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Department of Energy Releases the Retail Manual on the Procedures for the Implementation of the Green Energy Option Program

Pursuant to its authority under the Electric Power Industry Reform Act of 2001 and the Wholesale Electricity Spot Market (“WESM”) Rules, the Department of Energy (“DOE”) promulgated the Retail Manual on the procedures for the implementation of the Green Energy Option Program (“GEOP”) through its Department Circular No. DC2023-01-0004, which shall apply to the following:

  1. Renewable Energy Suppliers;
  2. GEOP End-Users;
  3. Network Service Providers;
  4. Retail Metering Services Providers;
  5. the Central Registration Body;
  6. the Market Operator; and
  7. Supplier of Last Resort.

The said Retail Manual laid down the procedures for the registration of Renewable Energy Suppliers and GEOP End-Users with the Central Registration Body and switching of GEOP End-Users between Renewable Energy Suppliers and the Distribution Utility, among others.

Some of the salient points are provided below:

Registration 

Renewable Energy Suppliers. In order to supply to GEOP End-Users, Renewable Energy Suppliers must hold a valid operating permit from the DOE and a Retail Electricity Supplier license from the Energy Regulatory Commission (“ERC”) before they can register with the WESM. Upon the said registration, Renewable Energy Suppliers shall be deemed registered with the Central Registration Body and shall be allowed to transact with the Central Registration Body for their customers under the GEOP.

Retail Metering Services Provider. Before being able to provide metering services for GEOP End-Users, the Metering Services Provider of the GEOP End-User must register in the WESM as a Retail Metering Services Provider. The Central Registration Body may require a Retail Metering Services Provider that is already registered and serving a Contestable Customer to submit additional registration requirements to provide services to a GEOP End-User.

Distribution Utilities shall act as default Retail Metering Services Provider for GEOP End-Users with service addresses located within their franchise area and shall register in the WESM in accordance with registration requirements.

Supplier of Last Resort. Like Retail Metering Services Provider, the Network Service Provider of the GEOP End-User must register in the WESM as a Supplier of Last Resort before providing electricity supply for GEOP End-Users within its franchise area during a last resort event. The Central Registration Body may also require a Supplier of Last Resort that is already registered and serving a Contestable Customer to submit additional registration requirements to provide services to a GEOP End-User.

Customer Transfer

Switching to a Renewable Energy Supplier. A Renewable Energy Supplier may submit a switch request to the Central Registration Body subject to certain conditions. Once all the conditions are met, the new Renewable Energy Supplier shall electronically fill out a switch request to the Central Registration Body, copy furnishing its Network Service Provider, not later than 7 working days prior to the proposed switch effective date.

In addition, the Renewable Energy Supplier must submit the following documentary requirements set in Section 16.2 of ERC Resolution No. 08, Series of 2021:

  1. Switch Request Form;
  2. Copy of Renewable Energy Supply Contract;
  3. Copy of valid Wheeling Service Agreement;
  4. Copy of valid Metering Services Agreement;
  5. Connection Agreement between a GEOP End-User and its Network Service Provider;
  6. Prudential Requirements; and
  7. A verification executed by the Renewable Energy Supplier stating that the above-enumerated documents are authentic, and the contents thereof are true and correct.

Within 2 working days from its confirmation that the necessary requirements are satisfied, the Central Registration Body shall approve the switch request and shall give notice of the confirmation of the switch request.

Switching to a Supplier that is Not a Renewable Energy Supplier. If a GEOP End-user wishes to switch to a Supplier that is not a Renewable Energy Supplier, the new Supplier shall submit a switch request in accordance with the procedures under the Retail Manual on Market Transaction Procedures, provided that the end-user is also qualified to be a Contestable Customer and complies with the necessary requirements under applicable laws and issuances.

Reversion to the Captive Market. A GEOP End-User may revert to being a Captive End-User once every 12 months by notifying its incumbent Renewable Energy Supplier or Supplier of Last Resort, and its Network Service Provider, subject to certain conditions.

Customer Relocation. A GEOP End-User who intends to transfer to a new service address within the Distribution Utility’s franchise area and wishes to continue receiving service from its Renewable Energy Supplier shall send a prior Request for Relocation of Service to its Renewable Energy Supplier and the relevant Network Service Providers.

The Renewable Energy Supplier shall inform the GEOP End-User whether it shall continue or discontinue its service at the GEOP End-User’s new location 1 working day from receipt of the Request for Relocation of Service. In case of discontinuance, the reason therefore shall be provided. Likewise, within the same period provided herein, the Renewable Energy Supplier shall send a copy of the GEOP End-User’s Request for Relocation of Service a notice to continue or discontinue the Renewable Energy Supplier’s service to the Central Registration Body. In case the Renewable Energy Supplier opted not to continue the service at the new location, the GEOP End-User shall endeavor to find a new Renewable Energy Supplier and undergo the Switching Procedures discussed above.

Transfer to a Supplier of Last Resort. A GEOP End-User shall be transferred to a Supplier of Last Resort upon the occurrence of any of the following Last Resort Supply Events:

  1. the Renewable Energy Supplier has ceased to operate;
  2. the Renewable Energy Suppliers license has been revoked by the ERC;
  3. the Renewable Energy Suppliers’ operating permit has been revoked by the DOE;
  4. the Renewable Energy Supplier is no longer permitted to trade in the WESM due to suspension, deregistration, or cessation of membership;
  5. the Wheeling Services Agreement between the Renewable Energy Supplier and Distribution Utility has been terminated;
  6. the Transmission Service Agreement between the Renewable Energy Supplier/GEOP End-User and National Transmission Corporation or its successors-in-interest or concessionaire has been terminated;
  7. failure to renew or secure a new GEOP Supply Contract; or
  8. any other analogous event that the ERC may deem as a Last Resort Supply Event.

For more information, the full department circular may be accessed here.