RE Supplier Qualifications

Section 5. RE Supplier Qualifications

1. Any person, natural orjuridical, registered andlor authorized to operate in the Philippines under existing Philippine laws and engaged in the business of generating and/or supplying electricity from RE Resources may apply for a GEOP Operating Permit as an RE Supplier under GEOP

2. For avoidance of doubt, any RE Facility is eligible for GEOP, whether or not the same is eligible for Renewable Portfolio Standards (RPS) compliance a long as there is still available capacity or energy for supply under GEOP

3. Owners and operators of RE Facilities constructed and operating prior to RE Act but registered under the RE Act may qualify as RE Suppliers under the GEOP.

Section 6. Application Requirements. All applications for the GEOP

                                                                      Operating

Permit shall be in writing and verified. The application shall likewise contain the following documents:

6.1. Affidavit of undertaking on the capability to supply and deliver the RE generation to the End-User;

6.2. Proof of a Contract for the Supply of Replacement Power in accordance with Section 10.1 of this Circular; and

6.3. Proof of payment of the processing fee.

Section 7. Qualification for Existing Retail Electricity Suppliers. Any person or entity that has been issued a Retail Electricity Supplier’s license by the ERC and has demonstrated the ability to serve its Contestable Customer under the Retail Competition and Open Access may be automatically issued an Operating Permit as RE Supplier under the GEOP subject to the applicant’s submission of the following documents:

7.1. Billing document from at least one (1) Contestable Customer for two (2) years immediately preceding the date of application, or a sworn statement of such Contestable Customer attesting to the fact that it has a contract with the applicant effective for the two (2) years immediately preceding the date of application;

7.2. Affidavit of undertaking on the applicant’s capability to supply and deliver the RE generation to the End-User;

7.3. Proof of a Contract for the Supply of Replacement Power in accordance with Section 10.1 of this Circular; and

7.4. Proof of payment of the processing fee.

Section 8. Processing and Approval of Applications.

8.1. The DOE, through its Renewable Energy Management Bureau (REMB ), shall be responsible for evaluating all applications for the issuance of GEOP Operating Permits to eligible RE Suppliers.  8.2. Within twenty (20) working days from the submission of complete application documents and compliance with the requirements, the REMB Director shall recommend to the Secretary the approval or disapproval of the applica tion. 8.3. The application shall be acted upon by the DOE Secretary, upon endors ement by the Supervising Assistant Secretary and Undersecretary of the REMB.

Section 9. Obligations of RE Suppliers. The RE Suppliers under the GEOP shall have the following obligations:

9.1. Comply with all the terms and conditions of the GEOP Operating Permit and the provisions of this Circular, and the GEOP Rules;

9.2. Submit annual reports to the REMB on or before the 30th of January, which shall contain the following data:

    9.2.1. Total kWh generated from owned and/or operated RE Facilit
                                                                     y;
    9.2.2. Total kWh purchased per RE Resource;
    9.2.3. Total kWh sold per customer; and
    9.2.4. Total kWh purchased for Replacement Power on hourly basis;

9.3. Ensure that the total power dispatched from its RE Facilities should always be greater than or equal to the total kWh sold to its customers;

9.4. Register in the Wholesale Electricity Spot Market and with the Central Registration Body before it can supply electric power to the eligible End-Users; and

9.5. Register with the RE Registrar pursuant to the RE Market Rules promulgated by the DOE.

Section 10. Provision of Replacement Power. To ensure that End-Users are supplied with sufficient and reliable electricity, the RE Supplier shall secure the necessary Replacement Power, as follows:

10.1. During the first two years of implementation of this Circular, any RE Supplie r may opt to contract supply from generation facilities utilizing indige nous resources as Replacement Power. Thereafter, in support of the greater development and utilization of RE Resources, any Replacement Power shall exclusively be sourced from RE Resources.

10.2. in cases where the supply is generated from hybrid RE technologies such as solar and battery energy storage systems, the Replacement Power shall only be required during the period when the facility is under maintenance service s. Section 11. Period of Validity. The GEOP Operating Permit shall be valid for a period of five (5) years from date of issuance stated therein, unless earlier revoked by the DOE for any violation of the GEOP Rules and this Circular. Section 12. Renewal of Application. Six (6) months prior to its expiration and upon submission of required documents and payment of a renewal fee, the RE Supplier may apply for renewal of its GEOP Operating Permit.

The DOE shall determine whether the RE Supplier has complied with all the DOE requirements for RE Supplier in accordance with this Circular.

Section 13. Suspension, Revocation or Cancellation of GEOP Operating Permits. The DOE may suspend, revoke or cancel any GEOP Operating Permit on the following grounds:

13.1. Failure of the RE Supplier to comply with its obligations under the GEOP Rules and the terms and conditions under which the GEOP Operating Permit was issued;

13.2. Providing false or misleading information to the End—User or the DOE;

13.3. Failure to respond to DOE directives, communications, inquiries within the periods provided therein, or address customer complaints within five (5) working days from receipt of the same; and

13.4.Termination of the GEOP Supply Contract by the End-User for cause.

Upon a positive finding by the DOE that the RE Supplier has committed of any of the above enumerated grounds, the latter shall be required to explain in writing why its GEOP Operating Permit should not be suspended, revoked or cancelled. The RE Supplier shall be given a non-extendible period of fifteen (15) calendar days to submit its explanation, which shall be accompanied by supporting documents.

Not later than fifteen working (15) days from its receipt of the RE Supplier’s written explanation, the REMB shall submit its findings and recommendations to the DOE Secretary, through its Supervising Assistant Secretary and Undersecretary. The DOE Secretary shall have a period of five (5) working days to act upon said recommendation. The decision of the DOE Secretary shall be final and immediately executory.

The RE Supplier shall immediately be notified of the decision of the DOE Secretary in writing, within three (3) days upon receipt by REMB of the DOE Secretary’s decision, through personal service, registered mail, private courier service, or in the absence of the aforementioned modes of service, through electronic mail.

Section 14. Penalties. The following are the penalties which may be imposed upon an RE Supplier which has been found to have committed any of the acts provided in Section 13 hereof and has failed to provide justifications therefor:

14.1. First Offense. Suspension of the GEOP Operating Permit for one (1) month;

14.2. Second Offense. Suspension of the GEOP Operating Permit for three (3) months; and

14.3. Third Offense. CancellationiRevocatlon of the GEOP Operating Permit.

Provided, That, in cases where the RE Supplier was found to have twice committed the same violation in succession, the GEOP Operating Permit shall be cancelledirevoked.

Section 15. RE Pool

To accelerate exploration, development and utilization of RE Resources, and to ensure RE supply is available in a least-cost manner, RE Suppliers and RE Generators/Developers may enter into a joint action or establish a pool of RE supply under the GEOP to the extent permitted by applicable laws.

Section 16. Separability Clause. if for any reason, any provision of this Circular is declared unconstitutional or invalid, the other parts or provisions not affected thereby shall remain in full force and effect.

Section 17. Repealing Clause

The provisions of other department circulars which are inconsistent with the provisions of this Circular are hereby repealed, amended or modified accordingly.

Section 18. Effectivity.

This Circular shall take into effect fifteen (15) days following its publication in at least two (2) newspapers of general circulation and its filing with the National Administrative Register of the UP Law Center.