customer


Choice Programs in the Retail Market

A4.1 Consistent with Section 31 of the EPIRA, effective exercise by


customers of their power to choose supply is the primary goal for the
implementation of the Competitive Retail Electricity Market (CREM)
1
and GEOP. Eligible End-users can choose their supplier that are duly
licensed or authorized by the ERC.
A4.2 Participation in any of the Customer Choice Programs under the
Retail Market is voluntary.

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“A”
A5. License to Operate in the Retail Market

A5.1 No person or entity may engage in the supply of electricity to


Retail Customers in the Retail Market unless such person or entity
has secured a RES License or Letter-authority in the case of Local
RES, from the ERC. For this purpose, a Supplier shall refer to any
person or entity authorized by the ERC to sell, broker, market or
aggregate electricity to the End-users.
A5.2 The RES License or Letter-authority shall stipulate all the
obligations of a Retail Supplier consistent with the qualifications
and criteria required herein and such other laws, rules, and
regulations pertinent thereto. A RES License or Letter- authority
shall be issued upon compliance with the standards and
requirements under Module C of these Omnibus Rules.

A6. Regulated Supply Service in the Retail Market

A6.1 Last Resort Supply is only applicable to the Retail Market and is
regulated by the ERC. It shall serve as the backup supply following
any Last Resort Supply Event (LRSE). A (a) Retail Supplier duly
authorized by the ERC, or (b) a DU, intending to be SOLR shall
secure a Letter of Designation from the ERC in accordance with the
provisions under Module G2 of these Omnibus Rules.
A6.2 The SOLR shall perform its duties and obligations in a non-
discriminatory manner. Any of the SOLRs duly designated by the
ERC may serve as the SOLR for Retail Customers requiring last
resort supply. DUs that are designated by the ERC to act as SOLR
to Retail Customers shall only provide Last Resort Supply within
their Franchise Area.

A7. Aggregating Electricity Requirement

A7.1 All Persons or entities, holding a valid RES License shall be allowed
to consolidate the electricity requirements of individual End-users
whose consumption levels do not yet meet the demand threshold
set by the ERC, for purposes of purchasing and reselling electricity
on a group or collective basis; Provided, for entities holding a valid
Letter-authority, as in the case of a Local RES, consolidation of the
electricity requirements of individual End-users whose consumption
levels do not yet meet the demand threshold set by the ERC, for
purposes of purchasing and reselling electricity on a group or
collective basis, may be allowed subject to prior ERC approval.
A7.2 Retail Aggregation shall be implemented where the CREM is
operational and effective and shall be implemented and interpreted
in a manner that gives full effect of the freedom of choice of all
End-users qualified to be part of the Retail Market.

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Annex
A8. References “A”

A8.1 Unless the context otherwise requires, any references to a


particular Module or Annex of these Omnibus Rules shall be
applicable to all Modules or Annexes to which the reference is
made, unless otherwise provided.

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Annex
“A”
A9. Cross-References

A9.1 A cross-reference to another document shall not in any way impose


any condition or modify the material contained in the document
where such cross- reference is made.

A10. Definitions

A10.1 Terms which are capitalized shall be interpreted according to the


definition under Module B of these Omnibus Rules. When a word or
phrase that is defined under Module B is more particularly defined
in another Module of these Omnibus Rules, the definition in that
Module shall prevail if there is any inconsistency.
A10.2 Definitions provided under the EPIRA, and its IRR shall apply
suppletorily, if terms are not defined in these Omnibus Rules.

A11. Table of Contents and Titles

A11.1 The Table of Contents and the titles of the Modules shall not
affect, in any way, the interpretation of these Omnibus Rules
provisions.

A12. Mandatory Provisions

A12.1 The word “shall” refers to a rule, procedure, requirement, or any


provision of
these Omnibus Rules that requires mandatory compliance.

A13. Singularity and Plurality

A13.1 In the interpretation of any of the provisions of these Omnibus


Rules, the singular shall include the plural and vice versa, unless
otherwise specified.

A14. Gender

A14.1 Any reference to a gender shall include all other genders. Any
reference to a person or entity shall include an individual,
partnership, company, corporation, association, organization,
institution, and other similar groups.

A15. “Include” and “Including”

A15.1 The use of the word “include” or “including” to cite an enumeration


shall not
impose any restriction on the generality of the preceding words.

A16. “Written” and “In Writing”

A16.1 The words “written” and “in writing” refer to the hardcopy and/or
electronic copy of a document that is generally produced by typing,
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“A”
printing, or other methods of reproducing words in a legible
format.

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“A”
A17. Term “Retail Supplier”

A17.1 The use of the word “Retail Supplier” shall refer to Retail
Electricity Suppliers (RES), Local Retail Electricity Suppliers (Local
RES), Retail Aggregator and/or Renewable Energy Suppliers, (RE
Suppliers), either collectively or singly.

MODULE B
DEFINITION OF TERMS

B1. Definitions

B1.1 All terms and phrases found in these Omnibus Rules shall be
interpreted and have the following meanings, unless otherwise
specifically stated in a certain provision.

Term Definition
Advanced An integrated system of smart meters,
Metering communications networks, and implementation
Infrastructure systems that enables two-way communication
(AMI) between utilities and its customers. Customer
systems may include in-home displays, home area
networks, energy management systems, and other
customer- side-of-the-meter equipment that enable
smart grid functions in residential, commercial, and
industrial facilities.
Affiliate Any person which, alone or together with any other
person, directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is
under common control with another person.
Affiliates shall include a subsidiary company and
parent company and subsidiaries, directly or
indirectly, of a common parent.
Aggregated Group End-users whose demand have been consolidated
and supplied by a Retail Supplier to qualify for
contestability under current rules issued by the
Department of Energy (DOE) and the ERC.
Aggregated An End-user that forms part of the Aggregated
Member Group to qualify for contestability under the current
rules issued by the DOE and the ERC.

Applicant Refers to any person or entity that seeks


authorization from the ERC to act as a Retail
Supplier.
The average of the Total Cost of Sales and Total
Average
Operating Expenses of the Applicant annually, based
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Expected “A”
on its submitted five-year financial projection.
Annual
Expenses

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“A”
Term Definition
Bill Deposit The deposit required from customers by DUs of new
and/or additional service equivalent to the
estimated billing for one month to guarantee
payment of bills.
Billing Cycle A Period bound by start and end dates that the
Retail Supplier, DU or SOLR use to determine when
a Retail Customer used a service.

Business Day The day when normal business operations take


place. This shall exclude Saturdays, Sundays, and
Holidays.
Captive Market The electricity End-users who do not have the
choice of supplier of electricity, as may be
determined by the ERC in accordance with the
EPIRA.
Cash Any cash deposit collected by a Retail Supplier from
Security its Retail Customer as a form of security for the
Deposit performance of the Retail Supply Contract,
deposited in an escrow, restricted account or Hold-
out Agreement facility, making it unavailable for use
in financing the Retail Supplier’s working capital
requirements.
Central The entity designated by the DOE to undertake the
Registration management of the required systems and processes
Body (CRB) and information technology system that is capable
of handling Customer switching and information
exchange as well as their transactions in the WESM.
Connection Agreement between a Connection Customer and
Agreement (CA) a DU governing distribution connection assets and
services.
Contiguous Area Areas which are located within certain boundaries
such as subdivisions, villages, economic zones,
business districts and other adjacent areas in which
supply of electricity similarly situated End-users in
which supply of electricity can be measured through
metering devices.
Contract Price The rate agreed upon by the Retail Customer and
its chosen Retail Supplier as consideration for the
supply and other services for the energy
consumption in the Retail Supply Contract,
excluding the pass-through and other related
charges.
Cooling-off Period The period of five (5) Business Days, or a longer
period agreed upon by both parties, in writing,
commencing from the signing of the Retail Supply
Contract, within which said Retail Customer has the
right to cancel the Retail Supply Contract it has
8
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“A”
entered into with the Retail Supplier.

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“A”
Term Definition
CREM End- user An electricity End-user that belongs to the Retail
Market, also referred to as Contestable Customer.

CREM End- A CREM End-user who redistributes electricity to


user End-users with sub-meters and connected to a
Redistributor Single Revenue Meter.
Customer The various programs offered under the retail
Choice market enumerated under Module D1 of these
Programs Rules.
Directly An industrial or bulk electricity End-user, that is
Connected supplied through the Grid or sub-transmission
Customer (DCC) assets that are still owned by the TransCo.
Distribution Any electric cooperative, private corporation,
Utility (DU) government- owned utility or existing local
government unit which has an exclusive franchise to
operate a distribution system in accordance with its
franchise and the Act.
Distribution The conveyance of power throughout a distribution
Wheeling system to meet the demand of End-users.
Service (DWS)
Distribution An agreement between a DU and a RES, in case of a
Wheeling Service single billing scheme, or between a DU and a Retail
Agreement Customer, in case of a dual billing scheme and when
(DWSA) customer is under SOLR service, for the
procurement of DWS.
Electric Any person or entity engaged in the generation,
Power transmission, distribution or supply of electricity.
Industry
Participant/s
Electricity Price The total amount due and billed to a Retail
Customer by a Retail Supplier, which includes the
contract price, pass- through and other ERC
approved charges.
Eligibility The qualification of an End-user meeting the
threshold level set by the ERC to participate in the
Retail Market.
Eligible End-user An End-user that has met the eligibility threshold,
as indicated by a single revenue meter and who has
a choice to switch to the Retail Market.
Eligibilit The demand level that qualifies an End-user to
y participate set by the ERC for CREM and RAP and
Threshol threshold level set by the DOE for GEOP.
d

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“A”
End-user Any person or entity requiring the supply and
delivery of electricity for its own use.

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“A”
Term Definition
Final The last actual meter reading made on a Retail
Meter Customer’s consumption prior to being served by a
Reading new Retail Supplier or SOLR.

Franchise Area Geographical area designated within the legal


franchise of a DU.

GEOP End-user Any person or entity requiring the supply and


delivery of electricity sourcing one hundred percent
(100%) of its electricity requirements from RE
resources for its own use.
GEOP A document issued by the DOE to an entity allowing
Operating the supply of electricity to a GEOP End-user
Permit pursuant to Department Circular No. DC2020-04-
0009 titled “Guidelines for the Issuance of
Operating Permits for RE Suppliers under the Green
Energy Option Program,” or any amendments
thereto.
Hold-out An agreement where a cash security deposit is held
Agreement subject to certain bank placed and/or customer
placed restrictions.
Initial Switch The commercial transfer of a Retail Customer from
the NSP as its supplier under regulated service to a
Retail Supplier.
Intangible Assets A non-physical long-term asset that accrues value
over time.
Last Resort Supply The supply of electricity that a Retail Customer will
receive from a SOLR. The Last Resort Supply is
intended to be a temporary service until the Retail
Customer transfers to a Retail Supplier.
Last Resort An event that will trigger the Retail Customer to
Supply Event switch to a Supplier of Last Resort (SOLR) or to
(LRSE) another Retail Supplier. These are circumstances
identified under Module G3.2 of these Omnibus
Rules.
Letter-authority The document issued by the ERC in lieu of a license,
to a Local RES, as proof of its authority to act as a
Retail Supplier within its Franchise Area.
Letter of The document issued by the ERC to either a Retail
Designation Supplier or a DU to act as Supplier of Last Resort
(SOLR)
Local Retail The non-regulated business segment of the DU
Electricity catering to the Retail Market only within its
Supplier (Local Franchise Area. As such, a license is not required.
RES)
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“A”
Term Definition
Marketing Contact A contact of any kind made by the Retail Supplier
with a Retail Customer (including in person, by
telephone, written or electronic communication) for
the purpose of promoting that Retail Customer to
enter, or consider entering into an RSC with the
Retail Supplier.
Market Operator The entity responsible for the operation of the
Wholesale Electricity Spot Market (WESM).

Metering Services The agreement that defines the responsibilities and


Agreement (MSA) obligations of the RMSP and the End-user in
relation to the provision of metering facilities,
equipment, and service as provided under these
Omnibus Rules, Distribution Services and Open
Access Rules (DSOAR), Philippine Distribution Code
(PDC), OATS Rules, the Grid Code, the WESM
Rules, and other pertinent Rules of the Commission.
National The corporation organized pursuant to EPIRA to
Transmission acquire all the transmission assets of the NPC.
Corporation
(TransCo)
Network An entity that owns, controls, and operates a
Service transmission or distribution system.
Provider (NSP)
No Disturbance A request made by an eligible End-user or a Retail
Request Customer for it not to be bothered by any Marketing
Contact by a Retail Supplier.
Notice of The notice being sent by the Retail Supplier through
Disconnection the Central Registration Body informing the Retail
Customer that it shall be disconnected from the grid
or network in accordance with the provisions of its
contracts, these Omnibus Rules and other relevant
ERC issuances.
Open Access The system of allowing any qualified person the use
of transmission, and/or distribution system and
associated facilities subject to the payment of
transmission and/or distribution retail wheeling
rates duly approved by the ERC.
Open Access Date The commencement date of Open Access and
Retail Competition in a grid, as determined by ERC.
Parent or Holding A corporation which owns or is organized to own a
Company substantial portion of another company's voting
shares of stock enough to control or influence the
latter's management, policies or affairs thru election
of the latter's board of directors or otherwise.

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“A”
Term Definition
Pass-through The amount collected by the Retail Supplier from
Charges End-users of the Customer Choice Programs in the
Retail Market, which shall only include NSP charges
and other charges as approved by the ERC.

Pilferage Refers to the unauthorized taking or use of


electricity. It encompasses various forms of
electricity theft, such as tampering with meters,
bypassing meters, or other means of obtaining or
using electricity without proper authorization or
payment.
Player/s Refers to individuals, groups, or entities that
actively participate in a specific activity, system, or
market in the electric power industry contributing
to and influencing its operations, outcomes, and
dynamics.
Primary The Retail Supplier nominated and assigned by the
Retail Retail Customer, in writing, as the single point of
Supplier contact for the CRB and all NSPs, in case it has
multiple Retail Suppliers. It shall be responsible for
billing and collecting from the Retail Customer all
applicable charges by the NSPs. Only the Primary
Retail Supplier shall execute a DWSA with the DU.
Prudential The amount that the Trading Participant in the
Requirement WESM is required to maintain to ensure that it will
meet its obligation to make payments as required
under the WESM Rules.
Regular Switch The commercial transfer of a Retail Customer from
a Retail Supplier to another Retail Supplier or
SOLR, after the initial switch.

Renewable Individuals or juridical entities created, registered,


Energy or authorized to operate in the Philippines in
Suppliers (RE accordance with existing laws and engaged in the
Suppliers) provision or supply of electric power from RE
resources to End-user, duly issued operating
permits by the DOE.
Retail Aggregator A person or entity engaged in consolidating electric
power demand of End-users for the purpose of
purchasing and reselling electricity on a collective
basis. For purposes of these Omnibus Rules, a Retail
Supplier may be a Retail Aggregator.
Retail Customer An Eligible End-user that has entered into a Retail
Supply Contract with a Supplier of its choice; shall
refer to any or all of the following:
(a) CREM End-user;

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“A”
Term Definition
(b) GEOP End-user;
(c) Directly Connected Customer; and
(d) Aggregated Group.

Retail Metering A person or entity authorized to provide metering


Services services to Eligible End-users and registered with
Provider the Central Registration Body in that capacity in
(RMSP) accordance with Chapter
2 of the Rules for Competitive Retail Electricity
Market (Retail Rules).
Restricted Account A reserve account that contains money that can be
used only for specific purposes.
Retail Any person or entity authorized by the ERC to sell,
Electricity broker, market or aggregate electricity to End-users
Supplier (RES) in the Retail Market.
Retail The authority granted to any person or entity by the
Electricity ERC to act as Retail Electricity Supplier.
Supplier (RES)
License
Retail Supply The contract entered into by and between the Retail
Contract Customer and the Retail Electricity Supplier or
(RSC) Local Retail Electricity Supplier.

Retail Supplier Under the Omnibus Rules, shall refer to the


following, singly or collectively:
(a) RES;
(b)Local RES; and
(c) RE Supplier.
Revenue Meter A device which measures and records the
production and consumption of electricity of the
end-user, installed at the connection point; used as
basis for billing of electricity.
Reversion An event due to the occurrence of the decrease in
the Retail Customer's average monthly peak
demand by a certain level, in the case of CREM
End-users and GEOP End-users; or an Aggregated
Member/Group has opted not to renew its contract,
as prescribed under Module K hereof.
Smart Meter An advanced technology electric meter capable of
two-way communication that can measure, record,
and transmit time- varying energy usage data and
its components, derivatives, and events/logs. It
includes a communication module for remote access
function and may also serve as a gateway between
the utility, customer site, and customer’s Home
Area Networking devices and/or local controllers.
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“A”
Term Definition
Special Also referred to as Ecozones, are selected areas
Economic Zone with highly developed or which have the potential to
be developed into agro-industrial, Industrial
tourist/recreational, commercial, banking,
investment and financial centers. A Special
Economic Zone may contain any or all of the
following: Industrial Estates (IEs), Export
Processing Zones (EPZs), Free Trade Zones, and
Tourist/Recreational Centers.
Special An actual meter reading performed by an RMSP
Meter upon request of a Retail Supplier, Retail Customer
Reading or SOLR on a date that is different from the
regularly scheduled meter reading date.
Supplier of Last A regulated entity designated by the ERC to serve
Resort (SOLR) End-users in the Retail Market following a Last
Resort Supply Event (LRSE).
Supply of The sale of electricity by persons or entities
Electricity authorized under EPIRA. The sale may be made by a
party other than a Generation Company or a
Distribution Utility in the Franchise Area of a
Distribution Utility using the wires of such
Distribution Utility.
Surety Bond A contractual agreement that guarantees certain
obligations will be fulfilled.

Switch or The commercial transfer of a Retail Customer from


Switching the NSP to a RES or SOLR and/or from one supplier
to another, which takes effect on the regular meter
reading date or on a special meter reading date
following a Last Resort Supply Event.
Tangible Net The value of all the assets, excluding intangible
Worth (TNW) assets and goodwill, minus the liabilities of an
entity.

Time-Of-Use (TOU) The segregation of energy rates based on the time in


which the energy is being consumed.
Transmission The agreement entered into by the Transmission
Services Provider and user of the facility that specifies the
Agreement (TSA) terms and conditions of the transmission service by
the Transmission Provider and the availing of such
service by the Transmission Customer; also serves
as the Connection Agreement.
Virtual Meter A mathematical model that uses process conditions
to estimate flow rates instead of a physical meter. It
is used to create a calculated meter point from one
or more physical meters.

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“A”
Term Definition
Wholesale The electricity market established by the DOE
Electricity pursuant to Section 30 of the EPIRA.
Spot Market
(WESM)

MODULE C
RETAIL ELECTRICITY SUPPLIERS (RES) LICENSE

C1. Issuance of a RES License

C1.1 The ERC shall issue a license to an entity or person that possesses
all the qualifications and none of the disqualifications and complies
with all applicable requirements stipulated herein. These
requirements may include, but are not limited to, technical,
managerial, and financial qualifications, compliance with the
prohibitions on cross-ownership, abuse of market power and other
discriminatory and anti-competitive behaviors, and all other
requirements which are deemed necessary for the proper
implementation of the Retail Market.

C2. Exempted from Securing a RES License

C2.1 The following entities, referred to as the Local RES, shall be


allowed to engage in the retail electricity supply business without
securing a RES License from the ERC, subject to the issuance of a
Letter-authority by the ERC and all the requirements as provided
under these Omnibus Rules:

(a) Distribution Utilities within their Franchise Areas; and


(b)Persons/entities authorized by competent authorities to supply
electricity within their respective Special Economic Zones.

C3. Eligibility for RES Application

C3.1 Any of the following entities shall be eligible to secure a RES


License from the ERC:

(a) A juridical person or natural person of legal age, duly registered with the
Department of Trade and Industry (DTI) as engaged in the retail
electricity supply business;
(b)A juridical person duly registered with the Securities and Exchange
Commission (SEC) as an entity engaged in the retail electricity supply
business; and
(c) Any entity created by law, where such law, or its charter which allows
them to create their sources of revenues.
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“A”
C4. Processing Timeline

C4.1 The ERC shall approve or deny an application within sixty (60)
calendar days from the date of issuance of the ERC docket
number, upon submission of

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“A”
complete application requirements, as provided under the Republic
Act No. 11234 or the Energy Virtual One-Stop Shop (EVOSS) Act, or
other applicable laws.

C5. Requirements for New RES License Applications

C5.1 The following documents which shall be Certified True Copy of the
original, and information are required to be submitted by an Applicant:
(a) Legal Requirements – To provide general information and
background on the legal personality and authority to conduct
business of the Applicant.

i. Duly accomplished RES Information Sheet (form available at


the ERC website);
ii. For juridical entities: Certificate of Registration with
corresponding Articles of Incorporation/Partnership issued by
the SEC;
iii. For juridical entities created by law: Basis of creation, such as
but not limited to, Republic Act No. or Certified True Copy of
its Charter;
iv. For sole proprietorship: Business Name Registration issued
by the DTI indicating the purpose of engaging in business/es
in electric power industry;
v. Valid Business Permit or Mayor’s Permit, if applicable;
vi. For Applicants currently engaged in the generation business:
proof of filing of its BSUP application and Accounting
Separation Statements reflecting the separate capitalization
for its RES business;
vii. Audited Financial Statement (AFS) for the two (2) most
recent reporting periods; or if it has been in existence for
less than two (2) years at the time of application, an
Audited Interim Financial Statement (AIFS);
viii. Latest General Information Sheet (GIS) of the Applicant, if
applicable; and
ix. For Applicants with affiliates:

1. AFS of the Applicant’s parent company for the two (2)


most recent reporting periods, as submitted in its annual
reports to shareholders; and
2. GIS of the Applicant’s affiliates engaged in the generation,
distribution, and retail supply of electricity, and their
corresponding business addresses.

(b)Technical and Managerial Capability Requirements – to


demonstrate the capability of the Applicant to operate the RES
business.

i. Proof of the ability of its officers/employees to operate a retail


electricity supply business or ability to trade in any market
involving regular sale/exchange of items/commodity.
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“A”
The required years of experience shall be any of the following:

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“A”
1. At least two (2) employees/officers holding managerial
positions have a combined relevant experience of at least
ten (10) years and with at least one (1) employee/officer
who has experience entering into contracts or negotiations
with the System Operator (SO), DU, Generation
Companies or with entities in other industries; or
2. Should the Applicant engage the services of a
Consultant/s, the said Consultant/s should have at least
fifteen (15) years of relevant experience and should have
with at least one (1) employee/officer of the Applicant who
has experience entering contracts or negotiations with SO,
DU, Generation Companies or with entities in other
industries.

ii. Organizational Chart identifying the Board of Directors and


Officers who will lead the operations of the Applicant,
including Curriculum Vitae;
iii. Proof of an approved sign-up account with the Central
Registration Body (CRB);
iv. Proof that the Applicant is in the process of adopting a billing
and collection system and has an employee or consultant that
is capable in maintaining the said system;
v. Proof that the Applicant has its own existing or under
development website, and has an employee or consultant that
is capable in maintaining the said website;
vi. Five-year Business Plan and Projected Five-year Financial
Statements (outline available at the ERC website [RES Form
3]). The Business Plan should adequately explain how the
Applicant will launch and operate its business, including the
different products or services it will offer; and
vii. Five (5)-year Staffing and Training plan to support the Business
Plan.

(c) Financial Capability Requirements – To provide proof of the


financial viability of the company to start, operate and sustain its
RES business.

i. For Applicants with available AFS: AFS for the two (2) most
recent reporting periods; or an AIFS, if it has been in
existence for less than two
(2) years at the time of application, reflecting its Tangible Net
Worth (TNW) equivalent to at least Fifteen Million Pesos
(PhP15,000,000.00) or equal to its Average Expected Annual
Expenses (AEAE), whichever is higher.

Where:

∑(TCOS + TOE)
𝐀𝐄𝐀𝐄 =
Term of License
TCOS = Total Cost of Sales expected for the term of license
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“A”
TOE = Total Operating Expenses expected to be
incurred for the term of license

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“A”
For newly incorporated Applicants which are yet to
commence operations: Proof of Tangible Net Worth (TNW)
amounting to Fifteen Million Pesos (PhP15,000,000.00) or
AEAE, whichever is higher.

ii. Market Risk Management Plan, which shall include measures


to mitigate exposure to price volatilities in the procurement of
supply for retail.

iii. Sworn Undertaking to, at a minimum, post a Performance


Bond/s for every and all RSCs which are unhedged, or
undertake other measures including but not limited to,
submission of a Certified True Copy of executed instruments
related to hedging that shall be considered as evidence of the
Applicant’s ability to withstand market disturbances or other
events that may increase the cost of providing service; and

iv. For those intending to collect cash security deposit: A


certification from any financial banking institution located in
the Philippines stating that the Applicant has already availed
of the said bank’s escrow, restricted account or Hold-out
Agreement facilities.

Only Applicants who have declared its intention to collect


cash security deposits shall be allowed to collect such deposit
during the term of its license. Otherwise, collection of cash
security deposit shall not be allowed during the validity of the
license.

C5.2 All submissions shall be certified under oath by the Applicant or


any of its duly authorized representative.

C6. Requirements for RES License Renewal Applications

C6.1 The RES shall apply for a renewal of its license not later than
sixty (60) calendar days before the expiration of its current
license, with the following documents, which shall be a Certified
True Copy of the Original:
(d)Legal Requirements – To provide the general information and
background of the Applicant.

i. Updated RES Information Sheet (downloadable form available


at the ERC website);
ii. Valid Business Permit or Mayor’s Permit;
iii. For Applicants who have engaged in the generation business:
approved BSUP application as evidenced by a Decision issued
by the ERC, or if the BSUP application remains pending,
proof of filing of its BSUP Application and Accounting
Separation Statements reflecting the separate capitalization
for its RES business;
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“A”
iv. AFS for the two (2) most recent reporting periods;
v. Latest GIS of the Applicant; and
vi. For Applicants with affiliates: Latest GIS of the Applicant’s
affiliates engaged in the generation, distribution, and retail
supply of electricity, and their corresponding business
addresses and AFS for the two (2) most

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“A”
recent reporting periods, or AIFS if it has been in existence
for less than two (2) years.

(e) Technical and Managerial Capability Requirements – To provide a


copy of the following requirements that demonstrates the capability
of the Applicant to operate the RES business.

i. Updated Five-year Business Plan and Five-year Projected


Financial Statements and (outline available at the ERC
website [RES Form 3]). The Business Plan should
adequately explain how the Applicant will continue to
operate its business operations under its new RES License
term;
ii. Updated Organizational Chart, as applicable, identifying
the Board of Directors and Officers who will continue to
spearhead the operations of the Applicant (Include
Curriculum Vitae); and
iii. Proof that the Applicant has its own existing website and an
employee or consultant that is capable in maintaining the
said website.

(f) Financial Capability Requirements – To provide copies of the


following proof of the financial viability of the company to start,
operate and sustain its RES business.

i. Certified True Copies of AFS for the two (2) most recent
reporting periods reflecting its Tangible Net Worth (TNW)
equivalent to at least Fifteen Million Pesos
(PhP15,000,000.00) or equal to its Average Expected Annual
Expenses (AEAE), whichever is higher.

∑(TCOS + TOE)
Where:

𝐀𝐄𝐀𝐄 =
Term of License
TCOS = Total Cost of Sales expected for the term of license

TOE = Total Operating Expenses expected to be


incurred for the term of license

ii. Market Risk Management Plan, which shall include measures


to mitigate exposure to price volatilities in the procurement of
supply for retail.

iii. Proof of, at a minimum, posting of a Performance Bond/s for


every and all Retail Supply Contracts which are unhedged or
proof that other measures were undertaken which shall
include but are not limited to a Certified True Copy of
executed instruments related to hedging which shall be
considered as evidence of the Applicant’s ability to withstand
market disturbances or other events that may increase the
cost of providing service; and
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“A”deposit: A
iv. For those intending to collect cash security
certification from any financial banking institutions located in
the Philippines stating that the Applicant has already availed
of the said bank’s escrow, restricted account or Hold-out
Agreement facilities.

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“A”
Only Applicants who have declared its intention to collect
cash security deposits shall be allowed to collect such deposit
during the term of its license. Otherwise, collection of cash
security deposit shall not be allowed in the course of the
license.

C6.2 All submissions shall be certified under oath by the Applicant or


any duly authorized representative in case of a juridical person.
The duly authorized representative shall likewise submit proof of
his/her authority, such as but not limited to a duly notarized
Secretary’s Certificate.
C6.3 The ERC reserves the right to deny the application for renewal of
any RES that fails to comply with the requirements for renewal
provided herein, including the period to file the application for
renewal. The Applicant may also be held liable, upon exercise of
due process, under ERC Resolution No. 03, Series of 2009 or any
subsequent amendments thereto.

C7. Requirements for Local RES Applications

C7.1 The following documents, which shall be a Certified True Copy of


the Original, and information are required to be submitted by the
Applicant:
(a) Local RES Information Sheet (form available at the ERC website);
(b)For Private Corporations: GIS of the Applicant and its affiliates
engaged in the generation, distribution, and retail supply of
electricity with their corresponding business addresses;
(c) For Electric Cooperative: Board Resolution or Secretary’s
Certificate that
will indicate the list of the Board of Directors and Board Members;
(d)Organizational Chart;
(e) AFS for the two (2) most recent reporting periods, or AIFS, if it
has been in existence for less than two (2) years;
(f) ERC-approved BSUP Application;
(g)Latest Accounting Separation Statements; and
(h)Five-year Business Plan (RES-Form 3) highlighting the strategies
of the intending Local RES in operating its supply business
separate from its other business segments, including narrative
with proof of the ability of its officers/employees to operate an
electricity supply business or ability to trade in any market
involving regular sale/exchange of items/commodity. The
required years of experience shall be any of the following:

i. At least two (2) of employees/officers holding managerial


position have a combined relevant experience of at least
ten (10) years and with at least one (1) employee/officer
who has experience entering into contracts or negotiations
with NGCP, DU, Generation Companies or other similar
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entities in different industry; or “A”
ii. Should the Applicant engage the services of a consultant,
the said Consultant should have at least fifteen (15) years
of relevant experience and with at least one (1)
employee/officer of the Applicant who has experience
entering into contracts or negotiations with

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“A”
NGCP, DU, Generation Companies or other similar entities in
a different industry.

(i) For those intending to collect cash security deposit: A


certification from any financial banking institution located in the
Philippines stating that it has already availed of the said bank’s
escrow, Restricted Account or Hold-out Agreement facilities.
Only Applicants who have declared its intention to collect cash
security deposits shall be allowed to collect such cash security
deposit. Otherwise, collection of cash security deposit shall not
be allowed.
C7.2 All submissions shall be certified under oath by the Applicant or
any duly authorized representative in case of a juridical entity. The
duly authorized representative shall likewise submit proof of
his/her authority, such as but not limited to a duly notarized
Secretary’s Certificate.

C8. Documents Previously Submitted

C8.1 If any of the documents required under Modules C5 to C7 have


been previously submitted to the ERC, the Applicant may issue a
Sworn Statement of Prior Submission in lieu of the previously
submitted document. The Sworn Statement of Prior Submission
shall state the following: (1) the document(s) submitted to the ERC
prior; (2) the date of such submission; (3) reference case or name of
the specific Service within ERC where such document(s) was
submitted; and (d) that there are no amendments to said
document(s) from the date of previous submission.

Notwithstanding the submission of the Applicant of a Sworn


Statement of Prior Submission, the ERC may require the Applicant
to submit the document(s) referred therein, if, upon verification,
such document(s) was not found in the records of the ERC.

C9. RE Suppliers License

C9.1 No person or entity may engage in the supply of electricity to


End-users under the GEOP unless such person/entity has secured
a RES License/Letter- authority from the ERC and has secured an
Operating Permit from the Department of Energy (DOE) pursuant
to DOE Department Circulars DC2018-07-0019 and DC2020-04-
0009, or any amendments thereto.

C10. Grounds for Suspension or Revocation of RES


License/Letter- Authority

C10.1 The ERC may suspend or revoke any RES License/Letter-authority


in the case of Local RES, upon exercise of due process, on the
following grounds:
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“A”
(a) Providing false, misleading, or misrepresentation of information to
customers and the ERC;
(b)Bankruptcy, insolvency, or any of the LRSEs where the Retail Supplier is at
fault;

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“A”
(c) Failure to provide service to any customer, without justifiable cause,
within two (2) years from the grant of the RES License or Letter-
authority;
(d)Failure to meet a satisfactory rating based on the parameters to
determine a Retail Supplier in Good Standing under Module O;
(e) Engaging in anti-competitive activities or behavior, including abuse of
market power; and
(f) Other violations of applicable laws, these Omnibus Rules, and other
relevant ERC issuances.

C11. Basic Obligations of Retail Suppliers

C11.1 Thefollowing obligations shall be observed by all Retail


Suppliers licensed/authorized by the ERC:

(a) A Retail Supplier that is also engaged in other electricity-related


business/es shall ensure that its supply business activities and rates
are functionally and structurally unbundled, as provided for in Rule
10 of the IRR of the EPIRA on the Structural and Functional
Unbundling of Electric Power Industry Participants. In the said
unbundling, the Retail Supplier shall ensure that there is no cross-
subsidization between and among its business activities, in
accordance with the ERC-approved Business Separation and
Unbundling Plan;
(b)A Retail Supplier shall maintain its own website linked to the ERC
and DOE websites. Such website shall provide updated information,
including indicative or average contract and electricity prices
under its RSCs and value-added services, to enable Retail
Customers to make informed choices;
(c) A Retail Supplier shall adopt the Central Registration and
Settlement System (CRSS) of the Central Registrations Body (CRB)
for switching its customers in the Retail Market;
(d)A Retail Supplier shall identify and segregate the components of
the Retail Rate on its bills to Retail Customers as provided in
Module F Billing and Payments;
(e) A Retail Supplier shall comply with the financial capability
standards provided in Module C5.1 (c) and C6.1 (c) of these
Omnibus Rules and as may be determined by the ERC to protect
the interest of the Retail Customers;
(f) A Retail Supplier shall ensure that the cash security deposits
collected from its Retail Customers are sufficiently secured and
segregated from other funds held by the Retail Supplier; such cash
security deposits shall be held in either an escrow, restricted
account or Hold-out Agreement facility making the said deposit
unavailable for use in funding the Retail Supplier’s working capital
or other funding requirements;
(g)The Retail Supplier shall be required to pay the customer annual
interest on collected cash security deposits equivalent to the
interest earnings of the subject amount, which may be applied as a
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Annex
deduction on the current billing of the customer; “A”
(h)The above notwithstanding, the Retail Supplier may draw sufficient
funds from the escrow account, restricted account or Hold-out
Agreement facility in case the customer commits a breach of its
payment obligations to it, details of which should be agreed upon
by both parties. On the other hand, in the event of the Retail
Supplier’s failure to supply the customer, the latter shall refund its
cash

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“A”
security deposit and interest earned, less any outstanding
obligations, subject to the provisions of the agreement entered into
and the RSC;
(i) A Retail Supplier that sources power from the WESM shall comply
with the WESM Rules at all times;
(j) A Retail Supplier shall comply with all the applicable rules and
regulations of the Retail Market, and other relevant issuances of
the ERC concerning abuse of market power, cartelization, and any
other discriminatory and anti-competitive behavior;
(k) A Retail Supplier is required to collect from all its Retail Customers
monthly, where applicable, those items listed under Module F1.2.
The Retail Supplier shall likewise comply with the Rules Governing
the Collection of Universal Charges and the Guidelines and
Procedures Governing Remittances and Disbursements of Universal
Charge, and the Guidelines on the Collection of the Feed-In Tariff
Allowance (FIT-All) and the Disbursement to the FIT-All Fund
issued by the ERC and any subsequent amendments thereto;
(l) A Retail Supplier shall inform the ERC of any material change to
any of the information supplied in its documentary requirements
under Module C5 to C7 hereof within three (3) calendar days from
the occurrence of such event;
(m) A Retail Supplier shall comply with the provisions of the EPIRA
and its IRR, the applicable provisions of the Business Separation
Guidelines as Amended, the Philippine Distribution Code (PDC), the
Distribution Services and Open Access Rules (DSOAR) as Amended,
these Omnibus Rules and any subsequent amendments thereto, and
such other relevant issuances of the ERC;
(n)A Retail Supplier, particularly the Local RES operating within its
Franchise Area, shall comply with the provisions of Section 26 of
the EPIRA and its IRR, which provides that, the DU may engage
directly or indirectly, in any business undertaking that maximizes
the utilization of its assets and shall apportion at least fifty percent
(50%) of the net income derived from such undertaking to reduce
its distribution wheeling charges;
(o) A Retail Supplier that intends to cease operations shall notify the
ERC at least sixty (60) calendar days prior to the intended date of
cessation of operations and shall provide proof of the refund of any
monies owed to its Retail Customers, as well as a settlement plan
or proof of payment of any amount owed to a DU, TransCo/its buyer
or concessionaire, WESM or Generation Company. Thereafter, the
RES License is deemed revoked; and
(p)A Retail Supplier who has defaulted in any of the provisions of its
RSC, including causing the occurrence of an LRSE, shall be
responsible for the continuous supply of electricity to the affected
Retail Customer until such time that the Retail Customer has
entered into a contract with a new Retail Supplier or Supplier of
Last Resort (SOLR). In case the new rate is higher than the agreed
upon rate under the previous RSC, the Retail Customer may avail of
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“A”
any of the appropriate remedy for indemnification provided in such
RSC.

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“A”
C12. Ownership Limitations and Other Restrictions for Retail Suppliers

C12.1 A Retail Supplier or Affiliate thereof, or any stockholder, director,


officer, or any of their relatives within the fourth (4th) civil degree
of consanguinity or affinity, legitimate or common law, shall not
hold any interest, directly or indirectly, in the Independent Market
Operator (IMO).
C12.2 Except for ex-officio government-appointed representatives, no
person who is an officer or director of TransCo or its buyer or
concessionaire shall be an officer or director of any Retail Supplier.
C12.3 A Retail Supplier, or its stockholders, directors, or officers within
the fourth (4th) civil degree of consanguinity and their respective
spouses, shall not be allowed to hold any shares of stock in
TransCo/its buyer or concessionaire; Provided, that the cross-
ownership prohibition under the provision shall not apply to a
relative by blood or marriage if such relative of any stockholder,
director or officer of TransCo/its buyer or concessionaire has no
employment, consultancy, fiduciary, contractual, commercial or
other economic relationship or interest in TransCo/its buyer or
concessionaire, or conversely, if such relative of any stockholder,
director, or officer of a Retail Supplier, has no employment,
consultancy, contractual, commercial or other economic
relationship or interest in the Retail Supplier, Provided further, that
this prohibition on cross- ownership shall not apply to:
(a) ownership of shares of stock in a company listed in the Philippine
Stock Exchange (PSE) even if such listed company is a Retail
Supplier if such share ownership is not more than one per centum
(1%) of the total outstanding shares of such listed Retail Supplier;
or
(b)ownership of shares of stock which is not more than one per
centum (1%) in a company listed in the PSE which owns or
controls shares of stock in TransCo/its buyer or concessionaire;
Provided, that such owner of shares of stock in the listed corporate
stockholder of the TransCo/its buyer or concessionaire shall not
own more than one per centum (1%) of the shares of stock or
equity interest in any Retail Supplier.

C12.4 In no case shall a Retail Supplier be allowed to purchase more


than fifty percent (50%) of its capacity requirements from its
affiliate Generation Companies.

C13. Payment of Fees

C13.1 The Applicant, either for a new application or application for


renewal of RES license, shall pay the application fee of Ten
Thousand Pesos (PhP10,000.00) upon the issuance of ERC of a
Confirmation of Completeness Email (CCE) with the attached
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statement of account. “A”
C13.2 If the new application is granted, the ERC shall issue a Notice of
Approval (NOA) with the attached statement of account to the
Applicant. The Applicant shall pay the RES License fee of One
Hundred Thousand Pesos (PhP100,000.00) to facilitate the release
of its RES License.

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“A”
C13.3 The above application fee and RES License fee are subject to
change, upon subsequent amendments to the Schedule of ERC Fees
and Charges.

C14. Term of License

C14.1 All new RES Licenses issued by the ERC shall be valid for five (5)
years from the date of its approval. Thereafter, for renewals as
provided under Module C6 of these Omnibus Rules, and subject to
ERC evaluation and approval, a Retail Supplier with a Very
Satisfactory rating shall be granted a license valid for ten
(10) years and a Retail Supplier having a Satisfactory rating shall
be granted a license valid for five (5) years.

MODULE D
PARTICIPATION OF ELIGIBLE END-USERS UNDER THE
CUSTOMER CHOICE PROGRAMS

D1. Voluntary Participation Under the Customer Choice Programs

D1.1 Eligible End-users, including a Directly Connected Customer (DCC)


meeting the demand threshold set by the ERC, may, at its option, switch
to and avail of the following Customer Choice Programs, subject to the
eligibility requirements set under Modules D2 to D4 hereof:

(a) Competitive Retail Electricity Market Program (CREM);


(b)Green Energy Option Program (GEOP); and
(c) Retail Aggregation Program (RAP)

D1. 2 The demand threshold for eligibility to the CREM and RAP is
500kW. The ERC shall issue separate Resolution/s for the lowering of the
demand threshold, until it reaches the household demand level.

D2. Eligibility Requirements of End-users for CREM

D2.1 The eligibility of an End-user for CREM shall be determined by a


Single Revenue Meter, as follows:

(a) An existing End-user that has a registered historical average


monthly peak demand equivalent to the prevailing threshold level
set by the ERC for the CREM, for the preceding twelve (12)
months; or
(b)An End-user whose forecasted monthly peak demand for the next
twelve (12) consecutive months, based on load profiling, is
equivalent to or above the prevailing threshold level approved by
the ERC.

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“A”
D3. Eligibility Requirements of End-users for GEOP

D3.1 The following threshold level shall apply to all eligible End-user
subject to any subsequent amendments under DOE DC No. 2018-
07-0019:
a) An End-user with an average monthly peak demand of one
hundred kilowatts (100kW) and above for the past twelve (12)
months may participate in the GEOP;
b) An End-user that has been in operation for less than twelve (12)
months shall be considered a newly connected End-user. Such
End-user may participate in the GEOP, subject to the following:

i. End-users whose estimated average monthly peak demand for


the next twelve (12) months, based on the load profiling, is
three hundred (300kW) or above; or
ii. End-users whose estimated average monthly peak demand
for the next twelve (12) months, based on the load profiling,
is from 100kW to below 300kW, and has a registered
historical monthly peak demand of at least 100kW for three
(3) consecutive months.

D3.2 An End-user with an average monthly peak demand below one


hundred kilowatts (100kW) may participate in the GEOP after the
DOE, in consultation with the ERC, the National Renewable Energy
Board (NREB) and industry stakeholders, determines that the
technical requirements and standards are already met.

D4. Eligibility Requirements of End-users for RAP

D4.1 End-users not yet meeting the prevailing threshold set by the ERC
for the CREM may form an Aggregated Group and participate in
the RAP, subject to the following:
(a) The aggregated average monthly peak demand of the
Aggregated Members, for the preceding three (3) months is
equivalent to or higher than the prevailing demand threshold
set by the ERC;
(b)There shall be no limit on the number of End-users forming
an Aggregated Group provided that their aggregated
demand complies with the prevailing demand threshold for
eligibility set by the ERC;
(c) Aggregated Members located in a Contiguous Area. For
purposes of these Omnibus Rules, Contiguous Area pertains
to the geographical boundaries identified under item (d) of
this Module; and
(d)Aggregation of End-users may be allowed within any of the
following geographical locations:

i. Subdivisions;
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ii. Villages; “A”
iii. Business Districts;
iv. Special Economic Zones; and
v. Such other location in which supply of electricity of similarly
situated End-users can be measured through metering
devices:

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“A”
1. Condominium buildings;
2. Commercial establishments;
3. Mixed-use development complexes;
4. Same Franchise Area of the DU, Provided, that the
metering facilities to be aggregated, belong to:
a. Same owner; or
b. Businesses covered by the same franchise.
5. Others, as may be determined by the ERC.
D4.2 For purposes of determining eligibility of End-users with installed
meters not capable of recording demand, the formula below shall
be used:

(𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑪𝒐𝒏𝒔𝒖𝒎𝒑𝒕𝒊𝒐𝒏 ÷ 𝑵𝒐. 𝒐𝒇 𝑫𝒂𝒚𝒔 𝒊𝒏 𝒂


𝑫𝒆𝒎𝒂𝒏𝒅, 𝑴𝒐𝒏𝒕𝒉 ) ÷ 𝟐𝟒 𝑯𝒐𝒖𝒓𝒔
𝒌𝑾 =
𝑳𝒐𝒂𝒅 𝑭𝒂𝒄𝒕𝒐𝒓

Where:

Average Consumption is the average kWh consumption for the


immediately three
(3) preceding months; and
Load Factor is the applicable load factor for the End-user as used or
determined by the DU where the End-user is located.
D4.3 The Retail Supplier shall be responsible for vetting demand computed
with the assistance of the DU.

D5. Procedures in Informing Eligibility of End-Users in the Retail


Market

D5.1 In lieu of the issuance of Certificates of Contestability, the


monthly billing statement from the NSP shall be considered as
proof of eligibility and qualification to the CREM and GEOP.
D5.2 As such, the NSPs shall inform their End-users who are eligible to
participate in any of the Customer Choice Programs as provided
under Modules D2 to D4 of these Omnibus Rules, by including the
following in the subject End-user’s monthly bill, to wit:

Your average monthly peak demand has reached


. You are now an Eligible End-user for GEOP [and/or
CREM].

For more details, including procedures for switching


to your preferred Retail Supplier, please access the
Energy Regulatory Commission – Buy Your
Electricity Website (bye.erc.ph).

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“A”placed in a
Such clause shall be clearly written and shall be
conspicuous portion in the Eligible End-user’s monthly bill for as
long as the End-user is still meeting the demand threshold or until
such time it has switched to CREM or GEOP. The NSP shall only
include the option for CREM if the demand level

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“A”
of the Eligible End-user meets the threshold level of the CREM;
otherwise, it shall only indicate eligibility for GEOP.

D5.3 TransCo/its buyer or concessionaire shall be responsible for the


End-users directly connected to transmission and sub-transmission
facilities relative to informing them of their eligibility and
providing ERC with the relevant information on such End-users.

D6. Metering Requirements for Retail Customers

D6.1 The DU shall be the default RMSP for the Retail Market until the
ERC adopts rules that shall govern the process of authorizing other
RMSPs other than the NSP. The TransCo/its buyer or
concessionaire shall likewise act as the default RMSP for the
Directly Connected Retail Customer.
D6.2 The RMSP shall procure, install, maintain and repair on behalf of
the Eligible End-user, the appropriate metering facilities, which
shall include but are not limited to, the ERC-type approved interval
meter and the telemetering devices required to effectively
communicate with its automated meter reading facilities for remote
or manual data retrieval. The RMSP shall likewise calibrate with
the supervision of the ERC these metering devices, conduct meter
reading and data dissemination to the CRB.
D6.3 The cost of the appropriate metering facilities and its installation
shall be borne by the Eligible End-user and shall be paid upon
execution of a Connection Agreement or an Amendment thereto, in
case of existing customers.
D6.4 The Retail Customer shall likewise be responsible for the
settlement of ERC- approved metering charges in accordance with
its customer classification, to cover other metering services
provided by the RMSP.
In the interim, a Retail Customer who was previously classified as a
residential customer under the Captive Market shall now pay the
metering charges applicable to low-voltage customers or its
equivalent classification under private distribution utilities, until
such time that the ERC has issued a separate resolution
rationalizing metering costs for all customer types within a specific
franchise area, Provided, that the DU acting as the default RMSP,
shall ensure that there is no cross-subsidization of metering costs
between Retail Customers and Captive Customers. No costs or
parts thereof, accruing to the metering requirements of the Retail
Customers, including the installation, maintenance of such meters,
and other related services, shall be charged to Captive Customers.
D6.5 The RMSP shall install the appropriate metering facilities or
enhance existing metering facilities by installing telemetering
devices to allow effective communication with its automated meter
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“A” receipt of
reading facilities within thirty (30) calendar days from
Eligible End-user’s notice of intention to switch; a longer time may
be allowed in the case of an Aggregated Group, provided, that such
period shall not exceed sixty (60) calendar days. Module D6.4 shall
apply

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“A”
in the settlement of necessary meter installation, maintenance and
recurring costs for related services.
D6.6 Metering Requirements shall be in accordance with the applicable
provisions of the Philippine Distribution Code (PDC), Philippine
Grid Code (PGC), Distribution Services and Open Access Rules
(DSOAR), Open Access Transmission Service (OATS) Rules, Rules
to Govern the Implementation of Advanced Metering Infrastructure
(AMI) by DUs and Other Authorized Entities, other related ERC
issuances, and any subsequent amendments thereto, subject to the
pertinent provisions of these Omnibus Rules.
D6.7 Eligible End-users and/or Retail Customers shall have the right to
own metering equipment and select their own contractor or
equipment vendor provided that it meets the metering
requirements under Module D6.6 herein. Notwithstanding
ownership of the metering facilities, Eligible End-users and/or
Retail Customers shall ensure that metering facilities are in areas
that are easily accessible by the RMSP, NSP or Retail Supplier and
that such access shall not be denied.

MODULE E
SWITCHING PROCESS FOR RETAIL CUSTOMERS

E1. Basic Conditions for Switching

E1.1 Any Eligible End-user who intends to switch to the Retail Market
or switch from one Retail Supplier to another shall comply with the
basic conditions set forth in the succeeding Modules.
E1.2 The Retail Supplier shall submit a switch request on behalf of the
Eligible End- user to the CRB once the following initial conditions
are met:
(a) An RSC has been executed between an Eligible End-user and a Retail
Supplier;
(b)A DWSA/TSA has been executed by a Retail Supplier and an NSP
for a single billing arrangement;
(c) A CA with an NSP and an MSA with an RMSP has been executed
covering the Retail Customer; and
(d)An agreed cooling-off period, subject to Module L13 of these
Omnibus Rules, has expired.

E1.3 No Eligible End-user shall be allowed to make an Initial Switch to a


Retail Supplier, should it have an outstanding balance with its NSP.
An Eligible End- user who is about to migrate to the CREM/GEOP
shall be entitled to the refund of the bill deposit from its NSP in
accordance with Section 3.4.2, Article III of the DSOAR and any
subsequent amendments thereto.

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“A” be allowed
E1.4 In the case of a Regular Switch, a Retail Customer shall
to switch to or be supplied by a new Retail Supplier or by a SOLR,
notwithstanding the existence of any dispute/s over billed amounts
or additional impositions not explicitly stated in the RSC. The Retail
Customer, however, shall be responsible

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“A”
for ensuring that it has fully complied with its other lawful
obligations with its current Retail Supplier; and that the Retail
Supplier is not precluded from enforcing any or all of the remedies
available to it as stipulated in the RSC, should the Retail Customer
fail to comply.
The return of the Retail Customer’s security deposit, if payment of
such deposit is indicated in its RSC, shall be completed within
thirty (30) calendar days after the termination of the RSC unless a
shorter period has been agreed upon, in writing, by the parties.

E2. Eligible End-user or Retail Customer Obligations

E2.1 An Eligible End-user intending to switch to any of the Customer


Choice Programs, including members of an Aggregated Group
through its Retail Supplier acting as the aggregator, are obligated
to complete the following:
(a) For initial switches, notify the NSP through registered mail,
electronic mail, or personal service, of the intention to switch and
such notification is received by the NSP, at least ninety (90)
calendar days prior to its intended switch date; and
(b)Enter into an RSC with the Retail Supplier, and an MSA with the
RMSP. Eligible End-user shall provide the CRB and the Retail
Supplier a copy of its signed MSA at least thirty (30) calendar days
prior to its intended date switch date.

E2.2 An Eligible End-user shall settle all its outstanding balances with its
NSP particularly for initial switches. After the initial switch has
been implemented, the Eligible End-user who is now a Retail
Customer, shall settle all other balances it has incurred after the
issuance of the attestation of no outstanding balance up to the point
of effectivity of the switch, in accordance with Module E1.3 herein.
In case the bill deposit is not sufficient, the Retail Customer shall
settle the deficit within seven (7) business days from receipt of the
bill, unless such billing is disputed. This dispute shall be treated as
a dispute of a Captive Customer and the relevant provisions of the
DSOAR, and other related ERC issuances shall apply.
E2.3 While the existence of an outstanding balance with the existing
Retail Supplier allows a Retail Customer to undergo a regular
switch as provided under Module E1.4 herein, the Retail Customer
shall continue to comply with its other obligations as provided in
their RSC.
E2.4 Module E2.1 shall also apply to eligible DCCs intending to switch
to any of the Customer Choice Programs. Consistent with the
relevant issuances of the DOE, a DCC may continue to directly
source its power supply from a generation company until the
expiration of its contract. Thereafter, if the DCC’s demand meets

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“A”as a Retail
the CREM eligibility threshold, it shall be treated
Customer and shall be subject to existing relevant to the retail
market.

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“A”
E3. Retail Supplier Obligations

E3.1. The Retail Supplier is required to comply with the following:

(a) Enter into an RSC with the Eligible End-user or Retail Customer,
whichever is applicable. In the case of an Aggregated Group under
RAP, the Retail Supplier shall enter into individual contracts with
each of the Aggregated Member should the latter opt for individual
contracts; Provided, that the terms and conditions shall be the same
across all contracts;
(b)Notify the Eligible End-user’s or the Retail Customer’s NSP and the
CRB through electronic mail, registered mail, personal service, or via
the NSP or CRB platform/system, the required information pertinent
to its signed RSC with the Eligible End-user or Retail Customer, at
least thirty (30) calendar days prior to the intended switch date;
(c) For initial switches, notify the concerned DU that an Aggregated
Group has been formed, through electronic mail, registered mail, or
personal service, ensuring receipt of such notification at least (90)
calendar days prior to the intended switch date;
(d)Enter into a DWSA or TSA whichever is applicable, with the NSP of
the relevant Eligible End-user or Retail Customer at least twenty (20)
calendar days prior to the intended switch date;
(e) Inform the CRB of the occurrence of any of the LRSEs as enumerated
under Module G3.2, as applicable;
(f) Maintain customer information received from the NSP or CRB in a
confidential manner and in accordance with the Data Privacy Act of
2012, its Implementing Rules and Regulations, other issuances of the
National Privacy Commission and other relevant laws of the
Philippines; and
(g)Register as a WESM member in accordance with the WESM Rules
and any subsequent amendments thereto.

E4. Network Service Provider Obligations

E4.1 The NSP is required to comply with the following:


(a) Enter into a DWSA/TSA with the Retail Suppliers, in a fair,
transparent and non-discriminatory manner;
(b)Inform the Retail Supplier of the transmission, distribution
services, and other charges, segregated and unbundled, for each of
its Retail Customers, through its monthly electric bill;
(c) In instances where NSP is the default meter provider, the NSP
shall ensure proper maintenance of the authorized meters toward
ensuring that these are in proper working condition and are
compliant with the pertinent laws, and rules on the matter;
(d)Submit to the CRB all the necessary information of the Retail
Customer and execute all the necessary documents for switching,
including but not limited to, attestations of no outstanding balance,
within thirty (30) calendar days from receipt of notice of intention
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to switch; and “A”

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“A”
(e) Perform other relevant duties and obligations in accordance with
pertinent laws, rules, and regulations.

E5. Different Contracts Necessary for Switching

E5.1 The following Retail Market participants/players shall execute and


sign an attestation that they have entered into any of the contracts
and/or agreements, as applicable, which shall form part of the
application for switching:

(a) the Retail Supplier and the Retail Customer for the RSC, its
terms and conditions including the effectivity dates;
(b)the Retail Supplier and the relevant NSP for the
wheeling/transmission services covering the Retail Customer; and
(c) the Retail Supplier or the Retail Customer, as applicable, and the
registered RMSP for the metering services covering the Retail
Customer.

E6. Switching Procedures

E6.1 Once the basic conditions for Switching as stated in Module E1


have been satisfied, the prospective Retail Supplier shall submit a
Switch Request to the CRB copy furnish its NSP at least thirty (30)
calendar days before the intended switch date in accordance with
CRB’s manner of submission.

E6.2 The Retail Supplier shall submit a Switch Request Form


accompanied by the attestations as provided under Module E5
herein, Prudential Requirements, and such other requirements of
the CRB, if applicable. The CRB, upon receipt of the Switch
Request, shall verify the satisfaction if the Retail Supplier has
updated its WESM Prudential Requirements if required by the
Market Operator (MO), to ensure that it fully satisfies the
Prudential Requirement as set out in the WESM Rules.

E6.3 The CRB shall, for a period not exceeding three (3) business days
check the completeness of the above-mentioned requirements,
including the verification of information of the Retail Customer, as
submitted by the NSP under Module E4 and notify the Retail
Supplier and the Retail Customer of deficiencies, if any.

E6.4 If the CRB determines that the conditions set forth in Modules E5
and E6 are not met, or, if the MO confirms that the Prudential
Requirements are not fully satisfied, the CRB shall notify the
Eligible End-user/Retail Customer, the new Retail Supplier that
submitted the switch request, the relevant NSP and the RMSP, that
the Switch Request shall not take effect and the reasons thereof.
Thereafter, the following shall be complied with:

(a) The Retail Supplier, which submitted the Switch Request, shall
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“A”
rectify the deficiencies in the application or requirements in its
application and submit the complete requirements to the CRB;
(b)If the deficiency pertains to Prudential Requirements, the party
required to comply shall update its Prudential Requirements to the
satisfaction of the MO; and

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“A”
(c) If the deficiency pertains to the metering requirements, the
relevant DU as the RMSP shall complete the requirements at the
most practicable time. For cases which require scheduling of
service interruption on the part of the Eligible End-user, the
completion will be based on the agreed date of execution with the
Eligible End-user.

E6.5 All deficiencies in its submission should be completed by the Retail


Supplier, Retail Customer/Eligible End-user or RMSP, whichever is
applicable, within five (5) business days after receipt of the CRB’s
notice. The maximum seven (7) day period to complete the switch
request evaluation shall be tolled pending the submission of the
deficiencies, if any. If after the lapse of five (5) business days, the
deficiencies in the application or requirements are not rectified, the
CRB shall notify the Retail Supplier, copy furnish the Eligible End-
user/Retail Customer, the NSP, the RMSP and the current Retail
Supplier, in the case of a regular switch. Such information will
indicate that the Switch Request will not be processed, without
prejudice to refiling of a new request, Provided, that all conditions
are met by the Retail Supplier and/or the party required to comply.

E6.6 If there are no deficiencies in the submission, the CRB shall


complete its evaluation and shall issue the switch request approval
for a period not exceeding seven (7) business days from submission
of a complete switch request requirements. The CRB shall notify
the Retail Supplier, the Retail Customer, RMSP, the relevant NSP,
and in the case of a Regular Switch, the current Retail
Supplier/SOLR of the approval of such switch request and the
effective switch date.

E6.7 The aforementioned procedures shall likewise apply to regular


switching from one Retail Supplier to another.

E6.8 The CRB shall ensure that the periods to evaluate switch requests,
including notification of deficiencies in submitted requirements,
shall be in accordance with the periods provided in these Rules so
as not to prejudice and cause undue delay to the switching of the
Retail Customer. Failure to comply with the periods provided
herein shall be a ground for initiating a complaint against the CRB.

E7. Customer Relocation within DU’s Franchise Area

E7.1 A Retail Customer who intends to transfer to a new service


address within the DU's Franchise Area and wishes to continue
receiving service from its Retail Supplier shall send a Request for
Relocation of Service to its Retail Supplier, with copy furnished to
the CRB, at least thirty (30) calendar days before the planned

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“A”
relocation date. The Request for Relocation of Service shall contain
the following:
(a) Address of the new location; and

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“A”
(b)Intended date of transfer and the commencement of service at the
new location. Prior to sending a request for relocation of service to
its current Retail Supplier, the Retail Customer should have
performed due diligence in ensuring that the intended relocation
site is within the DU’s Franchise Area and distribution system, and
all necessary connection and metering requirements have been
completed.

E7.2 The Retail Supplier shall inform the Retail Customer whether it
shall continue or discontinue its service at the Retail Customer's
new location within one (1) business day from receipt of the
Request for Relocation of Service. In the event of discontinuance,
the Retail Supplier shall provide the reason therefor. Likewise,
within the same period specified herein, the Retail Supplier shall
send a copy of the Retail Customer's Request for Relocation of
Service, along with a notice to continue or discontinue Retail
Supplier's service to the CRB. In the event that the Retail Supplier
opted not to continue the service at the new location, the Retail
Customer shall endeavor to find a new Retail Supplier and undergo
the Switching Procedures under Module E6 hereof.
E7.3 If the Retail Supplier shall continue its service, the CRB shall
forward the request for relocation of service to the DU within one
(1) business day from receipt of notice from Retail Supplier.
E7.4 The DU shall send a notice of approval or disapproval of such
request to the Retail Supplier through the CRB within two (2)
business days from receipt of CRB’s notice and the CRB shall
forward such notice to the Retail Supplier within one (1) business
day from receipt. In case of approval, the Retail Supplier shall enter
a new or amend the DWSA with the DU within three (3) business
days from receipt of the notice of the approval.
E7.5 The DU shall then send a notice to the CRB that the DWSA has
been entered into and the effective date and time for the
commencement of the service in the new location, within two (2)
business days from execution of the DWSA.
E7.6 The CRB shall forward the DU’s notice of the DWSA to the Retail
Supplier within one (1) business day from receipt of such notice
and the Retail Supplier shall then forward the notice to its Retail
Customer within one (1) business day from receipt thereof.
E7.7 The DU and Retail Customer shall have a new CA at the new
location. The relocation date shall take into consideration the DU's
completion of connection facilities at the new location.
E7.8 In cases where the Retail Supplier does not agree to continue to
provide its service to the Retail Customer:
(a) The Retail Customer, before relocation, shall switch to a new

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Retail Supplier following Module E6; and “A”
(b)If the Retail Customer fails to comply with the above procedures,
the CRB shall notify the Retail Supplier and the DU or NSP. The
Retail Customer shall endeavor to secure a new RES before
connection to the DU or NSP System.

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“A”

E7.9 The foregoing Modules shall only apply to Retail Customers whose
demand still falls within the eligibility threshold as determined by
the DU or NSP.

E8. Customer Relocation to Another Franchise Area

E8.1 A Retail Customer who intends to transfer to a new service


address in another Franchise Area shall be governed by the
procedures for new applications as provided in these Omnibus
Rules.

E9. Prohibited Commercial Transfers

E9.1 A Retail Customer shall not be transferred to another Retail


Supplier, or its RSC assigned to another Retail Supplier, or
reverted to a non-retail Supplier without the Retail Customer’s
authorization and consent in writing.
The Retail Customer may file a complaint with the ERC, in the
event a prohibited Commercial Transfer has occurred.

MODULE F
BILLING AND
PAYMENTS
F1.Bill
Content

F1.1 The Retail Supplier's bills shall also contain sufficient information
to allow Retail Customers the ability to calculate their charges,
such as but not limited to the kWh usage for the indicated billing
period, the billing due date, fuel cost charges, if applicable,
remaining balance and payments applied.
F1.2 The Retail Supplier or Primary Retail Supplier shall unbundle all
its charges, and each bill to the Retail Customer shall contain the
following:
(a) Retail Supplier Charges:

i. Generation Charge;
ii. Supplier’s Charge;
iii. WESM Charges, if applicable;
iv. Arrears, if any; and
v. Interests or penalty charges, if any.

(b)ERC Approved Charges related to Distribution and


Transmission, as applicable:

i. Transmission Charge;
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ii. Distribution Charge; “A”
iii. Metering Charge;
iv. System Loss Charge;
v. Local Franchise Tax;
vi. Real Property Tax;

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“A”
vii. Senior Citizen Subsidy;
viii. Lifeline Rate Subsidy;
ix. Value-Added Tax (VAT);
x. Universal Charge;
xi. FIT-All Charge;
xii. Reinvestment Fund for Sustainable CAPEX Charge, if applicable;
xiii. Arrears, if any; and
xiv. Other Government Charges and Adjustments approved by the
ERC.

Total Electricity Bill = (a) + (b)

F1.3 The Retail Supplier's bills shall be in clear and simple language,
and shall, among others, contain the following:
(a) Retail Supplier's customer service address, email and telephone
number;
(b)Address, telephone number and email addresses of the
Consumer Affairs Service (CAS) of the ERC;
(c) NSP's customer service and emergency telephone numbers; and
(d)Other announcements or information, as may be required by the ERC.

F2. Billing Scheme

F2.1 The NSP shall send, either through electronic mail, registered mail
or personal service, as may be agreed upon by the parties to the
DWSA/TSA, its billing statement to the Retail Supplier or to the
nominated Primary Retail Supplier in case of multiple Retail
Suppliers, within the timeframe specified in its billing agreement
after it has provided the Meter Reading Data to the CRB.
F2.2 The Retail Supplier or Primary Retail Supplier shall send the
consolidated billing statement to the Retail Customer within the
timeframe specified in its RSC upon receipt of NSP's billing
statement. Other Retail Suppliers, in case of multiple Retail
Suppliers, shall send its billing to the Retail Customer as specified
in its individual agreement.
F2.3 The Retail Customer shall receive one consolidated bill from the
Retail Supplier or the Primary Retail Supplier reflecting all charges
including the approved wheeling charges, described in Module E31
hereof, from the NSP and separate bills from its other Retail
Suppliers, in case of multiple Retail Suppliers, indicating its Retail
Supplier Charge for the billing period.
F2.4 A Retail Customer is responsible for paying the amounts billed by
its Retail Supplier, Provided, that such amount/s is based on the
charges clearly identified in their RSC. The Retail Customer shall
not be responsible for any amount/s not paid by the Retail Supplier
to other market participants. Any prejudice to the Retail Customer
due to the non-payment of the Retail Supplier to other market
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“A” and other
participants shall entitle the Retail Customer to damages
indemnifications as may be agreed upon in the breach of contract
provisions stated in their RSC.

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“A”
F2.5 The Retail Supplier or Primary Retail Supplier shall have the
responsibility to contract directly with the NSP for the wheeling or
transmission services.

F2.6 Other Retail Suppliers, in case of multiple Retail Suppliers, shall


follow Module F1 above, as applicable, for each bill sent to the
Retail Customer within the timeframe agreed in its respective RSC.
F2.7 The Retail Supplier or Primary Retail Supplier shall merely act as a
collecting agent on behalf of the NSP for the distribution and
transmission charges identified under Module F1.2 (b) of these
Omnibus Rules, as applicable, and shall be responsible for settling
these charges with the latter. Such distribution and transmission
charges are pass-through charges by the NSP based on rates
approved by the ERC, thus, shall not form part of the revenue or
losses of the Retail Supplier. The Retail Supplier shall not add and
collect administrative fees for collecting such distribution and/or
transmission charges.

F3. Payment Processing and Remittance

F3.1 The Retail Supplier or multiple Retail Suppliers shall pay all
amounts due to the NSP within the timeframe specified in their
wheeling or transmission service agreements to avoid
disconnection of supply.
F3.2 The Retail Supplier shall remit to the appropriate entities other
ERC-approved pass-through charges it has collected from the
Retail Customer, which shall include but not be limited to,
remittance of the FIT-All charges to the FIT-All Fund
Administrator, in accordance with Module C11.1 (i) of these
Omnibus Rules.
F3.3 The Retail Supplier/s or Primary Retail Supplier may impose late
payment charges on the Retail Customer for unpaid amounts,
Provided, that the terms of the late payment charges are clearly
stated in the RSC and previously disclosed to the Retail Customer.
The Retail Supplier or Primary Retail Supplier shall pay wheeling or
transmission service payments to the NSP within the timeframe
specified in their billing agreement by use of electronic fund
transfer or any other means agreed upon by both parties.
F3.4 Should payment by the Retail Customer be made through check
and the same is returned for any reason, the Retail Supplier/s or
Primary Retail Supplier may charge the Retail Customer for the
return fee and any reasonable administrative fee, in addition to late
payment charges, provided that these charges are stated in the
RSC and previously disclosed to the Retail Customer.
F3.5 No late payment charges or fees, including administrative charges,
may be collected by the Retail Supplier/s or Primary Retail Supplier
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“A” stated in
from the Retail Customer, if these charges are not clearly
the RSC, and previously disclosed to the Retail Customer.

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“A”

MODULE G
SUPPLIER OF LAST RESORT (SOLR)

G1. Entities Allowed to Act as a SOLR

G1.1 The following entities are allowed to act as a SOLR:

(a) A DU with an ERC-approved BSUP for regulated retail service


to operate within their Franchise Area only; and
(b)A RES with a valid license and an ERC-approved BSUP for
regulated retail service.

G2. General Requirements and Qualifications of a SOLR

G2.1 The following are the requirements for entities intending to be a SOLR:
(a) WESM Registration and Membership;
(b)Certificate of Compliance with WESM for the
following: i.Metering;
ii. Prudential Requirements; and
iii. Financial Obligations.
(c) With Retail Customer/s; and
(d)ERC-approved Business Separation and Unbundling Plan
(BSUP) for a Regulated Supply Business Segment.

G2.2 Any of the entities under Module G1 herein shall submit a letter of
intent to act as a SOLR including submission of proof of its
compliance with the requirements under Module G2.1. Upon
determination of compliance with the requirements mentioned
above, the ERC shall issue a Letter of Designation to act as SOLR to
such entity within sixty (60) calendar days from the receipt of
complete requirements.

G3. Last Resort Supply Events (LRSE)

G3.1 An LRSE is an event which may trigger the Retail Customer to


switch to a SOLR. A Retail Customer that is no longer being
supplied by their Retail Supplier due to the occurrence of any
LRSE shall be served by the SOLR in accordance with the terms
and conditions of their SOLR contract.
G3.2 The following circumstances are considered LRSEs:
(a) Either party terminated the RSC due to breach of contract,
Provided, that
the Retail Customer did not cause the breach;
(b)The TSA or DWSA between the Retail Supplier and the relevant
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NSP was terminated; “A”
(c) The Retail Supplier ceased to operate;

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“A”
(d)The GEOP Operating Permit issued to an RE Supplier has been
revoked by the DOE;
(e) The Retail Supplier is no longer permitted to trade electric
energy through the WESM, in accordance with the applicable
WESM or Retail Market Rules;
(f) The Retail Supplier has given notice to the ERC that it will no
longer provide supply of electricity;
(g)The Retail Supplier has unilaterally terminated the RSC without just
cause;
(h)The Retail Supplier does not agree to continue providing supply
to the Retail Customer in the event of relocation of the latter
and the Retail Customer fails to switch to another Retail
Supplier in time for such relocation;
(i) The Retail Supplier has defaulted in its RSC with an Aggregated
Group;
(j) The ERC has revoked the RES License or Letter-authority; and
(k) Any other circumstances that may be deemed an LRSE by the
ERC, subject to the submission of a letter-request by the Retail
Supplier with pertinent information and/or documents, for
ERC’s consideration.

G3.3 A Retail Customer disconnected by a Retail Supplier or RMSP for


pilferage cannot avail of Last Resort Supply unless such Retail
Customer pays in full any or all amounts, including any applicable
charges, due to the Retail Supplier or the NSP.

G3.4 For circumstances provided under Module G3.2 of these Omnibus


Rules, the Retail Supplier shall ensure continuous supply of
electricity to the Retail Customer until the effectivity of the Regular
Switch to another Retail Supplier or SOLR, and that the occurrence
of the LRSE identified in this provision shall be covered by the
liquidated damages or other measures for indemnification. This
provision shall be reflected in the RSC at all times.

G4. Procedures for the Assumption of Last Resort Supply

G4.1 Upon discovery of the occurrence of any of the LRSEs in G3.2, the
Retail Supplier shall immediately notify its affected Retail
Customer/s, the CRB, and the ERC, including relevant documents
in the said notice. Failure to provide notification shall be
considered a violation of these Omnibus Rules and shall be subject
to appropriate fines and penalties. If the LRSE is caused by ERC’s
revocation of a RES License, the ERC shall, within one (1) business
day, inform the CRB of such revocation and post a notice to that
effect, on the ERC official website and Buy Your Electricity website
(bye.erc.ph).

G4.2 The Retail Customer shall inform the CRB that it will or will not
avail of Last Resort Supply within one (1) business day after being
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notified of the occurrence of the LRSE. “A”

G4.3 Upon receipt of notice of intention to avail Last Resort Supply from
the Retail Customer and that the LRSE is one of those enumerated
under G3.2 (a) to (i),

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“A”
the following procedures shall apply, without need for confirmation
or further action from the ERC:
(a) The CRB shall send notice of intention to avail Last Resort Supply
to all Retail Suppliers acting as SOLR and the DU acting as SOLR
within the Franchise Area where the Retail Customer is located,
within one (1) business day from the receipt of notice from Retail
Customer as provided under G4.2;
(b)The notified SOLRs, through the CRB, shall inform the Retail
Customer of its offer, within one (1) business day from receipt of
the notice of intention to avail of Last Resort Supply, which shall
contain the following:

i. the effective date of transfer which shall also be the


commencement of the Last Resort Supply;
ii. the details of the terms and conditions of the SOLR contract;
and
iii. of their right to transfer to another Retail Supplier,
purchase its energy requirement from WESM, at any time
after the commencement of the Last Resort Supply,
subject to the provisions of Module G9;
and
(c) If the Retail Customer agrees to the terms and conditions of the
chosen SOLR and its attendant contract, said Retail Customer
shall:

i. Sign the SOLR contract; and


ii. Pay the corresponding cash security deposit.

G4.4 For LRSEs contemplated under G3.2 (j) to (k) herein, the
procedures outlined under G4.3 of these Omnibus Rules shall apply,
upon CRB’s receipt of notice of revocation of RES License or Letter-
authority, or confirmation that such circumstance was deemed an
LRSE by the ERC, whichever is applicable.

G4.5 The Retail Supplier is still responsible for the energy consumed
from the time of cessation, revocation, suspension or termination
until the effectivity of the switch to a SOLR.

G5. Disconnection After Notification of Non-availment of SOLR

G5.1 In the event a Retail Customer signifies that it is not willing to


avail of Last Resort Supply and the CRB is informed accordingly,
the CRB shall inform the NSP within one (1) business day from
receipt of the notice of the Retail Customer’s decision not to avail
of Last Resort Supply. The NSP, in turn, shall provide a 48-hour
disconnection notice to the Retail Customer and ensure that said
Retail Customer receives the notice properly.

G5.2 Should the Retail Customer fail to find a new Retail Supplier within
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48-hours of receipt of notice of disconnection, the “A”
RMSP or NSP
shall be compelled to disconnect the said Retail Customer. It is
incumbent upon the Retail Customer to inform the CRB within the
same period that it is negotiating or is in the process of drawing up
a contract with another Retail Supplier; in this case, Module G4.5
shall apply until effectivity of switch to such Retail Supplier.

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“A”
G5.3 The Retail Customer's electricity service will not be reconnected
until said Retail Customer enters a contract with a Retail Supplier.

G6. Provision of Information by the CRB

G6.1 The CRB shall provide the SOLR with the information of those
Retail Customers who signified its intention to avail of Last Resort
Supply in accordance with G4.2 herein.

G6.2 The Retail Customer information shall include the following:


(a) Billing address and service address, if different;
(b)Customer's account number;
(c) Meter reading date or cycle and reporting period;
(d)Billing date or cycle and billing period;
(e) Meter number;
(f) DU's rate class and subclass classification;
(g)Description of usage measurement type and reporting period; and
(h)The most recent twelve (12) months of historical usage.

G7. Cash Security Deposit

G7.1 A Retail Customer shall deposit one (1) month total estimated
billing based on the average of the previous six (6) months’ demand
and energy usage. Cash Security Deposit collected by the SOLR
shall be deposited in an escrow account, restricted account or
Hold-out Agreement facility availed by the SOLR, making the said
cash deposit unavailable for use in financing the SOLR’s working
capital requirements.

G7.2 If a Retail Customer: (a) transfers from the SOLR to a new Retail
Supplier; (b) reverts to the Captive Market from an Aggregated
Group; or (c) have its SOLR service terminated due to nonpayment
of bills, the final bill from the SOLR will be offset against the Retail
Customer's security deposit.

G7.3 Any remaining balance and interest earned shall be refunded to the
Retail Customer within thirty (30) calendar days or a shorter period
as agreed upon by the parties, from the final meter reading date. If
there is a deficit, the Retail Customer shall settle all outstanding
obligations due to the SOLR prior to the effectivity of the intended
switch date.

G8. Switch Request and Meter Reading

G8.1 Upon signing of the SOLR contract and the payment of the
deposit, the SOLR shall within one (1) business day submit a
Switch Request to the CRB.
G8.2 The RMSP shall conduct within one (1) business day from receipt
of the SOLR request, a special meter reading of the Retail
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“A” the Retail
Customer’s usage, to delineate the consumption between
Supplier and the SOLR, subject to special meter reading charges.

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“A”
G8.3 The date of the Final Meter Reading shall be the commencement
date of Last Resort Supply.

G9. SOLR Billing

G9.1 The Retail Customer shall be billed for the electricity supplied by
the SOLR. If the DU is the SOLR, the billing shall clearly indicate
that it is for its supply as the SOLR.
G9.2 Each bill for Last Resort Supply shall include the following items:
(a) The amount of energy consumed multiplied by the relevant WESM
nodal price or the bilateral contract price, whichever is applicable.
The five percent (5%) premium shall be indicated separately;
(b)The last approved unbundled monthly supply charge for the
relevant Retail Customer Segment, all approved pass-through
transmission and distribution wheeling costs, systems loss charges,
as well as the fixed monthly metering charges of the DU;
(c) Universal Charge;
(d)FIT-All;
(e) Taxes (franchise and VAT);
(f) Any previous balance;
(g)The period covered by the current billing;
(h)The date the bill was issued;
(i) All relevant meter readings for the first and last day of the billing
period;
(j) The date the meter was read;
(k) Meter serial and company number;
(l) The telephone number and address of the SOLR office where a
Retail Customer may obtain information concerning its bill or the
supply provided, including emergency contact number; and
(m) ERC's customer hotline number and website.

G9.3 Wheeling charges shall be billed by the DU where the Retail


Customer is located, to the SOLR for the said Retail Customer.

G9.4 If the effective switch date falls after the start of a regular Billing
Cycle, the SOLR shall still bill the Retail Customer in accordance
with Module G9.2 herein.

G10. Violation of SOLR Contract

G10.1 In the event the Retail Customer violates any provision of the
SOLR contract and fails to pay the SOLR for supply rendered on
the due date, the SOLR shall send a 48-hour disconnection written
notice to the Retail Customer.

G10.2 If the Retail Customer fails to pay the amount within forty-eight
(48) hours from receipt of disconnection notice, the SOLR shall
inform the CRB to disconnect said Retail Customer, and the RMSP
shall execute such request within twenty-four (24) hours from the
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receipt of the notice from the CRB. The “A”

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“A”
RMSP shall not reconnect the Retail Customer until the latter
settles all obligations owed to the SOLR and upon receipt of the
notice of reconnection from the CRB.

G11. Disconnection in Dangerous and Hazardous Condition

G11.1 The DU may disconnect electricity service without written notice


only if a dangerous or hazardous condition arises, subject to post-
disconnection notification of affected End-users. The supply will only
be reconnected once the dangerous or hazardous condition is
addressed.

G12. SOLR Obligations

G12.1 The SOLR shall have the following obligations:

(a) Continue supplying electricity to the Retail Customer from the


effectivity of the switch and commencement of supply up to the
time that the Retail Customer terminates the SOLR Contract,
subject to the SOLR Rate as indicated under Module G15 herein;
(b)Administer the process of transferring those Retail Customers who
opted to avail of its Last Resort Supply, including the metering and
billing arrangements; and
(c) Collect charges under G9.2 from all its Retail Customers on a
monthly basis, and remit to the appropriate entities.

G13. Term of SOLR Contract

G13.1 The SOLR contract shall commence upon the effectivity of the
switch date, which may be any day within one (1) Billing Cycle and
shall end at the last day of such Billing Cycle. If a Retail Customer
does not transfer to another Retail Supplier at the end of a Billing
Cycle, the SOLR Contract shall be deemed automatically renewed.
If the Retail Customer no longer intends to avail of a Last Resort
Supply, it shall inform the SOLR in writing at the start of a new
Billing Cycle, and the non-renewal shall apply to the next Billing
Cycle.

G14. Termination of SOLR Contract within the Billing Cycle

G14.1 Notwithstanding the provision under Module G13 herein, a Retail


Customer may terminate its SOLR contract and transfer to another
Retail Supplier before the end of a Billing Cycle. The Retail
Customer shall notify the SOLR in writing at least ten (10) calendar
days from the proposed termination date. A SOLR shall not impose
an exit or pre-termination fee on the Retail Customer. A special
meter reading may be conducted on a date other than the regular
meter reading date and an additional fee will be charged by the
RMSP to the entity requesting such service.

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“A”
G15. SOLR Rate and Premium

G15.1 The SOLR shall charge the applicable WESM nodal energy price,
or the price of the power supply agreement (PSA), whichever is
applicable, for the energy consumed by the Retail Customer during
all hours of the billing period, plus a premium of five percent (5%)
to cover incremental administrative and overhead expenses.
Provided, that in the case of DUs with a SOLR business segment
and duly designated to act as such, it shall ensure that PSA
reassignment and rate recovery is compliant with the Module Q2
herein and the BSUP guidelines. The SOLR may file its proposed
SOLR Rate to the ERC if the rate provided herein is deemed
insufficient to cover the SOLR operation. Any charges that may
cover a reasonable return on investment shall be subject to the
approval and/or determination of ERC.

G16. System Loss Charges

G16.1 System loss charges shall be computed using the same


methodology used for the Captive Market. All costs of Last Resort
Supply shall be disclosed in an unbundled and transparent manner
in the billing to the Retail Customer.

MODULE H
DISCONNECTION AND RECONNECTION PROCESS

H1. Retail Customer’s Failure to Pay its Retail Supplier

H1.1 If a Retail Customer fails to pay the Retail Supplier for supply of
electricity as it falls due, the Retail Supplier shall send a written
Notice of Disconnection to the Retail Customer, copy furnished the
CRB, forty-eight (48) hours before the date of disconnection.

H1.2 The CRB shall forward the Notice of Disconnection to the NSP
within twenty- four (24) hours from receipt of said notice.

H1.3 If the Retail Customer fails to settle its obligation in full within the
48-hour period, the Retail Supplier may send a Request for
Disconnection to the CRB. The latter shall then forward the
Request for Disconnection to the NSP within the 24-hour period
from receipt of said request.

H1.4 The NSP shall disconnect the Retail Customer within twenty-four
(24) hours, except during weekends, holidays, and on any other day
before 8AM and beyond 5PM, from receipt of the Request for
Disconnection and notify the CRB that the Retail Customer has
been disconnected. The NSP shall not be responsible for verifying
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“A”
the validity of the Retail Supplier’s request for disconnection.

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“A”
H1.5 The Retail Customer may settle its obligation in full and present
proof of such payment, unless otherwise agreed with the Retail
Supplier before the actual disconnection. The Retail Supplier shall
advise in writing the CRB and the NSP to desist from disconnection
of supply.

H1.6 The Retail Supplier, after due process, may be held liable in cases
where the Retail Customer protested the validity of the
disconnection made by the NSP if the disconnection was not done
in accordance with Modules H1.1 to H1.5 herein. The Retail
Supplier may likewise, after due process, be held liable if it pursues
the disconnection of a Retail Customer due to non-payment of its
outstanding balance which is the subject of a dispute as
contemplated under Module E1.4 of these Omnibus Rules.

H1.7 Any disconnection performed pursuant to this Module is without


prejudice to any charges, interest, or penalties that may be legally
imposed.

H2. Failure of Retail Supplier to Pay NSP

H2.1 If a Retail Supplier fails to pay for the Wheeling Service by the due
date, the NSP shall send a written Notice of Disconnection to the
CRB that the supply of electricity under the wheeling service
agreement will be terminated within seven (7) calendar days from
the Retail Supplier’s receipt of such notice.

H2.2 The CRB shall forward the Notice of Disconnection to the Retail
Supplier within one (1) hour upon receipt of the notice. Thereafter,
the CRB shall forward the duly received Notice of Disconnection to
the NSP.

H2.3 If the Retail Supplier fails to pay within forty-eight (48) hours
following said notice, the NSP shall send a copy of the Notice of
Disconnection to the affected Retail Supplier's Retail Customers.

H2.4 The Retail Customer shall enter into a SOLR contract following the
provisions under Module G3 and G4 of these Omnibus Rules.

H2.5 If at the time of disconnection is to be made, the Retail Supplier


tenders full payment of the unpaid bill to the NSP, the NSP shall
desist from disconnecting the supply of electricity and the CRB
shall be informed of such development at the soonest possible time.
Provided however, that the Retail Supplier can only invoke this
provision once for the same unpaid bill.

H3. Reconnection of Retail Supply

H3.1 Any Notice of Reconnection shall be initiated by the entity who


requested for the disconnection of the Retail Customer, whether it
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is a Retail Supplier or an NSP. “A”

H3.2 A Retail Customer shall be reconnected by the NSP within twenty-


four (24) hours after the Retail Customer has presented to the
Retail Supplier proof that

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“A”
any of the grounds for disconnection as provided in their RSC has
been remedied (e.g., proof of payment).

H3.3 The Retail Supplier shall then request for a reconnection of its
Retail Customer by submitting a Notice of Reconnection to the NSP
through the CRB within the same twenty-four (24) hour period
from fulfillment of Module H3.2 herein.

H3.4 In the case of a disconnected Retail Customer whose disconnection


was requested by multiple suppliers, the reconnection will only be
executed when the Primary Retail Supplier has issued the Notice of
Reconnection to the NSP.

H3.5 In case of disconnection due to failure to pay by the Retail Supplier


to the NSP, the NSP shall issue a Notice of Reconnection to the
CRB copy furnished the said Retail Supplier.

H3.6 The CRB shall forward said notice to the Retail Supplier’s Retail
Customer at the most practicable time. The Retail Supplier may opt
to renegotiate its contract with the affected Retail Customer.

H3.7 The affected Retail Customer shall have the right to continue
availing the services of its Retail Supplier or continue to be served
by a SOLR until such time that an RSC with a new Retail Supplier
has been approved.

H4. Disconnection and Reconnection of SOLR Service

H4.1 In the event the Retail Customer violates any provision of the
SOLR contract and fails to pay the SOLR for services rendered on
the due date, the SOLR may send a 48-hour written Notice of
Disconnection to the Retail Customer.

H4.2 If the Retail Customer fails to pay the amount within the 48-hour
period, the SOLR shall inform the CRB to disconnect said Retail
Customer.

H4.3 The CRB shall forward the said Notice of Disconnection to the NSP
and shall execute such request within twenty-four (24) hours from
the receipt of the notice from CRB. No reconnection shall be made
until the latter settles all obligations owed to SOLR.

H5. Deferment of Disconnection

H5.1 The disconnection may be deferred should any of the following occur:
(a) The outstanding amount due and demanded was settled prior to the
scheduled disconnection date. The Retail Supplier shall advise the
CRB and NSP to desist from disconnecting supply upon receipt of
the Retail Customer payment;
(b)The Retail Supplier has recalled the Notice of Disconnection as a
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“A” agreement
result of a special payment agreement or restructuring
entered into by the Retail Supplier and Retail Customer prior to the
scheduled disconnection date;
(c) The Retail Supplier has recalled the Notice of Disconnection for
any valid reason not stated above; and

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“A”
(d)The ERC or lawful authority has issued a stay order after due
notice and hearing.

H5.2 The disconnected Retail Customer shall continue to be liable for


any or all of its outstanding obligations and liabilities under ERC
issuances, WESM Rules and all other existing retail contracts they
are a party to.

H5.3 The procedures for disconnection, deferment of disconnection and


reconnection of Retail Customer shall also be governed by the
NSP’s existing rules, and other ERC and DOE relevant issuances.

H5.4 Furthermore, notwithstanding the service of a notice,


disconnection may be suspended should any of the following or
similar circumstances:
(a) Any occupant, whether permanent or not, is sick and dependent on
a life support system requiring electricity. Provided, that the
customer can present a medical certificate issued by a duly
licensed physician or public health official certifying that the
suspension of disconnection would be especially dangerous to the
health of said person;
(b)Retail Customer proves he did not receive a Statement of Account
from the Retail Supplier or SOLR; and
(c) Retail Customer is being billed in a single statement for
consumption covering several billing cycles due to the failure of the
Retail Supplier or SOLR to issue a timely billing statement.

H5.5 For item (a), the suspension of disconnection shall only be made
during the dependency of the occupant on the life support which
shall not exceed two (2) months from such suspension.

H5.6 For item (b), the reason should not be the refusal of the Retail
Customer to accept the bill.

H5.7 For item (c), the Retail Customer must pay the current billing on
its due date and should enter into a staggered payment scheme
within the period equivalent to the number of months covering the
unpaid bills.

H5.8 The NSP may disconnect electricity service without written notice,
only if a dangerous or hazardous condition arises. Service will not
be reconnected until the dangerous or hazardous condition has
been addressed.

MODULE I
RETAIL AGGREGATION PROGRAM

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I1. General Procedures for Retail Aggregation “A”

I1.1 Following the conditions set forth under Module D4, no limit shall
be imposed on the number of End-users whose demand shall be
consolidated to form an

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“A”
Aggregated Group, Provided, that no End-user that has already
reached the eligibility threshold set by the ERC or is already a
CREM End-user may be allowed to participate in the RAP.
I1.2 Any Retail Supplier which has consolidated the demand of at least
two (2) End- users forming an Aggregated Group shall serve a
written notice to the concerned DU in the Franchise Area where
the said End-users are located that an Aggregated Group has been
formed and provide the relevant customer information related to
these End-users.
I1.3 The Retail Supplier shall include in the said notice the relevant
customer information of the aggregated members and the
effectivity date of the said RSC. The notice shall be made at least
ninety (90) calendar days prior to the intended switch date. Upon
receipt of such notice, the DU shall, in a non-discriminatory
manner, assist and ensure that the demand derived under Module
D4 of these Omnibus Rules.
I1.4 The Retail Supplier may enter into a single RSC to supply all the
electricity requirements of the Aggregated Group. Should the
Aggregated Members opt to enter into individual contracts with the
Retail Supplier, the terms and conditions shall be the same across
all contracts.

I2. Billing and Payment

I2.1 Module F of these Omnibus Rules shall also be applicable to the


Retail Aggregation Program.
I2.2 For Aggregation through a Virtual Meter in the WESM, each
Aggregated Member shall receive a billing statement from its
Retail Supplier. This statement will include their respective share
of the wheeling charges calculated for each Aggregated Member.
I2.3 The Retail Supplier shall not impose any terms, conditions, fees, or
charges on any Aggregated Member unless such particular
condition is clearly disclosed and provided in the RSC.
I2.4 The Retail Supplier shall be responsible for the credit and
collection concerning the Aggregated Member. The Aggregated
Member shall be required to remit and comply with the agreed
payment terms by both parties. An Aggregated Member shall not
be prejudiced by the non-payment of another Aggregated Member
of its bill. The Retail Supplier cannot request the disconnection of
the aggregated group due to non-payment; however, the Retail
Supplier is not precluded from enforcing any of the remedies
available to it as stipulated under their RSC.

I3. Rights and Obligations of Aggregated Group/Member

I3.1 The Aggregated Group/Member shall be responsible for, but not


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limited to the following: “A”

(a) Communicating, transacting, and processing of payment to the Retail


Supplier;

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“A”
(b)Select and evaluate among the ERC-licensed Retail Suppliers in
accordance with their requirements;
(c) Provide pertinent information required by the Retail Supplier;
(d)Review of the disclosure statement stipulated in the RSC; and
(e) Meet the requirements before the WESM, if applicable.

I4.Disconnection of Aggregated Group/Member

I4.1 In case of non-payment, pilferage or such other breach of the RSC


and absent any condonation, collusion, or conspiracy among the
Aggregated Members of the Aggregated Group, disconnection may
only be implemented on the erring Aggregated Member/s alone. The
Aggregated Group as recognized by the CRB shall continue to
subsist, notwithstanding the disconnection of any of its Aggregated
Member/s.

MODULE J
REDISTRIBUTION IN THE RETAIL
MARKET

J1.Guiding Principles for Redistribution in the Retail Market

J1.1 In cases of sub-metering and where the Single Revenue Meter to


which these sub-meters were connected was able to register an
average peak demand that meets the prevailing threshold set by
the ERC for eligibility to the CREM, the building/complex owner,
administrator or in cases of condominium/residential buildings, its
homeowner’s association or any association recognized by the unit-
owners/users as its authorized representative, may opt to switch to
the CREM and can undertake redistribution of electricity within
such building/structure, or industrial or commercial complex.
J1.2 Upon switching to the CREM, the building/complex owner, or
administrator, or homeowner’s association or any association
recognized by the unit-users as its authorized representative,
subject to Module J1.1 hereof, shall now be considered as a CREM
End-user Redistributor. As such, all rights and obligations of a
CREM End-user as provided in these Omnibus Rules shall likewise
apply to a CREM End-user Redistributor.
J1.3 The individual unit-owners/users shall pay their electric bills to the
CREM End-user Redistributor as if they are being billed by the
Retail Supplier based on the same customer classification. Thus,
the unit-owners/users shall only pay for their actual consumption
reflected in their respective sub-meters and the rate to be charged
shall not be higher than those imposed by the RES. At no instance
shall the CREM End-user Redistributor derive profit from such
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recovery. “A”
J1.4 Reasonable expenses may be recovered by the CREM End-user
Redistributor. Non-technical losses may be recovered pursuant to
the provisions of Republic

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“A”
Act No. 7832, the Revised Penal Code and other related laws, rules
and regulations.
J1.5 Connection or network assets investments and all other electrical
equipment shall be recovered separately reflected in a bill separate
from the electricity bills.
J1.6 CREM End-user Redistributors are required to bill their unit-
owners/users individually in a transparent manner as if they are
being billed by the Retail Supplier/DU.

J2. General Conditions for Redistribution

J2.1 A CREM End-user Redistributor may be allowed to redistribute


electric service subject to the following conditions:
(a) A CREM End-user Redistributor shall provide and install individual
sub-meters to the units of the individual unit-owners/users, the cost
of which shall not be charged or passed-on to the individual
lessees/unit users, to accurately measure the latter’s energy
consumption;
(b)All electric watt-hour meters, including sub-meters, must be tested,
certified, and sealed by ERC prior to installation. The Rules and
Procedures for the Test and maintenance of Electric Meters of
Distribution Utilities, or any amendments thereto, shall apply;
(c) All sub-meters’ meter reading multiplier should be both attested
and documented by the CREM End-user Redistributor and the
Lessee/Customer/unit-owner/user and should be clearly indicated
on the face of the meter;
(d)All sub-meters shall be installed in a clean place, free of vibration
and easily accessible for reading and testing by both the CREM
End-user Redistributor and the individual unit-owner/users;
(e) Common areas shall be metered separately from the
unit-owner/user’s premises. In cases when this would not be
possible because of the design of the building, the consumption of
the common areas may be estimated using a computation method
agreed upon by the CREM End-user Redistributor and the
individual unit-owners/users. At no instance shall the CREM End-
user Redistributor derive profit from this recovery;
(f) Every CREM End-user Redistributor shall instruct its meter reader
when reading periodically the meter installed in the premises of a
customer to leave in such premises a record or any other means of
information showing the date of the reading, the reading made, the
previous reading and the total consumption expressed in units of
service used, as read by the meter reader, and the printed name of
the meter reader. Meter reading shall be on the same day as the
RMSP’s meter reading;
(g)The energy consumption of premises which are leased for very
short terms, or for temporary periods each not exceeding six (6)
months and are not permanent divisions in a building shall be
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deemed included in the rentals for such premises; “A”

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“A”
(h)A CREM End-user Redistributor shall bill its individual unit-
owners/users monthly. The billing statement, duly received by the
unit-owners/users, must contain the same detailed information, as
shown in the ERC approved unbundled customer bill format. A copy
of the Retail Supplier’s bill to the CREM End-user Redistributor
shall be displayed or posted in conspicuous places within the
premises;
(i) Individual unit-owners/users shall pay the CREM End-user
Redistributor their energy consumption based on the actual
consumption reflected in their individual sub-meters;
(j) For the establishment of credit, the unit-owner/user and the CREM
End-user Redistributor shall follow the deposit and deposit refund
requirements found in the Magna Carta for Residential Electricity
Consumers and DSOAR, whichever is applicable. The amount of the
bill deposit shall be equivalent to the estimated monthly billing of
that unit-owner/user. Provided, that after one
(1) year and every year thereafter, when the actual average
monthly bills increased/decreased more than ten percent (10%) of
the bill deposit, such deposit shall be correspondingly
increased/decreased to approximate said billing. The CREM End-
user Redistributor shall pay interest on bill deposits equivalent to
the Peso Savings Account Interest Rate of the BSP on the first
working day of the year, or other government banks subject to the
approval of the ERC. The interests shall be credited yearly to the
bills of the registered sub- meter user; and
(k) Rebates and refunds that will come from the Retail Supplier or NSP
should be passed on to the unit-owners/users.
Allocation/computation for rebates to unit-owners/users should be
of same manner as that of the NSP.

J3. Additional Conditions for Redistribution with Substations

J3.1 A CREM End-user Redistributor with a substation allowed to


redistribute electric service shall likewise comply with the following
conditions:
(a) The CREM End-user Redistributor must own the substation and the
buildings connected thereto to validly redistribute electricity
thereon;
(b)The substation and buildings must be located within a single
industrial or commercial complex situated in a contiguous area
fenced off from the surrounding properties. The requirement of the
contiguous area being fenced off from the surrounding properties
shall only apply to this Module;
(c) In cases where other buildings owned by other persons/entities are
located inside the industrial or commercial complex, the NSP must
give their consent prior to the connection thereof to the substation.
Otherwise, these buildings must be served by the NSP which has
franchise rights over the area;
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“A”
(d)The CREM End-user Redistributor must have a valid contract with
the NSP wherein the maximum load capacity of the substation is
determined. Unless otherwise provided for in its contract with the
NSP, future buildings owned and constructed by the CREM End-
user Redistributor may be connected to the substation as long as
the allowable maximum load of the substation is not exceeded,
after due notice to the NSP and compliance with all technical rules
and regulations provided for by law; and

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(e) The CREM End-user Redistributor must install a revenue meter in
each building connected to the substation to determine the
consumption of such building.

J4. Rights of Unit-Owners/Users for Condominium/Residential


Buildings

J4.1 Consistent with the provisions of the DSOAR, each unit-owner/user


shall be entitled to the rights provided to residential customers in
the Magna Carta for Residential Electricity Consumers under
Articles 7 (Right to a Refund of Bill Deposit), 10 (Right to a Refund
of Overbillings), 12 (Right to a Meter Testing by ERC), 18 (Right to
Due Process prior to Disconnection of Electric Service), 19 (Right to
a Notice Prior Disconnection), 21 (Right to tender Payment at the
Point of Disconnection; Deposit Representing the Differential
Billing); 22 (Right to Electric Service Despite Arrearages of Previous
Tenant); 23 (Right to Reconnection of Electric Service), 24 (Right to
Witness Apprehension), 25 (Right to ERC Testing of Apprehended
Meter), 6 (Right to Payment Under Protest) and 27 (Right to File
Complaints before ERC).

The unit-owners/users or lessees shall have the right to inspect the


Retail Supplier’s billing to the CREM End-user Redistributor at
reasonable business hours.

J5. Obligations of Unit-Owners/Users for


Condominium/Residential Buildings

J5.1 Unit-owners/users shall have the following obligations:


(a) Pay the bill/security deposit to guarantee payment of bills as may
be imposed by the CREM End-user Redistributor, computation of
which, shall be in accordance with Section 6.3.1 (k) of the DSOAR,
or any subsequent amendments thereto.
(b)Payment of its proportionate share in the security deposit, if such is
required under the RSC and no bill/security deposit was required
by the CREM End-user Redistributor under Module J5.1 (a) herein.
(c) Payment of bill within the period specified under their contracts or
the existing policies of the CREM End-user Redistributor, building
owner, administrator, or homeowner’s association;
(d)Payment of late charges and penalties specified under their
contract, and as disclosed to the Unit-owners, and as reflected in
the RSC, including the existing policies of the CREM End-user
Redistributor, building owner, administrator, or homeowner’s
association; and
(e) To allow the faithful and accurate recording of consumption as
reflected in his sub-meter.

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“A”
MODULE K
REVERSION OF A RETAIL CUSTOMER TO THE CAPTIVE
MARKET

K1. Conditions for Reversion under the CREM

K1.1 A CREM End-user who has entered into an RSC with Retail
Supplier is deemed to have migrated from the regulated service of a
DU to the CREM. In general, such CREM End-user shall no longer
be allowed to revert to the Captive Market. However, in instances
where the CREM End-user's average monthly peak demand has
decreased to less than twenty-five percent (25%) of the prevailing
threshold in the CREM for the preceding six (6) consecutive months
and the same is not attributable to seasonal demand, it may send a
written request to the ERC with a confirmation from its Retail
Supplier or SOLR that its demand level has decreased by such
amount. Such CREM End-user may revert to the Captive Market,
subject to ERC approval. Upon such approval, the CREM End-user
shall settle its obligations with its Retail Supplier or SOLR as stated
in the RSC or SOLR contract before it is reverted to the Captive
Market. Subsequently, the concerned Retail Supplier or SOLR of the
said CREM End-user shall inform the CRB and the ERC that its
customer has reverted to the Captive Market.

K2. Conditions for Reversion under the GEOP

K2.1 For instances where the GEOP End-user’s average monthly peak
demand has decreased to at least seventy-five percent (75%) of the
prevailing threshold for GEOP for the preceding six (6) consecutive
months and the same is not attributable to seasonal demand, the
RE Supplier shall send a written request to the DU, with a
confirmation from the RMSP that the demand level of such GEOP
End-user has decreased by such amount. Such GEOP End-user
shall be reverted to the Captive Market.

K2.2 The GEOP End-User may only exercise its option to revert to being
a Captive End-User once every twenty-four (24) months.
K2.3 A GEOP End-User who intends to revert to the Captive Market
shall be treated as a new customer by the DU.

K3. Conditions for Reversion under the RAP

K3.1 In no case shall any Aggregated Member opt-out of the Aggregated


Group during the term of their respective contracts.
K3.2 The Aggregated Group shall have the right to terminate its
contract if the Retail Supplier commits any act of default. Acts of
default include but are not limited to the following:

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(a) Breach of confidentiality regarding the “A”
Aggregated Member’s
information;
(b)Excess billing of the contracted electricity rate to its Aggregated
Group unless measures were immediately taken by the Retail
Supplier upon discovery of error;

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“A”
(c) Revocation of WESM membership;
(d)Non-payment on its obligation to the DU, Generation Company and
WESM, among others;
(e) Final Decision issued by any Courts in the Philippines convicting
the Retail Supplier of any crime or offense involving fraud or
deceit;
(f) The LRSE attributable to the Retail Supplier as provided in the
SOLR Rules shall likewise be considered as act of default; and
(g)Any other circumstances which the ERC may deem as an act of
default or breach.

K3.3 In case the Retail Supplier is in default as provided under Module


K3.2 the Aggregated Group may revert to the captive market,
whether individually or as a group. The Retail Supplier in default
shall continue supplying electricity to the Aggregated Group under
the same terms and conditions of their RSC, until such time the
reversion to the captive market or switch to another Retail Supplier
was effected.
K3.4 The Aggregated Group upon termination of its RSC with the Retail
Supplier subject to the parties’ mutual agreement and in
accordance with the terms of their respective contracts, the
Aggregated Group, may revert to the captive market, whether
individually or as group, Provided, that notice of intention to revert
shall be submitted to the DU thirty (30) calendar days before the
effectivity of such termination.
K3.5 Should a termination of contract occur, a special meter reading
may be conducted on a date other than the regular meter reading
date and an additional fee will be charged by the RMSP to the
entity requesting such service.

MODULE L
CODE OF CONDUCT FOR RETAIL MARKET PARTICIPANTS

L1. General Responsibilities of a Retail Supplier

L1.1 No person/entity is allowed to market its sale of electricity to


Retail Customers without having secured a RES License or Letter-
authority from the ERC in the case of a Local RES.
L1.2 All Retail Suppliers, except for Local RES, are allowed to market
its supply business anywhere in the Philippines. Local RES shall
only be allowed to market its supply business within its Franchise
Area. The sale and delivery of supply shall only be implemented in
areas the WESM is already implemented.
L1.3 The Retail Supplier shall always be responsible and liable for the
conduct of its employees, officers and authorized representatives,
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whether third party/external or not. “A”

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“A”
L1.4 Accordingly, a violation of these Omnibus Rules by any of the
above-mentioned parties will be deemed as a violation of these
Omnibus Rules by the Retail Supplier.
L1.5 In any Marketing Contact or advertising activity undertaken by the
Retail Supplier, the means to contact the ERC for any questions,
comments, complaints, or inquiries, shall be properly
communicated. This may include but not limited to ERC's telephone
number, email address, postal address, and website.
L1.6 Nothing in these Omnibus Rules shall affect the obligation of the
entities mentioned above to comply with national and local laws.

L2. Marketing Conduct

L2.1 A Retail Supplier, while engaged in marketing, shall:

(a) Comply with all laws, rules and guidelines relating to the sale of
electricity to Retail Customers;
(b)Not engage in misleading, deceptive or unfair conduct, whether
by act or omission;
(c) Not exert undue pressure, harass nor coerce a Retail Customer;
(d)Provide sufficient time, or a minimum of one (1) business day, for a
Retail Customer to thoroughly review all documents provided by it;
(e) Ensure that all information provided to a Retail Customer is written
clearly, and all terms are explicitly defined;
(f) Ensure that any comparison made is clear, accurate, timely and
easily understood by Retail Customers, and does not omit
important information that should be disclosed;
(g)Not make any verbal representations regarding contracts, rights or
obligations, unless those representations are contained in a written
offer;
(h)Ensure that all information provided to a Retail Customer is
relevant to that customer's circumstances;
(i) Ensure all descriptions and representation made in promotional
materials are in accordance with actual conditions, situations and
circumstances;
(j) Not use print that due to size or other visual characteristics, is
likely to impair materially the legibility or clarity of documents
provided to Retail Customers;
(k) Not state or in any way imply that it or its Affiliate Retail Supplier
has special relations/arrangements with a DU or has been given
preferential status by a DU; and
(l) Not solicit nor request from a DU preferential treatment for any
Retail Customer or Generation Companies and shall ensure that its
Retail Customers and Generation Companies comply with all the
technical requirements and policies of a DU.

L3. Time of Contact/Transaction

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“A” must not
L3.1 Unless mutually agreed upon in writing, a Retail Supplier
visit or call a Retail Customer for the purpose of marketing:

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“A”
(a) At any time on a Saturday, Sunday or other public holiday; or
(b) On any other day except between 8:00 AM to 5:00 PM.

L4. Retail Supplier’s Identification and Contact Details

L4.1 At the commencement of any Marketing Contact in person or by


telephone, the Retail Supplier must advise the Retail Customer of
the purpose of the Marketing Contact and provide the Retail
Customer with the following information:
(a) The name of the Salesperson;
(b)The name of the Retail Supplier; and
(c) RES License or any proof of Authorization to act as a Local RES.

L4.2 Prior to completion of a Marketing Contact whether in person or


through any means, the Retail Supplier must provide the Retail
Customer with contact details including, among other information,
its business address, telephone number, mobile phone number and
email address.
L4.3 In any Marketing Contact that is in written or in electronic form,
the Retail Supplier must clearly set out:
(a) The purpose of the Marketing Contact;
(b)The name of the Salesperson;
(c) The name of the Retail Supplier;
(d)RES License number or any proof of Authorization to act as a Local RES;
and
(e) Contact details including, among other information, its business
address, telephone number, mobile phone number, and e-mail
address.

L4.4 A Retail Supplier shall have a telephone number and an interactive


website through which it may be accessed by the general public.

L5. Marketing in Person

L5.1 A Retail Supplier or any of its Salespersons who initiates a


Marketing Contact by visiting the Retail Customer's premises must
exercise due care and respect to the Retail Customers' property and
premises.

L6. Refusal or Termination of Marketing Contacts

L6.1 If a Retail Customer refuses or requests the termination of a


Marketing Contact, the Retail Supplier, including its Salespersons,
shall:
(a) Immediately comply with such request; and
(b)Refrain from initiating a transaction with that Retail Customer for a
minimum period of twenty (20) business days, starting from the
date of the request, unless otherwise advised by the Retail
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Customer. “A”

L6.2 “No Disturbance Requests” made by Retail Customer shall be


respected by Retail Supplier at all times, unless revoked by said
Retail Customer.

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“A”
L7. Training and Product Knowledge

L7.1 A Retail Supplier shall take reasonable steps to ensure that its
employees, officers or authorized representatives, apart from
understanding, will:
(a) Comply with these Omnibus Rules and the requirements of all laws,
rules and guidelines relating to the sale of electricity to Retail
Customers;
(b)Be able to clearly explain the products offered under the retail
electricity supply business and the factors affecting the supply of
electricity, such as, but not limited to the following:

i. Pricing, billing procedures and payment options;


ii. Eligibility requirements for concessions or rebates; and
iii. The basis for any comparisons made between such
products and those offered by other Retail Suppliers;
and
(c) Emphasize the need for a Retail Customer to give its informed
consent to an RSC.

L7.2 A Retail Supplier shall provide continuing training and evaluation


of its employees for the purpose of ensuring that they acquire the
proper training and product knowledge, as referred to in this
Module.
L7.3 A Retail Supplier shall keep records of its training and evaluation
as stipulated under this Module for at least three (3) years after
completion of such training. The Retail Supplier shall likewise
submit an annual report on training and evaluation to the ERC.

L8. Advertising

L8.1 A Retail Supplier advertising for, or on its behalf shall ensure that:
(a) Any advertising conducted, and any material used in said
advertising is not conducted or used in a misleading or deceptive
manner;
(b) There is a fair, clear, timely, and verifiable comparison between
the offers of the said Retail Supplier and other Retail Suppliers;
and
(c) It provides a telephone number and an e-mail address, or any other
means convenient to the parties, which a Retail Customer may call
or use to request detailed information concerning the price of
electricity and other services.

L8.2 A Retail Supplier shall ensure that, where any advertising


conducted for and on its behalf refers to the proposed contract
price at which the Retail Supplier is offering to sell electricity and
optional services, the same also states:

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“A”
(a) The period of time during which the offer remains valid;
(b) The duration of the contract for which that price is being offered;
(c) If the price is not fixed, the manner in which the price will be
determined; or
(d)The proposed contract price per kWh, for the electricity that is to
be sold under the contract, over the term of the contract.

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“A”
L8.3 When advertising or disclosing the price for electricity, the Retail
Supplier shall disclose the components of the bill, such as the
Distribution Utility's Wheeling Charges, among others, and clarify
to the Retail Customer that the RES Charge only forms part of the
Total Bill.

L8.4 The CREM End-user Redistributor, who administers, or owns a


residential building/condominium, or commercial/industrial
buildings and/or complexes which is being leased to the general
public shall disclose its current end-user or meter classification to
its prospective lessee or unit-users, effectively informing the latter
if they are part of the Captive or the Retail Market.

L9. Customer Information

L9.1 A Retail Supplier shall comply with the provisions of all ERC-
promulgated guidelines governing Retail Suppliers, relating to the
provision of customer information.

L9.2 A Retail Supplier shall ensure that any customer information it


obtained shall be considered confidential. The said information
shall not be used by the Retail Supplier or any of its employees,
officers, or authorized representatives other than for the purposes
for which that customer information has been requested for.

L9.3 A Retail Supplier shall not disclose customer information without


the written consent from the Retail Customer, except when
Customer Information is required to be disclosed:
(a) for the purpose of complying with a legal requirement; or
(b)when past due accounts of the Retail Customer have been referred
to a debt collection agency.

L9.4 A Retail Supplier shall inform the Retail Customers regarding the
conditions described above under which customer information may
be released to a third party without the Retail Customer's consent.

L9.5 On request by a Retail Customer, a Retail Supplier must provide


the Retail Customer, free of charge, the details of all customer
information, including metering data, it retains with respect to that
Retail Customer.

L10. Record Keeping Standards

L10.1 To assist the Retail Supplier and Retail Customers in dealing with
inquiries, verifications, and complaints, the Retail Supplier shall
keep records of the following information, among others. The same
shall be subject to the ERC’s verification through the conduct of
regulatory visit:
(a) All Marketing Contacts by the Retail Supplier or their employees,
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“A” Customers
officers, or authorized representatives with Retail
during the previous three (3) years, whether initiated by the Retail
Supplier, a Salesperson or the Retail Customer (including the
name or contact details of the Retail Customer, the

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“A”
date and time of each Marketing Contact, the name of the
employee, officer, or authorized representative who is involved in
the Marketing Contact, and all email exchanges with Retail
Customers and/or prospects);
(b)All "No Disturbance Requests" made by Retail Customers during
the previous twelve (12) months; and
(c) All Marketing Contacts which have been refused/terminated during
the previous three (3) years at the request of a Retail Customer.

L10.2 A Retail Supplier shall keep records of all complaints filed by


Retail Customers, as referred to in Module L15.

L10.3 Maintain documentation of all transactions, not limited to the


following, for a period of three (3) years:
(a) All RSCs executed, whether still active or not, between the Retail
Supplier and Retail Customer; and
(b)All Power Supply Agreements (PSAs) executed between the
Generation Company and the Retail Supplier.

L10.4 The Retail Supplier shall periodically submit a copy of its executed
RSCs in accordance with the reportorial requirements set forth in
Module N.

L10.5 The ERC also reserves the right to require submission of PSAs
being entered into by the Retail Supplier with the Generation
Companies for regulatory purposes and monitoring.

L11. Market Information

L11.1 Markets should operate on trust with the accuracy of market


information, transparency of market behavior and the
confidentiality of commercially sensitive information entrusted to
each Retail Supplier. Hence, each Retail Supplier shall:

(a) Ensure that any information disclosed to the media, including


market publications, surveys and price indices, are accurate and
not misleading; and
(b)Strictly comply with procedures designed to ensure that all
business transactions are transparent and properly documented in
a timely manner and that no business transactions are concealed or
misrepresented.

L12. Offer Sheet and Retail Supply Contract (RSC)

L12.1 During the conduct of the initial proposal, the Retail Supplier shall
provide an Offer Sheet to the Retail Customer. The agreed pricing
structure, contract price, electricity price, obligations of parties to
the contract, as well as pertinent charges or fees, and other details
that the parties may deem applicable shall be consistent with the
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signed RSC. “A”

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“A”
L12.2 A Retail Supplier shall ensure that, at the time a Retail Customer
expresses its interest to enter into an RSC with the Retail Supplier,
the following minimum provisions are explicitly stated in the RSC.
(a) The full name, business address, telephone number, mobile
numbers and email address of the Retail Supplier;
(b)The type, frequency of bills and payment methods the Retail
Customer will receive;
(c) The details of all applicable prices, charges, and service levels that
will apply to the Retail Customer, where the Retail Supplier must
declare that the price offered is inclusive of all costs in connection
with the sale of electricity;
(d)Any prices and charges payable under or in connection with the
RSC other than for the electricity that is to be sold under the said
contract (including any costs associated with the provision of
infrastructure such as electricity meters with specifications beyond
the minimum CREM requirement);
(e) The price adjustment mechanism if the Retail Supplier is adopting
a variable pricing offer;
(f) Any additional charge of any type which is or may become payable
under the RSC including penalties, fees, interest and other
charges, including administrative fees, which may be payable by
the Retail Customer, if the Retail Customer defaults, or is late in
making payments that are due under the RSC;
(g)Any requirement for the payment of cash security deposit, the
amount of such cash security deposit, the circumstances in which
that cash security deposit (or any part of it) may be retained by the
Retail Supplier, and the circumstances in which that cash security
deposit, and the interest earned by such deposit, must be returned
to the Retail Customer;
(h)The circumstances in which the Retail Supplier, or the Retail
Customer may terminate the RSC;
(i) The early termination charges which may apply if the Retail
Customer terminates the RSC prior to its expiry date and after the
Cooling-off Period, and the method of calculation of those charges;
(j) Details of the right conferred on a Retail Customer to cancel the
RSC in accordance with Module L13 Cooling Off (including the
manner in which the Retail Customer may do so);
(k) Details of the procedures approved by the ERC under Module L15,
Complaint Handling Procedures to resolve complaints by Retail
Customers and the right under those procedures for Retail
Customers to refer such complaints to the ERC if they are not
satisfactorily resolved;
(l) Circumstances by which a Retail Customer may be transferred to
the Supplier of Last Resort; and
(m) The agreed upon allowable outage hours of the source plant of
the Retail Supplier and the Retail Customer.

L12.3 The Offer Sheet shall be considered as received by the Retail


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Customer based on the following circumstances: “A”

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(a) In the case where the statement is personally delivered to and
received by the Retail Customer or any of its employees/agent or
representative, the date when it is delivered;
(b)In the case where the statement is received by the Retail Customer
by email on or before 5:00 PM on a Business Day, that Business
Day; and
(c) In the case where the statement is received by the Retail Customer
by email after 5:00 PM on any day, the next Business Day; or
(d)In any other case, on the day the Retail Customer actually receives
the Offer Sheet.

L12.4 A Retail Supplier may enter an RSC with the Retail Customer
within five (5) business days commencing from the date of receipt
by the Retail Customer of the Offer Sheet;

L12.5 No Retail Supplier shall supply electricity to a Retail Customer


without a signed RSC. An Offer Sheet shall not be considered
compliance with the RSC requirement even if the Retail Customer
has signed such document. The Retail Customer shall be provided
with a copy of its RSC once signed by both parties.

L12.6 RSCs shall provide for the supply of electricity to commence on the
day as agreed upon by both the Retail Supplier and Retail
Customer, but not earlier than the expiration of the Cooling-off
Period, unless otherwise agreed upon by both parties.

L12.7 The rates and any terms and conditions of an RSC between a
Retail Customer and a Retail Supplier may only be modified by
agreement in writing between the contracting parties.

L12.8 For the avoidance of doubt, if the amount of the contract price
changes in accordance with written term or condition of an RSC
previously agreed between the Retail Customer and the Retail
Supplier, no further agreement is required.
L12.9 A Retail Supplier shall not automatically renew an RSC with a
Retail Customer unless the original contract contains an automatic
renewal clause, subject to the notification requirement herein
stated. The Retail Supplier shall notify the Retail Customer, at least
sixty (60) calendar days prior to the expiration of the contract;
otherwise, failure to notify the Retail Customer within the period
provided herein, shall invalidate the automatic renewal clause.
However, the parties may still opt to re-enter into a new RSC
subject to mutually agreed upon terms and conditions.

L12.10 An RSC subject of renewal shall have the same terms and
conditions of the previous contract, unless both parties agree to
new terms and conditions.

L12.11 In case the RSC is a templated contract, any doubt or ambiguity in


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the provisions thereof shall be liberally construed “A”
in favor of the
Retail Customer and strictly against the Retail Supplier.

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“A”
L13. Cooling-Off

L13.1 A Retail Supplier shall ensure that the RSC confers to the Retail
Customer the right to cancel the RSC in accordance with this
module within a period of five
(5) business days or a longer period agreed upon by both parties,
commencing from the date of its signing.

L13.2 A Retail Customer, however, may waive its right to cancel the RSC
during the Cooling-off Period.

L13.3 In order for a Retail Customer to exercise the right to cancel the
RSC under this module:
(a) The Retail Customer must give to the Retail Supplier a written
notice of cancellation which clearly indicates an intention on the
part of the Retail Customer to cancel the RSC; and
(b)The notice of cancellation referred to herein must be received by
the Retail Supplier not later than five (5) business days after
signing of the RSC.

L13.4 For this purpose, the notice of cancellation shall be deemed to


have been received by the Retail Supplier:
(a) In the case where the Retail Customer personally delivers the
notice to the Retail Supplier, on the day the Retail Customer so
delivers the notice;
(b)In the case where the Retail Customer sends the notice on or
before 5:00 PM on a Business Day through email, on that Business
Day;
(c) In the case where the Retail Customer sends the notice after 5:00
PM on any day by email to the Retail Supplier, on the next Business
Day; or
(d)In any other case, on the day the Retail Supplier actually receives the
notice.

L13.5 The Cooling-off Period prescribed above shall no longer apply in


cases of renewal of RSCs.

L14. Responsibilities of the DU, its Local RES, and its Affiliate RES

L14.1 A DU shall be a separate, independent entity, from its Affiliate RES


or must implement business separation in case of a Local RES. As
such, a DU must ensure operational separation as well as
accounting and financial separation from its Local and/or Affiliate
RES and shall maintain separate financial records and books of
accounts.

The DU shall be allowed to share assets, equipment and other


computer hardware/software ONLY on situations identified and
approved by the Commission under ERC Resolution No. 02, Series
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of 2007 titled “A Resolution to Clarify ERC’s
Separation Requirement.”

The DU, in sharing assets, shall demonstrate that solutions are


adopted to ensure that databases remain separate, as the ERC
shall not allow sharing of databases, information and costs between
regulated and non-regulated business segments.

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L14.2 A DU shall not accord, and must ensure that its Local and/or
Affiliate RES are not accorded, preferential treatment in relation to
the distribution of electricity, connection to the distribution system
operated by the DU, maintenance of the system, the provision,
installation, commissioning, testing, repair or maintenance of
meters, or the reading of meters, between:
(a) Retail Customers who acquire electricity from Retail Suppliers
other than the DU’s Local RES or its Affiliate RES; and
(b)Retail Customers who acquire electricity from the DU’s Local RES
or its Affiliate RES.

L14.3 A DU shall not, and shall ensure that its Local and/or Affiliate RES
does not, sell, advertise for sale or offer to sell electricity to Retail
Customers using a brand name, business name, trademark, logo or
other name or symbol that is used by, or that suggests any
affiliation or other connection with, the electricity distribution
which is conducted by that DU.

Accordingly, a DU's Local and/or Affiliate RES shall not use the
name, brand name, business name, trademark, logo or other name
or symbol of, or used by, the DU.

A Local RES shall, in addition to the business name, trademark or


logo of the DU, use another name or symbol that suggests it being
the Local RES of said DU.

L14.4 A DU's Affiliate RES shall not trade upon, promote or advertise its
relationship with the DU, including the maintenance of a link
between the website of the Affiliate RES and the website of the DU.

L14.5 A DU shall not, and shall ensure that its Local and/or Affiliate RES
does not provide Captive Customers and Retail Customers, in the
same communication or envelope, information about the sale of
electricity by its Local RES or any of its Affiliate RES.

L14.6 A DU's Local and/or Affiliate RES shall not participate in joint
advertising, joint marketing or joint promotional activities,
including joint sales calls, joint stalls or presentations at
tradeshows or other information or marketing events, or joint or
linked websites.

L14.7 In cases where a Retail Customer requests general information


from a DU about the sale of electricity, the DU shall not promote
the sale of electricity of its Local and/or Affiliate RES, or offer any
opinion regarding the sale of electricity by any other person, but
must instead direct the Retail Customer to the ERC website for the
purpose of obtaining a list of all licensed RES and/or authorized
Local RES. The DU shall likewise not give any negative comment or
remark against any of its competitors.
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“A”
L14.8 A DU may participate in meetings with the Local and/or Affiliate
RES to discuss technical or operational matter regarding the DU's
provision of distribution

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services to the Retail Customer, but only in the same manner and
to the same extent the DU participates in such meetings with Non-
Affiliate RES and their Retail Customers. The DU shall not listen to,
view, or otherwise participate in any way in a sales discussion
between a Retail Customer, Local RES, Affiliate RES or Non-
Affiliate RES.

L14.9 A DU shall not allow preferential access by its Local and/or


Affiliate RES to information about its distribution system or
operation. Information obtained by a DU in the course of
conducting its regulated business shall not be shared directly or
indirectly with its Local and/or Affiliate RES unless the same is also
made available to other Retail Suppliers operating within its
Franchise Area on the same terms, conditions, form and manner.

A DU shall not provide any information received from, or as a


result of doing business with other Retail Suppliers to its Local
and/or Affiliate RES without the written approval of such Retail
Suppliers.

L14.10 A DU shall not subsidize in any manner, directly or indirectly, the


business of its Local and/or Affiliate RES.

L14.11 A DU shall not finance or co-sign or guarantee any loan or


financial obligation of its Affiliate RES.

L14.12 If a DU collects a fee from its Local and/or Affiliate RES for any
services, products, property, equipment or facilities the latter used,
said fee shall be based on the market price or what the DU will
charge other Retail Suppliers.

L15. Complaint Handling Procedures

L15.1 Within twenty (20) calendar days upon the issuance of its RES
License or Letter-authority in the case of a Local RES, a Retail
Supplier must submit to the ERC its procedures to resolve
complaints by Retail Customers including its concerns about the
provisions of its RSC. The Complaint Handling Procedures (CHP) of
a Retail Supplier shall be reflected in all of its executed RSCs.

L15.2 The above procedures must, at a minimum provide for the following:
(a) How complaints are to be filed by Retail Customers to the Retail
Supplier;
(b)The procedures in handling complaints and the timelines for
processing and resolving such complaints by the Retail Supplier;
(c) The method of response to complaints (for example, in writing); and
(d)The filing of complaints with the ERC and or with the regular
courts, board or tribunal when these complaints are not
satisfactorily resolved at the level of the Retail Supplier.
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L15.3 A Retail Supplier shall keep records of all complaints filed by
Retail Customers in relation to the RSCs (including the name or
other contact details of the relevant Retail Customer, the details of
the complaint, the manner and the timeline in which it was handled
and the Retail Supplier’s resolution and the

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reasons therefor) for at least three (3) years after such complaints
have been resolved and must make records thereof available to the
ERC when required.

MODULE M
MAGNA CARTA FOR RETAIL CUSTOMERS

M1. Right to Choose its Supplier of Electricity

M1.1 A Retail Customer has the right to choose its Supplier of electricity,
whether sourced through conventional or renewable technology,
among the ERC licensed/ authorized Retail Suppliers.

A prospective lessee or unit-user intending to own or lease a unit


within a building or commercial/industrial complex shall have the
right to be informed by the CREM End-user Redistributor of its end-
user or meter classification.

M2. Right to Non-Discriminatory and Non-Preferential Services

M2.1 The Retail Customer shall have the right to avail the services of the
Network Service provider (NSP) for Distribution Wheeling Services
(DWS) or Transmission Services (TS), in the same manner that the
NSP is providing the same services to its captive or directly
connected customers.

The Retail Customer shall also have an equal opportunity to avail


the products and services of the Retail Suppliers in the same
manner that the Retail Suppliers cater to the needs of its affiliate
Retail Customers.

M3. Right to Dispute its Retail Supply Contract, Electricity Bills,


and File for a Complaint Before the ERC

M3.1 Every Retail Customer shall have the right dispute its electricity
bills by following the Complaint Handling Procedures (CHP)
provided in its RSC, and to further seek intermediation or file a
Dispute Resolution Case before the ERC, in the regular courts,
board or tribunal, in the event that the issue has been left
unresolved after exhausting the procedures stipulated in the CHP.

Every Retail Customer has the right to file a complaint before the
ERC for violation of ERC rules, regulations, guidelines and policies,
including but not limited to EPIRA and its IRR, Provided, that the
complainant has previously discussed the issue with its Retail
Supplier and that the CHP set forth in the RSC has been exhausted.

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M4. Right to Transparent Billing “A”

M4.1 Every Retail Customer has the right to receive a transparent bill
containing clear and complete information as prescribed in Module
F of these Omnibus Rules.

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“A”
M5. Right to Negotiate the Terms and Conditions of its RSC

M5.1 In cases of pre-termination of the RSC, whether initiated by the


Retail Customer or the Retail Supplier, the Retail Customer has the
right to negotiate with the Supplier the terms and conditions of its
RSC, which may include but not limited to the amount of the pre-
termination fee.

M6. Right to Refuse a Marketing Contact

M6.1 A Retail Customer has the right to refuse any Marketing Contact
initiated by the Supplier. In cases where in the Retail Customer
requests for refusal of a Marketing Contact, the Supplier shall:

(a) Immediately comply with such request; and


(b)Refrain from initiating a transaction with that Retail Customer,
starting from the date of the request, unless otherwise advised or
revoked by said Retail Customer.

M7. Right to Information

M7.1 A Retail Customer has the right to request from its Retail Supplier
the details of all customer information with respect to the
requesting Retail Customer, free of charge, which may include such
as, but not limited to historical metered quantities and energy
consumption.

M8. Right to Protection Against Premature Termination by Retail


Supplier of Contracts under Dispute

M8.1 A Retail Customer shall be protected against premature termination


of RSC unless the Retail Customer violated any terms of the RSC.
Hence, Suppliers shall:

(a) Refrain from any arbitrary premature termination of RSC;


(b)Refrain from premature termination of RSCs under dispute or
those with existing Cease and Desist Order; and
(c) Be subject to Penalty/Termination Fees equivalent to the
Termination Fees being imposed to Retail Customers in case of
early termination of RSC at the fault of the Retail Supplier.

M9. Right to Due Process Prior to Disconnection of Electricity Service

M9.1 No Retail Customer shall be disconnected from the service of its


DU, unless it has received a 48-hour “Notice” prior to disconnection
for valid reasons such as non-payment of bills and other violations
stipulated in the RSC or these Omnibus Rules.

Moreover, the DU shall not perform the disconnection of electricity of


any Retail Customer on any of the following:
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“A”
(a) At any time on a Saturday, Sunday or other public holiday; or

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“A”
(b)On any other day except between 8:00 AM to 5:00 PM.

M10.Right to Confidential Treatment of Customer Information

M10.1 Every Retail Customer has the right to confidential treatment of its
customer information, such as, but not limited to, personal
information and historical demand data, among others. Unless
requested by the ERC or the DOE as reflected in their respective
rules and regulations for market monitoring purposes.

M11. Right to Return of Security Deposits

M11.1 Every Retail Customer or an individual unit-owners/users in the


case of Redistribution in the CREM has the right to get refunded for
any bill/cash security deposit it has with its NSP, or Retail Supplier
or CREM End-user Redistributor, whichever is applicable, within
thirty (30) calendar days, unless a shorter period has been agreed
upon in writing by the parties, from termination of its service,
Provided, that the said Retail Customer or individual
unit-owners/users has no outstanding balance with the NSP, Retail
Supplier or CREM End-user Redistributor.

M12. Right to Payment Under Protest

M12.1 In cases of billing adjustments due to the stoppage or failure of the


meter to register the full and correct amount of energy consumed,
or for differential billing due to the alleged illegal use of electricity,
the Retail Customer and/or the individual unit-owner/user in the
case of Redistribution in the CREM, has the right to pay under
protest for purposes of continuous supply of electricity without
prejudice to the complaints to be filed by such Retail and/or the
individual unit-owner/user in the case of Redistribution in the CREM
against the imposition of the bill, billing adjustment or differential
billing. Such payment shall not be construed as an admission by the
Retail Customer and/or the individual unit-owner/user in the case of
Redistribution in the CREM of the allegations or claims of the Retail
Supplier/NSP/CREM End-user Redistributor or of any violation of
law or of the contract with the Retail Supplier/NSP/CREM End-user
Redistributor.

M13. Right to Switch to Another Retail Supplier

M13.1 In cases of billing disputes, the Retail Customer has the right to
switch to another Retail Supplier, despite the existence of an
outstanding balance, Provided, that such outstanding balance are
based on charges and/or impositions that are not expressly
identified in their RSC consistent with Module E1.4 of these
Omnibus Rules.

M14.Obligation to Pay its Electricity Bills Promptly


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“A”
M14.1 A Retail Customer and/or the individual unit-owner/user in the case
of Redistribution in the CREM shall pay its electricity bills
to the Retail

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“A”
Supplier/CREM End-user Redistributor based on the period
stipulated in its RSC, DWSA/TSA or on the due date reflected in its
regular electricity billing statement.

M15. Obligations to Receive Monthly Bills

M15.1 Retail Customers and/or the individual unit-owner/user in the case


of Redistribution in the CREM must accept their electricity bills,
without prejudice to the exercise of their right pursuant to Modules
M12 to M13 of these Omnibus Rules.

M16.Obligation to Review and Understand its RSC

M16.1 The Retail Customer, prior to signing its RSC with a Retail
Supplier, shall properly review and analyze the terms and
conditions stipulated thereto, including but not limited to the
contract price, electricity price, other charges applicable, and
amendments, if applicable.

M17. Obligation to Allow Inspection, Installation and Removal of


Electricity Meters

M17.1 Retail Customers shall allow the authorized employees or


representatives of the NSP and/or RMSP, with proper identification
cards, to enter their premises for any of the following purposes, as
the need arises:

(a) Inspection;
(b)Installation;
(c) Reading;
(d)Testing;
(e) Repairs;
(f) Removal; and
(g)Disconnection.

M18.Obligation Not to Commit Any Illegal Use of Electricity

M18.1 A Retail Customer is prohibited from performing any act that may
result in the pilferage of electricity, which may or may not include
tampering with the electricity meters.

MODULE N
REPORTORIAL REQUIREMENTS FOR RETAIL MARKET PARTICIPANTS
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N1. Guiding Principle

N1.1 All reportorial requirements provided herein shall be submitted to


the ERC in accordance with the Rule XIII, Annex A of the ERC
Resolution No 9, Series of 2020, titled “A Resolution Adopting the
Guidelines Governing Electronic Applications, Filings and Virtual
Hearings before the Energy Regulatory Commission,” or any
amendments thereto, using the prescribed format posted on the
ERC website. Thereafter, reportorial submissions shall be made via
the Competitive Retail Electricity Market- Monitoring and Reporting
System (CREM-MRS) upon issuance of an official advisory or
resolution.

N2. Network Service Provider

N2.1 The NSP shall submit to the ERC the following, without need of further
notice:
(a) A monthly report on End-users with an average monthly peak
demand, classified based on the threshold levels set by the ERC,
every 20th day of the month after the period being reported, and
shall include, but shall not be limited to the following:

i.Aggregated Group Name or Customer Name;


ii.Retail Market Category (i.e., CREM, GEOP, RAP);
iii.Billing/Service Address;
iv. Meter Number and Account Number;
v. The most recent twelve (12) months of historical usage, i.e.,
monthly registered peak demand (in kW) and monthly total
registered energy consumption (in kWh); and
vi. Customer Information, such as contact person, contact
numbers and email addresses, subject to agreement on
confidentiality.

(b)A semi-annual report showing compliance with the twenty (20) day
requirement to complete the necessary procedures for customer
switching, such as the execution of the CA, DWSA/TSA, etc., from
receipt of the information on the effective switch date from the
executed RSC either from the Retail Supplier, in case of a Single
Billing Scheme, every July 30th and January 31st of following year;
and

(c) Further to the reportorial requirements under Q2 of these Omnibus


Rules, upon the NSP’s determination of stranding of supply caused
by the migration of Eligible End-users to the Retail Market, either
as a forecast or actual occurrence of such, a report shall be
submitted within thirty (30) days from such determination,
indicating the efforts it will or has undertaken to address and
mitigate the stranding of supply. The NSP shall include in its report
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the projected rate impact of such stranding, and also the estimated
rate impact following the implementation of mitigating measures,
pursuant to Module Q2 of these Omnibus Rules.

N3. Supplier of Last Resort

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N3.1 All SOLR shall submit to the ERC, without need of further notice, the
following:
(a) A quarterly report, covering the data pertaining to the
amount of capacity and energy (in MW and MWh) that the
SOLR have contracted with the generation companies and
other sources of its supply, as well as the capacity and
energy (in MW and MWh) that they are intending to allocate
for their SOLR Customer, if any, every 20th day of the
month following each quarter; and
(b)A quarterly report, containing the following information,
broken down on a per month basis, every 20th day of the
month following each quarter:

i. Retail Customers per Customer class:

1. Currently serviced;
2. Disconnected Retail Customers per Customer class due non-
payment of the SOLR bill and amount owed at the time of
disconnection; and
3. Transferred from SOLR to new RES and name/s of new RES
transferred to.

ii. Customer reason for resorting to SOLR service;


iii. Period of SOLR service;
iv. SOLR Rate;
v. Pricing (i.e., WESM nodal energy price, price of power supply
agreement); and
vi. List of Retail Customer reverted to Captive Market:

1.Names of each Retail Customer;


2.Type of Customer Choice Programs; and
3.Reason for reversion to Captive Market.

N4. Retail Suppliers

N4.1 All Retail Suppliers shall submit to the ERC, without need of further
notice, the following:
(a) A quarterly report providing for the information below, every 20th
day of the following month after the quarter (e.g. April 20 for
January to March report):

i. Supply Portfolio:
a. List of generation companies that they are in contract
with, and other sources of its supply (including WESM
purchases); and
b. Amount of capacity and energy (in MW and MWh) that
they have contracted with these sources;

ii. Respective allocation for capacity and energy (in MW and


MWh) of their Retail Customer/s;
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iii. Customer Information:
a. List of Aggregated Group and Retail Customers indicating
whether such Retail Customer is acting a Redistributor
under CREM;

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b. Retail Market Category (i.e., CREM, GEOP, RAP);
c. Respective Meter number and Account Numbers of
Aggregated Group or Retail Customer; and
d. DU Franchise Area of End-users;

iv. Pricing and Contract Information:


a. Total kilowatt-hour sales for each Retail Customers;
b. Total revenues from kilowatt-hour sales for each Retail
Customers;
c. Average electricity prices for each Retail Customer;
d. Contract Price for each Retail Customer;
e. Period of contract under the RSC for each Retail Customer; and
f. Type of Pricing Structure (e.g., Fixed, Time-of-Use, Indexed,
etc.);

v. Total kilowatt-hour sales per RE technology, in case of Retail


Customers under GEOP;

vi. Retal Aggregation Program – Other Information:


a. Number of Aggregated Group;
b. Aggregated demand (in kW) of each Aggregated Group;
c. Names of End-users in each group and their demand (in kW);
and
d. Location of Contiguous Area (based on Module
D4.1(d)); and

vii. Complaints Handling Procedure:

a. Type of issue/complaint received;


b. Date when the issue/complaint has been filed;
c. Resolution to the issue/complaint; and
d. Date when the issue/complaint has been resolved.
(b)Certification from the commercial bank or financial institution
where either an escrow, restricted account or Hold-out Agreement
facility is maintained, indicating the available funds equivalent to
the cash security deposit from its Retail Customer plus all legal
interest earned, once every quarter;
(c) Complete set of AFS (i.e., balance sheet, income statement,
statement of cash flows, notes); Audit opinion; and Statement of
management’s responsibility on the financial statements within one
hundred and fifty (150) calendar days from the end of the Financial
Year or as required by the Bureau of Internal Revenue, including
proof of compliance Proof of Tangible Net Worth amounting to
Fifteen Million Pesos (PhP15,000,000.00) or AEAE, whichever is
higher;
(d)Annual report of training held, conducted or attended, every 31st of
January of the preceding year;
(e) Mayor’s/Business Permit, not later than 31 March of each year;
(f) All existing Retail Supply Contracts and those that are currently
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“A” that they
being transacted can be reviewed by the ERC to ascertain
were negotiated on an arms-length basis and do not violate market
control or anti-competitive rules, every 31st of January of the
preceding year; and

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(g)Such other information as may be required by the ERC for market
evaluation and monitoring purposes, subject to appropriate
measures to preserve confidentiality of proprietary or commercially
sensitive information.

N5. Central Registration Body (CRB)

N5.1 The CRB shall submit without need of further notice every 20th
day following the subject month, a monthly report which provides
the following information:
(a) For CREM and GEOP:

i. List of Retail Customer’s name;


ii. Retail Market Category (i.e., CREM, GEOP);
iii. Name of Supplier;
iv. Meter number;
v. Monthly registered demand (in kW);
vi. Monthly metered quantity (in kWh);
vii. Number of GEOP End-users that switched, sorted by the
DU Franchise Area;
viii. Percent (%) increase in Switching per DU Franchise Area;
ix. Number of Eligible End-users that switched, sorted by
the DU Franchise Area; and
x. Switch Information for each Retail Customer (i.e., Type of
Switch –
Initial/Regular, Date of Switch, and other relevant
information); and

(b)For RAP:

i. List of Aggregated Group;


ii. Name of Supplier;
iii. Meter number;
iv. Monthly registered demand (in kW);
v. Monthly metered quantity (in kWh);
vi. Number of End-users that switched, sorted by the DU
Franchise Area; and
vii. Percent (%) increase in Switching per DU Franchise Area.

The ERC may require other information that it may deem necessary or
useful in carrying out its duties and functions.

MODULE O
DETERMINATION OF RETAIL SUPPLIER IN GOOD STANDING

O1. Parameters to Determine a Retail Supplier in Good Standing

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“A”to determine a
O1.1 The following are the parameters that shall be used
Retail Supplier in Good Standing:

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“A”
(a) Retail Supplier Scorecard Rating;
(b)Compliance with Reportorial Requirements;
(c) Number of Consumer Complaints filed against the Retail Supplier
before the ERC;
(d)Number of Show-Cause Order(s) issued by the ERC against the
Retail Supplier; and
(e) Number of ERC Decision ruled against the Retail Supplier.

O2. Retail Supplier Scorecard Rating

O2.1 The Retail Supplier Scorecard shall be accomplished by all Retail


Customers through the CREM-MRS to provide rating on the
services they received from their respective Retail Supplier(s).

O2.2 The Retail Supplier Scorecard Rating shall be measured based on


the result of the Retail Customer’s evaluation of its Retail
Supplier/s. A Retail Customer shall rate its Retail Supplier, once, at
least one (1) month prior until one (1) month after the expiration of
its RSC.

O3. Compliance with Reportorial Requirements

O3.1 Reportorial Requirements refers to the periodic reports listed


under Module N submitted by each Retail Supplier to the ERC for
proper monitoring. Each reportorial requirement shall be rated
according to (i) Completeness and (ii) Timeliness.

O3.2 Completeness shall be evaluated based on the submission of all data


and information required under the aforementioned Module.
Missing or incomplete data submission for each report shall be
counted as non-compliance. Timeliness shall be measured by the
actual submission and availability of the reports in accordance with
the deadline provided in the same Module. Failure to submit each
report within the prescribed deadline shall be counted as non-
compliance.
O4. Number of Show-Cause Order(s) Issued by the ERC Against the
Retail Supplier

O4.1 Show-Cause Order(s) are issued by the ERC upon a determination


that a prima facie case exists against a regulated entity. Thus, an
issuance of such is an indicium of non-compliance with ERC’s rules
and regulation and shall be used as one of the parameters to
determine a Retail Supplier’s good standing.

O5. Number of Consumer Complaints Filed Against the Retail Supplier

O5.1 Consumer Complaints shall refer to formal written complaints and


protests of a Retail Customer against its Retail Supplier. This is
included as one of the parameters to determine Retail Supplier in
Good Standing, since an existence of consumer complaint and its
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resolution, or lack thereof, is a clear indication“A”
of the Retail
Supplier’s ability to address and resolve its Retail Customers
concern/s and the effectivity of its established Complaint Handling
Procedures.

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“A”
O6. Number of ERC Decision Ruled Against the Retail Supplier

O6.1 ERC Decisions encompasses all decisions issued by the ERC against
the Retail Supplier of any nature which does not necessarily order
the revocation of its license or Letter-authority in the case of a Local
RES.

O7. Criteria for Determination of Retail Supplier Standing

O7.1 Each parameter mentioned in Modules O2 to O5 shall be scored in


accordance with criteria below:

PARAMETER CRITERIA PERCENTAG


E
Range of initial ratings and
their equivalent transmuted
Retail grades:
 100 to 90 – 100 15
Supplier
Scorecard  below 90 to 80 – 75
 below 80 to 70 – 50
 below 70 – 0
Average score based on the
Completeness number of reports to be
of Submission submitted: 15
of Reportorial  Complete – 100
Requirements  Incomplete – 50
 No Submission – 0
Average score based on the
Timeliness number of reports to be
of submitted:
 On Time – 100 15
submission
of  Late – 50
Reportorial  No Submission – 0
Requirement
s
Submission of a  On Time – 100
Complaint Handling  Late – 50 10
Procedure (should
 No Submission – 0
also be found in the
RSC)
Number of Consumer
Complaints filed against the
No. of Consumer Retail Supplier:
Complaints filed  Zero (0) – 100 10
against the Retail
 One (1) – 85
Supplier
 Two (2) to Five (5) –
75
 More than Five (5)–
50

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“A”

Number of show-cause
order issued by
No. of Show-Cause ERC:
 Zero (0) – 100 10
Orders issued
 One (1) – 85
 Two (2) to Five (5) –
75
 More than Five (5)–
50
Number of decisions
Number of ERC ruled against the 25
Decision/s ruled Retail Supplier:
against the Retail
 Zero (0) – 100
Supplier
 One (1) or more – 0
Total Rating 100

O8. Interpretation of Retail Supplier Total Rating

O8.1 Each Retail Suppliers Total Rating shall be interpreted based on the
Table below:

TOTAL EQUIVALEN REMARKS


RATING T
Very Satisfactory with
Recommendation for
complete compliance
Above 85% - renewal of license
with the legal, technical,
100% with validity of ten
financial
(10) years.
standards
Recommendation for
75% - 85% Satisfactory renewal of license
with validity of five
(5) years.
Recommendation
Below 75% Failed
for non-renewal of
license.

MODULE P
MISCELLANEOUS PROVISIONS

P1. Separability Clause

P1.1 If any module or provision of these Omnibus Rules is declared


invalid, the other parts or provisions hereof which are not affected
thereby shall remain and continue in full force and effect.

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P2. Repealing Clause “A”

P2.1 All ERC rules and regulations and other issuances or parts thereof
which are inconsistent with these Omnibus Rules are hereby
deemed amended, repealed

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“A”
or modified accordingly. These, shall include, but are not limited to,
provisions contained under the following ERC issued Resolutions:

(a) Resolution No. 10, Series of 2005 titled “A Resolution Adopting the
Guidelines for the Issuance of Licenses to Retail Electricity
Suppliers (RES)”;
(b) Resolution No. 03, Series of 2006 titled “A Resolution Adopting the
Guidelines
for the Issuance of Licenses to Retail Electricity Suppliers (RES), As
Amended”;
(c) Resolution No. 31, Series of 2006 titled “A Resolution Adopting
Code of Conduct for Competitive Retail Market Participants”;
(d) Resolution No. 35, Series of 2006 titled “A Resolution Adopting the
Rules for the Supplier of Last Resort (SOLR)”;
(e) Resolution No. 03, Series of 2007 titled “A Resolution Indicating
Timeline for
Full Retail Competition and Open Access in Luzon”;
(f) Resolution No. 26, Series of 2007 titled “A Resolution Adopting the
Rules on Customer Switching”;
(g) Resolution No. 02, Series of 2008 titled “A Resolution Adopting the
Rules for Contestability”;
(h) Resolution No. 01 Series of 2011 titled “A Resolution Adopting the
Revised Rules for the Issuance of Licenses to Retail Electricity
Suppliers (Revised RES Rules)”;
(i) Resolution No. 16, Series of 2012 titled “A Resolution Adopting the
Transitory
Rules for the Implementation of Open Access and Retail Competition”;
(j) Resolution No. 11, Series of 2013 titled “A Resolution Adopting the
Supplemental Rules to the Transitory Rules for the Initial
Implementation of Retail Competition and Open Access”;
(k) Resolution No. 22, Series of 2013 titled “Resolution Adopting
Amendments to Articles I, II and III of the Revised Rules for the
Issuance of Licenses to Retail Electricity Suppliers”;
(l) Resolution No. 09, Series of 2018 titled “A Resolution Adopting the
ERC Rules Supplementing the Switching and Billing Process and
Adopting a Disconnection Policy for Contestable Customers”;
(m)Resolution No. 12, Series of 2020 titled “A Resolution Prescribing the
Timeline
for the Implementation of Retail Competition and Open Access (RCOA)”;
(n) Resolution No. 08, Series of 2021 titled “A Resolution Adopting the
Rules for the Green Energy Option Program (GEOP)”;
(o) Resolution No. 04, Series of 2022 titled “A Resolution Adopting the
Rules for the Electric Retail Aggregation Program”;
(p) Resolution No. 01, Series of 2023 titled “Amendment to the ERC
Rules Supplementing the Switching and Billing Process and
Adopting a Disconnection Policy for the Contestable Customers”;
and
(q) Provisions of the DSOAR not consistent with these Rules are also
repealed accordingly.

P3. Exceptions
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“A”
P3.1 Where good cause appears, the ERC may allow an exception from
any provision of these Omnibus Rules, if such exception is found to
be for the interest of the public and is not contrary to law or any
other related rules and regulations.

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“A”
P4. Notification

P4.1 All notices contemplated in these Omnibus Rules shall be


transmitted in any of the following means of communication:

(a) in writing, through personal service, registered mail or a reputable


courier;
(b)electronic mail; and
(c) other means of communication capable of time stamping.

P5. Confidentiality and Treatment of Data

P5.1 The ERC shall accord certain information disclosed and identified
by the respective entities such level of strict confidentiality by
subjecting the same to appropriate protective measures, as
necessary and in accordance with the Data Privacy Act of 2012, its
Implementing Rules and Regulations, other issuances of the
National Privacy Commission and other relevant laws of the
Philippines.

P6. Sanctions

P6.1 Any person or entity acting as a Retail Supplier without a valid


license or authority issued by ERC, except those exempted from this
requirement, shall be subjected to the appropriate sanctions
provided under existing laws, rules, and regulations.

The ERC shall impose the appropriate fines and penalties, including
the revocation or cancellation of license, for any violation or non-
compliance with these Omnibus Rules, including abuse of market
power and any discriminatory and anti-competitive behaviors,
pursuant to penalties herein provided, supplemented by the
“Guidelines to Govern the Imposition of Administrative Sanctions in
the Form of Fines and Penalties Pursuant to Section 46 of R.A.
9136”, the penalties provided under Section 45 of the EPIRA and
any subsequent amendments to the law and rule.

The procedures enforcing RA 7832 or “An Act Penalizing the


Pilferage of Electricity and Theft of Electric Power Transmission
Lines/Materials, Rationalizing System Losses by Phasing Out
Pilferage Losses as a Component Thereof, and for Other Purposes”
and its IRR applicable to Captive Customers shall also be applicable
to Retail Customers.

P7. Dispute Resolution

P7.1 The ERC shall have the original and exclusive jurisdiction over all
cases involving disputes between and among players and
participants in the Retail Market, pursuant to Section 43 (u) of the
EPIRA and existing jurisprudence.
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“A”
Nonetheless, the parties to the dispute must ensure that the remedy
as provided in the CHP submitted by the Retail Supplier to the ERC
has already been exhausted, prior to the referral of the dispute to
the Commission. Further, the

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“A”
parties may agree upon other remedies to resolve its disputes,
Provided, that it is clearly written and stipulated in its RSC.

P8. Effectivity

P8.1 Unless otherwise specifically provided herein, the provisions of


these Omnibus Rules shall take effect immediately following its
complete publication in a newspaper of general circulation or in the
Official Gazette.

MODULE Q
TRANSITORY
PROVISIONS

Q1. Applicability of the Omnibus Rules for Customer Choice


Programs in the Retail Market

Q1.1 The following conditions shall apply during the transition period:

(a) All NSPs, RMSPs, Retail Customers and Retail Suppliers shall
immediately comply with the following Modules upon effectivity
of these Omnibus Rules:

i. Module D: Participation of Eligible End-users under the


Customer Choice Programs;
ii. Module K: Reversion of a Retail Customer to the Captive
Market;
iii. Module L: Code of Conduct for Retail Market Participants; and
iv. Module M: Magna Carta for Retail Customers.

(b) All applications for RES license and Letter-Authority, in the case
of Local RES, filed subsequent to the adoption of these Omnibus
Rules shall be covered by these Omnibus Rules upon its
effectivity, Provided, that in applications for renewal, the Retail
Supplier Scorecard parameter shall only be applied upon the
implementation of the enhanced CREM-MRS and Retail
Supplier Scorecard, thus, the weight allocation for the Retailer
Supplier Scorecard;
(c) All pending applications for RES Licenses, including
applications for renewal, will be covered by the existing
licensing requirements under ERC Resolution No. 01, Series of
2011 and shall be issued a five (5) year license upon approval;
(d) All Retail Suppliers shall submit a CHP or an updated CHP
within one (1) month from the effectivity of these Omnibus
Rules, such that, said CHP shall be implemented immediately
and shall appear in all their existing and future RSCs;
(e) All Retail Suppliers, DUs, NSPs and RMSPs shall submit the
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“A”N of these
reportorial requirements provided under Module
Omnibus Rules in accordance with the existing procedures
provided under ERC Resolution No. 09, Series of 2020;

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“A”
(f) All RMSPs, especially in Mindanao, upon effectivity of these
Omnibus Rules, shall procure meters for its prospective Retail
Customers that are meeting the eligibility thresholds as
provided in these Omnibus Rules and related rules issuances by
the DOE, subject to the provisions of these Omnibus Rules on
settlement of costs for meter installation, maintenance, and
other related services;
(g) All persons or entities with an existing and valid RES License
shall be allowed to also operate as a Retail Aggregator and RE
Supplier; Provided, that in the case of an RE supplier, the same
shall be in possession of a valid Operating Permit issued by the
DOE, upon effectivity of these Omnibus Rules, without need for
further action; in the case of a Local RES with a valid Letter-
Authority from the ERC, it may be allowed to operate as a Retail
Aggregator, subject to prior approval of the ERC.
(h) Upon effectivity of these Omnibus Rules, all Retail Suppliers
having retail customers that are residential
buildings/condominiums with a single revenue meter, shall
notify the respective homeowner’s associations or any group or
association recognized by the homeowner’s as their authorized
representative, that they need to issue a resolution or
agreement, stating its intention to remain in the CREM or revert
to being a captive customer. Residential
buildings/condominiums having a single revenue meter shall be
allowed to exercise this choice at least three (3) months before
the expiry of its RSC. Failure to provide such notice shall result
in the said Retail Customer continuing to be part of the CREM.
Any instance of non- compliance with this requirement shall be
grounds for disallowance of reversion to the Captive Market
request unless otherwise provided under Module J of these
Omnibus Rules. All Retail Suppliers shall submit proof to the
ERC that they have informed its Retail Customers of this
requirement, and that the latter fully understands this directive.
The homeowner’s resolution and/or agreement duly executed,
may be attached as part of the Retail Supplier’s compliance;
(i) All Generation Companies supplying electricity to Directly
Connected
Customers (DCC) shall secure an RES License within one (1)
year from the effectivity of these Omnibus Rules;
(j) The CRB and/or MO shall adapt and implement the necessary
processes to operationalize Retail Aggregation within 60
calendar days from the effectivity of these Omnibus Rules;
(k) The ERC shall issue a separate Resolution rationalizing cost
recovery mechanism in the procurement of metering facilities
for the different customer choice programs in the retail market
and/or demand management programs it is implementing,
within ninety (90) calendar days from the effectivity of these
Omnibus Rules. Until then, the relevant provisions herein
stated shall apply; and
(l) The ERC shall likewise issue a separate Resolution outlining the
regulatory framework to address displaced contracted
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capacities/energy within one hundred twenty “A”
(120) calendar
days from the effectivity of these Omnibus Rules.

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“A”
Q2. Occurrence of Displaced Contract Capacity/Energy

Q2.1 In case of DUs with bilateral contract(s) having no energy reduction


provisions, the DUs shall be allowed to provisionally implement
measures to mitigate the impact of customer switching, including
possible renegotiation of power supply agreements and/or
assignment of excess contracted energy volumes to Retail
Supplier(s), or its Local RES and/or SOLR business segments. In any
or all such measures, the DU shall demonstrate to the ERC that
there is already a stranding of supply, and that the said measures
will result in the least-cost supply and reasonable power rates to the
captive customers.

Q2.2 The DU may sell its excess contracted supply to WESM, subject to
the provisions of ERC Resolution No. 16, Series of 2016, or any
amendments thereto.

Q2.3 The DU may employ other means to reduce the excess contracted
energy volumes toward ensuring least cost for the captive
consumers. All these measures, implemented provisionally or
otherwise, shall be reported to the ERC, as required under these
Omnibus Rules, and shall be subject to the same post-
implementation evaluation.

Q2.4 All DUs may implement such measure/s, subject to post-


implementation evaluation by the ERC through submission of
necessary report and supporting document/s by the DU
demonstrating that the adopted methodology resulted in least cost
supply and reasonable cost to remaining captive customers.

Q2.5 Within thirty (30) calendar days from effectivity of these Omnibus
Rules, the DUs shall submit a demand and supply assessment
report, which shall include but not limited to the following:

(a) Total peak demand of all its customers;


(b)Total number of eligible end-users and their equivalent peak demand;
(c) List of existing Power Supply Agreements with ERC-approved
Provisional Authority or Final Authority, whichever is applicable;
(d)List of eligible end-users who have signified their intention to
switch to the Retail Market and their equivalent peak demand;
and
(e) Forecasted equivalent of displaced contracted capacities for
one (1) year reckoned from effectivity of these Omnibus Rules.

Q2.6 Thereafter, the DU shall submit to the ERC its demand and supply
assessment report for the succeeding year, every 15 th of December
of each year, consistent with Module Q2.5 of these Omnibus Rules.

Q3. Collection of Over/Under Recoveries of Pass-Through Charges


from Retail Customers
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“A”
Q3.1 Any over/under recovery in the regulated generation charges,
transmission charges, system loss charges, lifeline rate subsidy,
business tax and senior citizen discounts, shall be applied for by
the DUs in the confirmation of the said

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“A”
regulated charges in accordance with ERC Resolution No. 14, Series
of 2022, or any amendments thereto.

The ERC shall confirm the said charges from the last billing period
of the Retail Customer when it was still the DU’s captive customer
until its transfer to a Retail Supplier.

Any over/under recovery shall be refunded and/or collected from all


Retail Customer for billing periods when they were still captive
customers. These shall be part of the DU’s bill, as a separate line,
through the Retail Supplier currently serving the Retail Customer.

All distribution pass-through charges will continue to be billed to


the Retail Customer which shall include transmission charges,
system loss charges, lifeline rate subsidy, business tax and senior
citizen discounts, over/under recoveries on pass-through charges,
universal charge, and other ERC-approved charges.

Under the Customer Choice Programs in the Retail Market, the


universal charges shall continue to be billed and collected by the
DU to the Retail Supplier and remit the same to PSALM at least
fifteen (15) calendar days from the DU’s collection. For DCC’s
qualified as Retail Customer, universal charges shall be billed and
collected directly by the TransCo/its buyer or concessionaire and
subsequently remit the same to PSALM based on the said required
schedule.

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Annex “B-1”

(RES Form 1a)

CHECKLIST OF REQUIREMENTS FOR NEW RES LICENSE APPLICATION

Name of Applicant:

Note: The application will only be considered as filed upon completion of the
requirements, receipt of the ERC’s Confirmation of Completeness Email (CCE), payment
of the RES application fee, and official docketing of the RES License application.

PART I. DOCUMENTARY/LEGAL REQUIREMENTS

Remarks
Requirement
(Complete -
s ✔)

1. If the Applicant’s email is already registered with the ERC:


Certificate of Email Registration (CER1) Number.

If the Applicant has an ongoing request for email registration:


Reference Number of the CER application.
2. Fully accomplished RES Information Sheet (RES-Form 2a)

3. If Juridical Entity: Certificate of Registration with


corresponding Articles of Incorporation/Partnership issued
by the Philippine Securities and Exchange Commission
(SEC);

If Juridical Entity is created by Law: Basis of creation, such as


but not limited to, Republic Act No. or Certified True Copy of
its Charter; or

If Sole Proprietorship: Business Name Registration issued by


the Department of Trade and Industry (DTI) indicating the
purpose of engaging in business/es in electric power industry.
4. Valid Business Permit or Mayor’s Permit, if applicable

5. For Applicants who has been in existence or in operation


for at least two (2) years: Certified True Copy2 of the
applicant’s Audited Financial Statements (AFS) for the two
(2) most recent reporting periods; or

For Applicants who has been in existence or in operation


for less than two (2) years, at the time of filing:
Certified True Copy of the applicant’s Audited Interim
Financial Statement (AIFS) for the recent
reporting period, if applicable.

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1
ERC Resolution No. 09, series of 2020, entitled “A Resolution Adopting the Guidelines governing Electronic Applications, Filing and Virtual
Hearings before the Energy Regulatory Commission”
2
The Chief Financial Officer shall certify the true copy/ies of the Audited Financial Statements (AFS).

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6. For Applicants with Affiliates:

a. Certified True Copy of the AFS of the applicant’s parent


company for the two (2) most recent reporting period,
as submitted in its annual reports to shareholders; and
b. General Information Sheet (GIS) of the applicant’s
affiliates
engaged in the generation, distribution, and retail supply
of electricity, and their corresponding business
addresses.

7. For Applicants who are currently engaged in any of the


following business/es in the power industry, such as
generation, supply or distribution:

a. ERC Case Number for BSUP application; and


b. Copy of latest Accounting Separation Statements
reflecting the separate Capitalization for its RES
business.

Note: Accounting Separation Statements (ASS) are part of


the annual reportorial requirement of entities with
approved BSUP, otherwise, if newly approved BSUP,
ASS is part of the BSUP
application.
8. Latest GIS of the Applicant, if applicable.
9. Sworn Statement of Prior Submission, if applicable.

PART II. TECHNICAL REQUIREMENTS

Remarks
Requirement
(Complete -
s ✔)
1. Five-year Business Plan (RES Form 3)

2. Narrative with proof of the ability of its officers/employees


to operate an electricity supply business or ability to trade
in any market involving regular sale/exchange of
items/commodity.

The required years of experience shall be any of the following:

a. At least two (2) employees/officers holding


managerial position have a combined relevant
experience of at least ten
(10) years and with at least one (1) employee/officer
who has experience entering into contracts or
negotiations with NGCP,
DU, Generation Companies or entities in other
industries; or
b. Should the Applicant engage with the services of a
Consultant, the said Consultant should have at least
fifteen (15) years of relevant experience and with at
least one (1) employee/officer of the Applicant who

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has experience entering into contracts or
negotiations with NGCP, DU, Generation Companies
or entities in other industries.

(attachments may include, but not limited to, Curriculum Vitae


of key
officers/employees/board of directors showing relevant
experience or Certifications on relevant trainings of
officers/employees)

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3. Narrative and proof of an approved sign-up account with
the Central Registrations Body (CRB); (e.g. but not limited
to, screenshot of email
approval or certificate of registration);

4. Narrative and proof that the Applicant is in the process of


adopting a billing and collection system or subscription of
such to a 3rd party platform provider available in the
market and an employee or consultant that is capable in
maintaining the said system (e.g. but not limited to, proof of
quotations, negotiations with developer or procurement
documents, among others, with attached Curriculum Vitae
or Certification of Trainings for the person who will
maintain the system)

5. Narrative and proof that the Applicant has its own


existing/under development website and an employee or
consultant that is capable in maintaining the said website.
(e.g. but not limited to, link to the website, proof of
negotiations with website developer, or procurement
documents, among others, with attached Curriculum Vitae
or Certification of Trainings for the person who will
maintain the system)

Note: The website shall be able to reflect the information


on average prices, contact details of the RES,
comments/suggestions box for customers, value-added
services, and any other information necessary for the
customer to learn more about the services of the
RES in helping them to have informed choices)

PART III. FINANCIAL REQUIREMENTS

Remarks
Requirement
(Complete -
s ✔)

1. Tangible Net Worth (TNW) criteria, whichever is applicable:

a. For Applicants with available Audited Financial


Statements (AFS): Certified True Copies of AFS for
the two (2) most recent twelve-month periods; or for
the life of the business, if it has been in existence for
less than two (2) years, if applicable, reflecting its
Tangible Net Worth (TNW) equivalent to at least
Fifteen Million Pesos (PhP15,000,000.00) or equal to
its Average Expected Annual Expenses (AEAE),
whichever is higher.

Where:
∑(TCOS + TOE)
𝐀𝐄𝐀𝐄 =
Term of License
TCOS = Total Cost of Sales expected for the term of
license

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TOE = Total Operating Expenses expected to be incurred
for the term of license

b. For newly incorporated Applicants which are yet to


commence operations: Proof of Tangible Net Worth
amounting to Fifteen

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Million Pesos (PhP15,000,000.00) or AEAE,
whichever is higher.

2. Market Risk Management Plan, which shall include


measures to mitigate exposure to price volatilities in the
procurement of supply for
retail.

3. Sworn Undertaking to, at a minimum, post a Performance


Bond/s for every and all RSCs which are unhedged or
undertake other measures including but not limited to,
submission of a Certified True Copy of executed
instruments related to hedging that shall be considered as
evidence of the Applicant’s ability to withstand market
disturbances
or other events that may increase the cost of providing
service.

4. For Applicants intending to collect cash security deposits:


Certification from any financial banking institution located
in the Philippines stating that it has a lready availed of the
said bank’s escrow, restricted account or Hold-out
Agreement facility, making the said cash security deposit
unavailable for use in financing the applicant’s working
capital requirements; and

Only Applicants who have declared its intention to collect


cash security deposits shall be allowed to collect such deposit
during the term of its license. Otherwise, collection of cash
security deposit shall not be allowed during the validity of the
license.

Any advance cash security deposit collected from Retail


Customers shall be sufficiently covered by a restricted facility,
making the said cash security deposit unavailable for use in
financing the Retail Supplier’s
working capital requirements.

Note: All documents shall be submitted in one (1) hard copy and one (1) soft copy.

Initially Assessed by:


Complete

For Completion
SIGNATURE OVER PRINTED NAME
Date:
Note: Only forms/documents
with complete entries will be
accepted; otherwise, it will be
returned to the applicant for
Noted by:
re-submission of forms with
complete entries
Approved for Filing

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SIGNATURE OVER PRINTED NAME
Date:

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Annex “B-2”

(RES Form 1b)

CHECKLIST OF REQUIREMENTS FOR RES LICENSE RENEWAL


APPLICATIONS

Name of Applicant:

Note: The application will only be considered as filed upon completion of the
requirements, receipt of the ERC’s Confirmation of Completeness Email (CCE), payment
of the RES application fee, and official docketing of the RES License application.

PART I. DOCUMENTARY/LEGAL REQUIREMENTS

Remarks
Requirement
(Complete -
s ✔)

1. Certificate of Email Registration (CER1) Number.


2. Updated RES Information Sheet (RES-Form 2b)
3. Valid Business Permit or Mayor’s Permit

4. Certified True Copy 2of the applicant’s Audited Financial


Statements
(AFS) for the two (2) most recent reporting periods

5. Latest General Information Sheet (GIS) of the applicant

6. For Applicants with Affiliates:

a. Latest GIS of the applicant’s affiliates engaged in the


generation, distribution, and retail supply of
electricity, and their corresponding business
addresses;

b. AFS of the applicant’s affiliates engaged in the


generation, distribution, and retail supply of
electricity for the two (2) most recent reporting
periods, or Audited Interim Financial
Statement (AIFS) if it has been in existence for less
than two
(2) years.

7. For Applicants who are currently engaged in any of the


following business/es in the power industry, such as
generation, supply or distribution:

a. ERC Case Number for BSUP application; and

Page 1 of
3
1
ERC Resolution No. 09, series of 2020, entitled “A Resolution Adopting the Guidelines governing Electronic Applications, Filing and Virtual
Hearings before the Energy Regulatory Commission”
2
The Chief Financial Officer shall certify the true copy/ies of the Audited Financial Statements (AFS).

Page 2 of
3
b. Copy of latest Accounting Separation Statements
reflecting the separate Capitalization for its RES
business.

Note: Accounting Separation Statements (ASS) are part of the


annual reportorial requirement of entities with approved
BSUP, otherwise, if
newly approved BSUP, ASS is part of the BSUP application.
8. Sworn Statement of Prior Submission, if applicable.

PART II. TECHNICAL REQUIREMENTS

Remarks
Requirement
(Complete -
s
✔)

1. Updated Five-year Financial Statements and Five-year


Business Plan (outline available at the ERC website [RES
Form 3]);

2. Updated Organizational Chart, if applicable, identifying the


Board of Directors and Officers who will continue to
spearhead the operations of the applicant (Include
Curriculum Vitae and narrative on their
capability to continue the RES operations); and

3. Proof that the Applicant has its own existing website and an
employee or consultant that is capable in maintaining the
said website. (e.g. but not limited to, link to the website
with attached Curriculum Vitae or Certification of Trainings
for the person who will maintain the system)

Note: The website shall be able to reflect the information


on average prices, contact details of the RES,
comments/suggestions box for customers, value-added
services, and any other information necessary for the
customer to learn more about the services of the
RES in helping them to have informed choices)

PART III. FINANCIAL REQUIREMENTS

Remarks
Requirement
(Complete -
s ✔)

Page 3 of
3
1. Certified True Copies of AFS for the two (2) most recent
reporting periods reflecting its Tangible Net Worth (TNW)
equivalent to at least Fifteen Million Pesos
(PhP15,000,000.00) or equal to its Average Expected
Annual Expenses (AEAE), whichever is higher.

Where:

∑(TCOS + TOE)
𝐀𝐄𝐀𝐄 =
Term of License

TCOS = Total Cost of Sales expected for the term of license

TOE = Total Operating Expenses expected to be incurred


for the term of license

Page 4 of
3
2. Market Risk Management Plan, which shall include
measures to mitigate exposure to price volatilities in the
procurement of supply for
retail.

3. Proof of, at a minimum, posting of a Performance Bond/s for


every and all Retail Supply Contracts which are unhedged
or proof that other measures were undertaken which shall
include but are not limited to a Certified True Copy of
executed instruments related to hedging which shall be
considered as evidence of the Applicant’s ability to
withstand market disturbances or other events that may
increase the cost of providing service.

4. For Applicants intending to collect cash security deposits:


Certification from any financial banking institution located
in the Philippines stating that it has already availed of the
said bank’s escrow, restricted account or Hold-out
Agreement facility, making the said cash deposit
unavailable for use in financing the applicant’s working
capital requirements; and

Only Applicants who have declared its intention to collect


cash security deposits shall be allowed to collect such
deposit during the term of its license. Otherwise, collection
of cash security deposit shall not be allowed during the
validity of the license.

Any advance cash deposit collected from Retail Customers


shall be sufficiently covered by a restricted facility, making
the said cash deposit unavailable for use in financing the
Retail Supplier’s working
capital requirements.

Note: All documents shall be submitted in one (1) hard copy and one (1) soft copy.

Initially Assessed by:


Complete

For Completion
SIGNATURE OVER PRINTED NAME
Date:
Note: Only forms/documents
with complete entries will be
accepted; otherwise, it will be
returned to the applicant for
Noted by:
re-submission of forms with
complete entries
Approved for Filing

SIGNATURE OVER PRINTED NAME


Date:

Page 5 of
3
Annex “B-3”

(RES Form 1c)

CHECKLIST OF REQUIREMENTS FOR THE APPLICATION AS A


LOCAL RETAIL ELECTRICITY SUPPLIERS

Name of Applicant:

Note: The application will only be considered as filed upon completion of the requirements and
receipt
of the ERC’s Confirmation of Completeness Email (CCE).

PART I. DOCUMENTARY/LEGAL REQUIREMENTS

Remarks
Requirement
(Complete -
✔)

1. If the Applicant’s email is already registered with the ERC:


Certificate of Email Registration (CER1) Number.

If the Applicant has an ongoing request for email


registration: Reference Number of the CER application.
2. Fully accomplished RES Information Sheet (RES-Form 2c)

3. ERC Case Number for BSUP application.

Note: The applicant should have a Non-Regulated Supply


Segment, or equivalent, in its approved BSUP/BSUP
application.

4. Copy of latest Accounting Separation Statements


reflecting the separate Capitalization for its Local RES
business.

Note: Accounting Separation Statements (ASS) are part of


the annual reportorial requirement of entities with
approved BSUP, otherwise, if newly approved/ongoing
BSUP applications, ASS is
part of the BSUP application.

5. For Private Corporations: General Information Sheet (GIS)


of the applicant and its affiliates engaged in the generation,
distribution, and retail supply of the electricity with their
corresponding business addresses; or

For Electric Cooperative: Certified True Copy of Board


Resolution or Secretary’s Certificate that will indicate the
list of the Board of Directors and Board Members.

Page 1 of
3
1
ERC Resolution No. 09, series of 2020, entitled “A Resolution Adopting the Guidelines governing Electronic Applications, Filing and Virtual
Hearings before the Energy Regulatory Commission”

Page 2 of
3
6. If the Applicant has been in existence or in operation for at
least two
(2) years: Certified True Copy2 of the applicant’s Audited
Financial
Statements (AFS) for the two (2) most recent reporting
periods; or

For Applicants who has been in existence or in operation


for less than two (2) years at the time of application:
Certified True Copy of the applicant’s or Audited Interim
Financial Statement (AIFS), if
applicable.
7. Sworn Statement of Prior Submission, if applicable.

PART II. TECHNICAL REQUIREMENTS

Remarks
Requirement
(Complete -
✔)

1. Five-year Business Plan (RES-Form 3) highlighting the


strategies of the intending Local RES in operating its supply
business separate from its other business segments.

Include narrative with proof of the ability of its


officers/employees to operate an electricity supply business
or ability to trade in any market involving regular
sale/exchange of items/commodity.

The required years of experience shall be any of the


following:
a. At least two (2) employees/officers holding
managerial position have a combined relevant
experience of at least ten (10) years and with
at least one (1) employee/officer who has
experience entering into contracts or
negotiations with NGCP, DU, Generation
Companies or entities in other industries.

b. Should the Applicant engage with the services


of a Consultant, the said Consultant should
have at least fifteen (15) years of relevant
experience and with at least one (1)
employee/officer of the Applicant who has
experience entering into contracts or
negotiations with NGCP, DU, Generation
Companies or entities in other
industries.

2. For Applicants intending to collect cash security deposits:


Certification from any financial banking institution located
in the Philippines stating that it has already availed of the
said bank’s escrow, restricted account or Hold-out
Agreement facility, making the said cash security deposit
unavailable for use in financing the applicant’s working
capital requirements.

Page 3 of
3
Only Applicants who have declared its intention to
collect cash security deposits shall be allowed to collect
such deposit during the

2
The Chief Financial Officer shall certify the true copy/ies of the Audited Financial Statements (AFS).

Page 4 of
3
term of its license. Otherwise, collection of cash security
deposit shall not be allowed during the validity of the
license.

Any advance cash security deposit collected from Retail


Customers shall be sufficiently covered by a restricted
facility, making the said cash security deposit unavailable
for use in financing the Retail
Supplier’s working capital requirements.

All documents shall be submitted in one (1) hard copy and one (1) soft copy.

Initially Assessed by:


Complete

For Completion
SIGNATURE OVER PRINTED NAME
Date:
Note: Only forms/documents
with complete entries will be
accepted; otherwise, it will be
returned to the applicant for
Noted by:
re-submission of forms with
complete entries
Approved for Filing

SIGNATURE OVER PRINTED NAME


Date:

Page 5 of
3
Annex “C-1”

(RES Form 2a)

RES INFORMATION SHEET FOR NEW APPLICATIONS

To be filled-out by
ERC
Official Application No.:
Date Filed:

PART 1. APPLICANT INFORMATION

1.1 Company Profile

a. Business Name:
b. Complete Business Address:
c. Website:
d. Contact Number
e. E-mail Address
f. ERC Case number of BSUP Application*:
(*if the applicant has other businesses in the electric power industry which
falls under distribution, supply, generation, and transmission)

1.2 Name of RES’ Regulatory Compliance Officer:


E-mail Address (preferably
official/work email; not personal
emails):
Telephone/Mobile No.:

1.3 Board of Directors and Company Officers’ Profile

Company Officers Name Designation E-mail Address

Board of Directors
Key Officers
Representative
to
ERC/Position

Please attach Curriculum Vitae of the above stated Board of Directors and Officers

1.4 Corporate Information

List and Description of Companies affiliated with the Applicant:

Description of
the Description Business
Name of of
Company Relationship Addresse
Business s
with the
Applicant

Page 1 of
4
1.5 Business Activities

a. Newly organized for the purpose of providing retail electricity service.

b. Existing organization engaged in other activity/s in the electric power


industry
(Generation, Distribution and/or Transmission). Specify existing business
activities:

1.6 Green Energy Option Program

a. Applicant intends to act as a Renewable Energy Supplier within the 5-


year period.
b. Applicant does not intend to act as a Renewable Energy Supplier
within the 5-year
period.

1.7 Retail Aggregation Program

a. Applicant intends to act as a Retail Aggregator within the 5-year


period.
b. Applicant does not intend to act as a Retail Aggregator within the 5-
year period.

PART 2. FINANCIAL CAPABILITY REQUIREMENTS

2.1 TNW Requirement:

For applicants with available Audited Financial Statements (AFS):


Certified True
Copy of AFS for the two (2) most recent reporting periods; or for the
life of the business, if it has been in existence for less than two (2)
years, if applicable, reflecting its Tangible Net Worth (TNW) equivalent
to at least Fifteen Million Pesos (PhP15,000,000.00) or equal to its
Average Expected Annual Expenses (AEAE), whichever is higher.
Where:
𝐀𝐄𝐀𝐄 =
∑(TCOS+TOE)
Term of License

TCOS = Total Cost of Sales expected for the term of license


TOE = Total Operating Expenses expected to be incurred for the
term of license

For newly incorporated applicants which are yet to commence


operations: Proof of
Tangible Net Worth amounting to Fifteen Million Pesos
(PhP15,000,000.00) or AEAE, whichever is higher.

2.2 Financial Stability Requirements:

Sworn Undertaking to, at a minimum, post a Performance Bond/s for


every and all RSCs which are unhedged or undertake other measures
including but not limited to, submission of a Certified True Copy of
executed instruments related to hedging that shall be considered as
evidence of the Applicant’s ability to withstand market disturbances or
other events that may increase the cost of providing service.
2.3 Cash Secuity Deposit Requirements:

Page 2 of
4
Applicant intends to collect cash deposits from customers.

Applicant does not intend to collect cash deposits from customers.


Provide Certification from any financial banking institution located in the Philippines stating that it
has

Page 3 of
4
already availed of the said bank’s escrow, restricted account, or Hold-out Agreement facility, making
the
said cash deposit unavailable for use in financing the applicant’s working capital requirements.
Only Applicants who have declared its intention to collect cash security deposits shall be
allowed to collect such deposit during the term of its license. Otherwise, collection of cash
security deposit shall not be allowed during the validity of the license.
Any advance cash deposit collected from Retail Customers shall be sufficiently covered by
a restricted facility, making the said cash deposit unavailable for use in financing the
Retail Supplier’s working capital requirements.

Page 4 of
4
(Prescribed Format Only)

UNDERTAKING

REPUBLIC OF THE PHILIPPINES)


) S.S.

I, [name of authorized representative (with attached proof of authority)] of


legal age, with office address at , after having been sworn to in accordance with
law, hereby depose and say:

That I am the (designation) of the (name of RES);

I swear and affirm that I have personal knowledge of the facts stated in the
attached RES Information Sheet, that I am competent to testify to them, and that I
have the authority to submit this RES Information Sheet for on behalf of (name of
RES).

I further swear or affirm that all information, statements and/or documents


submitted by the (name of RES) to the Energy Regulatory Commission (ERC) relevant
to this request for RES authorization are true, correct and complete and that any
substantial changes in such information will be provided to the ERC in a timely
manner. That I am fully aware that any intentional omission, false statements, or
misrepresentations of the information submitted herewith may be grounds for perjury
which shall be punishable by law.

IN WITNESS WHEREOF, I have hereunto affixed my signature this day of


at , Philippines.

Signature over printed name of the


Authorized Representative

Name of RES

SUBSCRIBED AND SWORN to before me, a notary public in and for


this day of . The affiant exhibited to me his/her
and personally signed the foregoing instrument before me and avowed under
penalty of law to the whole truth of the contents of said instrument.

NOTARY PUBLIC

Doc. No. :
Page No. :
Book No. :
Series of 20

Page 5 of
4
Annex “C-2”

(RES Form 2b)

RES INFORMATION SHEET FOR RENEWAL APPLICATIONS

To be filled-out by
ERC
Official Application No.:
Date Filed:

PART 1. APPLICANT INFORMATION

1.1 Updated Company Profile

a. Business Name:
b. Complete Business Address:
c. Website:
d. Contact Number
e. E-mail Address
f. ERC Case number of BSUP Application*:
(*if the applicant has other businesses in the electric power industry which
falls under distribution, supply, generation, and transmission)

1.2 Name of RES’ Regulatory Compliance Officer:


E-mail Address (preferably
official/work email; not personal
emails):
Telephone/Mobile No.:

1.3 Updated Board of Directors and Company Officers’ Profile

Company Officers Name Designation E-mail Address

Board of Directors
Key Officers
Representative
to
ERC/Position

Please attach Curriculum Vitae of the above stated Board of Directors and Officers

1.4 Updated Corporate Information

List and Description of Companies affiliated with the Applicant:

Description of
the Description Business
Name of
Relationship of Addresse
Company Business
with the s
Applicant

Page 1 of
4
1.5 Business Activities

a. Only operating as a RES Supplier; or

b. With other existing business activity/s in the electric power industry


(Generation, Distribution and/or Transmission). Specify existing business
activities:

1.6 Green Energy Option Program

a. Applicant intends to act as a Renewable Energy Supplier within the 5-


year period.
b. Applicant does not intend to act as a Renewable Energy Supplier
within the 5-year
period.

1.7 Retail Aggregation Program

a. Applicant intends to act as a Retail Aggregator within the 5-year


period.
b. Applicant does not intend to act as a Retail Aggregator within the 5-
year period.

PART 2. FINANCIAL CAPABILITY REQUIREMENTS

2.1 TNW Requirement:

For applicants with available Audited Financial Statements (AFS):


Certified True
Copy of AFS for the two (2) most recent reporting periods; or for the
life of the business, if it has been in existence for less than two (2)
years, if applicable, reflecting its Tangible Net Worth (TNW) equivalent
to at least Fifteen Million Pesos (PhP15,000,000.00) or equal to its
Average Expected Annual Expenses (AEAE), whichever is higher.
Where:
𝐀𝐄𝐀𝐄 =
∑(TCOS+TOE)
Term of License

TCOS = Total Cost of Sales expected for the term of license


TOE = Total Operating Expenses expected to be incurred for the
term of license

For newly incorporated applicants which are yet to commence


operations: Proof of
Tangible Net Worth amounting to Fifteen Million Pesos
(PhP15,000,000.00) or AEAE, whichever is higher.

2.2 Financial Stability Requirements:

Proof of, at a minimum, posting of a Performance Bond/s for every and


all Retail Supply Contracts which are unhedged or proof that other
measures were undertaken which shall include but are not limited to a
Certified True Copy of executed instruments related to hedging which
shall be considered as evidence of the Applicant’s ability to withstand
market disturbances or other events that may increase the cost of
providing service.
2.3 Cash Secuity Deposit Requirements:

Applicant intends to collect cash deposits from customers.

Page 2 of
4
Applicant does not intend to collect cash deposits from customers.

Page 3 of
4
Provide Certification from any financial banking institution located in the Philippines
stating that it has already availed of the said bank’s escrow, restricted account, or Hold-
out Agreement facility, making the said cash deposit unavailable for use in financing the
applicant’s working capital requirements.
Only Applicants who have declared its intention to collect cash security deposits shall be
allowed to collect such deposit during the term of its license. Otherwise, collection of cash
security deposit shall not be allowed during the validity of the license.
Any advance cash deposit collected from Retail Customers shall be sufficiently covered by
a restricted facility, making the said cash deposit unavailable for use in financing the
Retail Supplier’s working capital requirements.

Page 4 of
4
(Prescribed Format Only)

UNDERTAKING

REPUBLIC OF THE PHILIPPINES)


) S.S.

I, [name of authorized representative (with attached proof of authority)] of


legal age, with office address at , after having been sworn to in accordance with
law, hereby depose and say:

That I am the (designation) of the (name of RES);

I swear and affirm that I have personal knowledge of the facts stated in the
attached RES Information Sheet, that I am competent to testify to them, and that I
have the authority to submit this RES Information Sheet for on behalf of (name of
RES).

I further swear or affirm that all information, statements and/or documents


submitted by the (name of RES) to the Energy Regulatory Commission (ERC) relevant
to this request for RES authorization are true, correct and complete and that any
substantial changes in such information will be provided to the ERC in a timely
manner. That I am fully aware that any intentional omission, false statements, or
misrepresentations of the information submitted herewith may be grounds for perjury
which shall be punishable by law.

IN WITNESS WHEREOF, I have hereunto affixed my signature this day of


at , Philippines.

Signature over printed name of the


Authorized Representative

Name of RES

SUBSCRIBED AND SWORN to before me, a notary public in and for


this day of . The affiant exhibited to me his/her
and personally signed the foregoing instrument before me and avowed under
penalty of law to the whole truth of the contents of said instrument.

NOTARY PUBLIC

Doc. No. :
Page No. :
Book No. :
Series of 20

Page 5 of
4
Annex “C-3”

(RES Form 2c)

LOCAL RES INFORMATION SHEET

PART I. BASIC LOCAL RES INFORMATION

1. Local RES Profile

a. Business Name:
b. Complete Business Address:
c. Website:
d. Contact Number
e. E-mail Address
f. ERC Case number of BSUP Application:

2. Name of Local RES’ Regulatory Compliance


Officer:
E-mail Address (preferably
official/work email; not personal
emails):
Telephone/Mobile No.:

3. Local RES Directors and Officers:

Company Name Designation E-mail Address


Officers
Board of Directors

Key Officers

Representative
to
ERC/Position
Please attach Curriculum Vitae of the above stated Board of Directors and Officers

4. List and description of companies affiliated with the DU:

Description of
the Description Business
Name of of Addresse
Company Relationship
Business s
with the
Applicant

5. Proposed date of commencement of operations as Local RES:

6. Sources of Supply (Please check and identify)


Affiliate IPP/Generation Company

Non-affiliate IPPs/Generation
Page 1 of
3
Companies

Page 2 of
3
WESM

Others (please
specify)
PART 2. CASH SECURITY DEPOSIT REQUIREMENTS

Applicant does not intend to collect cash security deposits from


customers.
Applicant intends to collect cash security deposits from
customers.

Provide Certification from any financial banking institution located in the Philippines
stating that it has already availed of the said bank’s escrow, restricted account, or Hold-
out Agreement facility, making the said cash security deposit unavailable for use in
financing the applicant’s working capital requirements.

Only Applicants who have declared its intention to collect cash security deposits shall be
allowed to collect such deposit during the term of its license. Otherwise, collection of cash
security deposit shall not be allowed during the validity of the license.

Any advance cash security deposit collected from Retail Customers shall be sufficiently
covered by a restricted facility, making the said cash security deposit unavailable for use
in financing the Retail Supplier’s working capital requirements

Page 3 of
3
(Prescribed Format Only)

UNDERTAKING

REPUBLIC OF THE PHILIPPINES)


) S.S.

I, [name of authorized representative (with attached proof of authority)] of


legal age, with office address at , after having been sworn to in accordance with
law, hereby depose and say:

That I am the (designation) of the (name of Local RES);

I swear and affirm that I have personal knowledge of the facts stated in the
attached Local RES Information Sheet, that I am competent to testify to them, and that
I have the authority to submit this Local RES Information Sheet for on behalf of (name
of Local RES).

I further swear or affirm that all information, statements and/or documents


submitted by the (name of Local RES) to the Energy Regulatory Commission (ERC)
relevant to this request for Local RES authorization are true, correct and complete and
that any substantial changes in such information will be provided to the ERC in a
timely manner. That I am fully aware that any intentional omission, false statements,
or misrepresentations of the information submitted herewith may be grounds for
perjury which shall be punishable by law.

IN WITNESS WHEREOF, I have hereunto affixed my signature this day of


at , Philippines.

Signature over printed name of the


Authorized Representative

Name of RES

SUBSCRIBED AND SWORN to before me, a notary public in and for


this day of . The affiant exhibited to me his/her
and personally signed the foregoing instrument before me and avowed under
penalty of law to the whole truth of the contents of said instrument.

NOTARY PUBLIC

Doc. No. :
Page No. :
Book No. :
Series of 20

Page 4 of
3
Annex “D”

(RES Form 3)

RES/Local RES Outline for a Five-year Business Plan

I. Executive Summary

Overview of the Company and its Business Plan, including but not limited to the following:

(a) Description of the Businesses the Applicant is currently engaged with;


(b) Description of the Businesses of the Applicant’s Parent Company and/or
relevant
Affiliates; and
(c) For new RES applicants and Local RES applicants: Reason of the
Applicant’s
intention to enter the Retail Market.

II. Marketing Plan (specify for Retail Aggregation and/or GEOP, if applicable)

2.1. Five-year Market Share and Revenue Target(s)*

Year 1 Year 2 Year 3 Year 4 Year 5

Target Market Share (%)

Target Annual Revenue


(PhP)
*With Narrative
2.2. Type/s of Market to be served.
Provide Narrative and list down the target markets (e.g., Industrial, Malls,
Condominiums, etc.) that the applicant plans to serve.

2.3. Target Geographical Location to be served.


Provide Narrative and list down the target areas (e.g., Luzon, Visayas,
Mindanao and/or Specific Cities/Municipalities) that the applicant plans to serve.

2.4. Marketing Strategies*

Marketing Strategies Brief Description


e.g. Social Media/Newspaper
Advertisements and Email
Campaigns, etc.

*With Narrative
2.5. 5- Year Allocation of Capacity & Energy*

Year 1 Year 2 Year 3 Year 4 Year 5


Capacity (MW)
Energy (kWh)
Total
*With Narrative

Page 1 of
4
2.6. Value Added Services

With a Fee or
Value-Added Service/s Brief Description
Free of Charge

III. Power Procurement Plan

5-Year specific Source of Power with corresponding quantity (specify if


procuring from Renewable Energy Sources) *

Name of Year Year Year Year Year


Specific 1 2 3 4 5
Generation (MW (MW (MW (MW (MW
Company ) ) ) ) )

*With Narrative

IV. Financial Plan

4.1 5-Year Capitalization Plan (e.g., equity, borrowings or public offerings, etc.) *

Year Year Year Year Year


Source of Capital
1 2 3 4 5
(PhP (PhP (PhP (PhP (PhP
) ) ) ) )

*With Narrative

4.2 5-Year Financial Statements:

5-Year Statement of Financial


Performance
(Income Statement)
Year Year Year Year Year
1 2 3 4 5
(PhP (PhP (PhP (PhP (PhP
) ) ) ) )
Revenue
(Cost of Sales)
Gross Profit
(General and Admin
Expenses)
Net Income Before Tax
(Provision for Income Tax)
Net Income After Tax

Page 2 of
4
5-Year Statement of Financial
Position
(Balance Sheet)
Year Year Year Year Year
1 2 3 4 5
(PhP (PhP (PhP (PhP (PhP
) ) ) ) )
Cash and cash equivalents
Receivable
Other current assets
Total Current Assets
Property, Plant and Equipment
Other non-current assets
Total Non-Current Assets
Total Assets
Current Liabilities
Other current liabilities
Total Current Liabilities
Long-term debts
Other non-current Liabilities
Total Non-
Current
Liabilities
Stockholder’s/Partners’/Owner’s
Equity
Retained Earnings
Total Equity
Total Liabilities and Equity

5-Year Statement of Cash Flows

Year Year Year Year Year


1 2 3 4 5
(PhP (PhP (PhP (PhP (PhP
) ) ) ) )
Operating Cash Flows
Investing Cash Flows
Financing Cash Flows
Others
Net Increase (Decrease)
in Cash
4.3 Market Risk Management Plan:
Provide a narrative detailing strategies to mitigate exposure to price volatilities
in retail supply procurement. This shall include, but not limited to, the
following: Objectives and Scope; Risk Identification; Risk Assessment and
Mitigation Strategies; Monitoring and Review; Communication and Training;
Page 3 of
4
Contingency Planning; Documentation and Reporting; Compliance and Legal
Considerations; and Technology and Tools.

Page 4 of
4
V. Organizational Plan

5.1 Organizational Chart, indicating Key Personnel, including roles and


functions; services outsourced and control over outsourced entities*

Name
Position
Departme
nt

Name Name Name


Position Position Position
Departme Departme Departme
nt nt nt

Description of Functions of
Departments within the
each
Organization Department

5.2 List of Advisors or Consultants, if any*

Current Brief
Name of and/or Relevant years description of
Advisor or Previous of experience tasks in
Consultant Company/s previous
Engaged company/
with s

*With Narrative

5.3 5-Year Staffing/Hiring Plan with Narrative:

Number Number of Additional Employees to


Departmen
of Hire
ts within
Employe
the
es Hired Year 1 Year 2 Year 3 Year 4 Year 5
Organizati
at
on Presen
t

5.4 5-Year Training Plan with Narrative:

Specific Brief Target Employee/Position to Undergo


Training/s Description Training
Year 1 Year 2 Year 3 Year 4 Year 5

Page 5 of
4
Annex “E”

RETAIL SUPPLY CONTRACT

This Retail Supply Contract ("RSC") is entered into this (date), by and
between the following:

SELLER, a corporation duly organized and existing


under the laws of the Republic of the Philippines, with
office address at (Seller’s Address), herein represented
by its (Position, Name) hereinafter referred to as the
"SELLER";
-and-
BUYER, a corporation duly organized and existing
under the laws of the Republic of the Philippines, with
office address at (Buyer’s Address), represented herein
by its (Position, Name), hereinafter referred to as the
"BUYER";

(The SELLER and BUYER are hereafter referred to individually as


"Party" and collectively as "Parties".)

Witness: That –

WHEREAS, the SELLER has a Retail Electricity Supplier's (RES)


License from the ERC to allow it to sell power to duly qualified Retail
Customers;

WHEREAS, the BUYER is an end-user with a Certificate of


Contestability issued by the ERC and therefore qualified to secure its
power supply from a registered Retail Supplier;

WHEREAS, the BUYER desires to buy and receive electric power from
the SELLER and SELLER has agreed to sell and supply electricity to the
BUYER, and as such, the Parties have agreed to execute this RSC to
formalize the terms and conditions of such sale and purchase of power.

NOW THEREFORE, for and in consideration of the foregoing premises


the Parties, for themselves and for their successors and allowed
assigns, hereby agree as follows:

ARTICLE 1
DEFINITION OF TERMS

The following terms as used in this RSC shall have the meanings given to them
below:

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(Insert Definition of Terms used in the Retail Supply Contact)

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ARTICLE
3 TERM

2.1 Term. This RSC shall be binding between the Parties on the date of
signing ("Execution Date") and shall remain effective until (agreed
end of contract). Supply of the electric power by the SELLER shall
commence on the Start Date and shall continue until the end of the
RSC Term.

2.2 Start Date Conditions Precedent. Prior to the Start Date, the
following conditions must be satisfied:

2.2.1 The BUYER shall submit the following information and


documents to the SELLER:
a. Demand or Electricity requirements
b. Load profile
c. SEC Certificate of Registration
d. Articles of Incorporation and By-laws
e. Certificate of Contestability
f. Post the required Security Deposit, provided that
SELLER notifies BUYER in writing of the required
Security Deposit amount at least sixty (60) calendar
days before the Execution Date.

2.2.2 The Parties shall have executed the following:


a. Necessary Customer Service Agreements with the
relevant Distribution Utility for the delivery of electric
power to the BUYER (DWSA, CA and MSA).
b. Switch Approval issued by the Central Registry Body
of the commercial transfer of the Customer from one
Distribution Utility/Supplier to Another Supplier.

2.3 Cooling-off Period. The BUYER may cancel this RSC within five (5)
business days from the Execution Date. The BUYER must furnish a
written notice of such cancellation not later than 5:00 o'clock p.m.,
five (5) Business Days after the signing of this RSC, counted from
the business day following the date of signing. The BUYER may
waive his/her right to the Cooling-Off Period through a written
Notice to the CRB and authorize the SELLER to deliver its service in
accordance with the terms of this RSC.

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ARTICLE
4
SECURITY DEPOSIT

3.1 Amount. For the first Contract Year, the BUYER shall provide a
Security Deposit to the SELLER equivalent to one hundred (100%) of
the estimated average monthly power bill computed using the
BUYER's actual power consumption for the twelve (12) months
immediately preceding the Start Date and the SELLER's rates
herein. This Security Deposit shall be updated at the start of every
calendar year subject to adjustments, based on the BUYER's actual
average monthly power bill of the preceding twelve (12) months as
may be needed or required by the SELLER. Each update shall be
executed at least one (1) week prior to the beginning of the coming
calendar year. SELLER shall notify the BUYER at least thirty (30)
calendar days before the due date of the Security Deposit update,
otherwise, it shall be understood that the existing Security Deposit
remains to be sufficient for SELLER's purposes.

3.2 Form. The Security Deposit shall be in the form of cash, cash bond,
manager's or cashier's check, bank certified check, irrevocable
stand-by letter of credit, performance bond or bank guarantee
issued by a financial institution, or any other forms of security, such
as but not limited to escrow account to be administered by a bank
acceptable to the SELLER, in such form and substance acceptable to
the SELLER.

3.3 Time of Posting. The Security Deposit shall be posted by the BUYER
not later than thirty (30) calendar days prior to the Start Date.

3.6 Release of All Security Deposits. Within seven (7) business days from
payment of the last bill for the last Billing Period following the
termination of this RSC, the SELLER shall return or release all the
Security Deposits posted by the BUYER including interest earned,
less any deductions identified by the SELLER properly chargeable to
the Security Deposits, for any amount owed by the BUYER to the
SELLER under this RSC. Security Deposits posted in cash shall earn
interest based on prevailing savings account deposit rates of the
bank specified by the SELLER.

ARTICLE 4
SALE AND PURCHASE OF CONTRACT ENERGY

4.1 Monthly Contract Energy

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ARTICLE
4.1.1 Beginning the Start 5Date, the SELLER shall make available
to the BUYER at the Energy Fees specified under Annex I.

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4.1.2 The RSC Energy shall be delivered by the SELLER to its
Delivery Point(s) mentioned in Annex II. This will be used for
purposes of declaration of BCQs, billing and settlement. Title
and risk of loss for the RSC Energy shall be transferred to the
BUYER at Delivery Point.

4.2 Supply

4.2.1 The SELLER shall have no obligation to supply more than the
Maximum Allowable Demand during peak hours as provided
for in Annex I. The BUYER may submit hourly capacity
requirement nomination in accordance with the "Nomination
Protocol" attached as Annex V herein.

4.2.2 During Off-peak Hours, BUYER may require SELLER to


provide up to a maximum of (Retail Customer’s Demand) MW.

4.2.3 Seven (7) calendar days before the start of the Billing Period,
the BUYER shall submit to the SELLER, a month-ahead
nomination translated into hourly and daily schedule referred
as the BCQ, in accordance with the "Nomination Protocol".
The BUYER may submit revisions on the BCQ Schedule on
week-ahead and day-ahead basis. If the BUYER fails or is
unable for any reason to submit such nominations, the
SELLER shall use the BUYER's best available data for the
same hour, day or week.

4.2.4 Meter registrations over and above the Maximum Allowable


Demand during peak hours, shall be deemed purchased from
the WESM.

4.3 SOLR Event

4.3.1 Without prejudice to BUYER's rights under Article10 of this


RSC, the BUYER may be served by a SOLR when any of the
following events occur:

4.3.1.1The SELLER has ceased to operate or its license has


been revoked by the ERC;
4.3.1.2The SELLER has failed to meet its obligations to the
relevant Distribution Utility wheeling power to the
BUYER;
4.3.1.3The SELLER has failed to meet its obligations to the
power generator from whom it is sourcing its power.

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4.3.1.4The SELLER has failed to meet its obligations to the
WESM, resulting in the revocation of the SELLER's
membership in the WESM.

4.3.2 Prior to transfer of the BUYER and be served by a SOLR, the


SELLER shall endeavor to secure a new SELLER who shall
take over the its

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responsibilities under this contract at the similar contract rate
and terms agreed with the BUYER.

ARTICLE 5
OUTAGES

5.1 Annual Outage Allowance. For every Contract Year during the term
of this RSC, the annual outage allowance shall be (number of
hours/days the SELLER’s contracted generation company will be on
outage).

5.2 In the event that a Contract Year is less than twelve (12) Billing
Periods, the Forced Outage allowance shall be pro-rated based on
the actual number of Billing Periods.

5.3 Major Maintenance Outage Hours Per Unit. The SELLER shall be
allowed an additional outage allowance of (approved major
maintenance outage of the SELLER’s contracted generation
company). The SELLER is not obligated to deliver energy from the
Plant during Major Maintenance Outage; instead shall deliver
Replacement Power at a most economical rate to its current RSC.

5.4 Replacement Power. To ensure the uninterrupted supply of energy


to the BUYER during the Annual Outage Allowance or Major
Maintenance Outage hours, the SELLER shall procure Replacement
Power from other sources; and shall deliver Replacement Power at a
rate economically equivalent to this RSC.

5.4 Unutilized Annual Outage Allowance hours or Major Maintenance


Outage hours shall not be carried forward to any subsequent
Contract Year.

5.5 Notification of Scheduled Outages. The SELLER shall inform the


BUYER of the Scheduled Outages of the Plant as submitted to and
approved by NGCP, as soon as such approved schedule is available,
but not later than ninety (90) calendar days before the Scheduled
Outage. The SELLER shall inform the BUYER of any revisions made
by NGCP at least thirty (30) calendar days prior to the start of the
revised Scheduled Outage.

5.6 Notification of Forced Outages. The SELLER shall inform the BUYER
of the occurrence, nature and expected duration of a Forced Outage
as soon as possible after such occurrence by the most expeditious
means, including but not limited to text messages, calls through

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landlines or cellular phones, with the details to follow by written
notice within 48 hours from the first advice or following any agreed
protocol establish by and between the SELLER and the BUYER.

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ARTICLE 6
CHARGES AND ADJUSTMENTS

6.1 Contract Charges. Beginning the Start Date and subject to the terms
and conditions of this RSC, BUYER shall pay Contract Energy Fees
equivalent to the metered energy consumption multiplied by the
agreed rate, adjustments in the Energy Fees, the cost of
Replacement Power during the Annual Outage Allowance, Major
Maintenance Outage Allowance or during an Event of Force Majeure
, all WESM Charges as billed by the PEMC to SELLER, subject to
presentation by SELLER of certified true copies of the relevant
WESM bill.

6.2 Retail Supply Charge. Fixed monthly charge of PhP (declared and
agreed) shall be paid by the BUYER.

6.3 Taxes. All applicable existing taxes as well as all other future taxes,
except corporate income tax, that may be imposed by the
government in connection with SELLER's performance of its
obligation under this RSC, including any increase or adjustments
thereon, shall be for the account of the BUYER.

6.4 Other Fees. BUYER shall bear all other relevant costs and charges
incurred after the Delivery Point, including but not limited to
transmission line losses, any interconnection charges and site-
specific loss adjustments, among others.

ARTICLE 7
PAYMENT

7.1 Form of Payment

7.1.1 Payment of any and all fees and charges by the BUYER to the
SELLER under this RSC may be in the form of cash, demand
drafts, checks or other cash equivalents. Payments made,
other than in the form of cash and checks, must be in cleared
funds on or before the designated due dates.

7.1.2 All payments made by the BUYER under this RSC shall be
free and clear of all deductions on account of set-offs,
counter-claim, tax or otherwise except as may be required by
law or allowed under this Contract.

7.1.3 BUYER shall deduct and withhold from all the fees and

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charges, the applicable creditable withholding tax and
BUYER shall remit any amounts withheld for such tax to the
relevant taxing authorities and the corresponding
documentation due to the prevailing regulation of such
withholding to SELLER.

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7.2 Serving of Power Bills and Place of Payment. Bills for the Contract
Charges during a Billing Period and/or bills for other charges
covered by this RSC payable by the BUYER to the SELLER, if any,
shall be served upon the BUYER within the first ten (10) calendar
days of the succeeding Billing Period and must be paid without the
necessity of demand not later than the last Business Day of the
calendar month following the Billing Period subject of the bill.

7.3 Disputed Bills.

7.3.1 The BUYER shall notify the SELLER in writing of any dispute
in a power bill within sixty (60) calendar days from the date
of its receipt of the disputed bill. The SELLER shall act on
such disputed bill in good faith and endeavor to resolve the
claim within sixty (60) calendar days from the date of filing of
the claim. Failure by the BUYER to question the power bills
within the said period shall constitute a waiver by the BUYER
of any claim on such bills.

7.3.2 In the event that the BUYER does not agree with the
resolution of the SELLER on a disputed billing, the BUYER
and the SELLER shall seek to amicably resolve the
disagreement. If the disagreement cannot be resolved by the
Parties within sixty (60) calendar days from the date the
BUYER informs the SELLER in writing of its disagreement
with the SELLER's decision on a disputed billing, then such
matter shall be resolved in accordance with the provisions
under Article 10 (Settlement of Disputes).

7.3.3 In case the claim of the BUYER as to a disputed power bill is


found by the SELLER to be meritorious, the pertinent
adjustments in the subject power bill shall be reflected in the
succeeding power bill to be issued by the SELLER. In case of
overpayment by the BUYER, the SELLER shall credit the
same in the succeeding billings.

7.3.5 In the event that any disputed bill(s) remains unresolved


upon the expiration of this RSC, the BUYER shall not deduct
the disputed portion of the bill(s) from its final payment. The
disputed bill shall still be resolved by the SELLER within the
period and in accordance with the procedure set out in
Article 10. In the event that the BUYER's claim is found
meritorious, the SELLER shall make the appropriate

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adjustments to the bill and refund any overpayment to the
BUYER within seven (7) Business Days from the resolution of
the dispute.

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7.4 Overdue Account

7.4.1 If BUYER fails to pay its power bill on its due date, the
Security Deposit shall be utilized and applied against all
unpaid power bills. SELLER shall then send a Notice of
Collection ("NOC") informing BUYER of the utilization of the
Security Deposit and requiring BUYER to replenish the
Security Deposit within seven (7) calendar days from receipt
of the NOC.

7.4.2 If the BUYER fails to pay its overdue account within any
grace period allowed by the SELLER and the Security Deposit
is not replenished or is no longer available, the overdue
account shall bear interest rate per annum equal to the
prevailing 91-day Treasury Bill rate published by the Bureau
of Treasury.

7.4.3 If BUYER fails to pay its subsequent power bill or other


amounts due and payable and/or fails to replenish the
Security Deposit within seven (7) calendar days from receipt
of the NOC, all existing liabilities of BUYER to SELLER shall
immediately become due and demandable.

7.4.4 If the BUYER fails and continues to fail to pay its overdue
account for two (2) consecutive months and the Security
Deposit is not replenished or is no longer available, then
Section 10.3 (Default by the BUYER) shall apply. This is
without prejudice to all legal remedies available to the
SELLER, including physical disconnection.

7.5 Adjustments Due to Inaccurate Meters and/or Erroneous Billings. In


the event that a billing is found by the SELLER to be erroneous due
to wrong reading, incorrect use of kilowatt-hour meter multiplier,
arithmetical mistakes, omissions or typographical error, the SELLER
shall issue to the BUYER a corrected power bill which the BUYER
shall settle in accordance with this RSC. SELLER shall make the
appropriate correction of the erroneous billing within sixty (60)
calendar days of the BUYER's receipt of the bill, otherwise SELLER
shall be deemed to have waived its right to correct said erroneous
bill. However, this waiver shall not apply to errors made by third
party entities, such as the NGCP or PEMC.

ARTICLE 8
FORCE

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MAJEURE

8.1 Force Majeure shall be defined as an extraordinary event which


cannot be foreseen or which though foreseen, cannot be avoided,
and must render it impossible for a Party to fulfill any of its
obligations in a normal manner despite

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the exercise of due care. Force Majeure shall not excuse either
Party from exercising due care to prevent it or minimize its effects.

8.2 Events of Force Majeure shall include:

8.2.1 Storm, typhoon, lightning, flood, earthquake, tsunami, fire,


solar flares, cyclones, volcanic eruptions, landslides or other
natural disasters, acts of God, explosions radioactive
contamination or ionizing radiation;

8.2.2 War, rebellion, insurrection, riot, naval or other blockade,


embargo, acts of terrorism, sabotage, civil unrest, epidemics,
quarantine, plague and other events, which are entirely
beyond the control of either or both Parties;

82.3 Any action or combination of actions or the failure to act by


any government agency or instrumentality, including
expropriation, reacquisition, confiscation, nationalization or
other means of compulsory acquisition, import restrictions,
closure of harbors, docks or canals or other assistance to
shipping or navigation by competent government agency; the
unusual delay in the grant of any approval, consent,
authorization, permit or other legal requirement without fault
on the part of SELLER;

8.2.4 Labor disturbance, collective action by workers including but


not limited to strikes, sit-down strike, employees' unfair labor
practice, or lock-outs;

8.2.5 Appropriate actions taken in response to an order, warning or


advice from the System Operator or a government
agency/instrumentality;

8.2.8 The inability of the distribution system of the relevant


Distribution Utility to deliver power from the SELLER to the
BUYER; and

8.2.9 When changes in applicable laws prevent the SELLER from


selling power to the BUYER, and/or prevent the BUYER from
buying power from the SELLER.

8.3 Insolvency or business losses of a Party shall not be considered as an


Event of Force Majeure.

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8.4 Effect of Force Majeure. Force Majeure shall excuse a Party from its
obligations under this RSC for the duration of the Force Majeure;
provided that any actual consumption of electricity supplied shall be
billed as provided for in this RSC.

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ARTICLE
18
TERMINATION

9.1 Termination by Default or Breach. Unless otherwise provided herein,


either Party shall have the right to terminate this RSC by reason of
the default or breach by the other Party of any of its obligations
under this RSC, provided that written notice of termination shall be
sent by the non-defaulting Party within thirty (30) calendar days
prior to the intended date of termination and during said period the
defaulting Party fails to remedy the default or breach to the
reasonable satisfaction of the non-defaulting Party.

9.1.1 SELLER Events of Default. The following shall constitute an


Event of Default that shall entitle the BUYER to terminate
this RSC:

a. appointment of the SELLER’s assets, stocks, and property to


another
person;
b. declaration of the SELLER for bankruptcy, insolvency,
and other events similar in nature; and
c. breach and non-compliance with any of the obligations
under this RSC.

9.1.2 BUYER Events of Default. The following shall constitute an


Event of Default that shall entitle the SELLER to terminate
this RSC:

a. appointment of the BUYER’s assets, stocks, and property to


another
person;
b. declaration of the BUYER for bankruptcy, insolvency,
and other events similar in nature; and
c. breach and non-compliance with any of the obligations
under this RSC.
d. When a third party takes over the ownership of the
BUYER and SELLER does not accept such takeover.

9.3 The Parties hereby agree that the termination or expiration of this
RSC shall not abrogate, impair, release or extinguish any debt,
obligation or liability of either Party incurred or arising prior to the
date of termination or expiration of the RSC.

9.4During events of SELLER default, the SELLER shall ensure


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ARTICLE
continuous supply of power19to the BUYER until its transfer to a new
Retail Supplier or to a SOLR.

9.4 Termination By Mutual Agreement. This RSC may be terminated at


any time upon the mutual written agreement of the Parties.

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ARTICLE
PROCEDURES FOR20
SETTLEMENT OF DISPUTES

(This Article shall be consistent with the Retail Supplier’s Complaint Handling
Procedure)

ARTICLE 11
ATTORNEY'S FEES AND LITIGATION EXPENSES

In the event of arbitration or litigation as provided herein, an amount of


ten percent (10%) of the value of the award by the arbitrator or court
shall be paid by the losing Party to the prevailing Party to cover
attorney's fees and other expenses of litigation but in no case shall such
amount be less than Fifty Thousand Pesos (PHP50,000.00).

ARTICLE 12
GENERAL PROVISIONS

12.1 Warranties. Each Party warrants to the other that:

12.1.1 Status. It is a corporation duly organized, validly existing


and in good standing under the laws of Republic of the
Philippines.

12.1.2 Authorization. This RSC constitutes the Party's valid and


legally binding obligation, enforceable in accordance with its
terms. It has full power and authority to enter into this RSC
and to perform the transactions contemplated hereby and has
taken all necessary action to duly and validly authorize the
execution, delivery and performance of the RSC and the
transactions contemplated hereby. By the Start Date, it has
taken all action in respect of any authorizations or consent
from the applicable governmental authority or agency as may
be required for the execution and implementation by a Party
of this RSC.

12.1.3 Non-Contravention. None of the execution and delivery by


a Party of this RSC, the consummation of the transactions
described herein, nor the compliance by it with the terms and
provisions hereof results in or will result in, constitutes or will
constitute (i) any violation or default, or be in conflict with or
result in a violation or breach of (x) its constitutive

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ARTICLE
documents, (y) any judgment,
21 order or decree of any court or
arbitrator to which a Party is a party or is subject, (z) any
agreement or contract of a Party, or (ii) a violation of any
statute, law, regulation or order, or an

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event which results in the creation of any lien, charge or
encumbrance upon any asset of a Party.

12.1.4 SELLER further warrants that it has an existing RES


License from the ERC, as well all other permits and licenses
necessary for its Plant to lawfully operate, prior to the Start
Date. The SELLER shall remain bound by the terms of this
RSC, notwithstanding its inability or failure to maintain the
necessary RES License or other required permit/s.

12.2 Assignability. This RSC shall be binding between the Parties, their
successors- in- a, interest and assigns. Except as to its known
Affiliates, a Party may not assign this RSC or its rights and
obligations therein to a third party without the other Party's written
consent.

12.3 Assignment to an Affiliate RES. In the event that the SELLER is


unable to secure a RES License before applicable laws require the
BUYER to secure its power supply from a RES, the SELLER shall
assign this RSC to the SELLER's Affiliate RES under the same terms
and conditions, provided that notwithstanding the assignment to an
Affiliate RES for the purpose of complying with applicable laws, the
Affiliate RES shall likewise comply with and be fully bound by all
terms and conditions of this RSC as if it were an original signatory
hereof.

12.4 Separability. Should any provision of this RSC be declared null,


void or unenforceable by any competent government agency or
court, this shall not affect the other provisions of this RSC which are
capable of severance and which will continue unaffected. The Parties
agree that any provision declared null, void or unenforceable by any
competent government agency or court shall be replaced with valid
or enforceable provisions as closely aligned with the original
intention of the Parties.

12.5 Waivers. Neither Party shall be deemed to waive any right under
this RSC unless such waiver is done in writing and signed by a duly
authorized officer of the Party executing such waiver. No omission
or delay in the exercise of a remedy or power shall be deemed as an
assent or acquiescence.

12.6 Amendments. This RSC may be amended or modified only with a


written agreement between the Parties.

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12.7 Reportorial Requirement. For monitoring and regulatory
purposes, the Parties shall, to the extent required by applicable law
or regulation, disclose market information and load profiles to the
DOE and ERC to ensure transparency and facilitate access to market
information.

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12.8 Confidentiality. The Parties shall keep under strict confidence all
information communicated to a Party (the "Disclosing Party") as
"Confidential Information" or which by its nature should be
considered as confidential information. The Party receiving the
Confidential Information (the "Receiving Party") shall ensure that no
Confidential Information is disclosed to third parties and shall
employ its utmost effort and diligence to prevent unauthorized
disclosure of such Confidential Information.

12.8.1 Confidential Information includes but is not limited to


information related to the operations, business, investments,
technology, trade practices, products and product
information, business methods, marketing, sales, technical
and financial information, plans, projections and calculations,
documents and contracts, including legal affairs of a Party
and its Affiliates.

12.8.2 The Receiving Party's breach of confidentiality shall entitle


the Disclosing Party to a) terminate this RSC, b) file civil
action against the Receiving Party for damages and c) file
criminal action against persons responsible for said breach.

12.9 Governing Law. This RSC and the rights and obligations of the
Parties herein shall be governed by the laws of the Republic of the
Philippines.

ARTICLE
13
NOTICES

13.1 Any notice, demand or request by the Parties to this RSC shall be
deemed properly served if transmitted by registered mail with
return card, postage prepaid, or delivered personally to the
signatories or their duly authorized representatives at their
indicated addresses, as follows:

If to SELLER:

(SELLER)
(Seller’s Registered Address)
Attention: The General Manager

If to BUYER:

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(BUYER)
(Buyer’s Registered Address)
Attention: The Energy Manager

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ARTICLE 14
ENTIRE AGREEMENT

14.1 This RSC, the Annexes and other attachments constitute the entire
agreement between the Parties and supersede any previous
agreements, understanding and practices between the parties
relating to the subject matter hereof. This RSC may be amended,
modified, or superseded only in writing and signed by both Parties.

14.2 This RSC may be entered into in counterparts and by the Parties in
separate counterparts, and each of the executed counterparts, when
duly exchanged or delivered, shall be deemed to be an original, and
taken together, they shall constitute one and the same instrument,
provided that this RSC shall be effective on the date of the signature
of the last signing Party.

IN WITNESS OF THE FOREGOING, the Parties affix their signatures


this 22nd day of April 2016 in Makati City.

(SELLER)
By:

(BUYER)
By:

Witnesses:

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ACKNOWLEDGEMENT

Republic of the Philippines)


) S.S.

BEFORE ME, a Notary Public for and in , this


day of , personally appeared:

Personal
Name Date/Place Issued
Identificatio
n

all known to me and to me known to be the same persons who executed


the foregoing instrument for and in behalf of their respective
corporations, and they acknowledged before me that the same is their
free and voluntary act and deed, as well as that of their respective
corporations, and that they are duly authorized to sign, execute and
deliver the same.

This instrument consists of (number of pages) pages, including


this page on which this Acknowledgment is written (and Annexes if
applicable), which are attached to this Retail Supply Contract, and all
pages have been signed by the Parties and their instrumental witnesses
on each and every page hereof and sealed with my notarial seal.

IN WITNESS WHEREOF, I have hereunto set my hand and


affixed my notarial seal on the date and the place first above-written.

NOTARY PUBLIC

Doc. No.
; Page No.
;
Book No.
; Series of ;

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Annex “F”

DISTRIBUTION WHEELING SERVICE AGREEMENT


(For Retail Customers)

This AGREEMENT is entered into this day of at


, Philippines, by and between:

, a company duly organized and


existing under the laws of the Republic of the Philippines, with principal
office address at , duly represented by
Mr./Ms.
(designation) hereinafter referred to as “RETAIL SUPPLIER”;

-and –

, duly organized and existing


under the laws of the Republicof the Philippines,
with principal offices at
duly represented by Mr./Ms.
(designation), and hereinafter referred to as
“Distribution
Utility or DU;

“Retail Supplier” and “DU” hereinafter shall collectively be referred to


as “PARTIES”.

WITNESSETH THAT:

WHEREAS, the RETAIL CUSTOMER is an end-user certified


by the Energy Regulatory Commission (ERC) as such
under Certificate Number
dated ;

WHEREAS, the DU, is an entity with a legislative franchise to


operate and maintain an electric distribution
system in the Cities/Municipalities
of
;

WHEREAS, the RETAIL CUSTOMER is desirous of procuring


directly from the WESM or from the RETAIL SUPPLIER and
simultaneously, of availing of the Distribution Wheeling Service (DWS)
offered by the DU;

WHEREAS, the PARTIES agree to permit the wheeling


transaction to take place based on the terms and conditions as set out
in this Agreement; subject to rules and regulations of the ERC and any
Page 1 of
9
other applicable laws;

NOW, THEREFORE, in consideration of the foregoing premises


and the mutual covenants set forth herein, the PARTIES hereto agree as
follows:

Section 1. Scope. This Agreement is for the provision if DWS for


a RETAIL CUSTOMER, which pertains to those services performed
for the conveyance of

Page 2 of
9
electricity to the RETAIL CUSTOMER through the distribution system,
in order to meet the demand of such customer. This Agreement does
not constitute an Agreement to supply electricity.

Section 2. Provisions of DWS. Subject to the terms and


conditions of this Agreement, and applicable rules and regulations, the
DU shall provide DWS to the RETAIL CUSTOMER, through the
RETAIL SUPPLIER, under the technical specifications specified in the
attached with the concerned customer.

The RETAIL CUSTOMER shall not modify or allow the


modification of the technical specifications without the written consent
of the DU. Should the RETAIL CUSTOMER intend to modify said
specifications, the RETAIL CUSTOMER shall notify its RETAIL
SUPPLIER, which shall then inform the DU no less than thirty
(30) business days in advance. Any incremental cost attributed to any
modification in the specifications of the RETAIL CUSTOMER shall be
made at the sole expense of the latter.

Section 3. Charges. The RETAIL CUSTOMER shall pay DWS


charges through its RETAIL SUPPLIER, including all applicable taxes,
based on the applicable rate schedule approved by the ERC for the
provision of DWS, which include, among others, the: (i) Distribution
Charge; (ii)); (iii) Supply Charge; (iv) Metering Charge; (v) System Loss
Charge; (vi) Transmission Charge; (vii) Local Franchise Tax; (viii)
Senior Citizen Subsidy, if applicable; (ix) Lifeline Rate Subsidy;
(x) Universal Charge; and (xi) Other Charges and Adjustments which
shall include, but not limited to, over/under-recoveries and other
distribution pass-through charges approved by the ERC to be billed by
the DU. Said charges shall be payable in accordance with Section 9
(Billing & Payment) hereof, commencing on the first billing month from
the effectivity of this Agreement.

Should the RETAIL CUSTOMER fail to pay its RETAIL


SUPPLIER of the DWS charges within the timeframe specified in
Section 9 hereof, the RETAIL CUSTOMER shall pay interest on the
unpaid amount through its RETAIL SUPPLIER. The DU shall calculate
the late payment charges based on Section 4.8.3, Article IV of the
DSOAR or the surcharge approved by the ERC, whichever is applicable,
from the date the payment was due to be received by the DU.

Section 4. Eligibility for DWS. A RETAIL CUSTOMER shall be


eligible for DWS if it: (i) continues to possess all the eligibility
requirements under the rules and regulations governing the Retail
Market; and (ii) has no undisputed outstanding debts with the DU, the
transmission service provider, or the WESM.

Section 5. Duties and Responsibilities of the Retail Customer. The


Page 3 of
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RETAIL CUSTOMER shall:

a. Secure any required approvals from the ERC and/or other


governmental agencies for its authority as RETAIL
CUSTOMER;

Page 4 of
9
b. Comply with the technical specifications and requirements, and
technical infrastructure/equipment standards prescribed by the
DU, as embodied in the Connection Agreement (CA) executed by
the RETAIL CUSTOMER, including applicable provisions of the
Philippine Distribution Code (PDC), rules and regulations of the
ERC and any other applicable law or guidelines;
c. Be solely responsible for complying with any applicable WESM
requirement;
d. Be solely responsible for its contractual obligations with the DU
and other entities regarding supply of electricity and billing
matters, including disputes; and
e. Not engaged in pilferage of electricity.

Section 6. Duties and Responsibilities of the DU. The DU shall:


a. Subject to system constraints and performance standards
approved by the ERC, make reasonable provisions to provide
steady and continuous DWS to the Retail Customer.
b. Comply with applicable laws, and pertinent government rules
and regulations, as well as good utility practice; and
c. Use as reference the registrations of the metering facilities
which are capable of measuring energy use and demand, unless
an estimated meter reading is necessary, in accordance with
applicable rules and regulations.
d. Protect the interests of the Aggregated Group/s in good
standing based on the records of the DU, to the extent
consistent with this Agreement, and applicable laws, rules, and
regulations.

Section 7. Additional Terms and Conditions. Any terms and


conditions specifically applicable to the PARTIES shall be specified in
the applicable Schedule, which shall be considered an integral part
hereof.

Section 8. Switching of Retail Customer. Switching of the


Retail Customer shall follow the procedure laid down in the applicable
rules and regulations.

a. The switching of the RETAIL CUSTOMER shall not be allowed


in the absence of the required switch approval from the Central
Registration Body (CRB); and
b. The DU shall have the right to fully rely on the Switch Approval
sent to it by the CRB and shall not be responsible for verifying
the validity of such approval. In all cases, the RETAIL
CUSTOMER through its RETAIL SUPPLIER shall hold the DU
free from any liability arising therefrom.

Section 9. Billing and Payment. The RETAIL SUPPLIER shall


be billed by the DU for all the charges incurred in wheeling electricity

Page 5 of
9
to its RETAIL CUSTOMER as stipulated under this Agreement and the
applicable Schedule, if any, including any billing adjustment,
differential bills and such other charges as may be approved by the
ERC. Said bill shall become due and demandable not later than nine (9)
calendar days from the receipt of said bill by the RETAIL CUSTOMER

Page 6 of
9
from its RETAIL SUPPLIER. Any amount unpaid shall be charged with
interest at the rate previously approved by the ERC or late payment
charges provided under Section 4.8.3, Module IV of the DSOAR,
whichever is applicable, from the date the bill was due to be paid.

The RETAIL CUSTOMER through its RETAIL SUPPLIER may


dispute any bills in writing within thirty (30) calendar days from receipt
of the bill. Notwithstanding the foregoing, the RETAIL CUSTOMER,
through its RETAIL SUPPLIER shall continue to pay the disputed bills
without deductions or any offset and shall not be an excuse or ground
for the RETAIL CUSTOMER to delay payment of succeeding bills or to
unilaterally deduct any amount therefrom. The DU shall endeavor to
resolve any disputed bills within thirty (30) calendar days from receipt
of the written complaint.

Section 10. Security Deposit. Prior to the commencement of


the services to the RETAIL CUSTOMER, a bill deposit to secure
payment of any outstanding regular bills shall be paid by the RETAIL
CUSTOMER to the DU, equivalent to the one (1) month estimated
billing for all DWS Charges under Section 3 (Charges) hereof, based on
the RETAIL CUSTOMER's average billing in the immediately
preceding twelve (12) months or in case of a newly connected
customer, based on projected demand and/or energy of such customer.

The DU may likewise apply such security deposit to any


outstanding bill, billing adjustment or differential billing upon
termination of the contract.

Said deposit shall be adjusted: (i) annually, to reflect the average


billing of the RETAIL CUSTOMER during a one (1) year period; or (ii)
to replace any deposit previously applied to any outstanding bill, billing
adjustment or differential billing. Any excess or deficiency in the
amount of security deposit, after said adjustment, shall be
correspondingly refunded through credit to bill to, or collected from the
RETAIL CUSTOMER by the DU through its RETAIL SUPPLIER.

A RETAIL CUSTOMER that has paid its electric bills on or


before its due date for three (3) consecutive years may, however,
demand the full refund of the deposit prior to the termination of its
service. The provisions of the DSOAR shall apply.

Section 11. Disconnection of Service of the Retail


Customer. Subject to 24-hour prior notice to the RETAIL SUPPLIER
by the DU, the services of the RETAIL CUSTOMER shall be
disconnected under any of the following circumstances:

a. Failure to pay the DWS charges, or any adjusted or differential


bills or such other charges stipulated in this Agreement, on the
Page 7 of
9
due date, in part or in whole;
b. Termination of the Retail Supply Contract between the RETAIL
CUSTOMER and RETAIL SUPPLIER;

Page 8 of
9
c. Violation of R.A. 7832, otherwise known as "Anti-electricity and
Electric Transmission Lines/Materials Pilferage Act of 1994",
and of any of the terms and conditions of this Agreement;
d. Violation of any terms and conditions of this Agreement by the
RETAIL CUSTOMER and/or RETAIL SUPPLIER;
e. Non-compliance with any of the provisions of the applicable
laws, including any amendments thereon;
f. Violation of any of the terms and conditions of this Agreement
by the Retail Customer; and
g. Other circumstances allowed by law or government rules and
regulations.

The DU's exercise of its rights under this Section shall not entitle
the RETAIL CUSTOMER to renege on its obligation to pay the DWS
charges, disconnection fees or other billings rendered under this
Agreement.

Nothing in this agreement shall prevent the DU from temporarily


discontinuing the provision of DWS whenever it finds it necessary to
execute any routine maintenance, repairs or modifications on its
distribution system or in the event of an emergency or to correct unsafe
operating conditions in the distribution or connection facilities;
Provided however, that except in cases of force majeure, forced
outage/interruption, event of emergency or the need to correct unsafe
operating conditions, the DU shall give advance notice to the RETAIL
SUPPLIER a reasonable time of said temporary discontinuance of
DWS, in a manner allowed by the applicable rules and regulations.

In case the DWS is temporarily discontinued under this Section,


the DU shall likewise effect the reconnection of the RETAIL
CUSTOMER's service, when the DU's routine maintenance, repairs or
modification to the facilities and nearby facilities have been completed
or when the emergency has ceased or the unsafe operating conditions
in the distribution or connection facilities have been corrected.

Section 12. Reconnection of Service of the Retail Customer.


The services of the RETAIL CUSTOMER shall be reconnected after the
latter has settled its obligation with the DU.

Reconnection of the RETAIL CUSTOMER shall be subject to


payment of appropriate reconnection fees as approved by the ERC. If
the emergency or unsafe operating condition, which brought about the
suspension of the DWS is due to the fault of the RETAIL CUSTOMER,
the same shall likewise be subject to payment of appropriate
reconnection fees.

The procedures for disconnection, deferment of disconnection and


reconnection of RETAIL CUSTOMER shall likewise be governed by
Page 9 of
9
the DU's existing rules and ERC relevant issuances.
Section 13. Cessation of Direct WESM Membership of
Retail Customer. Prior to cessation of Direct membership of the
RETAIL CUSTOMER in the WESM, the PEMC or Independent
Electricity Market Operator of the

Page 10
of 9
Philippines (IEMOP) shall, within twenty-four (24) hours, notify the DU
of such fact. Thereafter, the DU shall send a final billing to the RETAIL
CUSTOMER, through its RETAIL SUPPLIER, covering its DWS,
including any adjusted or differential bill/s and other applicable charges
approved by the ERC, if the service is terminated before the next
scheduled reading.

In case the cessation of the Direct WESM membership of the


RETAIL CUSTOMER was due to the reversion of the latter to the
captive market, the discontinuance of DWS to such RETAIL
CUSTOMER shall become effective only at the end of the meter
reading date of said customer; Provided, that such reversion of the
customer to the captive market has been approved by the ERC, with
notice to the DU. For the avoidance of doubt, prior to the effectivity of
the discontinuance of the DWS to such RETAIL CUSTOMER, the
RETAIL CUSTOMER shall continue to be liable for the payment of
charges as stipulated under Sections 3 (Charges) and 9 (Billing &
Payments) hereof and the observance of the terms and conditions
provided in this Agreement.

Section 14. Undelivered Energy, Damages and Other


Losses. The RETAIL CUSTOMER, through its RETAIL SUPPLIER,
understands that the DU undertakes scheduled and/or unscheduled
maintenance, repairs and replacement of its facilities to improve
service. In such cases, and in other cases of outages due to events
stated in Section 17 (Force Majeure/Fortuitous Event/Other Event) or
for reasons not attributable to the fault of the DU, the RETAIL
CUSTOMER, through its RETAIL SUPPLIER, agrees that the DU
shall not be liable for any undelivered energy, or for damages, whether
direct or consequential, including without limitation, loss of profits, loss
of revenue, or loss of production capacity, as a result of interruption or
disconnection of its service.

Section 15. Liability for Non-technical System Losses and


Damages as a result of Pilferage. The RETAIL CUSTOMER shall be
liable for non- technical system losses if it engages in the pilferage of
electricity or tampering of meters or facilities of the DU. The RETAIL
CUSTOMER shall likewise be liable for any damages caused to the DU
or third persons arising, or resulting, from such pilferage.

The RETAIL SUPPLIER shall ensure that its RETAIL


CUSTOMER adheres with the policies of the DU with regard to
pilferage of electricity or tampering of meter or facilities of the DU.

Section 16. Force Majeure/Fortuitous Event/Other Event.


The DU shall not be liable to the RETAIL CUSTOMER with respect to
the non- performance of any of its obligations under this Agreement in
the event and to the extent that such non-performance is the direct
Page 11
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result of or has been directly caused by force majeure and fortuitous
event including other event that are beyond the control of the DU.
Force majeure and fortuitous event including other event shall mean
such event: (i) that is not within the reasonable control, directly and
indirectly, of the DU; and (ii) which, despite the exercise of
reasonable diligence, cannot be

Page 12
of 9
prevented, avoided or removed by the DU; Provided, that the DU has
taken all reasonable precautions, and due care in order to avoid or
mitigate the effect of such event on the DU's ability to perform its
obligations under this Agreement. These events shall include, but may
not be limited to the following:

a. A typhoon, storm, tropical depression, flood, drought, volcanic


eruption, earthquake, tidal wave or landslide;
b. An act of public enemy, war (declared or undeclared), sabotage,
blockade, revolution, riot, insurrection, civil commotion or any
violent or threatening actions;
c. Non system-wide and system-wide Transmission constraints
and/or outages in the Transmission and Distribution System; and
d. Any lawful orders rendered by competent authority, including
any advice or warnings of government authorities for safety
reasons.

Section 17. Amendment/Modification of Agreement. This


Agreement, including the applicable Schedule with the RETAIL
CUSTOMER and the RETAIL SUPPLIER, constitutes the sole and
entire agreement between the PARTIES and supersedes all previous
arrangements or agreements in respect of the subject-matter of this
Agreement. No amendments of this Agreement or the applicable
Schedule with the RETAIL CUSTOMER and the RETAIL SUPPLIER,
or consent to any departure therefrom, shall in any way be of any force
or effect unless confirmed in writing and signed by the PARTIES. If
necessary, such amendment or departure shall be effective only upon
approval by the ERC. The failure of any Party, at any time, to require
performance of any provision hereof shall in no manner affect the right
to enforce the same at a later time. No waiver by any Party of the
breach of any term or covenant contained in this Agreement, whether
by conduct or otherwise, shall be deemed to be construed as a further
or continuing waiver of such breach or waiver of the breach of any
other term or covenant, unless such waiver is in writing.

Section 18. Effectivity and Termination of Agreement. This


Agreement shall be valid and binding to the PARTIES upon execution
hereof unless terminated by either party by serving written notice to
the other at least thirty (30) calendar days before the effective date of
termination. It shall take effect on the earliest next regular meter
reading date of the RETAIL CUSTOMER, as contained in the attached
Schedule, after the execution date hereof.

Upon termination or expiration of this Agreement, all rights and


obligations of the PARTIES hereunder shall cease, except (a) such
rights and obligations as may have accrued as of the date of termination
or expiration, such as but not limited to payment of any outstanding
bills; and (b) any right or obligation which survives the termination of
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this Agreement.
Section 19. Warranties. The PARTIES represent and warrant
to each other that: (i) the signatories to this Agreement are duly
authorized to sign this Agreement; and (ii) all requisite authorizations,
approvals, permits or consent to

Page 14
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make this Agreement or any amendment or supplement thereto valid
and enforceable have been obtained.

Section 20. Invalidity of Provisions. If any provision of this


Agreement is declared by a competent court to be invalid or
unenforceable, the invalidity or unenforceability of such provisions shall
not affect the other provisions of this Agreement, and all provisions not
affected by such invalidity or unenforceability shall remain in full force
and effect.

Section 21. Assignment of Rights. The RETAIL SUPPLIER


shall not assign its rights under this Agreement. In case of any change
in its corporate name, or status brought about by merger, consolidation,
amendment of Articles of Incorporation, sale of business or transfer of
ownership, the RETAIL SUPPLIER shall advise the DU of such fact in
writing, within thirty (30) calendar days from the effective date thereof.
Violation of this provision shall give the DU the right to terminate this
Agreement, without prejudice to any action that the DU may bring for
the collection of any outstanding obligation of the RETAIL
CUSTOMER to the DU.

Section 22. Disputes. If any dispute arise between the


PARTIES in connection with or arising out of this Agreement, either
party may request in writing to meet within five (5) days from
occurrence thereof and attempt to resolve the dispute. In the event that
such dispute remains unresolved within ten (10) days after such
request, the aggrieved party may bring the dispute for resolution by the
ERC if said dispute is within the exclusive jurisdiction of the ERC.
Otherwise, the aggrieved party may seek redress from the regular
courts. In case of the latter, the PARTIES hereby agree that the venue
for any court action shall be the regular courts of the principal place of
business or principal office where the DU is located.

IN WITNESS WHEREOF, the PARTIES hereto have caused the


foregoing instrument to be executed by their respective officers and/or
their representatives, thereunto duly authorized at the place and on the
date first above written.

Signature Over Printed Signature Over Printed


Name Name
(Designation) (Designation)
(Distribution Utility) (Retail Customer)
(Date Signed) (Date Signed)

SIGNED IN THE PRESENCE


OF:

Page 15
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(Witness Name, Signature (Witness Name, Signature
Over Printed Name) Over Printed Name)

Page 16
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ACKNOWLEDGMENT

Republic of the Philippines}


} S.S.

Before me, a Notary Public, for and in the City of


personally appeared the following affiants with their respective
competent proof of identities:

DU Valid government issued ID


RETAIL CUSTOMER Valid government issued ID

known to me and to me known to be the same persons who executed


the foregoing instrument, consisting of pages, including the
page whereon this Acknowledgment is written, with all pages signed by
both PARTIES and their instrumental witnesses, and they
acknowledged to me that the same is their free and voluntary act and
deed and that of the Corporation/ Company they respectively represent.

IN WITNESS WHEREOF, I have hereunto set my hand and seal this day of
, at Philippines.

Doc. No.
; Page No.
;
Book No.
; Series of ;

Page 17
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Annex “G”

CONNECTION AGREEMENT

This AGREEMENT is made and entered into in [PLACE OF


EXECUTION], Philippines, this day of by and between:

[NAME OF DISTRIBUTION UTILITY], a corporation duly organized


and existing Philippines, with principal office at [ADDRESS OF
DISTRIBUTION UTILITY], duly represented by
[REPRESENTATIVE/S OF DISTRIBUTION, DESIGNATION]
hereinafter referred to as “COMPANY”;

-and-

[NAME OF CUSTOMER], duly organized and existing under the laws


of the Republic of the Philippines, with principal office at [ADDRESS
OF CUSTOMER], duly represented by [REPRESENTATIVE/S OF
CUSTOMER, DESIGNATION] hereinafter referred to as “RETAIL
CUSTOMER”;

“COMPANY” and “RETAIL CUSTOMER” hereinafter shall


collectively be referred to as “PARTIES”.

WITNESSETH THAT:

WHEREAS, the COMPANY is a Distribution Utility (DU) with a


legislative franchise to operate and maintain an electric distribution
system in the Cities/Municipalities of [FRANCHISE CITIES AND/OR
MUNICIPALITIES OF DSITRIBUTION UTILITY];

WHEREAS, the RETAIL CUSTOMER has applied with the DU


for distribution connection service at [ADRESS OF CUSTOMER] and
has complied with the DU’s applicable pre-connection requirements;

WHEREAS, the AGGREGATED MEMBER is part of an


Aggregated Group whose demand has been consolidated by a Retail
Aggregator duly licensed by the Energy Regulatory Commission (ERC),
pursuant to ERC Resolution No. 4, Series of 2022, entitled “A
Resolution Adopting the Rules for the Electric Retail Aggregation
Program” (the “Retail Aggregation Rules”); (include if under Retail
Aggregation Program, otherwise delete)

WHEREAS, Article XI of the Retail Aggregation Rules provides


that all other rules and regulations governing the implementation of
Retail Competition and Open Access insofar as they are not inconsistent
with the Retail Aggregation Rules shall apply to the Retail Aggregation
scheme; (include if under Retail Aggregation Program, otherwise
delete)

Page 1 of
13
WHEREAS, the RETAIL CUSTOMER has applied with the
COMPANY for distribution connection service and has complied with
the COMPANY's applicable pre-connection requirements;

Page 2 of
13
WHEREAS, Section 4.4 of the Distribution Services and Open
Access Rules (DSOAR), as amended, provides that end-users may
contract directly with the COMPANY for Connection Assets and
Services;

WHEREAS, Section 4 (c), Module 1, of the Rules on RETAIL


CUSTOMER Switching provides that the "Connection Agreement
shall be entered into by a RETAIL CUSTOMER and the
COMPANY";

WHEREAS, the PARTIES are willing to enter into a Connection


Agreement for the COMPANY to provide distribution connection
services to the RETAIL CUSTOMER;

NOW, THEREFORE, the foregoing premises considered, the PARTIES


hereby mutually agree as follows:

I. GENERAL TERMS AND CONDITIONS


GOVERNING CONNECTION

Section 1.1. Scope. This Agreement is solely for the provision of


distribution connection service to the RETAIL CUSTOMER. Energy
supply, wheeling, and other services that the RETAIL CUSTOMER
may need shall be covered by separate agreements in accordance with
the existing rules and regulations of the Energy Regulatory Commission
(ERC). Other terms and conditions specifically applicable only to the
RETAIL CUSTOMER, if any, are contained in the attached Annex "A",
which shall be deemed an integral part hereof.

Section 1.2. Connection Point. The RETAIL CUSTOMER and


the COMPANY agree that the Connection Point is as described in
Annex “A” hereof. In case of a non-residential customer, and, if
necessary, upon the determination of the COMPANY, the demarcation
between the properties and/or equipment of the PARTIES, and the
operational responsibilities of each, are contained in the attached
Annex “B” of this Agreement.

Section 1.3. Connection Specifications. The connection will be


made at the standard nominal voltage of volts,
wire, phase, and 60
hertz. The capacity of the COMPANY's facility reserved for the
RETAIL CUSTOMER is hereby fixed at kW.

Section 1.4. Standard Connection Facilities (SCF). The


RETAIL CUSTOMER understands that the facilities covered by this
Agreement are limited to the SCF as particularly described in Annex
Page 3 of
13
“A,” which shall be subject to the payment of appropriate ERC-
approved Guaranteed Minimum Billing Demand (GMBD). Such GMBD
shall be replaced by the Standard Connection Charges (SCC) as soon as
the same has been approved by the ERC. The SCC is currently part of
the DWS charges until such time the ERC comes up with a separate
SCC.

Page 4 of
13
Unless otherwise amended by a subsequent written Agreement
between the RETAIL CUSTOMER and the COMPANY, or otherwise
directed by a lawful authority, or a subsequent law, rule or regulation,
the SCC will be paid by the RETAIL CUSTOMER to the COMPANY or,
in case of a RETAIL CUSTOMER, through the latter's Retail Supplier
or Local Retail Electricity Supplier (Local RES) or Supplier of Last
Resort (SOLR), as part of the COMPANY's bill to such Retail
Supplier/Local RES or SOLR in accordance with the billing policy under
the Omnibus Rules. Notwithstanding Article IV hereof, the GMBD or
SCC shall continue to run, and be paid by the RETAIL CUSTOMER in
the manner prescribed herein, until all the facilities of the COMPANY
are removed from the premises of the RETAIL CUSTOMER.

Section 1.5. Modification and/or Extension of Lines and/or


Facilities. Any modification and/or extension of lines and/or facilities
beyond the SCF shall be made in accordance with the DSOAR, as
amended, or any other rule or regulation of the ERC.

II. DUTIES AND RESPONSIBILITIES OF THE COMPANY

The following are the rights, duties and responsibilities of the


COMPANY, in addition to those already existing under applicable laws,
rules and regulations:

Section 2.1. Connection Service. The COMPANY shall provide


connection service to its distribution system that is nondiscriminatory
as envisioned in Section 2.5.3 of the DSOAR. However, this does not
constitute a guarantee for the provision of uninterrupted connection
service to the RETAIL CUSTOMER as provided for underthis
Agreement. The COMPANY should adhere to the performance
standards set by the ERC.

Section 2.2. SCF, Line Extensions and Other Associated


Equipment. The COMPANY shall install, maintain and operate, in
proper operative condition, including easement costs, the SCF, line
extensions and other associated equipment and devices (transformers,
meters and other apparatus), which may be required for the provision
of distribution connection service to the RETAIL CUSTOMER. All such
equipment shall remain to be the property of the COMPANY.

Section 2.3. Location and Maintenance of Company's


Equipment inside the Retail Customer's Premises. The COMPANY
shall install its distribution line facilities, poles, wires, transformers and
other equipment on the property of the RETAIL CUSTOMER or within
the buildings of the RETAIL CUSTOMER, if necessary, at a point or
points convenient, visible and readily accessible for inspection and
maintenance. For these purposes, the RETAIL CUSTOMER shall grant
Page 5 of
13
the right to the use of suitable space for the installation of the
necessary equipment and facilities at no cost to the COMPANY.
Maintenance

Page 6 of
13
of these poles, lines, transformers, and other equipment shall be performed by
the
COMPANY.

Section 2.4. Data Requirements and


Contingency/Emergency Procedures. The COMPANY shall comply
with all of the provisions covering data requirements and
contingency/emergency condition procedures established in the
DSOAR, as amended, Philippine Distribution Code (PDC), the attached
Annexes "A" and "B", if applicable, and other applicable government
rules and regulations.

III. DUTIES AND RESPONSIBILITIES OF THE


RETAIL CUSTOMER

The following are the duties and responsibilities of the RETAIL


CUSTOMER, in addition to those already existing under applicable
laws, rules and regulations:

Section 3.1. Retail Customer Equipment. The RETAIL


CUSTOMER shall install only such motors or other apparatus that are
suitable or acceptable for operation with the character of service
supplied by the COMPANY and which will not be detrimental to the
same, and the electric power must not be used in such manner as to
cause voltage fluctuations or disturbances in the COMPANY's
distribution system. The RETAIL CUSTOMER shall ensure that its
equipment can operate reliably and safely within the limits specified in
Article 3.2 of the Philippine Distribution Code (PDC) during normal
conditions and can withstand such limits specified in the said Article.

Section 3.1.1. All apparatus used by the RETAIL CUSTOMER


shall be such type as to secure the highest practicable commercial
efficiency, power factor and the proper balancing of phases. Motors,
which are frequently started, or motors arranged by automatic control,
will be of a type that will give maximum starting torque with minimum
current flow, and equipped with controlling devices, approved by the
COMPANY. The COMPANY shall have the sole discretion as to the
suitability or acceptability of the apparatus or appliances to be
connected to its lines and also as to whether the operation of such
apparatus or appliances will be detrimental to its general service.

Section 3.1.2. The RETAIL CUSTOMER shall notify the


COMPANY, and its Retail Supplier, in writing, of any increase in its
connected load, equipment or capacity beyond the capacity of the
COMPANY's facility as indicated in Section 1.3 hereof. No additions to
the equipment or load connected to the COMPANY's facility shall be
allowed, except by written consent of the COMPANY. Any damage or
injury to person or property resulting from accident or otherwise, due
Page 7 of
13
to a violation of this clause shall be the sole responsibility of the
RETAIL CUSTOMER. Subject to a 48- hour prior written notice to the
RETAIL CUSTOMER, any violation of this clause shall be a ground for
the termination of this Agreement.

Page 8 of
13
Section 3.2. Warranty. The RETAIL CUSTOMER warrants that
any and all RETAIL CUSTOMER equipment connected to or to be
connected to the COMPANY's distribution system meet the
requirements and standards set under applicable laws, rules and
regulations to avoid or minimize any possible damage to the
COMPANY's distribution system. Any breach of this warranty, whether
intentional or unintentional, particularly those which result in
emergencies or unsafe operating conditions, gives the COMPANY the
right to disconnect the services of the RETAIL CUSTOMER.
Reconnection under this provision will only be made upon the
COMPANY's determination that the breach has been remedied and
upon the payment of a Reconnection Fee to the COMPANY, as
approved by the ERC.

Section 3.3. Entry and Access. By virtue of this Agreement, the


RETAIL CUSTOMER hereby gives the COMPANY, its authorized
employees and/or representatives express permission to enter its
premises without being liable for trespass to dwelling for the purpose of
operating, maintaining, inspecting, installing, reading, testing,
replacing, or otherwise disposing its facilities and/or equipment thereat,
and/or removing the same upon termination of the Agreement or for
any cause provided under existing law or ERC rules and regulations.
Should the COMPANY be unable to carry out the foregoing actions by
reason of the RETAIL CUSTOMER's failure or refusal to grant the
COMPANY entry and access to its premises, and such inability by the
COMPANY to perform such actions directly or indirectly results in
injury or death or property damage to the RETAIL CUSTOMER or any
third person, the RETAIL CUSTOMER shall be solely liable for any
liability arising from, or in connection with, such incidents.

Section 3.4. Loss or Damage to Company Facilities. The


RETAIL CUSTOMER shall be responsible for protecting the meters,
wires, poles, cables, transformers and all other facilities and equipment
of the COMPANY installed in RETAIL CUSTOMER's premises and if
lost, destroyed or damaged by fire or any other cause whatsoever other
than ordinary wear and tear, force majeure, or fortuitous event the
RETAIL CUSTOMER shall pay for the cost of such meters, wires,
poles, cables, transformers, facilities and equipment and/or the cost of
repairing or replacing the same.

Section 3.5. Tampering and Other Illegal Acts. The RETAIL


CUSTOMER shall be liable for tampering, interfering with, or breaking
seats of meters or other equipment of the COMPANY installed on the
RETAIL CUSTOMER's premises pursuant to R.A. 7832, otherwise
known as “Anti- Electricity and Electric Transmission Lines/Materials
Pilferage Act of 1994”, and its Implementing Rules and Regulations, as
amended. The RETAIL CUSTOMER agrees that no one except
authorized employees and/or representatives of the COMPANY
Page 9 of
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showing proper identification card shall be allowed to make any
internal or external adjustments on any meter or any other equipment
owned by the COMPANY. A RETAIL SUPPLIER may be held liable for
non-technical losses when found to condone, collude, conspire, or
engage in the pilferage of electricity or tampering with any meters or
COMPANY facilities.

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Section 3.6. Reporting of Outages, Interruptions and
Irregularities. The RETAIL CUSTOMER shall report all outages,
interruptions, and irregularities to the COMPANY without delay.

Section 3.7 Data Requirements and Contingency/


Emergency Procedures. The RETAIL CUSTOMER shall comply with
all of the provisions covering data requirements and
contingency/emergency conditions procedures established in the
DSOAR, as amended, PDC, the attached Annexes "A" and "B", if
applicable, and other applicable government rules and regulations.

Section 3.8. Requirements for New Connections. If the


RETAIL CUSTOMER is a newly connected RETAIL CUSTOMER, it
shall, prior to connection, submit its (i) Certificate of Final Electrical
Inspection (CFEI); (ii) test results of its equipment (if available); and
(iii) such other documentary requirements of the COMPANY to ensure
that the facilities of the RETAIL CUSTOMER are ready for
energization.

IV. DISCONNECTION AND INTERRUPTION OF SERVICE

The COMPANY shall disconnect the service of the RETAIL CUSTOMER


under the following instances:

Section 4.1. Execution of Routine Maintenance and Similar


Acts. The COMPANY may interrupt the service upon request from or
reasonable notice to the RETAIL CUSTOMER, in order to execute any
routine maintenance, repairs or modification to the COMPANY's or
RETAIL CUSTOMER's facilities and for the purpose of ascertaining
their integrity, completeness, accuracy, safety and reliability to remain
connected to the distribution facilities and for any other legitimate
purpose, the COMPANY may interrupt the service upon prior notice, two
(2) days before the routine maintenance. In the same manner, the RETAIL
CUSTOMER may request for service interruption on the same grounds
with prior reasonable notice to the COMPANY.

A notice shall be provided by the COMPANY to the RETAIL


CUSTOMER and Retail Aggregator if the interruptions or suspension of
service will create a dangerous or life-threatening condition on the
RETAIL CUSTOMER’s premises. The RETAIL CUSTOMER shall also
notify its Retail Aggregator and the COMPANY if a condition exists on the
RETAIL CUSTOMER’s premises such that a suspension or interruption
of service will create a life-threatening or dangerous condition.

The COMPANY shall comply with all reporting requirements of


the Distribution Code, and in addition to those requirements, shall
either issue a written public notice published in a newspaper of general
circulation in the COMPANY's service territory and file with ERC
Page 11 of
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stating the precise reasons causing the curtailment or interruption
within seven (7) days, or deliver a report through electronic media or
any other means to all affected RETAIL CUSTOMERs, any respective
Retail Supplier, and the ERC within seven (7) days. The public notice or
report may cover

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more than one curtailment or interruption if there were multiple
occurrences prior to the seven-day deadline for the first occurrence.
The provision of Section 1.85 of the DSOAR shall apply.

Section 4.2. Emergency Conditions and/or Unsafe Operating


Conditions. The COMPANY may also interrupt the service at any time,
without the need of a notice, in the event of an emergency or to correct
unsafe operating conditions in the connection facilities, or, with due
notice, when the RETAIL CUSTOMER is no longer compliant with the
provisions of the DSOAR, as amended, PDC, other applicable laws, or
this Agreement.

The DU may curtail or interrupt a Connection and/or DWS in the


event of an emergency arising anywhere on the distribution system or
the interconnected systems of which it is a part, which emergency
poses a threat to the integrity of its system or the systems to which it is
directly or indirectly connected if, in its judgment, such action may
prevent or alleviate the emergency condition. The COMPANY may
interrupt service when necessary, in COMPANY’s prudent judgment,
for inspection, test, repair, or changes in the DU’s Distribution System,
or when such interaction will lessen or remove possible danger to life or
property, or will aid in the restoration of DWS.

When notice is required, it shall be made at least two (2) days


prior to said curtailment, reduction, or interruption and may be made
by electronic notice (such as facsimile, text messages, or e-mail) to all
affected RETAIL CUSTOMER or through radio broadcast, television
broadcast, or local newspaper with specific identification of location,
time and expected duration of outage. Such information shall also be
posted on the Customer Bulletin Board. The COMPANY shall submit a
written report to the ERC within three (3) business days from the date
of curtailment, reduction, or interruption, containing the reasons for the
curtailment, reduction, or interruption and the actions taken by the
COMPANY to resolve the issues. In instances where notification to the
RETAIL CUSTOMER was not reasonably possible, an explanation why
such advance notice was not delivered shall likewise be included in the
written report to the ERC.

Section 4.3. Retail Customer with Retail Supplier/Local


RES/Supplier of Last Resort (SOLR). If the RETAIL CUSTOMER
has a contract with a Retail Supplier/Local RES/SOLR for the supply of
electricity, the COMPANY shall have the right to discontinue service:

Section 4.3.1. Within twenty-four (24) hours from the


COMPANYs receipt of the written request for disconnection from the
Central Registration Board (CRB). The COMPANY is not required to
verify the validity of the request and shall not be held liable to the
RETAIL CUSTOMER should the latter protest the disconnection; and
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Section 4.3.2. In all other cases not covered by Section 4.3.1
above, such as but not limited to non-payment of bills of the RETAIL
CUSTOMER's Retail

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Supplier/Local RES/SOLR to the COMPANY, in accordance with
relevant rules and regulations.

Section 4.4. Failure to comply with the terms and


conditions of this Agreement. The COMPANY shall have the right to
discontinue service to the RETAIL CUSTOMER for any violation or
breach of its obligation and duties under this Agreement or any
applicable laws, rules and regulations.

In no case shall the COMPANY's exercise of its rights under this


Article exempt the RETAIL CUSTOMER from its obligation of paying
any of its outstanding obligations to the COMPANY.

V. RECONNECTION OF SERVICE

The COMPANY shall reconnect the service of the RETAIL CUSTOMER


under the following instances:

Section 5.1. In cases of: (i) Sections 4.1 and 4.2, upon
termination of any routine maintenance, emergency, unsafe conditions
and other similar circumstances; (ii) Section 4.3, upon receipt of
request for reconnection from the CRB, or when the Retail
Supplier/Local RES/SOLR has already settled its obligations to the
COMPANY; and (iii) Section 4.4 when the RETAIL CUSTOMER
presents proof that its violation of the terms and conditions of this
Agreement, or any applicable laws has been corrected and has ceased,
as the case may be.

Section 5.2. Payment of Other Reasonable Costs. The


reconnection of service of the RETAIL CUSTOMER shall be without
prejudice to the payment of actual costs incurred by the COMPANY in
case the disconnection is: (i) as a result of the RETAIL CUSTOMER's
non-compliance with the terms and conditions of this Agreement, or
applicable laws, rules and regulations; (ii) upon request of the RETAIL
CUSTOMER; (iii) caused by any emergency or unsafe condition due to
the fault of the RETAIL CUSTOMER, and damage is caused to the
COMPANY, its employees or authorized representatives or other third
persons.

Section 5.3. Other Requirements for Reconnection. For


disconnections pursuant to Sections 4.2 to 4.4 wherein the RETAIL
CUSTOMER's electric service has been disconnected for:

a. At least six (6) months, the RETAIL CUSTOMER shall submit a


written undertaking that its facilities are ready for energization; or
b. More than one (1) year, the RETAIL CUSTOMER shall submit a
new CFEI pursuant to the Philippine Electrical Code (PEC).

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In any case, the COMPANY may require the RETAIL CUSTOMER
to submit further documentary requirements prior to reconnection to
verify that the latter’s facilities are ready for energization.

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VI. LIABILITIES AND OBLIGATIONS

Section 6.1. Provision of Distribution Connection Service.


The COMPANY's liability to the RETAIL CUSTOMER, with respect to
the provision of distribution connection service, shall be limited to those
set forth in the DSOAR, as amended, and other applicable laws, rules
and regulations of the ERC.

Section 6.2. Undelivered Energy, Damages and Other


Losses. The RETAIL CUSTOMER understands that the COMPANY
undertakes scheduled and/or unscheduled maintenance, repairs and
replacement of its facilities. In such cases, and in other cases of outages
due to force majeure, fortuitous event or for reasons not attributable to
the fault of the COMPANY, the RETAIL CUSTOMER agrees that the
COMPANY shall not be liable for any undelivered energy, or for
damages, whether direct or consequential, including without limitation,
loss of profits, loss of revenue, or loss of production capacity, as a result
of interruption or disconnection of its service if the COMPANY has
exercised due care and except for gross negligence of the COMPANY.

Section 6.3. Force Majeure/Fortuitous Event/Other Event.


The COMPANY shall not be liable to the RETAIL CUSTOMER with
respect to the non-performance of any of its obligations under this
Agreement in the event and to the extent that such non-performance is
the direct result of or has been directly caused by force majeure and
fortuitous event including other event that are beyond the control of the
COMPANY. Force majeure and fortuitous event including other event
shall mean such event: (i) that is not within the reasonable control,
directly and indirectly, of the COMPANY; and (ii) which despite the
exercise of reasonable diligence, cannot be prevented, avoided or
removed by the COMPANY; Provided, that the COMPANY has taken
all reasonable precautions and due care in order to avoid or mitigate
the effect of such event on the COMPANY's ability to perform its
obligations under this Agreement. These events shall include, but may
not be limited to, any of the following:

a. A typhoon, storm, tropical depression, flood, drought, volcanic


eruption, earthquake, tidal wave or landslide;
b. An act of public enemy, war (declared or undeclared), sabotage,
blockade, revolution, riot, insurrection, civil commotion or any
violent or threatening actions;
c. Non system-wide and system-wide Transmission constraints and/or
outages in the Transmission and Distribution System; and
d. Any lawful orders rendered by competent authority, including any
advice or warnings of government authorities for safety reasons.
e. Other analogous circumstances.

Section 6.4. Cancellation and Modification during Processing.


Page 17 of
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In the event that the RETAIL CUSTOMER: (i) cancels this Agreement
or its application for connection service with the COMPANY; or (ii)
requests any amendments to its connection facilities, at the time of the
processing of the Agreement or its application

Page 18 of
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or installation of said facilities, the RETAIL CUSTOMER shall be liable
for any processing costs incurred, including reimbursement for the cost
of whatever facilities, equipment or appurtenances already installed
and which can no longer be used, by the COMPANY as a result of such
cancellation or amendment.

VI. EFFECTIVE TERM AND TERMINATION OF AGREEMENT

Section 7.1. Effectivity. This Agreement shall take effect on

and shall be binding upon the PARTIES, their successor, and assigns,
unless terminated by either party by serving written notice to the other
at least thirty (30) days before the effective date of termination. This
Agreement may likewise be terminated: (a) after due notice, for
violation of any of the obligations set forth herein by any party; and/or
(b) without any need of prior notice: (i) when this Agreement is
rendered invalid and/or unenforceable by law or competent authority;
(ii) when the performance of any obligations under this Agreement has
been rendered legally or physically impossible; or (iii) in case of
violation by the RETAIL CUSTOMER of
R.A. 7832, otherwise known as "Anti-electricity and Electric
Transmission Lines/Materials Pilferage Act of 1994". Upon termination
of this Agreement, all rights and obligations of the PARTIES hereunder
shall cease, except: (a) such rights and obligations as may have accrued
as of the date of termination; and (b) any right or obligation which
survives the termination or expiration.

VIII. MISCELLANEOUS PROVISIONS

Section 8.1. Governing Laws. This Agreement will be interpreted,


governed, and construed under the laws of the Republic of the
Philippines. policies, rules and regulations, administrative orders and
any amendments and modifications thereof, emanating from the
Department of Energy, the ERC, other government agencies, or
authorized bodies having jurisdiction. The said law, policies, rules, and
regulations shall be deemed incorporated in this Agreement.

Section 8.2. Disputes. If any dispute shall arise between the


PARTIES in connection with or arising out of this Agreement, either
Party may request in writing to meet within five (5) business days from
occurrence thereof and attempt to resolve the dispute. In the event that
such dispute remains unresolved within ten (10) business days after
such request, the aggrieved Party may bring the dispute before the ERC
for resolution, if said dispute is with the exclusive jurisdiction of the
ERC. Otherwise, the aggrieved Party may seek redress from the regular
courts. In case of the latter, the PARTIES hereby agree that the venue
for any court action should be the regular courts of the principal
address where the COMPANY is located.
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Section 8.3. Severability. If any provision of this Agreement is
declared by a competent court to be invalid or unenforceable, the
invalidity or unenforceability of such provisions shall not affect the
other provisions of this Agreement shall not be affected or impaired
thereby, provided that the remaining provisions are sufficient to render to
each Party the benefits contemplated hereby.

Page 20 of
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Section 8.4. Amendment/Modification of Agreement. This
Agreement constitutes the sole and entire agreement between the
PARTIES and supersedes all previous arrangements or agreements in
respect of the subject-matter of this Agreement. No amendments of this
Agreement or consent to any departure therefrom, shall in any way be
of any force or effect unless confirmed in writing and signed by the
PARTIES. If necessary, such amendment or departure shall be effective
only upon approval by the ERC. The failure of any Party, at any time, to
require performance of any provision hereof shall in no manner affect
the right to enforce the same at a later time. No waiver by any Party of
the breach of any term or covenant contained in this Agreement,
whether by conduct or otherwise, shall be deemed to be construed as a
further or continuing waiver of such breach or waiver of the breach of
any other term or covenant, unless such waiver is in writing.

Section 8.5. Non-waiver of rights. The failure or delay of any Party,


at any time, to require performance of any provision hereof shall in no
manner affect the right to enforce the same at a later time. No waiver by
any Party of the breach of any term or covenant contained in this
Agreement, whether by conduct or otherwise, shall be deemed to be
construed as a further or continuing waiver of such breach or waiver of the
breach of any other term or covenant, unless such waiver is in writing.

Section 8.6. Warranties. Each Party hereby represents and warrants


that: (a) it is a duly incorporated validly existing and in good standing
under the laws of the republic of the Philippines; (b) it possesses full power
and authority to enter into this Agreement, and has taken all the necessary
action to authorize the person/s signing the contract on its behalf; (c) that
it has taken all actions to authorize the entry into and the delivery of this
Agreement, and the transactions contemplated hereby, and the
performance of its obligations hereunder; (d) it has the power, licenses and
permits required to carry on its business as it is being conducted and
proposed to be conducted; (e) this Agreement and the consummation of the
transactions contemplated herein are its legal, valid, binding and
enforceable obligations; and (f) it shall, in good faith, comply with all its
obligations under this Agreement

Section 8.7. Assignment of Rights. The RETAIL CUSTOMER


shall not assign its rights under this Agreement. In case the RETAIL
CUSTOMER is a partnership or a corporation, it shall advise the
COMPANY in writing, of any change in its COMPANY name, or status
brought about by merger, consolidation, amendment of Articles of
Incorporation, sale of business or transfer of ownership, within thirty
(30) days from the effective date thereof. Violation of this provision
shall give the COMPANY the right to disconnect the service of the
RETAIL CUSTOMER or terminate this Agreement, without prejudice
to any action that the COMPANY may bring for the collection of any
outstanding obligation of the RETAIL CUSTOMER to the COMPANY.

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Section 8.7. Counterparts. This Agreement may be executed in
any number of counterparts and by the different PARTIES hereto on
separate counterparts, each of which when so executed and delivered
shall be an original, but all of which shall together constitute one and
the same instrument.

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IN WITNESS WHEREOF, the PARTIES hereto have caused the
foregoing instrument to be executed by their respective offices and/or
their representatives, thereunto duly authorized at the place and on the
date first above written.

Signature Over Printed Signature Over Printed


Name Name
(Designation) (Designation)
(COMPANY) (RETAIL CUSTOMER)
(Date Signed) (Date Signed)

SIGNED IN THE PRESENCE


OF:

(Witness Name, Signature (Witness Name, Signature


Over Printed Name) Over Printed Name)

Page 23 of
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ACKNOWLEDGMENT

Republic of the Philippines}


} S.S.

Before me, a Notary Public, for and in the City/Municipality of

, personally appeared the following affiants with their respective


competent proof of identities:

[COMPANY] Any government


issued ID [RETAIL CUSTOMER] Any
government issued ID

known to me and to me known to be the same persons who executed


the foregoing instrument, consisting of pages, including the
page whereon this Acknowledgment is written, with all pages signed by
both PARTIES and their instrumental witnesses, and they
acknowledged to me that the same is their free and voluntary act and
deed and that of the Corporation/ COMPANY they respectively
represent.

IN WITNESS WHEREOF, I have hereunto set my hand and seal this day of
, at Philippines.

Doc. No.
; Page No.
;
Book No.
; Series of ;

Page 24 of
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Annex “H”

SUPPLIER OF LAST RESORT CONTRACT


(SOLR Contract)

This Contract is made and entered by and

between:

, an entity duly organized and


existing under the laws of the Philippines, with
principal office at
, in its capacity as a Supplier of
Last Resort (a regulated business segment designated by the ERC for the
Retail Market hereinafter referred to as “SOLR”).
-and-
, an entity duly organized and
existing underthe laws of the Philippines, with principal
office at
represented by its (designation),
, hereinafter referred to as “Retail Customer”.

"SOLR" and "RETAIL CUSTOMER" shall collectively be referred


to as "PARTIES."
The PARTIES hereby mutually agree to enter into this Contract with the
foregoing premises considered subject to rules and regulations of the
ERC and other applicable laws, rules, and regulations, as follows;

I. GENERAL TERMS AND CONDITIONS GOVERNING


SUPPLY OF ENERGY

Section 1.1. Scope. This Contract is for the supply of electricity


to the RETAIL CUSTOMER, who has ceased to receive service from its
Retail Supplier arising from the occurrence of any Last Resort Supply
Event (LRSE), as provided under Section of ERC Resolution No. ,
Series of 2024, titled: "A Resolution Adopting the Omnibus Rules for
Customer Choice Programs in the Retail Market, as may be amended.

Section 1.2. Supply of Electric Energy and Delivery Point.


The SOLR shall supply electric energy to the RETAIL CUSTOMER of
kW at the premises located at . The electric
energy to be delivered shall be alternating current at approximately
volts, wire, hz, phase at ,
the point of delivery.

Section 1.3. Use of Electric Energy. The electricity supplied


hereunder shall be used strictly by the RETAIL CUSTOMER in direct
connection with its business. It shall not be sold or supplied to any
Page 1 of
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other person or entities, unless otherwise allowed by law, rule or
regulation of the ERC.

Page 2 of
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II. BILLINGS AND CHARGES

Section 2.1. Monthly Billing. The SOLR shall bill the RETAIL
CUSTOMER monthly for all the consumption and charges stipulated
under this Contract, including other charges that may be approved by
the ERC. The RETAIL CUSTOMER shall pay the SOLR all amounts due,
including any adjusted or differential bill/s rendered, within nine (9)
calendar days from receipt of the bill or as agreed upon by the
PARTIES.

The RETAIL CUSTOMER may dispute any bills in writing within


thirty (30) calendar days from receipt of the bill or as agreed upon by
the parties. Failure to dispute any bill on time shall constitute an
agreement by the RETAIL CUSTOMER that the bill is accurate and
binding. The RETAIL CUSTOMER shall pay disputed bills without any
deduction or offset and shall not be an excuse or ground for the RETAIL
CUSTOMER to delay payment of succeeding bills or to deduct any
amount therefrom unilaterally.

Section 2.2. Cash Security Deposit. The RETAIL CUSTOMER


shall pay a cash security deposit to the SOLR, equivalent to one (1)
month total estimated billing, based on the average of previous six (6)
months of demand and energy usage, as provided for under the
Omnibus Rules.

Subject to Section 2.5 of this Contract, this deposit shall be fully


refundable upon termination of Last Resort Supply, with interest paid
on the cash security deposit following the applicable legal interest for
savings deposit approved by the Bangko Sentral ng Pilipinas (BSP), less
any arrears that have accrued in the Retail Customer’s account, except
when such arrears are retrained under legal contest.

Section 2.3. Termination fee. If the RETAIL CUSTOMER


requests the pre-termination of the Agreement for whatever reason, it
shall notify the SOLR in writing within the ten (10) calendar days as
prescribed in Section 6.2 hereof. Should such notice be received by the
SOLR less than ten (10) calendar days prior to the RETAIL
CUSTOMER's intended termination date or should the intended
termination date fall prior to the lapse of one (1) month as provided in
Section 6.1, the RETAIL CUSTOMER before its intended pre-
termination date, shall pay the exit or termination fee charged by SOLR
to Retail Customers whose energy that was used for Last Resort Supply
was sourced through bilateral contract as provided in the Omnibus
Rules.

Section 2.3. Other Fees approved by the ERC. Should there


be other fees to be collected by the SOLR, such as special meter
reading fee, it should be subject to approval of the ERC.

Section 2.4. Final and Outstanding Bill/s. If the RETAIL


CUSTOMER transfers from the SOLR to a Retail Supplier, revert to
captive in case an aggregated group, or if SOLR service is terminated

Page 3 of
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due to nonpayment of bills, the final bill or any outstanding bill/s of the
RETAIL CUSTOMER shall be offset against the RETAIL CUSTOMER's
deposit and the remaining balance and interest earned, if any, shall be
refunded to the RETAIL CUSTOMER within thirty (30) calendar days
from the final meter reading date. In the event of any deficit, the
RETAIL CUSTOMER must settle all outstanding balances owed to the
SOLR, regardless of any disputes, before switching to another Retail
Supplier. In cases that the RETAIL CUSTOMER decides

Page 4 of
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to switch to another Retail Supplier, the SOLR reserves the right to
request disconnection of the service if there are any outstanding obligations.

III. DISCONNECTION AND INTERRUPTION OF SERVICE

Section 3.1. Failure to Pay Bill on Due Date. If the RETAIL


CUSTOMER fails to pay the SOLR for services rendered on the due
date, the SOLR shall send a 48-hour written notice of disconnection to
the RETAIL CUSTOMER. If the Retail Customer fails to pay the amount
within forty-eight (48) hours, the SOLR shall inform the CRB to
disconnect said RETAIL CUSTOMER, and the RMSP shall execute such
request within twenty-four (24) hours from the receipt of the notice
from the CRB.

Section 3.2. Execution of Routine Maintenance and Similar


Acts. The SOLR may interrupt the service upon request from or
reasonable notice to the RETAIL CUSTOMER to execute any routine
maintenance, repairs or modification to the SOLR's, DU's or RETAIL
CUSTOMER's facilities and nearby facilities and to ensure the integrity,
completeness, accuracy, safety and reliability of the connections to the
distribution facilities and for any other legitimate purpose.

Section 3.3. Emergency Conditions and/or Dangerous and


Hazardous Conditions. The SOLR may disconnect electricity service
without written notice only if a dangerous condition arises, subject to
post-disconnection notification of affected End-users.

Section 3.4. Failure to comply with the terms and


conditions of this Contract. The SOLR shall have the right to
discontinue service to the RETAIL CUSTOMER at any time such
RETAIL CUSTOMER violates any of the terms and conditions of this
Contract or any applicable laws, rules, and regulations.

Section 3.5. Other circumstances. The SOLR may discontinue


service of the RETAIL CUSTOMER in case of termination of this
Contract pursuant to Sections
6.2 and 6.3 hereof and other circumstances allowed by law and relevant
rules and regulations.

In no case shall the SOLR, under this Article, be exempted from


any obligations from the RETAIL CUSTOMER of its rights in
accordance with the Omnibus Rules.

IV. RECONNECTION OF SERVICE

The SOLR shall request the reconnection of the service of the


RETAIL CUSTOMER from the RMSP through the CRB, under the
following instances, and upon payment of all outstanding obligations
and appropriate reconnection fees as approved by the ERC:

Section 4.1. In case of the circumstances under Sections 3.1,


3.3, and 3.4, when the RETAIL CUSTOMER settles its obligations with
the SOLR and/or presents proof that its violation of the terms and
Page 5 of
7
conditions of this Contract, the Omnibus Rules, DSOAR as amended,
PDC and other applicable laws has been corrected and has ceased, as
the case may be.

Page 6 of
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Section 4.2. In case of the circumstances under Sections 3.2 and
3.3, upon termination of any routine maintenance, emergency,
dangerous condition.

V. LIABILITIES AND OBLIGATIONS

Section 5.1. Provision of Electric Energy. The SOLR's


obligation to the RETAIL CUSTOMER regarding its provision of electric
energy shall be limited to those set forth in the Omnibus Rules and
DSOAR, as amended.

Section 5.2. Force Majeure/Fortuitous Event/Other Event.


The SOLR shall not be liable to the RETAIL CUSTOMER to the non-
performance of any of its obligations under this Contract in the event
that such non-performance resulted from or is caused by force
majeure/fortuitous events that are beyond the control of the SOLR.
Force majeure and fortuitous event shall mean such (i) event that is not
within the reasonable control, directly and indirectly, of the SOLR; and
(ii) such event, which despite the exercise of reasonable diligence,
cannot be prevented, avoided or removed by the SOLR; Provided, that
the SOLR has taken all reasonable precautions, due care and
reasonable measures in order to avoid the effect of such event on the
SOLR's ability to perform its obligations under this Contract. These
events shall include, but may not be limited to, the following:

a. A typhoon, storm, tropical depression, flood, drought,


volcanic eruption, earthquake, tidal wave or landslide;
b. An act of a public enemy, war (declared or undeclared),
sabotage, blockade, revolution, riot, insurrection, civil
commotion or any violent or threatening actions;
c. Non-system-wide and system-wide Transmission constraints
and/or outages in the Transmission and Distribution
system; and
d. Any lawful orders rendered by the competent authority,
including any advice or warnings of government authorities
for safety reasons.

Section 5.3. Damages and Other Costs. The SOLR shall not be
liable for any damages, whether direct or consequential, including
without limitation, loss of profits, revenue, or production capacity, as a
result of interruption of electric service, except as maybe provided by
law or government rules and regulations.

VI. EFFECTIVE TERM AND TERMINATION OF AGREEMENT

Section 6.1. Effective Term. The effectivity of this Contract


shall commence upon the final actual meter reading made on the
RETAIL CUSTOMER's consumption prior to being served by the SOLR
and shall terminate no sooner than the lapse of one (1) month, subject
to Section 2.3 of this Contract. The term hereof shall automatically be
renewed from month to month unless this Contract is terminated under
Page 7 of
7
Section 6.2 or 6.3.

Section 6.2. Termination of Contract. The RETAIL


CUSTOMER may terminate this Contract by sending a written notice of
termination within ten (10) calendar days from the date of intended
termination by said RETAIL CUSTOMER. Otherwise, the RETAIL
CUSTOMER shall remain liable for all billings and charges for the
succeeding billing month/s as provided in this Contract.

Page 8 of
7
Section 6.3. Other Grounds for Termination of Contract.
SOLR may likewise terminate this Contract: (i) after due notice, for
violation of any of the obligations set forth herein by any party; and/or
(ii) without any need of prior notice:
(a) when this Contract is rendered invalid and/or unenforceable by law
or competent authority; (b) when the performance of any obligations
under this Contract has been rendered legally or physically impossible;
or (c) in case of violation of R.A. 7832 otherwise known as "Anti-
Electricity and Electric Transmission Lines/Materials Pilferage Act of
1994" by the RETAIL CUSTOMER. Upon termination or expiration of
this Contract, all rights and obligations of the PARTIES hereunder shall
cease, except (a) such rights and obligations as may have accrued as of
the date of termination or expiration, such as but not limited to the
payment of any outstanding bills; and (b) any right or obligation which
survives the termination of this Contract.

VII. MISCELLANEOUS PROVISIONS


Section 7.1. Governing Laws. This Contract will be interpreted,
governed and construed under the laws of the Republic of the
Philippines.
Section 7.2. Venue. The venue of any action arising hereunder or
related to this Contract shall exclusively be at the city where the
SOLR's principal place of business is.

Section 7.3. Invalidity of Provisions. If any provision of this


Contract is declared by a competent court to be invalid or
unenforceable, the invalidity or unenforceability of such provisions
shall not affect the other provisions of this Agreement, and all
provisions not affected by such invalidity or unenforceability shall
remain in full force and effect.

Section 7.4. Amendment/Modification of Contract. This


Contract shall not be amended or modified except in writing by both
PARTIES. The failure of any Party, at any time, to require the
performance of any provision hereof shall in no manner affect the right
to enforce the same later. No waiver by any Party of the breach of any
term or covenant contained in this Contract, whether by conduct or
otherwise, shall be deemed to be construed as a further continuing
waiver of such breach or waiver of the breach of any other term or
covenant, unless such waiver is
in writing.

Section 7.5. Warranties. The PARTIES represent and warrant


to each other that: (i) the signatories to this Contract are duly
authorized to sign this Agreement; and (ii) all requisite authorizations,
approvals, permits or consent to make this Agreement or any
amendment or supplement thereto valid and enforceable have been
obtained.

Section 7.6. Assignment of Rights. The RETAIL CUSTOMER


shall not assign its rights under this Agreement.

Page 9 of
7
The RETAIL CUSTOMER shall advise the SOLR in writing of any
change in its COMPANY name or status brought about by merger,
consolidation, amendment of Articles of Incorporation, sale of business,
or transfer of ownership within thirty
(30) calendar days from the effective date thereof.

Section 7.7. Disputes. If any dispute shall arise between the


PARTIES in connection with or arising out of this Contract, either party
may request in writing

Page 10
of 7
to meet within five (5) calendar days from the occurrence thereof and
first resolve the dispute through mutual discussions between the
PARTIES. If such dispute remains unresolved within ten (10) calendar
days after such request, the aggrieved party may bring the dispute for
resolution by the ERC or the regular court as the case may be. In the
case of the latter, the PARTIES hereby agree that the venue for any
court action shall be the regular courts of the city where the principal
business office of the SOLR is located.

Section 7.8. Conflict. In the event of a conflict between the


provisions of this Agreement and the provisions of the Omnibus Rules,
as amended, or such other relevant rules and regulations, the latter
shall prevail.

IN WITNESS WHEREOF, the PARTIES hereto have caused the


foregoing instrument to be executed by their respective officers and/or
their representatives, thereunto duly authorized at the place and on the
date first above written.

Signature Over Printed Signature Over Printed


Name Name
(Designation) (Designation)
(SOLR) (RETAIL CUSTOMER)
(Date Signed) (Date Signed)

Page 11
of 7
Republic of the
Philippines ) City of )
S.S.

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in the city indicated below,
personally appeared the Parties and exhibited their respective competent
proofs of identity, as follows:

Government
Name Date/Place of Issue
Issued
ID/No.

known to me to be the same persons who executed the foregoing


Memorandum of Agreement, consisting of six (6) pages including herein
acknowledgment, intimating to me that the same being their own free
and voluntary act and deed.

WITNESS MY HAND AND SEAL on this day of 20 at


, Philippines.

NOTARY PUBLIC

Doc. No.:
Page No.:
Book No.:
Series of

Page 12
of 7
Annex “I”

(SOLR Form 1)

CHECKLIST OF REQUIREMENTS FOR THE APPLICATION AS A


SUPPLIER OF LAST RESORT (SOLR)

Name of Applicant:

Note: The application will only be considered as filed upon completion of the requirements
and
receipt of the ERC’s Confirmation of Completeness Email (CCE).

DOCUMENTARY/LEGAL REQUIREMENTS

Remarks
Requiremen
(Complete -
t
✔)
1. Wholesale Electricity Spot Market (WESM) Proof of
Registration and Membership
2. Certificate of Compliance with WESM for the following:
a. Metering;
b. Prudential Requirements; and
c. Financial Obligations.
3. ERC Case Number of BSUP Application
Note: The applicant should have a Regulated Supply
Segment, or equivalent, in its BSUP application.
4. Copy of latest Accounting Separation Statements
reflecting the separate Capitalization for its SOLR
business.
Note: Accounting Separation Statements (ASS) are part of
the annual
reportorial requirement of entities with approved BSUP,
otherwise, if newly approved BSUP, ASS is part of the BSUP
application.
5. If the Applicant’s email is already registered with
the ERC: Certificate of Email Registration (CER1)
Number.
If the Applicant has an ongoing request for email
registration: Reference Number of the CER application.
All documents shall be submitted in one (1) hard copy and one (1) soft copy.

Initially Assessed by:


Complete

For Completion
SIGNATURE OVER PRINTED NAME
Date:
Note: Only forms/documents
with complete entries will be
Noted by: accepted; otherwise, it will be
returned to the applicant for
re-submission of forms with
complete entries
Approved for Filing
SIGNATURE OVER PRINTED NAME
Date:

Page 1
of 1
1 1
ERC Resolution No. 09, series of 2020, entitled “A Resolution Adopting the Guidelines governing Electronic Applications, Filing and
Virtual Hearings before the Energy Regulatory Commission”

Page 1
of 1
Annex “J-1”
(RS Reportorial Form 1)

RETAIL SUPPLIER'S QUARTERLY REPORTORIAL REQUIREMENTS


Name of Retail Supplier:
Short Name:
Year:
Quarter:
Prepared by & Designation: Contact No. Email Address:
Authorized by & Designation:

PART I. SUPPLY PORTFOLIO


Affiliated to Retail
Contracted Capacity Contracted Contract Price Contract Duration
No. Name of Source Supplier? Resource Type1
(MW) Energy (MWh) (PhP/kWh) (no. of years)
(Yes/No)
1 Name of Generation Company A
2 Name of Generation Company B
3 Name of Generation Company C
4 (add rows if necessary)
5 WESM Purchases2
GRAND TOTAL
1
Coal, Hydro, Natural Gas, Geothermal, Oil-Based, Solar, etc.
if WESM, indicate purchased energy and price

PART II. CAPACITY ALLOCATION FOR RETAIL CUSTOMERS


Energy Retail Market Affiliated to Retail
Capacity Allocation Distribution Utility's Meter No./ ID No.
No. Name of Retail Customer Allocation Category Supplier?
(MW) Franchise Area issued by CRB (if RAP)
(MWh) (CREM/GEOP/RAP) (Yes/No)
1
2
3
4 (add rows if necessary)
GRAND TOTAL

PART III. PRICING INFORMATION


Other Additional Pricing Structure
Contract Price (PhP) (as Pass Through Charges/
No. Name of Retail Customer Total Revenue (PhP)2 Total kWh Sales Ave. Price (PhP/kWh)2 Charges, if any (e.g. Fixed, Time of Use,
indicated in the RSC) DWS Charges (PhP) Indexed, etc.)
(PhP) (Include Value-Added
Service)
1
2
3
4 (add rows if necessary)
GRAND TOTAL
2
Excluding DWS charges or pass-on charges by NSP

Page 1 of
3
PART IV. OTHER CUSTOMER INFORMATION
Was a contract Customer Business
Contract End Amount of Security Acting as Redistributor
Contract Start Date hedged or was a bond Category
No. Name of Retail Customer Date Deposit Collected, if any under CREM? Remarks
(dd/mmm/yyyy) posted? (ex. Real Estate, Hotel, Food
(dd/mmm/yyyy) (Submit proof of deposit) (Yes/No)
(Hedged/Performance Manufacturing, Mall, etc.)
bond posted with ERC)
1
2
3
4 (add rows if necessary)

PART V. GREEN ENERGY OPTION PROGRAM - OTHER INFORMATION


No. Renewable Energy Source Type kWh Sales
1
2
3
4 (add rows if necessary)
GRAND TOTAL

PART VI. RETAIL AGGREGATION PROGRAM - OTHER INFORMATION


DU Franchise Area
Aggregated Demand ID No. issued by Location of Name of Aggregated
No. Name of Aggregated Group (for each aggregated Respective Meter No.
(kW) CRB Contigouos Area Members
members)
1
2
3
4 (add rows if necessary)
GRAND TOTAL

PART VII. VALUE-ADDED SERVICES (if any)


List of VAS offered to Retail Customers For Fee or For Free
No. Please indicate amount if with fee (PhP)
1
2
3
4 (add rows if necessary)

Page 2 of
3
VIII.COMPLAINTS HANDLING REPORT

No. Name of Retail Customer Issue/Complaint Date Filed Resolution Date Resolved

1
2
3
4 (add rows if necessary)

Re fe re nc e s: Omnibus Rule s for Custome r Choic e Programs in the Re tail Ele c tric ity Marke t

Kindly submit e ve ry 20 th day of the subse que nt month afte r the quarte r to doc ke t@e rc .ph and c onte s table @e rc .ph, toge the r with the Anne x A- 2 Ve rifie d De c laration in c omplianc e with Rule XIIIof ERC's E- Filing Guide line s (Re solution No. 09 , S e rie s of 2020 )

Page 3 of
3
Annex “J-3”
(SOLR Reportorial Form 1)

SUPPLIER OF LAST RESORT'S QUARTERLY REPORTORIAL REQUIREMENTS


Name of Supplier of Last Resort:
Short Name:
Year:
Quarter:
Prepared by & Designation: Contact No. Email Address:
Authorized by & Designation:

PART I. SUPPLY PORTFOLIO OF SOLR

Contracted Contracted Contract Price Contract Duration Affiliated to SOLR?


No. Name of Source Resource Type1
Capacity (MW) Energy (MWh) (PhP/kWh) (no. of years) (Yes/No)

1 Name of Generation Company A


2 Name of Generation Company B
3 Name of Generation Company C
4 (add rows if necessary)
5 WESM Purchases
GRAND TOTAL
1
Coal, Hydro, Natural Gas, Geothermal, Oil-Based, Solar, etc.

PART II. CAPACITY ALLOCATION FOR SOLR CUSTOMERS


Energy Retail Market Customer Class
Capacity Meter No./ ID No. Affiliated to SOLR?
No. Name of Retail Customer Allocation Category (Residential, Commercial,
Allocation (MW) issued by CRB (if RAP) (Yes/No)
(MWh) (CREM, GEOP, RAP) Industrial, Others)
1
2
3
4 (add rows if necessary)
GRAND TOTAL

PART III. SOLR CUSTOMER INFORMATION


Effectivity Date of Reason of
SOLR Pricing Customer Reason for Name of New
No. of Billing Period Name of Last Retail Reversion Reversion to
No. Name of Retail Customer Resorting to SOLR Customer Status3 Retail Supplier
SOLR Rate of SOLR Service Supplier (if reverted) Captive Market
Type of Pricing2 (PhP) Service (if switched already)
(dd-mmm-yyyy) (if reverted)
1
2
3
4 (add rows if necessary)
2
ERC Approved Rate, WESM Nodal Energy Price, or Bilateral Contract Price
3
Switched to new Retail Supplier, Reverted to Captive Market, or Disconnected

Re fe re nc e s: Omnibus Rule s for Custome r Choic e Programs in the Re tail Ele c tric ity Marke t

Kindly submit e ve ry 20 th day of the subse que nt month afte r the quarte r to doc ke t@e rc .ph and c onte s table @e rc .ph, toge the r with the Anne x A- 2 Ve rifie d De c laration in c omplianc e with Rule XIIIof ERC's E- Filing Guide line s (Re solution No. 09 , S e rie s of 2020 )

Page 1 of
1
(NSP Reportorial Form 1)

NETWORK SERVICE PROVIDER'S MONTHLY CUSTOMER INFORMATION REPORT


Name of Network Service Provider:
Short Name:
Year:
Month:
Address:
Prepared by & Designation: Contact No. Email Address:
Authorized by & Designation:

PART I. CUSTOMER INFORMATION


Customer Name / Aggregated Account/ Service Designation / Landline
No. Meter Number* Billing/ Service Address* Contact Person Email Address Mobile Number
Group Number* Position Number
1 Customer A/Group A
2 Customer B/Group B
3 (add rows if necessary)
4 Highlighted for newly-qualified end-user/s for the month being reported
*Add column/row if applicable

PART II. OTHER CUSTOMER INFORMATION


Threshold Level Billing Month Name of Retail Customer Business
Customer Name / Aggregated Status Retail Market
(1MW/ 3MW forecasted/ Notified of Supplier, if Category
No. (Newly-qualified/ Terminated/ Category
Group 1MW for 3 months/ 750k W/ Eligibility Ceased/ Switched to RES, etc.)
(ex. Real Estate, Hotel, Food
500k W/ 100k W) (Month-Year, ex. Jan-2022)
switched (CREM, GEOP, RAP)
Manufacturing, Mall, etc.)

1 Customer A/Group A
2 Customer B/Group B
3 (add rows if necessary)
4 Highlighted for newly-qualified end-user/s for the month being reported

PART III. METERING INSTALLATION COMPLIANCE


PROCESSING TIME
Type of Meter Date of Installation
Capability of Meter Receipt Date of Intention Status of Meter
Customer Name / Aggregated Installed of Enhanced
No. for Remote Reading to Switch to Retail Number of Days Installation
Group (Ex. Interval Meter, Demand Metering
(Yes or No) Supplier Processed (Completed / Target date for the
Meter, TOU Meter) Facilities*
(Day-Month-Year) meter to be installed, etc.)
(Day-Month-Year)
1 Customer A/Group A
2 Customer B/Group B
3 (add rows if necessary)
4 Highlighted for newly-qualified end-user/s for the month being reported

**Subject for confidentiality in compliance with the Republic Act No. 10173 ["Data Privacy Act of 2012"]

Page 1 of
2
Page 2 of 2
Annex “J-4”
(NSP Reportorial Form 2)

NETWORK SERVICE PROVIDER'S SEMI-ANNUAL SWITCHING COMPLIANCE REPORT

Name of Network Service Provider:


Short Name:
Year:
Semester (1st/2nd):
Address:
Prepared by & Designation: Contact No. Email Address:
Authorized by & Designation:

Date of Receipt of
Name of Retail Account/ Threshold Notice on the Date of Submission
Billing
Meter Type of Level Effective Switch of Complete
No. Name of End-User Supplier Service and Remarks
Number Switch (1 MW/ 3MW Date of Executed Switching
(if single billing) Number Service
(Initial/ Regular) forecasted/ 1 MW for Retail Supply Requirements
Addresses
3 months/ Contract (dd-mmm-yyyy)
750kW/ 500kW/ (dd-mmm-yyyy)
100kW)
1
2
3
4
add rows if applicable

References: Omnibus Rules for Customer Choice Programs in the Retail Market
Kindly submit every July 30th and January 31st of following year to [email protected] and [email protected], together with the Annex A-2 Verified Declaration in compliance with Rule XIII of ERC's E-Filing Guidelines (Resolution No. 09, Series of 2020)

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