37th Epira Report October 2020

37th Electric Power Industry Reform Act (EPIRA)
Implementation Status Report

(For the Report Period October 2020)
Prepared by the
Department of Energy
With Contributions from
Energy Regulatory Commission

Philippine Electricity Market Corporation
National Power Corporation
National Electrification Administration
Power Sector Assets and Liabilities Management Corporation
National Transmission Corporation
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY……………………………………………………………………………. 2
II. PRIVATIZATION……………………………………………………………………………………...4
A. Generating Assets and Independent Power Producer (IPP) Contracts…………… ............4
B. Other Disposable Assets...................................................................................................5
C. Privatization Proceeds ......................................................................................................7
D. Concession of the National Transmission Network ...........................................................8
A. Sale of Sub-Transmission Assets (STAs)..........................................................................9
III. PSALM LIABILITY MANAGEMENT………………………………………………………………10
IV. ELECTRICITY RATES……………………………………………………………………………..11
V. COMPETITION…………………………………………………………………………………… 27
A. WESM Operational Highlights………………………………………………………………… 27
B. Updates on WESM Governance Activities…………………………………………………….31
C. Market Development Updates………………………………………………………………… 48
D. Retail Competition and Open Access (RCOA)……………………………………………… 51
E. Generating Capacity Market Share and Concentration…………………………………… .55
VI. POWER SUPPLY SECURITY AND RELIABILITY…………………………………………… 59
VII. TOTAL ELECTRIFICATION……………………………………………………………………… 82
VIII. PROMOTION OF RURAL ELECTRIFICATION……………………………………………… 91
IX. POLICY ISSUANCES……………………………………………………………………. …… 92
ANNEXES
Annex 1. TransCo Inspection Report Based on Concession Agreement…………………...........96

Annex 2. NGCP Related Petitions to ERC as of August 2020……………………………………..98
Annex 3. ERC Approved Capital Expenditure Projects………………………………................... 102
Annex 4. Policy Proposals……………………………………………………………………………..109
37th Status Report on EPIRA Implementation

As of October 2020
1
I. EXECUTIVE SUMMARY
The 37th Status Report on Republic Act No. 9136 titled “Electric Power Industry Reform Act (EPIRA)
of 2001” covers the implementation period May 2020 to October 2020. This highlights significant
accomplishments, strategies and policies undertaken by the Department of Energy (DOE), the
Energy Regulatory Commission (ERC), the DOE Attached Agencies as well as other private sector
instrumentalities so mandated by the EPIRA.
As the country continues to battle the Corona Virus Disease (COVID-19) pandemic which started in
the month of March 2020, the DOE and the Energy Regulatory Commission (ERC) continued to
adopt and implement authorized COVID19 response and recovery intervention during the
community quarantine period in line with the EPIRA and applicable laws and guidelines, to assist
and give relief to the electricity consumers in the country.
Despite the pandemic, the power sector continued to accomplish significant developments and battle
challenges thru the DOE, its attached agencies and the private sector as mandated under the EPIRA
as follows:
1. With the declaration of failure of the third round of public bidding for the sale of the 650-
megawatt Malaya Thermal Power Plant (MTPP) and its underlying land, the Power Sector
Assets and Liabilities Management Corporation (PSALM) shall immediately pursue the
negotiated process of privatization of the said assets.
2. There was a reduction in peak demand compared to 2019 level due to the pandemic that hit
the three major grids, Luzon, Visayas and Mindanao of about 241 MW from peak demand of
11,344 MW, 23 MW from the recorded 2,224 MW, and 36 MW decline from peak demand of
2,013 MW, respectively.
3. The WESM continues to operate under normal conditions with electricity demand plus a
reserve schedule to gradually regain normalcy and to increase in level since the country’s
transition to General Community Quarantine (GCQ). The WESM registered capacity for the
month of September 2020 is recorded at 20,207.47 MW, an increase of 15.5 MW compared
from a total of 20,191.97 MW registered in April 2020. Of the said total capacity, only about
64% or an average of 12,973 MW were offered in the market. Average market price is at
PhP2,621/MWh with the lowest rate of PhP2,040/MWh in May 2020 and highest rate of
PhP3,657/MWh in September 2020.
4. Regarding market share limitations, no power generation entity has exceeded the installed
generating capacity and market share limitation of 30% per grid and 25% for the national
grid. The country's electricity market reflected a moderately concentrated market indicating
a competitiveness power industry in the country;
5. In relation to the implementation of Retail Competition and Open Access (RCOA), even
during the MECQ and GCQ periods, the retail market showed signs of recovery, as there
was a recorded increase of 7% on the number of registered Contestable Customers (CCs)
as compared from September 2019. 90% of the Contestable Customers (CCs) are located
within Luzon and 76% of the total number of CCs are currently being served by Manila
Electric Company (MERALCO). While, the National Grid Corporation of the Philippines
(NGCP) served the 3% accounted for 33 Directly Connected CC. In retail market
performance, MERALCO holds the most number of contestable customers and the largest
share of energy sales. The average metered quantity from June 2020 to September 2020 is
1,483 GWh of which 95% of the contracted energy was accounted through bilateral contracts
and the remaining 5% was transacted through the spot market.

As of October 2020
2
6. In terms of electricity pricing as of June 2020, the country's average electricity rate was
around PhP8.25/kwh, 22 centavos lower compared with March 2020 level national average
system rate.
7. For the report period, the household electrification level is around 92.96% based on the latest
status of energization provided by the National Electrification Administration, Local
Government Unit-Owned Utilities and Private-Investor Owned Utilities. Said level
corresponds to 23.23 million energized households, surpassing the 22.98 million identified
and targeted household population based from the 2015 Census of the Philippine Statistics
Authority (PSA).
8. Finally, in keeping with its mandates under EPIRA, the DOE promulgated three (3) policies
regarding WESM Rules and Market Manual and utilization of ER 1-94 Funds which were also
published in (3) newspapers for general circulation. Also, around 15 policy proposals are
drafted mostly on further amendments to WESM Rules and Market Manual which shall be
primarily subject to virtual consultation involving participation of the concerned electric power
industry players in the country.

As of October 2020
3
II. PRIVATIZATION
A. Generating Assets and Independent Power Producer (IPP) Contracts
On 23 September 2020, PSALM declared a failure of the third round of public bidding for the sale
of the 650-megawatt Malaya Thermal Power Plant (MTPP) and its underlying land in Pililla, Rizal,
after none of the pre-qualified bidders submitted any bid. The two pre-qualified bidders were
Panasia Energy, Inc. (Panasia) and AC Energy Philippines, Inc. (AC Energy).
As approved by the Commission on Audit, the minimum bid price of MTPP and its underlying
land was already lowered and was published in public to interested bidders in the hope that the
bidders would be encouraged to submit their bids. Said minimum bid price that the PSALM Board
set for the third round considered various factors such as the book value of the plant and its
underlying land, the zonal value of the land, the substantial losses continuously incurred by
PSALM in maintaining the Malaya plant, marketability impacted by the Covid-19 pandemic, and
electricity demand.
PSALM shall proceed and get Board approval to immediately commence the negotiated process
of privatization. PSALM pursues to dispose of said assets due to increasing substantial losses
in continuously maintaining it.
Based on the losses for the last 10 years (2010 to 2019), the average annual net loss of PSALM
in maintaining MTPP is PhP1.2 billion. It was declared a "must run unit" in 2014. The average
annual net loss of PSALM if based on the years that it is running as a must run unit (2015 to
2019) is PhP556.2 million.
In 2019, PSALM conducted two (2) rounds of bidding for the sale of said assets which were
declared "failed" due to lack of interested bidders. It can be noted that PSALM proceeded to a
negotiated sale with the lone bidder of the then second round of bidding but it was also declared
a failure because the bid offer was below the minimum bid price set for the said assets.
For the remaining generating assets, the latest privatization target is indicated in Table 1.
Table 1. Schedule of Privatization for Generating Assets as of 30 June 2020

Asset Type/ Rated Capacity
Bid Date Turnover Date
Plant Name (MW)
Owned Generating Plants
Malaya
Thermal
650.00 20201/
Power
Plant
Agus 1 & 2
260.00
Hydro
Agus 4 & 5
213.10 For Rehabilitation
Hydro
Privatization is subject to consultation with Congress
Agus 6 & 7
273.002/ and PSALM Board’s policy direction
Hydro
Pulangi
255.00
Hydro
1/ The three (3) Rounds of Public Bidding conducted for the Malaya TPP privatization in 2019 were unsuccessful.
2/Capacity increased by 19 MW as a result of Agus VI Units 1 & 2 Uprating
Source: PSALM

As of October 2020
4
For the selection and appointment of IPP Administrators, the latest privatization target is
indicated in Table 2.
Table 2. Indicative Privatization Schedule for the Appointment of IPPAs as of 30 June 2020
Contracted Commenceme
Grid Capacity nt of
Plant Name Turnover Date
(MW)/Energy Privatization
(GWh) Process
Luzon Casecnan Multi-
228.00 GWh 2021 2022
Grid Purpose Hydro
Caliraya-Botocan-
Kalayaan (CBK) 797.92 MW 2021 2022
Hydro
Mindanao
Mindanao Coal-Fired 200.00 MW 2022 2022-2023
Grid
Source: PSALM
During the report period, The Asian Development Bank (ADB) received the endorsement of
the Department of Finance (DOF) to proceed with the study of CBK and Casecnan
Hydroelectric Power Plants (HEPPs), as such, the process on the hiring of a technical
consultant commenced despite the declaration of Enhanced Community Quarantine brought
about by the pandemic. Also, a technical expert was selected by ADB out of a shortlist. The
contract has been finalized and conferred with the selected technical expert for its acceptance.
Upon acceptance, engagement will commence in July 2020.
The privatization process for the CBK and Casecnan HEPPs will commence in 2021.
PSALM tapped ADB in the conduct of a study that will determine sound privatization options
for PSALM’s remaining IPP contracts.
B. Other Disposable Assets
For the sale of other disposable assets which include real estate and unserviceable assets, waste
and junk materials, following are the updates on PSALM’s bidding activities:
1. Disposal of Real Estate Assets (REA) through Public Bidding
a. The Manila Thermal Power Plant (MTPP) land, located in Isla de Provisor, Paco
Manila, comprises 8 lots with an aggregate area of 20,975.70 square meters. It is
now called Paco-Manila property. With two (2) failed biddings in 2018 and a failed
negotiated sale in January 2019, the asset is targeted for another round of public
bidding in 2020.
The Agency Appraisal Report (ARR) for the 3rd round of public bidding for the sale
of this real estate asset, was updated in February 2020. The updated ARR for the
3rd round of bidding was submitted to COA in March 2020. PSALM is awaiting
OGCC review of the Deed of Absolute Sale (DOAS) which was transmitted to the
OGCC on 05 March 2020. The ITB is scheduled to be published in July 2020.
b. The Sudipen Property, comprising 2 lots with an aggregate area of 1,649 square
meters, is for disposal through public bidding in 2020. The review of the revised
appraisal report of AACI is on-going.
The Puerto Azul Property, comprising two (2) condominium units and club share, is
for disposal through public bidding. With the receipt of the final report by PSALM on
23 December 2019, the 3rd party appraisal services provided by AVISO and Asian

As of October 2020
5
Appraisal was completed. The report will serve as PSALM’s guide in setting the
Minimum Bid Price for the disposal of said assets.
PSALM used the results of the valuation of third-party appraisers in updating the
profile of the assets and proceeded with the drafting of the AAR and the bidding
documents. PSALM reported to the Board in February 2020 on the bidding
documents, disposal timeline and Minimum Bid Price (MBP) for the asset while the
Agency Appraisal Report (AAR) was submitted to COA on 28 February 2020.
The commencement of the disposal is pending due to ECQ.
PSALM received OGCC’s comments/recommendations on the draft bidding

procedures in May 2020 and these were revised accordingly. The OGCC’s review
of the DOAS was received on 25 June 2020.
c. The procurement of consultancy services for the conduct of the Feasibility Study as
required for the Master Planning of Diliman Property, was completed after a
successful negotiation with PwC Philippines/Isla Lipana & Co. (PwC) which was
proclaimed the bidder with Single Rated Bid.
As part of its consultancy services, PwC was required to submit its initial assessment
and preliminary reports which were discussed in depth between PSALM and PwC.
PwC submitted its final report (Phase 3) to PSALM in May 2020.
PSALM requested the OGCC to assign a lawyer to assist in the Feasibility Study
and also requested for a meeting to discuss the propriety of PSALM crafting its own
Joint Venture (JV) guidelines or adopting the NEDA JV guidelines which was
discussed in detail in a coordination meeting between PSALM and OGCC in March
2020. PSALM, likewise, requested for the OGCC’s opinion on whether PSALM is
exempted from the coverage of the 2013 Revised NEDA JV Guidelines.
PSALM received the OGCC opinion on 09 June 2020 which conveys that PSALM is
exempted from the 2013 NEDA JV Guidelines, thus, PSALM can craft its own JV
guidelines.
d. Nasipit Property
PSALM reported to the Board in February 2020 on the Bidding Document, Disposal
timeline; and Minimum Bid Price (MBP). Subsequently, the Board approved on 26
February 2020 the commencement of sale. The Agency Appraisal Report was
submitted to the COA on 28 February 2020. The publication of the ITB will be done
upon the lifting of the ECQ. PSALM received the OGCC’s
comments/recommendations on the draft bidding procedures in May 2020 and these
were revised accordingly. The OGCC’s review of the DOAS was received on 25
June 2020.
e. Maco and Agusan Properties
PSALM reported to the Board in February 2020 on the Bidding Document, Disposal
timeline; and Minimum Bid Price (MBP). Subsequently, the Board approved on 26
February 2020 the commencement of sale. The Agency Appraisal Report was
submitted to the COA on 28 February 2020. The publication of the ITB will be done
upon the lifting of ECQ.

As of October 2020
6
PSALM received the OGCC’s comments/recommendations on the draft bidding
procedures in May 2020 and these were revised accordingly. The OGCC’s review
of the DOAS was received on 25 June 2020.
f. Camalaniugan Property
The asset profile has been prepared and the bidding procedures were drafted in
accordance with the OGCC’s comments/ recommendations. Further, PSALM has
coordinated the disposal of the property with Cagayan Electric Company
(CAGELCO) which is currently the occupant/lessee of the property. To pursue the
property’s sale, it will be necessary for PSALM to issue a Notice to Vacate to
CAGELCO.
g. Mexico Property
The asset profile has been prepared and the bidding procedures were drafted in
accordance with the OGCC’s comments/ recommendations.
2. Disposal of REA through Other Modes
a. The asset profile of the Bagac Property was drafted based on the gathered
documents during site visit and internal resources/references. The bidding
procedures were drafted in accordance with the OGCC’s
comments/recommendations.
b. Reconveyance of Gensan Property
On 19 May 2020, PSALM received from the BIR RDO No. 110, General Santos, a
certified Zonal Values Schedule for the lots located in Calumpang General Santos
City. However, the certification did not specifically state the applicable zonal value
for the subject property. Hence, PSALM immediately requested for further
clarification or confirmation of the Zonal value. The BIR RDO No. 110 is scheduled
to conduct an inspection of the property on 01 July 2020.
C. Privatization Proceeds
As of 30 June 2020, PSALM, through the privatization of generation assets, the transmission
business, and the IPP contracted capacities, has generated a total of PhP915 billion. The actual
collection to date amounted to PhP625 billion.
Table 3. Privatization Proceeds Generation and Collection as of 30 June 2020, (in PhP Billion)
Privatization Assets Generated Collected Balance
Generating Assets 163.88 163.88 -
Appointment of IPPAs 482.50 271.05 193.40
Transmission Concession 264.80 185.87 78.93*
Decommissioned Plants 0.66 0.66 -
Other Priva-Related 3.09 3.09 -
TOTAL 914.93 624.55 272.33
* Exclusive of estimated foregone interest resulting from the advance payment made by NGCP to PSALM in 2013 which is
now subject of an Arbitration Case between NGCP and PSALM/TRANSCO.
Source: PSALM
PSALM utilizes its privatization proceeds to cover maturing obligations such as regular debt
service, debt prepayment, IPP obligations, TransCo operating expenses, and other
privatization-related expenses.

As of October 2020
7
Table 4. Privatization Proceeds Utilization as of 30 June 2020
Particulars Amount
Debt Prepayment 64.68
Regular Debt Service 402.37
Lease Obligations 204.64
Subtotal 671.69
Others 4.98
TRANSCO Opex 0.05
TOTAL 676.72
USD1:PhP49.851(BSP Guiding Rate dated 30 June2020)
Source: PSALM
Total collections of PhP625 billion as of June 2020, including interest income on placements,
were exclusively utilized for the liquidation of financial obligations amounting to PhP677 billion
as of June 2020.
D. Concession of the National Transmission Network
Pursuant to the Concession Agreement (CA) between the Government and the National Grid
Corporation of the Philippines (NGCP), Republic Act (RA) No. 9511 or the Franchise Law and
the Construction Management Agreement (CMA), the National Transmission Company
(TransCo) continues to monitor the performance and compliance of NGCP to these Agreements.
During the report period, relative to the inspection of Financial Records which was completed in
December 2019, the Joint PSALM-TransCo Technical, Regulatory, Financial and Legal
Compliance Assessment Team (TRFLAT) provided NGCP checklists for the different areas and
corresponding schedules for the conduct of inspection as reflected in the table below.
Schedule of Inspection
Technical Document Technical Document
Areas of Responsibility
Center 1 Center 2
(NGCP Head Office) (Mexico, Pampanga)
1.Technical November 17-18, 2020 November 19-20, 2020
● Philippine Grid Code November 24-25, 2020 November 26,27, 2020
● System Operations October 27-30, 2020 November 3-6, 2020
● Operation and October 27-30, 2020 November 3-6, 2020
Maintenance
● Planning, Engineering, and November 24-25, 2020 November 26-27, 2020
Construction
● Environmental October 27-28, 2020 October 29-30, 2020
2. Regulatory October 22, 2020 October 23, 2020
3. Financial
● Financial Records October 8, 2020 October 9, 2020
● Transmission Assets October 8, 2020 October 9, 2020
4. Legal November 19, 2020 November 20, 2020
5. Right-of-Way October 27-28, 2020 October 29-30, 2020
November 17-18, 2020 November 19-20, 2020
6. Administrative, IT, QA, November 5-6, 2020 November 12-13, 2020
Safety and Security
In view of the above, the NGCP has yet to respond to the request of PSALM and Transco or
coordinate with the TRANSCO and PSALM Inspection of Book Records Team Heads.
Meanwhile, TransCo continues on the conduct of inspection of the assets condition consistent
with the inspection protocol established with the concessionaire. Annex 1 shows the summary
of the TransCo Inspection Report based on CA.

As of October 2020
8
A. Sale of Sub-Transmission Assets (STAs)
The sale of TransCo’s sub-transmission assets involves 198 sale contracts with 107 interested
distribution utilities (DUs), most of which are electric cooperatives. The sub-transmission assets
include around 4,092 ckt-km. of mostly 69 kV transmission lines and 860 MVA of substation
capacity.
As of 30 August 2020, TransCo has signed 116 sale contracts with 95 DUs/ECs/consortia
amounting to PhP6 billion. These sales cover an aggregate length of 3,836 ckt-kms of sub-
transmission lines and 34,184 sub-transmission structures and 835 MVA of substation capacity.
Of the 116 sale contracts, 64 contracts with total sale price of PhP4.1 1 billion have been
approved, approved with modification, and disapproved. Included in the said 64 contracts are
nine (9) contracts amounting to PhP373.3 million disapproved as of August 30, 2020 and posted
at the ERC website. The rest of the sale contracts are for filing with the ERC for evaluation and
approval.
Following the EPIRA provision to extend concessional financing to ECs, TransCo implemented
Lease Purchase Agreements (LPAs) with an amortization period of 20 years. Of the 116 sale
contracts already signed, 79 are mostly under LPAs with 68 ECs/consortia, valued at around
PhP4.136 billion. The remaining 37 involved sales to private DUs/consortia.
1
The total ERC approved amount of PhP3.005 Billion is lower compared to the total approved/disapproved/dismissed
contract amount of PhP4.074 Billion due to the following reasons:
a. Exclusion of some assets from the ERC approval due to reclassification from sub-transmission to transmission
assets;
b. The lower amount of valuation was used as basis of the ERC approval;
c. Exclusion of some assets from the ERC approval since said assets are not yet connected to the sold assets;
d. Exclusion of some assets from the ERC approval due to decommissioning;
e. DU withdrawal from the Joint Application pertaining to the divestment of sub-transmission assets; and
f. The STAs in the sale contract/s should have been sold to a consortium instead of a single DU because the
STAs were in a super loop configuration.
As of October 2020
9
III. PSALM LIABILITY MANAGEMENT
As of June 2020, PSALM’s financial obligations was reduced to PhP393.3 billion or a decrease
of PhP847.3 billion from the 2003 level of PhP1,241 billion from 2003 peak level of PhP1.2 trillion.
In terms of currency, more than half (67.5%) of PSALM’s Financial Obligations (FOs) is
denominated in dollars, amounting to PhP265.3 billion. Peso-denominated FOs of PhP99.4
billion accounts to 25.3%, while the remaining FOs amounting to PhP28.60 billion equivalent to
7.3% is in Japanese Yen.
Figure 1 below shows the movement of the financial obligations of PSALM from 2000 to 30 June
2020.
Figure 1 - PSALM’s Outstanding Financial Obligations Assumed from NPC
Source: PSALM
Table 5. Financial Obligations (FOs) as of 30 June 2020

PhP Equivalent (In Billions)
Debts 261.20
IPP Lease Obligations 132.10
Total 393.30
Source: PSALM
Table 6. Financial Obligations by Currency as of 30 June 2020

Currency Amount in PhP Equivalent % to Total
(In Millions)
USD 265,262.52 67.5%
PHP 99,379.74 25.3%
JPY 28,608.90 7.3%
Total 393,251.16 100%
Exchange Rates Used: BSP Guiding Rate dated 30 June 2020
USD: PhP 1.00 = 9.8510 JPY: PhP 1.00 = 0.4635
Source: PSALM
With regard to PSALM Debt Financing/Loan Financing the PHP43.0 Billion Loan Agreement
between PSALM and the Development Bank of the Philippines (DBP) was signed on 14 May
2020. On the same day, the DBP issued the Guarantee Letter for the PhP43 Billion loan. This
kind of financing is incurred by PSALM to finance maturing obligations while collections are still
yet to be received.

As of October 2020
10
IV. ELECTRICITY RATES
The information contained in the DOE’s EPIRA Reports are intended only to provide the JCEC and
the public an idea on the level of electricity prices. The average values are indicative values of
available data gathered by the DOE. The relevant movement in prices should be examined more
closely on a per utility basis. In this regard, the data cannot be used or attributed directly to the policies
being adopted by the DOE.
A. Average Electricity Rates

Figure 2 - National Average Systems Rate
The country’s average electricity rates
as of June 2020 is around
PhP8.25/kwh, 22 centavos lower
compared with the March 2020 national
average systems rate. All the grids
decrease in rate: Luzon Grid rate
showed a decline from PhP8.37/kWh in
March 2020 to PhP8.04/kWh in June
2020 or a decrease of 33 centavos/kwh,
the Visayas and Mindanao grid
decreased by both 15 centavos/kwh
from PhP7.69/kwh to PhP7.54/kwh and
Source: NEA and Monthly Operations Report of PDUs
PhP9.39/kwh to PhP9.23/kwh.
Figure 3 - Electric Cooperatives’ Average Systems Rate
Meanwhile, the ECs’ average systems

rate for June 2020 is at PhP9.16/kWh,
PhP0.17 centavos lower compared to
March 2020 rate. All the three grids,
decreased in rate by only 20
centavos/kwh for Luzon, 17
centavos/kwh for Visayas and 7
centavos/kwh for Mindanao.
Source: Monthly Operations Report of PDUs
Figure 4 - Private Distribution Utilities' Average Systems Rate

The national average systems rates of
Private Distribution Utilities (PDUs)
posted an overall increase by 27
centavos/kWh from PhP7.60 per kWh in
March 2020 to PhP7.33/kWh in June
2020. The average PDU rates in all
grids went down as Luzon posted a
decrease of 45 centavos /kwh, 13
centavos/kwh for Visayas and 24
centavos/kwh for Mindanao. The low
average rates for PDUs can be
attributed to the low rates of economic
zones where customer base are mostly
industrial and commercial.

As of October 2020
11
As reflected in Table 7, the ECs’ national average unbundled residential electricity rate for June 2020
was PhP8.91/kWh. Mindanao grid still has the highest average unbundled residential electricity rates
at around PhP9.38kWh of which generation costs comprise 56.8%. On the average, generation costs
comprise the bulk of ECs residential rates at around 56.8% followed by distribution, supply and
metering charges (DSM) at 19.6%.
Table 7. ECs’ Unbundled Average Residential Electricity Rates, June 2020
LUZON VISAYAS MINDANAO NATIONAL

Bill Subgroup PhP/kwh % PhP/kwh % PhP/kwh % PhP/kwh %
share share share share
Generation 4.72 54.1 4.59 52.8 5.32 56.8 4.85 54.4
Transmission 1.03 11.8 0.90 10.4 0.92 9.8 0.96 10.8
System Loss 0.62 7.1 0.60 7.0 0.78 8.3 0.66 7.4
DSM 1 1.71 19.6 1.83 21.1 1.69 18.0 1.74 19.5
RFSC2 0.38 4.4 0.35 4.0 0.49 5.3 0.40 4.5
Other Charges3 (0.11) (1.2) 0.08 0.9 (0.13) (1.4) (0.04) (0.5)
Subsidy 0.02 0.2 0.05 0. 6 0.02 0.2 0.03 0.3
Charges4
Universal 0.29 3.3 0.26 3.0 0.26 2.8 0.27 3.1
Charges5
Other Taxes6 0.08 0.9 0.02 0.2 0.02 0.2 0.04 0.4
Total 8.73 100.0 8.69 100.0 9.38 100.0 8.91 100.0
Source: NEA
1 Distribution, Supply and Metering Charges
2 Reinvestment Fund for Sustainable CAPEX
3 Loan Condonation & PEMC-SPA Charge
4 Lifeline & Senior Citizen Subsidy/Discount
5 Missionary Electrification, Environmental Charges, NPC Stranded Cost
6 Local Franchise &Business Taxes, Real Property Tax
Among the PDUs, Cagayan Electric Power and Light Company in Mindanao posted the highest
average power rates for the billing month of June 2020 PhP10.4/kwh followed by Iligan Light and
Power Inc.at PhP9.3/kwh. On the other hand, the lowest average rate was noted for Lima Enerzone
(LEZ) in Luzon at PhP6.5/kwh, higher by PhP1.6/kWh compared to its March 2020 average systems
rate. Also LEZ posted the highest increase in rate of 33.7% from its PhP4.8/kwh in March2020.
Majority of LEZ customers are industrial entities, hence, the low average rates.
The average systems rate of MERALCO, the largest distribution utility in the country, went down by
4.0% from PhP8.0/kwh in March 2020 to PhP7.7/kwh in June 2020. Based on MERALCO’s reports,
the downward trend in their rates from May to July 2020 was due to the MERALCO’s invoking the
Force Majeure provision in its power supply agreements for the duration of the lockdown, reducing
fixed charges for generation capacity that would have been charged by suppliers. However, in August
2020, MERALCO’s average rates moved upward by 13 centavos/kwh due to higher generation cost
of their power supply agreements with Independent Power Producers (IPPs).
Also, on 29 May 2020, the ERC issued MERALCO a Show Cause Order upon the latter’s alleged
violation of certain directives contained in the ECQ and MECQ measures. The alleged violations are
the following among others: 1) the word “ESTIMATE” was not written on the April bill, 2) the cumulative
amount of electricity bill was supposed to have fallen due within the ECQ was not amortized in four
(4) equal monthly installments, payable in the four (4) succeeding billing months following the end of
the ECQ and 3) payments thereof by customers in areas covered by ECQ extension until 15 May
2020 shall commence no earlier than 30 May 2020.
On 20 August 2020, the ERC imposed a PhP19 Million fine on MERALCO for violating the regulatory
agency’s Advisories that it issued during the community quarantine period starting in March until July
2020. MERALCO, in particular, violated the following ERC directives: (1) Failure to clearly indicate
that the bills were estimated; and 2) Failure to comply with the mandated installment payment
arrangement.
As of October 2020
12
Figure 5 - Private Investor-Owned Distribution Utilities Average Electricity Rates
As of September 2020, MERALCO’s residential customers pay the highest electricity rates at
PhP9.05/kwh followed by commercial at PhP7.46/kwh and industrial customers with PhP6.21/kwh.
Table 8. Summary of MERALCO Unbundled Power Rates, September 2020 (PhP/kWh)

Bill Sub-Group Residential % Commercial % Industrial %
Generation 4.11 45.4 4.10 54.9 4.08 65.6
Transmission 0.78 8.7 0.88 11.7 0.69 11.1
Systems Loss 0.41 4.5 0.31 4.2 0.22 3.6
DSM 2.62 28.9 1.22 16.4 0.61 9.8
Cross Subsidies (0.09) -0.9 0.07 0.9 0.07 1.1
Universal Charges 0.20 2.2 0.20 2.7 0.20 3.2
Gov’t Taxes 0.97 10.7 0.64 8.6 0.30 4.8
Fit-All Charges 0.05 0.6 0.05 0.7 0.05 0.8
TOTAL 9.05 100.0 7.46 100.0 6.21 100.0
Source: MERALCO
For October 2020, MERALCO’s average residential electricity rates in the amount of PhP8.55/kwh
for its 0-200kwh residential customers was lower by 54 centavos/kwh compared to its year ago level
of PhP9.09/kwh. The decline was brought mainly by lower generation, transmission and universal
charges as well as taxes and subsidies. MERALCO’s average effective residential rates in October
2020 ranged from PhP8.55/kwh to PhP9.76/kwh of which the highest component was generation
costs at PhP4.22/kwh. Meanwhile, MERALCO distribution charges for its different residential
customer classes comprised 22.9% to 31.0%% of the total effective residential rates equivalent to
about PhP1.96/kwh and PhP3.03/kwh, respectively. Systems loss charges on the other hand was 41-
centavos/kwh.
Table 9. Summary of MERALCO Residential Unbundled Power Rates as of October 2020 (PhP/kWh)
0 to 200 201 to 300 301 to 400 Over 400

BILL SUBGROUP % Share % Share % Share % Share
kWh kWh kWh kWh
Generation 4.22 49.4% 4.22 47.6% 4.22 46.0% 4.22 43.3%

Transmission 0.77 9.1% 0.77 8.7% 0.77 8.4% 0.77 7.9%
System Loss 0.41 4.8% 0.41 4.6% 0.41 4.4% 0.41 4.2%
Distribution 1.96 22.9% 2.24 25.2% 2.52 27.4% 3.03 31.0%
Subsidies* 0.06 0.7% 0.06 0.7% 0.06 0.7% 0.06 0.6%
Government Taxes 0.88 10.3% 0.92 10.3% 0.95 10.4% 1.01 10.4%
As of October 2020
13
0 to 200 201 to 300 301 to 400 Over 400
BILL SUBGROUP % Share % Share % Share % Share
kWh kWh kWh kWh
Universal Charge 0.20 2.3% 0.20 2.2% 0.20 2.2% 0.20 2.0%
Fit-All Renewable 0.05 0.6% 0.05 0.6% 0.05 0.5% 0.05 0.5%
TOTAL 8.55 100% 8.87 100.0% 9.18 100.0% 9.76 100.0%
Source: MERALCO
Table 10 provides information on generation costs in reference with MERALCO’s power supply
agreements, WESM procurement and the regulated generation costs of PSALM. MERALCO’s
blended generation costs showed a declining trend from May 2020 to October 2020 which can be
largely attributed to lower WESM prices specifically during the month of April, July and August 2020.
During these months, MERALCO’s WESM purchases were around 19.1% of its total supply,
significantly lowering MERALCO’s blended generation charges.
Table 10. MERALCO/PSALM Generation Costs

Oct
Particular Apr-20 May-20 June-20 July-20 Aug-20 Sept-20 2020
MERALCO BLENDED
GENERATION COST 4.53 4.38 4.34 4.33 4.12 4.09 4.22
QPPL 7.15 5.82 4.95 5.78 6.72 6.65 5.24
FGPC - STA.RITA 4.96 4.52 4.38 4.41 4.22 4.25 4.61
FGP - SAN LORENZO 4.86 4.21 4.14 5.44 3.98 4.12 4.07
MPPCL
TLI 4.44 3.62 3.51 3.34 3.36 3.67 3.01
First Natural Gas Power
Corp. - San Gabriel (FNPC) 4.66 4.66 4.10 4.53 4.58 4.26 6.54
San Buenaventura
Power Ltd. Co. (SBPL) 4.47 4.02 4.14 3.88 4.15 3.80 4.21
AC Energy (baseload) 4.24 4.24 4.86 4.58 5.16 4.33 4.28
SMEC 4.01 4.04 4.05 4.13 4.11 4.14 4.15
SPPC (baseload) 4.05 4.05 4.05 4.13 1.15 4.14 4.15
AC Energy (midmerit) 4.24 4.24 4.86 5.90 6.44 6.48 4.89
SPPC (midmerit) 4.05 4.90 5.25 5.25
First Gen Hydro Power Corp.
(FGHPC) (midmerit) 4.24 4.24 4.24
Others 5.20 5.53 3.68 4.02 3.96 2.94 3.95
WESM 3.16 5.01 5.32 3.54 2.42 2.41 3.57
Export Energy from Net
Metering Customers 4.61 4.59 4.41 2.83 4.32 4.24 7.91
WESM ESSP 1.50
NPC/PSALM Generation
Cost - LUZON 4.39 4.39 4.39 4.39 4.39 4.39
NPC/PSALM Generation Cost
- VISAYAS 3.74 3.74 3.74 3.74 3.74 3.74
NPC/PSALM Generation
Cost - MINDANAO 2.85 2.85 2.85 2.85 2.85 2.85
Source: MERALCO and PSALM Websites; values were rounded off.
MERALCO’s bulk purchase comes from First Gas Power Corp. (FGPC) - Sta. Rita, South Premier
Power Corporation (SPPC), and First Gas Power Corp. (FGP) – San Lorenzo, which are all-natural
gas-powered plants. Further, MERALCO also sources a considerable amount of supply from
WESM.

As of October 2020
14
Also, MERALCO’s average bulk power purchase for the month of October 2020 which came from
First Gas Power Corp. (FGPC) - Sta. Rita at 15.4%, South Premier Power Corporation (SPPC) at
12.8%, and First Gas Power Corp. (FGP) – San Lorenzo at 10.0% which are all natural gas powered
plants. About 19.1% percent of MERALCO’s power supply requirement is bought from the WESM.
On 06 March 2020 ERC directed distribution utilities, both private and electric cooperatives to refund
to their respective consumers the over-recoveries in the Generation Rate (GR), Transmission Rate
(TR) System Loss Rate (SLR), Lifeline Subsidy Rate (LSR) and Senior Citizen Subsidy Rate (SrSR),
otherwise known as pass through charges implemented for a period of twelve (12) months except
for MERALCO and Angeles Electric Corporation (AEC) which prayed for a shorter period of refund,
starting the next billing cycle thus decreasing the rate on the next bill.
Meanwhile, transmission charges, on the average, comprised around 7% to 9% of a DU’s average

electricity rates. Transmission charges have two major components, namely, power delivery
charges (PDS) and Ancillary Service (AS) charges. The PDS share around 57.8 to 61.9% on the
average of the total transmission costs while ancillary service is around 38.1 to 42.3% of the total
transmission costs.
For the period January 2020 to August September 2020, Luzon Grid recorded the highest
transmission charges at PhP0.96kwh of which 52 centavos was paid for the power delivery service
while 44 centavos/kwh went to ancillary services. The Visayas grid has the lowest average
transmission cost in February 2020 at 76 centavos of which power delivery service was around 41
centavos/kwh while ancillary services cost 34 centavos/kwh. The highest transmission cost for the
report period was noted in Luzon Grid at about PhP0.96/kwh in May 2020.
On 20 April 2020, the ERC in a recent Order granted the NGCP an Interim Relief to implement an
Interim Maximum Annual Revenue (Imar). The Interim Relief reduced the existing Transmission
Charge by PhP0.0413 from PhP0.5114/kwh in 2019 to PhP0.4701/kwh for 2020. This is to provide
relief to all electricity consumers during this pandemic time.
Figure 6 - Transmission Cost
Source: NGCP

As of October 2020
15
B. Measures Implemented to Provide Relief to Electricity Consumers during the General
Community Quarantine (GCQ) Period
During the report period, following were issued:
1. Department of Energy (DOE)
a. DOE Advisory dated 07 May 2020 entitled, "Advisory on Providing Grace Period to All
Power Sector Bills Falling Due During the Enhanced Community Quarantine” which will
be until 15 May 2020. The advisory provides the following:
i. For Electricity Consumers: A grace period in the payment of electricity consumption

and allowed amortization of the same for at least 4 months;
ii. For Power companies, 4 months grace period in the payment of all obligations and
suspension of interests, fees, penalties and charges to the following:
 Payments due to NPC, PSALM, NGCP;

 Payment to fuel sources;
 Payment to IPPs;
 Grace period in the payment of Universal Charge to PSALM; and
 Payment to IEMOP;
iii. Suspension of the Fit-All;
iv. Encouraged negotiations between a contestable customers and Retail Electricity

Suppliers relative to obligations falling within the ECQ period; and
v. Requesting consideration of the LGUs in the collection of relative taxes, fees and
dues among power companies/facilities.
b. DOE letter to all distribution utilities (DU) dated 14 August 2020 that urges DUs to lower
the cost of electricity services;
c. DOE Advisory dated 23 September 2020 provides the implementation of a minimum of

thirty (30) day period and staggered payment without interests, penalties and other
charges to all payments due within the period of Community Quarantine (CQ) in the entire
electric power value chain to include generation companies, transmission utility and
distribution utilities. DOE directed the following entities to observe the grace period and
staggered payment for unpaid bills provided under the law, to wit:
i. Fuel/Resource suppliers with respect to their Generation Company customers being

supplies with fuel for the generation of electricity;
ii. Generation Companies, whether public or private corporation, with respect to

payment of electricity bills for the supply of electricity to Distribution Utilities, Retail
Electricity Suppliers and Directly Connected Customers including the Independent
Market Operators with regard to spot quantity transactions in the wholesale
electricity spot market;
iii. Independent Power Producers (IPP) with respect to the payments of the Power
Sector Assets and Liabilities Management Corporation (PSALM) of its obligations
pursuant to their respective power supply agreements;
iv. PSALM with respect to the payments of IPP Administrators (IPPA) pursuant to their
IPPA Administration Agreements;
As of October 2020
16
v. The National Grid Corporation of the Philippines (NGCP) with respect to the
transmission services payable by Generation Companies, Distribution Utilities,
Directly Connected Customers and other customers;
vi. Payments due to the independent Electricity Market Operator of the Philippines of
total trading amounts and other charges payable by WESM Participants; and
vii. Retail Electricity Suppliers relative to the bills of their Contestable Customers.
2. Energy Regulatory Commission (ERC)
a. ERC Advisory dated 05 May 2020 was issued in line with the government’s directive
extended anew the ECQ in the NCR and some areas until 15 May 2020. The Advisory
contains the following among others:
i. DUs and RES operating in areas that continue to be under the ECQ are directed
to further extend the grace period for the payment of their consumers’ electricity
bills falling due within the ECQ period of 16 March to 15 May 2020, without interest,
penalties, fees and other charges. The directive on the amortization payment in
four (4) equal monthly installments, payable in the four (4) succeeding billing
months following the end of the ECQ shall continue to be observed, but payments
thereof by customers in areas covered by ECQ extension until 15 May 2020 shall
commence no earlier than 30 May 2020.
ii. DUs and RES that are operating in areas under the GCQ shall retain the grace
period on the due date of their consumers’ electricity bills not earlier than 15 May
2020, without interest, penalties, fees and other charges. Similarly, the directive
on the amortization of payments in four (4) EMI payable in the four (4) succeeding
billing months is hereby reiterated.
iii. Actual payments received by the DU during the said period are still required to be
immediately proportionately to the concerned entities. Consequently, DUs are
authorized to adopt incentive schemes to encourage early payment of the deferred
amount by customers who are able to settle ahead of the four (4) months;
iv. The word “ESTIMATE” be clearly written on the consumer bill and that
corresponding adjustments be made as soon as practicable.
v. Government entities that are contestable customers shall observe the regular
payment schedule of their electricity bills starting 16 May 2020.
vi. The Generators/Suppliers, PSALM, NPC, TransCo NGCP IPPs and IPPAs and MO
shall extend the same payment scheme as provided in the preceding paragraph,
to the RES, DU and other customers, depending on whether such customer is
operating under an ECQ or GCQ. Availment of PPD will still be in accordance with
the parties’ approved supply contract;
vii. The suspension of the FIT-ALL collection from electricity customers is applicable
for March and April billing periods to be implemented on the next electricity bill to
be issued by the Collection Agents.

As of October 2020
17
b. ERC Advisory dated 22 May 2020 was issued in line with the certain areas under MECQ
until 31 May 2020. This Advisory contains the following among others:
i. The collection of Universal Charge-Environmental Charge (UC-EC) equivalent to

PhP0.0025/kwh is hereby suspended until further notice;
ii. DUs are directed to conduct actual meter readings and thereafter issue a new
billing reflecting the actual consumption and corresponding amount due, not later
than 08 June 2020, except when actual reading is not possible due to the
implementation of community quarantine;
iii. DUs are directed to allow their electricity customers with monthly consumption of
200 kwh and below in February 2020, a staggered payment of up to six (6) equal
monthly installments for their electricity bills falling due within the ECQ and MECQ
period, the first monthly amortization to be made not earlier than 15 June 2020,
without penalties, interest and other fees;
iv. For electricity customers with monthly consumption of above 200 kwh in February
2020, DUs shall allow a staggered payment of up to four (4) EQI for their electricity
bills falling due with the ECQ and MECQ periods, the first monthly amortization to
be made not earlier than 15 June 2020, without penalties, interest and other fees;
and
v. Availment of Prompt Payment Discount (PPD) may be subjected to negotiation

between the contracting parties.
c. ERC Advisory dated 07 July 2020 was issued in connection with previous Advisories
issued by the Commission and its initial evaluation of the reports submitted by
distribution utilities (DUs)/Electric Cooperatives (ECs) on their compliance on said
advisories and following directives are hereby issued:
i. DUs/ECs that failed to comply with the ERC’s directives contained in its Advisories
are directed to cause the refund of the following electricity charges:
● Feed-in-Tariff Allowance (FIT-All) for the billing months of March and April 2020
as directed in the ERC Advisories dated 15 April 2020 and 5 May 2020;
● Universal Charge – Environmental Charge (UC-EC) as stated in the 22 May
2020 Advisory;
● Overpayments made by consumers arising from monthly billings issued based
on estimated consumption and verified against actual meter reading; and
● Overpayments resulting from the non-implementation of the installment payment
scheme prescribed by the Commission;
The said overpayments shall be accurately and clearly reflected on the billing
statement.
ii. For consumers who are entitled to refunds due to overpayments, they may, in lieu
of cash refund, request the DU/EC to apply the amount to be refunded as credits
that will be applied in the immediate future billings. For this purpose, the DUs/ECs
shall provide the necessary communication facility where such requests may be
forwarded by the consumers. Such requests shall be acknowledged by the DU/EC
within 48 hours upon receipt of the request;
iii. For consumers who already paid in full, their monthly billings that fell due during the
Enhanced Community Quarantine or Modified Enhanced Community Quarantine

As of October 2020
18
shall also have the option to seek a refund and avail of the mandated installment
payment;
iv. DUs/ECs are required to submit a Report on overbillings, by month, and the
pertinent refund undertaken on or before 15 August 2020; and
v. DUs/ECs in Cebu Province, particularly in places that are still under the Enhanced
Community Quarantine, are directed NOT to effect any disconnection on account of
unpaid ECQ bills of electricity consumers until September 2020.
C. Universal Charge (UC)
This section provides development on the implementation of UC pursuant to Section 34 of the EPIRA.
Highlights include status of collection and disbursements, updates on PSALM’s application for the
recovery of stranded contract costs and stranded debts, and the implementation of UC collection from
self-generating facilities.
1. Universal Charge Remittances, Interests & Disbursements Charge Remittances,

Interests & Disbursements
As of 30 June 2020, the total collections of Universal Charge amounted to PhP19.1 billion
with interest earnings from deposits and placements of UC funds amounted to PhP0.3 Billion.
On the other hand, UC fund disbursement amounted to PhP194.1 Billion. Accounting for the
inflows and outflows of the UC fund leaves it with a balance of about PhP2.3 billion.
Below are the details of UC remittances, interests and disbursements:
Table 11. UC Collections as of June 2020 (in Billion PHP)

Particulars Remittances Interests Disbursements Balance
Special Trust Fund –
Missionary Electrification
104.79 0.05 104.74 0.10
(ME) NPC-SPUG
Special Trust Fund – ME
Renewable Energy
Developer Cash Incentive 0.79 0.02 0.30 0.51
(REDCI)
Environmental Charge (EC) 2.53 0.15 1.49 1.18
Stranded Contract Cost
80.81 0.07 80.39 0.48
(SCC)
Stranded Debts 7.22 0.00 7.20 0.03
TOTAL 196.14 0.29 194.12 2.30
Source: PSALM
2. UC Remittances
For June 2020, PSALM received PhP1.09 Billion in UC remittances.
3. UC Disbursements
For June 2020, PSALM disbursed PhP5.08 billion to NPC-SPUG to fund the missionary
electrification functions, chargeable against the UC-ME fund.

As of October 2020
19
The aforementioned UC disbursement is pursuant to the following ERC Decisions/Orders:
ERC Case No. Date Approved Particulars
2012-085 RC 12 August 2013 ERC Decision on CY 2011 True-up
Adjustments (PhP4.651 billion)
2012-046 RC 10 October 2013 ERC Decision on CY 2010 True-up
Adjustments (PhP2.566 billion)
2014-135 RC 03 November 2013 & 17 August 2015 ERC Order on CY 2015 UC-ME
Subsidy
2012-085 RC 20 April 2015 ERC Order on CY 2014 UC-ME
Subsidy (PhP2.763 billion)
In accordance with the ERC decision dated 28 January 2013 under Case No. 2011-091 RC, the
amount of PhP0.319 billion was transferred from the UC-SD to the UC-SD Special Fund Account
for the period June 2019.
4. ERC-Approved UC Rates
a. The table below shows the ERC-approved UC rates being implemented as of 30 June
2020:
Type of UC PhP/kWh
UC-ME 0.1544
ME – REDCI (Renewable Energy Developers 0.0017
Cash Incentive
UC-EC 0.00001/
UC-SCC 0.00002/
UC-SD 0.0428
Total 0.1989
1/ Collection of UC-EC of PhP0.0025/kWh from all electricity end-users by all collecting entities, including
NGCP, has been suspended effective 22 May 2020, until further notice from the ERC.
2/ Collection of UC-SCC of PhP0.0543/kWh from all electricity end-users by all collecting entities has
ceased effective February 2020 in view of full recovery of ERC-approved SCC amount of PhP5.117
billion.
b. UC-SCC
In view of the effectivity of the Murang Kuryente Act (MKA) and its implementing Rules and
Regulation (IRR), ERC in its Order dated 28 May 2020, dismissed the following PSALM UC-
SCC applications:
ERC Case No. Date Applied Purpose Amount Applied

No. 2017-066 RC 06 July 2017 CY 2016 UC-SCC 3,686,192,736.05
Availment
No. 2019-048 RC 25 June 2019 CY 2018 UC-SCC 6,121,174,568.47
Availment
c. UC-SD
For UC-SD, the CY 2014 True-Up Adjustment Motion for Reconsideration filed by PSALM on
06 June 2019 amounting to PhP1,578,164,643.22 was declared moot and academic by ERC
in its order dated 28 May 2020 as posted in their website.
The following UC-SD True-Up Adjustment applications were likewise dismissed due to the
effectivity of the MKA and its IRR:

No. 2016-150 RC 30 June 2016 CY 2015 UC-SD True-Up 27,670,386,541.73
Adjustment

As of October 2020
20
No. 2017-069 RC 31 July 2017 CY 2016 UC-SD True-Up 34,642,180,036.26
Adjustment
No. 2018-087 RC 31 July 2018 CY 2017 UC-SC True-Up 11,804,635,030.22
Adjustment
No. 2019-047 RC 25 June 2019 CY 2018 UC-SC True-Up 4,722,490,975.31
Adjustment
D. Lifeline Rate Subsidy Program
As of May 2020, almost all distribution utilities in the country are implementing the lifeline rate at
varying thresholds and discount structures. While the threshold are different per DU, it is not clear
what are the parameters used in setting the said threshold, although from a closer look, the relevant
number of subsidizing customers may have been among the key considerations, i.e. the higher the
number of non-lifeline customers, the higher are the thresholds set for the lifeline consumption
threshold.
Out of the one-hundred forty-eight (148) distribution utilities implementing the lifeline rate, 79 have a
threshold level of 20 kWh and below. On the other hand, the highest lifeline threshold approved by
the ERC is up to 100 kWh of consumption per month and it is being implemented by seven (7) DUs
which are all privately owned and that includes MERALCO, Davao Light, Iligan Light, CEPALCO and
Visayan Electric Company (VECO), in Cebu. It can be noted though that except for Cebu City, none
of these franchise areas belong to the top 20 poorest provinces showing potential disparity in the
distribution of lifeline rate subsidy.
The smallest amount of subsidized consumption was up to 8 kWh which is being implemented by
Cagayan de Sulu Electric Cooperative (CASELCO). The most common threshold of lifeline
consumption being implemented is 0-20 kWh which is being implemented by 48 ECs, followed by 0-
25 kWh which is being implemented by 25 ECs. There are also 13 ECs that are implementing
subsidized consumption of up 15 kWh.
Looking at Table 12, the Province of Cebu without the Cities of Cebu, Lapu-Lapu and Mandaue has
the largest incidence of poverty on the country followed by Sulu, Lanao Del Sur, Negros Occidental
without the City of Bacolod. Despite having the largest volume of poor families, it can be noticed that
the level of consumption discounted ranged only from 0-20 kWh among the majority except
Maguindanao and Lanao Del Sur. This reflects the capability of the other consumers in the areas
that could only be limited to a certain level as extending the discounted consumption to a higher
threshold will also significantly affect and will be burdensome to the subsidizing segment of the
consumers.
Table 12. Top 20 Poorest Cities and Provinces in the Philippines

Region/Province Annual Per Capita Magnitude of Poor Lifeline Threshold
Poverty Threshold Families Level
(in PhP)
Cebu (w/o the Cities of Cebu, Lapu-Lapu 25,827 113.0 0-20
and Mandaue)
Sulu 29,150 110.0 0-15
Lanao del Sur 29,224 109.1 0-50
Leyte (w/o the City of Tacloban) 23,564 104.2 0-18
Negros Occidental (w/o the City of Bacolod) 23,676 103.5 0-25
Camarines Sur 24,271 88.3 0-20
Zamboanga del Norte 28,523 87.2 0-15
Maguindanao 25,368 84.6 0-35
North Cotabato 25,020 83.1 0-25
Bukidnon 25,624 73.4 0-25
Iloilo (w/o the City of Iloilo) 26,069 66.7 0-25
Pangasinan 27,828 66.2 0-20
Negros Oriental 25,113 63.1 0-20
As of October 2020
21
Region/Province Annual Per Capita Magnitude of Poor Lifeline Threshold
Poverty Threshold Families Level
(in PhP)
Zamboanga del Sur (w/o the City of 23,761 60.8 0-18
Zamboanga)
Batangas 33,068 58.4 0-35
Isabela 25,460 51.9 0-15
Masbate 22,911 51.1 0-25
Agusan del Sur 24,655 50.5 0-25
Sarangani 23,282 48.3 0-25
Eastern Samar 29,070 48.0 0-15
Source: 2018 PSA Family Income and Expenditure Survey
Meanwhile, Table 13 provides the information on the average number of poor families per Region
and the average Annual Per Capita Poverty Threshold. As of 2018, the average income per poor
household per year is PhP25,965.
The disparity in the distribution of lifeline end-users is apparent as areas with lower magnitudes of
poor families have the highest number of lifeline electricity end-users such as NCR, Region III and
Region 10. On the other hand, those regions with higher magnitudes of poor families have less lifeline
customers, particularly ARMM.
Table 13. Updated Annual Per Capita Poverty Threshold, Poverty Incidence and Magnitude of Poor Families
with Measures of Precision, by Region, Province and Highly Urbanized Cities: 2018
Annual Per Magnitude Range of Lifeline Rate No. of Lifeline
Capita Poverty of Poor Threshold Leve*/cl Rate Electricity
Region/ Province Threshold/a Families/b (kWh) End-Users*/d
(in PhP) ('000)
Low High
PHILIPPINES 25,813 3,004.6 0-8 0-100 4,760,489
NCR 28,682 47.6 0-100 0-100 2,653,250
CAR 24,907 36.3 0-13 0-45 99,483
Region I 27,055 85.2 0-20 0-70 98,938
Region II 25,099 106.3 0-15 0-20 53,783
Region III 26,954 143.4 0-20 0-100 159,769
Region IV-A 27,928 190.4 0-20 0-100 142,953
MIMAROPA 23,315 77.4 0-10 0-35 40,370
Region V 24,461 256.3 0-15 0-40 136,349
Region VI 24,494 218.3 0-20 0-80 292,974
Region VII 25,745 246.2 0-12 0-100 317,661
Region VIII 24,987 253.3 0-10 0-70 104,391
Region IX 25,650 213.0 0-15 0-70 147,555
Region X 24,835 194.2 0-15 0-100 205,947
Region XI 25,953 178.5 0-20 0-100 174,365
Region XII 25,023 252.8 0-25 0-80 97,264
CARAGA 25,375 149.4 0-15 0-40 34,430
ARMM 27,715 356.2 0-8 0-50 1,007
Notes:
a/ updated; The 2018 estimates were updated following the availability of the final 2018 Family Income and
Expenditure Survey (FIES), which now includes the new urban-rural classification based on the results of the 2015
Census of Population (POPCEN 2015), in addition to other changes that were made.
b/FIES as of 2018
c/ lifeline threshold level differ for each distribution utility. Reflected only the smallest and the largest amount of
consumption subsidized.
d/ average lifeline consumption as submitted by the ERC
* No. of Lifeline Rate data is based on the May 2020 submissions of the DUs thru the ERC.
As of May 2020, a total of PhP402,687,524, were collected from non-marginalized customers as

lifeline rate subsidy to marginalized end-users. Of the said amount, PhP308,853,863 was provided
to lifeline consumers in the MERALCO franchise area while only PhP47,287,921.62 was provided in
the ECs franchise areas and PhP46,545,739 from other private DUs.

As of October 2020
22
Private DUs despite being fewer than ECs provide a bigger amount of subsidy than their EC
counterparts considering that they mostly operate in highly urbanized areas such as Metro Manila,
Cebu, Davao and Cagayan De Oro where the bulk of electricity is consumed.
Table 14. Summary of Lifeline Subsidy as of May 2020

Sum of
Sum of Non- Sum of Total
Sum of Total Lifeline Sum of Total Sum of Total
Lifeline Amount of
Number of Customers' Number of Discounts to
Region Customers' Subsidy by
Lifeline kWh Non-Lifeline Lifeline
kWh Non-Lifeline
Customers Consumptio Customers Customers
Consumption Customers
n
22,263,320.8 924,990,484.6
EC 1,615,711.00 2 4,669,263.00 3 45,125,166.77 47,287,921.62
ARMM 1,007 17,397 16,897 3,234,043 45,159 4,528
CAR 99,483 1,179,031 159,187 34,559,994 1,980,470 2,009,008
CARAGA 34,430 263,875 166,670 30,147,891 717,509 642,267
I 50,338 463,795 290,423 43,210,267 1,224,275 720,098
II 53,783 723,176 152,482 16,466,594 1,382,533 1,167,482
III 130,331 2,144,323 593,401 151,323,548 3,528,741 3,388,207
IV-A 138,813 3,029,110 361,011 127,862,381 5,269,130 5,856,147
IX 147,555 2,431,136 369,609 95,724,864 3,383,178 7,732,006
V 136,349 1,464,770 590,406 42,834,170 3,003,066 3,028,730
VI 292,974 5,234,974 591,227 153,834,701 9,857,430 9,867,828
VII 105,261 895,942 370,371 61,140,637 1,791,922 2,302,517
VIII 104,391 721,436 256,816 31,466,285 1,135,033 1,146,915
X 142,626 1,429,624 304,377 49,257,630 5,065,146 3,983,533
XI 51,743 660,215 114,279 28,145,768 2,323,127 2,600,669
XII 86,257 1,186,782 192,842 35,755,189 3,534,938 1,954,465
IV-B 40,370 417,737 139,265 20,026,522 883,509 883,523
PDU 3,144,779 150,019,890 5,269,527 3,418,487,242 372,959,186 355,399,602
I 48,600 1,371,462 125,178 45,591,366 2,981,116 3,337,898
III 29,438 667,301 105,181 60,158,669 2,549,662 2,752,643
IV-A 4,140 104,792 10,583 2,972,485 114,458 -

VI
VII 212,400 8,980,731 340,955 243,088,636 20,708,186 20,825,335
X 63,321 3,276,228 90,652 100,583,023 7,662,685 7,322,444
XI 122,622 7,104,701 302,081 170,448,256 11,286,259 11,286,259
XII 11,008 495,899 33,068 13,177,570 1,017,997 1,021,159
NCR 2,653,250 128,018,776 4,261,829 2,782,467,238 326,638,823 308,853,863
Grand Total 4,760,490 172,283,211 9,938,790 4,343,477,727 418,084,352 402,687,524

Source: ERC

As of October 2020
23
As of May 2020, the average amount of subsidized consumption in the MERALCO franchise area
averaged 48.25 kwh which is way above the minimum subsidized consumption of 20kwh. For other
private DUs, the average subsidized consumption is at 44 kwh while about 14 kwh are in the ECs.
The average subsidized consumption during the month was at 36 kwh per lifeline customer. The
amount of subsidy added to non-lifeline customers per kwh amounted to 12 centavos/kwh in the
MERALCO franchise area, 5 centavos/kWh in the ECs franchise areas, for other DUs, at 7
centavos/kwh.
The said subsidy translated to an average discount to lifeline customers of about PhP2.55/kwh in the
MERALCO area, P2.03/kwh in the ECs franchise areas, while PhP2.11/kwh in the franchise areas of
other private DUs. This is equal to a nationwide average of PhP2.43/kwh. The said discount cuts
across all the lifeline threshold levels of all DUs.
Table 15. Average Monthly Subsidy and Benefits to Lifeline End-Users

Electric
Particulars MERALCO Cooperative Other PDUs Grand Total
s
Average Number of Lifeline Customers per 2,653,250 1,615,711 491,529 4,760,490
Month
Average Number of Non-Lifeline Customers 4,261,829 4,669,263 1,007,698 9,938,790
per Month
Average Total Monthly Consumption of 128,018,776 22,263,321 22,001,114 172,283,211
Lifeline Customers (kWh)
Average Monthly Consumption of Non-Lifeline 2,782,467,23 924,990,485 636,020,005 4,343,477,72
Customers (kWh) 8 7
Average Total Monthly Subsidy to Lifeline 308,853,863 47,287,922 46,545,739 402,687,524
Customers (P/Mo.)
Average Monthly Amount of Subsidy Provided 326,638,823 45,125,167 46,320,363 418,084,352
by Non-Lifeline Customers (in PhP)
Average Monthly Consumption per Lifeline 48.25 13.78 44.76 36.19
Customer (kWh)
Average Amount of Subsidy Provided to 2.55 2.03 2.11 2.43
Lifeline Customers, in PhP/kWh
Average Amount of Subsidy Provided by 0.12 0.05 0.07 0.10
Non-Lifeline Customers, in PhP/kWh
Source: ERC
E. Mandatory Rate Reduction (MRR)
Pursuant to Section 72 of the EPIRA, NPC is continuously granting to residential customers the
mandatory discount of 30-centavos/kWh. For this report period, mandated rate reduction for Luzon,
Visayas and Mindanao including SPUG areas is considered in the report.
For the period April-July 2020, NPC reported an average of 8% increase in the amount of discounts
extended pursuant to the Mandated Rated Reduction (MRR). This can be attributed to the increased
consumption of residential customers during the imposition of community quarantine nationwide.

As of October 2020
24
Figure 7 - MRR Collection (August 2019 – July 2020)
Source: NPC
Majority of the rate reduction were applied in the off-grid areas and the largest was recorded in
Region IV-B with Marinduque taking the biggest amount of reduction of about PhP10.8 Million from
August 2019 to July 2020. In the Visayas, Camotes Island got a fair share of reduction with
PhPPhP2.0 Million while Basilan in Mindanao took the highest share of rate reduction with PhP5.8
Million. For On-Grid DUS, Aurora Electric Cooperative (AURELCO) got PhP1.2 Million, Northern
Samar Electric Cooperative in the Visayas got PhP641Thousand. In Mindanao, Davao Del Norte
Electric Cooperative (DANECO) got the biggest reduction of PhP221Thousand. The MRR is
extended only to residential customers of DUs which has a supply contract with PSALM.
Figure 8 – Total Amount of Mandated Rate Reduction (August 2019 – July 2020)
25,000,000.00
In Philippine Pesos
20,000,000.00
15,000,000.00
10,000,000.00
5,000,000.00
0.00
ON-GRID OFF-GRID
LUZON VISAYAS MINDANAO
For the period starting August 2019 to July 2020, a total of PhP61 Million amount of MRR has been
granted to consumers in Luzon, Visayas and Mindanao areas. From the beginning of implementation
of the MRR, a total of PhP31.6 Billion has been given to electricity consumers nationwide until July
2020.
Table 16. NPC Total Amount Incurred Due to Mandatory Rate Reduction
Billing Month TOTAL LUZON VISAYAS MINDANAO TOTAL
2001-June 2019 3,458,987,375.66 2,462,937,348.15 5,579,719,909.90 31,498,647,971.34
Jul-19 1,935,325.81 2,454,950.33 4,390,276.14
Aug-19 3,061,405.77 589,519.12 2,385,503.31 6,036,428.20
Sep-19 2,817,510.58 571,118.25 2,412,424.80 5,801,053.63

As of October 2020
25
Billing Month TOTAL LUZON VISAYAS MINDANAO TOTAL
Oct-19 2,809,171.89 562,517.08 2,430,996.05 5,802,685.02
Nov-19 2,920,238.66 829,791.16 2,521,484.06 6,271,513.88
Dec-19 2,107,022.68 701,489.12 2,576,566.59 5,385,078.39
Jan-20 2,941,005.32 398,185.99 2,599,232.61 5,938,423.92
Feb-20 3,048,343.79 472,958.76 2,588,058.23 6,109,360.78
Mar-20 2,813,156.00 502,510.24 2,525,969.56 5,841,635.80
Apr-20 3,433,780.90 558,445.60 2,640,828.06 6,633,054.56
May-20 3,701,995.55 605,201.38 2,774,469.12 7,081,666.05
Jun-20 3,527,103.44 653,215.60 2,806,772.16 6,987,091.20
Jul-20 3,385,213.38 589,463.96 2,723,942.34 6,698,619.68
TOTAL 3,497,488,649.43 2,469,971,764.41 5,613,161,107.12 31,577,624,858.59
Source: NPC

As of October 2020
26
V. COMPETITION
This section provides an update on key areas of competition covering the period November 2019 to
April 2020 on the operation of the Wholesale Electricity Spot Market (WESM), commercial operations
of Retail Competition and Open Access (RCOA), implementation of the Reserve Market, and
monitoring of compliance to Section 45 of the EPIRA.
A. WESM Operational Highlights
As of 25 September 2020, the total registered participants in the integrated WESM (Luzon and
Visayas) is two hundred seventy-four (274), consisting of one hundred and thirty-five (135)
generation companies and one hundred thirty-nine (139) customers.
During this period, Bataan 2020, Inc., a generation company in Luzon registered in the market as
a direct member, while two (2) customers ceased their operations which include the National Power
Corporation, an indirect member and First Gen Energy Solutions, with a wholesale aggregator
category.
For the month of August 2020 one (1) generation company, and two Directly Connected Customers
(DCC) from Luzon also ceased their WESM registration. These are: CW Marketing and
Development Corporation, Purity Ice Plant & Cold Storage and First Philippine Industrial
Corporation
Early on, there are two (2) new participants that entered the market in the months of June and July
2020, namely: Philippine Power and Development Company (PPDC), a generation company and
Lima Enerzone Corporation (LEZ) a distribution utility, which are both from Luzon.
For June 2020, there are also two (2) DCCs which were delisted due to change in category from
DCC to Directly Connected Contestable Customer (DCCU). They are the International Rice
Research Institute and San Miguel Yamamura Packaging Corporation.
The breakdown of the Generation Companies and Customer Trading Participants is shown in the
table below.
Table 17. Registration Update as of 25 September 2020 (Luzon and Visayas)

REGISTERED
CATEGORY TOT DIRECT INDIRECT
AL LUZ VIS LUZ/VIS2 LUZ VIS LUZ/VIS
Generation
135 86 45 2 1 0 0
Companies
Customers
Private distribution
utilities & Local 19 9 5 0 5 0 0
government utilities
Electric cooperatives 71 29 28 0 14 0 0
Directly Connected
49 7 6 1 27 7 1
Customers
Wholesale
0 0 0 0 0 0 0
aggregators
Total Customer
139 45 39 3 46 7 1
Trading Participants
TOTAL
274 131 84 3 47 7 1
PARTICIPANTS
Source: PEMC
2
The Luz/Vis represents generation company which facilities exist in both Luzon and Visayas (PSALM and EDC)
As of October 2020
27
Capacity Profile
The WESM registered capacity for the month of September 2020 is recorded at 20,207.47 MW
MW, an increase of 15.5 MW compared from a total of 20,191.97 MW registered in April 2020. Of
the said total capacity, only about 64% or an average of 12,973 MW were offered in the market.
During the report period from May to September 2020, several changes in the registered capacity
of power plants in the WESM were recorded as follows:
1. Increase in capacities:
a. Bauang DPP from 200 MW to 210 MW;
b. Irisan 1 HEP from 3.8 MW to 3.9 MW;
c. Calumangan DPP units 3 and 5 from 4.2 MW to 4.3 MW and 6.4 MW to 6.6 MW,
respectively;
d. Makban GPP units A and B from 126 MW to 126.4 MW each;
e. Tiwi GPP unit A from 118 MW to 120 MW;
f. Calumangan DPP units 1 and 2 from 4.2 MW to 4.3 MW each; and
g. Sabangan HEP from 14.3 MW to 15MW.
2. Decrease in capacities:
a. Ecopark Energy Solar plant from 4.4 MW to 4 MW;
b. FFHC biomass from 13 MW to 9 MW;
c. SCBI biomass from 8.3 MW to 7.4 MW;
d. PWEI Nabas wind from 36 MW to 21 MW;
e. San Jose I Power Corporation biomass plant from 12 MW to 10.8 MW;
f. Therma DPP units 1, 3, 4, 5, and 6 from 7.4 MW to 6.8 MW each; and
g. Therma DPP unit 2 from 7.4 MW to 6.7 MW.
3. New entries:
a. Philippine Power and Development Corporation’s 3.1 MW hydro plants in Luzon; and
b. Bataan 2020, Inc.’s 25-MW coal plant.
4. Ceased registration:
a. Home Depot Solar plant 1.5-MW.
Market Outcome
During the report period from May to September 2020, the average effective supply and supply
margin in the market was recorded at 13,251 MW and 2,326 MW respectively. Lowest supply
margin was recorded in September 2020 which was attributed to the notable rise in outages and
capacities not offered this month and increased system demand due to improved economic
activities.
Average market price is at PhP2,621/MWh with the lowest rate of PhP2,040/MWh in May 2020
and highest rate of PhP 3,657/MWh in September 2020.
For the May 2020 billing month, a resulting drop in demand was seen on 15 May as several 69 kV
and 230 kV transmission lines in Luzon and Visayas went on outage due to the passing of the
Typhoon Ambo. Demand slowly went back to normal after a few days as the transmission lines
were restored.
On 16 May 2020, the Modified Enhanced Community Quarantine (MECQ) was imposed in high-
risk parts of Luzon, including Metro Manila, which was previously under ECQ. Meanwhile, the
majority of the areas in the country transitioned to the General Community Quarantine (GCQ). In
areas under both quarantine categories, protocols are slightly relaxed which led to partial
As of October 2020
28
resumption of operations of some industries but to certain extent. This caused electricity demand
plus a reserve schedule to gradually regain normalcy and to increase in level. With this, electricity
consumption grew by 11.2% from an average of 9,259 MW in April 2020 to 10,299 MW in May
2020 as higher heat indices were also noted towards the end of the dry season.
Tightness between the supply and demand was observed to persist starting June 1, which
eventually recovered, as outages from large capacity generating plants were evident. Additionally,
a yellow alert notice was issued by the System Operator (SO) in the Luzon grid due to insufficient
operating reserve as supply was low alongside the increasing demand after the easing of the
community quarantine. As a result, hourly supply margin reached as low as 114 MW on 04 June
14H.
In general, for the June 2020 billing month, the average effective supply increased by 5.2% from
12,811 MW in May 2020 to 13,475 MW level. This was attributed to the notable decrease in
outages this month which occurred in the second week of June. The electricity demand plus
reserve schedule continued to increase in level since the country’s transition to GCQ. Electricity
consumption grew by 9.3% from an average of 10,299 MW in May 2020 to 11,254 MW. Contrary
to the pattern in the previous months where demand was seen to peak during evening, the pattern
is now starting to resemble its usual peaking hours in the afternoon. However, a resulting drop in
demand was seen on 12 June owing to the holiday in celebration of Philippines’ Independence
Day.
Based on record, in July 2020, the growth rate of demand slowed down and almost retained its
average level. With this, electricity consumption with a reserve schedule minimally declined by
0.5% from an average of 11,254 MW in June 2020 to 11,196 MW in July 2020. Although the
demand pattern over the previous months was seen to be gradually increasing, this level was still
lower than last year’s level of average demand at 11,572 MW since the country is still under
quarantine protocols.
For the August 2020 billing month, electricity consumption with a reserve schedule declined by
5.3% compared to July 2020. This is due to the reimposition of Modified Enhanced Community
Quarantine (MECQ) from 4 to 18 August for the high-risk areas, including Metro Manila because
of the alarming and increasing COVID-19 cases.
As a result of the supply-demand mix, average supply margin for the month of September 2020
was at 1,863 MW, which was noted due to high system demand recorded as the highest for the
year 2020. Accordingly, electricity demand with consideration of reserve schedules increased by
6.4 percent from an average of 10,599 MW in August 2020 to 11,278 MW in September 2020. On
a yearly comparison, this level was higher than last year’s level of average demand at 11,154 MW
despite the country being under quarantine protocols.
Due to the interaction of the supply and demand, the resulting market prices saw an 81.3 percent
surge to an average of PhP3,657/MWh in September 2020 from August 2020’s PhP2,017/MWh.
The details of the demand and supply situation and the Average Market Prices are shown in the
table below.
Table 18. Demand and Supply Situation (May to September 2020)

Demand + Reserve Effective Supply Supply Margin Average Market
Month Price (Php/MWh)
(MW) (MW) (MW)
May 2020 10,299 12,811 2,512 2,040
June 2020 11,254 13,475 2,221 3,265
July 2020 11,196 13,577 2,381 2,124
August 2020 10,599 13,251 2,652 2,017
September 2020 11,278 13,141 1,863 3,657
Average 10,925 13,251 2,326 2,621
Source: PEMC
As of October 2020
29
Market Transactions
Customer Spot market transactions (spot market volume) in Luzon and Visayas for the report
period were at an average of 814.28 GWh. 84% of these transactions is for Luzon while 16% is for
the Visayas grid.
Spot market transactions increased enormously by 85% from 549.83 GWH in May 2020 to
1,015.52 GWH in September 2020. The generator payments in Luzon increased by 302% from
PhP 776.86 Million in May 2020 to PhP 3,120 Million in September 2020, while in Visayas, the
generator payments decreased by 42% from PhP655.59 Million in May to PhP931.15 Million in
September 2020.
For September 2020, Customer Spot market transactions were at 1.015524 TWH which translates
to 14.70% of the total energy consumed in Luzon and Visayas. The remaining 85.30% of the total
volume was transacted and settled outside the market. Luzon spot market transactions were
recorded at 871.187 GWH while Visayas spot market transactions were at 144.338 GWH. Luzon
generator payments amounted to Php 3.12 Billion while Visayas generator payments were
recorded at Php 931.15 Million.
Summary of Market Transactions are shown in the following table.
Table 19. Summary of Market Transactions for May to September 2020

Visayas
Spot Market Spot Market Spot Market Luzon
Generator
Transactions Transactions Transactions Generator
Month Payments
for Luzon & for Luzon for Visayas Payments
(Million
Visayas (GWH) (GWH) (GWH) (Million PhP)
PhP)
May 2020 549.83 373.94 175.89 776.86 655.59
June 2020 897.83 785.37 112.46 2,416.13 965.00
July 2020 898.86 790.09 108.78 1,633.94 503.01
August 2020 709.37 595.40 113.98 1,163.40 504.87
September 2020 1,015.52 871.19 144.34 3,120.00 931.15
Average 814.28 683.20 131.09 1,822.07 711.92
Source: PEMC
Outage Capacity
During the report period, an average of 12% of the total registered capacity equivalent to 2,441
MW was on outage.
The May 2020 billing month experienced the highest level of outage at 2,962 MW, of which the
majority or 80% was classified as forced outages resulting from transmission lines outages in
Luzon and Visayas due to the passing of the Typhoon Ambo on 15 May 2020.
In June 2020, there was a 25% decline in the level of outages from May 2020’s average of about
2,962 MW to 2,222 MW this month. Significant decrease in forced outages were noted to comprise
only 67%.
Outage levels almost remained the same going into July. About 11% of the total registered capacity
or an average of 2,139 MW was on outage. This was a minimal 3.7% decline from May 2020’s
average of around 2,222 MW.
In August 2020, the majority of the outages or 66% was classified as forced outages, planned
outages represented 31% and maintenance outages accounted for 1% of the total outages.
Meanwhile, deactivated shutdown comprised the remaining 3% of the total outages.

As of October 2020
30
Lastly in September 2020, outage levels constituted 13% of the total registered capacity or an
average of 2,623 MW. This showed an 18.3% increase from August 2020’s average of around
2,217 MW.
Based on the type of resource, about 53% or an average of 1,379 MW, was mainly on account of
the long outage period from coal plants namely: the planned outage of Masinloc CFTPP unit 1 (315
MW); and forced outages of SLPGC CFTPP unit 1 (150 MW), SLPGC CFTPP unit 2 (150 MW),
Sual CFTPP unit 1 (647 MW) SBPL CFTPP (455 MW), Pagbilao CFTPP unit 2 (382 MW), Mariveles
CFTPP unit 2 (316 MW), and Sual CFTPP unit 2 (647 MW). Meanwhile, natural gas plants recorded
an average of 497 MW or 19% of the total outages coming from 100% availability or no outage in
August 2020. Majority of the outage came from the unavailability of the San Gabriel NGPP (420
MW), starting 05 September, due to an electrical fault in the generator based on the initial findings.
Geothermal plants also recorded a 25% increase in level of outage from August 2020’s average of
282 MW to September 2020’s 352 MW. Additionally, hydro plants posted a significant drop in
average outage capacity this month from 106 MW in August 2020 to 8 MW in September 2020.
Majority of the average outage of oil-based plants at about 387 MW in September consisted of the
prolonged outage of Malaya TPP unit 1 (300 MW) due to problems in the unit generator since 03
May 2019.
Capacity Profile in the WESM for the covered period from May to September 2020 is summarized
in the following table.
Table 20. Summary of Capacity Profile for May to September 2020

Capacity of Must Run
Registered Offered Outage Capacity
Plants on Unit
Month Capacity Capacity Capacity Not Offered
Commissioning Capacity
(MW) (MW / %) (MW / %) (MW / %)
(MW / %) (MW / %)
13,185/ 2,962/ 2,700/ 994/ 350/
May 2020 20,191
65% 15% 13% 5% 2%
13,738/ 2,222/ 2,874/ 997/ 350/
June 2020 20,178
68% 11% 14% 5% 2%
13,944/ 2,139/ 2,804/ 995/ 303/
July 2020 20,188
69% 11% 14% 5% 2%
13,465/ 2,217/ 3,188/ 966/ 350/
August 2020 20,182
67% 11% 16% 5% 2%
September 12,973/ 2,623/ 3,289/ 961/ 350/
20,207
2020 64% 13% 16% 5% 2%
20,189 13,461 2,433/ 2,971 982.60/ 340.6/
Average
67% 12% 15% 5% 2%
Source: PEMC
B. Updates on WESM Governance Activities
The DOE monitors the governance of the WESM through its representation from the different
technical committees which undertake regular meetings relative to WESM rules changes,
operational audit, conduct of technical evaluation and studies, investigation of breach of the WESM
Rules, and management of dispute resolution process. For the covered report period, the following
are the activities accomplished by each WESM Governance Committees:
1. Market Surveillance Committee (MSC)
During the covered period, the MSC accomplished the following:
a. Assessment of Market Outcomes
The MSC assessed the results of the WESM operations for six (6) billing months or for the
period 26 February to 25 August 2020, as reported in the Monthly Market Assessment Report
of the MAG (MMAR-2020-03 to 08).
As of October 2020
31
The details of submission of these reports are contained in the following table:
Table 21. Summary of MMAR Submissions, May to August 2020

MMAR PEM Board DOE/ERC
Billing Month Publication Date
Number Submission Date Submission Date
March 2020 2020-03 06 May 2020 07 May 2020 07 May 2020
April 2020 2020-04 29 May 2020 02 June 2020 02 June 2020
May 2020 2020-05 30 June 2020 03 July 2020 03 July 2020
June 2020 2020-06 03 August 2020 05 August 05 August
04 September 09 September
July 2020 2020-07 09 September 2020
2020 2020
04 September 09 September
August 2020 2020-08 09 September 2020
2020 2020
Source: PEMC
The MSC delved particularly on the unusual decline in the demand and price during these
billing months, driven by the prolonged implementation of the Enhanced Community
Quarantine (ECQ) as a response to the threat brought about by COVID-19 beginning 15 March
2020.
The demand slightly regained normalcy in May 2020, following the increase in system demand
that was observed upon implementation of the Modified Enhanced Community Quarantine
(MECQ) in high-risk areas in Luzon, including Metro Manila, and the General Community
Quarantine (GCQ) for the remaining areas in the country.
In August 2020, the MSC had an extensive discussion on the effects of line congestion on the
WESM outcomes. It was agreed by the Committee to identify and provide prominence to these
transmission lines that affect the market outcomes.
The MSC likewise reviewed the highlights of the Annual Market Assessment Report (AMAR)
for 2019. The AMAR provides an assessment of results of the integrated Luzon and Visayas
operations of the WESM for the period of Cool Dry Season (26 November 2018 to 25 February
2019), Hot Dry Season (26 February to 25 May 2019), and Rainy Season (26 May to 25
November 2019).
The MSC noted the observations discussed by MAG for each of the three (3) seasons. In
particular, the MSC noted the record-breaking events that occurred during the rainy season as
follows: In June 2019, the market recorded the highest system demand for the year at
12,030MW, as well as the highest monthly LWAP at PhP7,770/MWh. Meanwhile, the highest
recorded average system effective supply was recorded in September 2019 at 13,894MW.
The imposition of the secondary price cap was also observed during the year. The same was
imposed during the occurrence of sustained high prices in April and May 2019, following its
last imposition in September 2014. However, it is noteworthy that the rainy season recorded
more secondary price cap impositions, especially in June 2019, compared to the dry season.
Overall, this constituted 3% (243 trading intervals in Luzon and 274 trading intervals in Visayas)
of the total trading intervals for the 2019 billing year.
Moreover, market intervention events slightly increased this year in the Luzon region, from
0.1% (9 trading intervals) in 2018 to 1% (57 trading intervals) in 2019 while retaining its Visayas
share at 0.1% (11 trading intervals) in 2019. It is noted that around 69% of the market
intervention events in 2019 (47 trading intervals) was the result of the insufficiency of supply
to satisfy the high level of demand that led to a number of alert warnings and the SO’s
implementation of manual load dropping.
After thorough deliberation, the MSC recommended some improvements in the report format
of AMAR, including a suggestion to reformat some of the indices that were discussed in the
Report.
As of October 2020
32
● Market Assessment for the Hot-Dry Season (26 February to 25 May 2020)
The MSC deliberated upon the MAG’s Market Assessment Report for the Hot-Dry
Season covering 26 February to 25 May 2020 (MAG-MAR-HD-2020) in its August
Regular Meeting.
The Hot-Dry season was marked by the low level of market prices, driven by the
substantial reduction in demand following the implementation of quarantine measures in
a bid to combat the spread of coronavirus disease. The MSC agreed that these measures
resulted in disruption in economic activity and restricted operations of industries and
businesses which weakened electricity demand amidst the onset of the summer months.
Consequently, owing to the comfortable supply cushion during the season, prices were
mostly below PhP2,000/MWh.
b. Grid Operation and Maintenance Program (GOMP) for the 2nd Quarter of 2020
The MSC noted the presented revisions on the National Grid Corporation of the Philippines’
(NGCP’s) GOMP as made available in July 2020. The GOMP was compared with the Market
Assessment System (MAS) data which involved information on the schedule of planned, forced
and maintenance outages.
Following the presentation, the MSC agreed to have another round of discussion regarding the
changes in the GOMP which shall involve the impact of the changes in the supply and demand
condition of the market with respect to reserve, price and supply.
c. Review of Consolidated Report on Interesting Pricing Events
The MSC reviewed the highlights of the MAG Consolidated Report on Interesting Pricing
Events from September 2018 to December 2019. It was discussed that most of the interesting
pricing events were mainly due to generating unit outages. For the March, April, September
and December billing months, high demand likewise caused some of the high prices.
On the other hand, interesting pricing events that breached the lower threshold in January
2019 were mainly due to the low demand that was experienced during the New Year.
The write-up on the consolidated IPER will be reviewed by the MSC, for submission to the
PEM Board, the DOE and ERC.
For the billing month of June 2020, the MSC noted that a total of three (3) intervals were found
to have breached the approved seasonality threshold for the spot price indices on interesting
pricing events. It was further noted that price-setters above the PhP10,000/MWh mark during
the subject intervals were also found to have exhibited bid-splitting behavior.
The MSC approved the MAG’s analysis on the interesting pricing events for June 2020. The
MSC likewise requested MAG to further pursue the bid-splitting analysis and submit
recommendation to the MSC regarding this, to include the development of the corresponding
guidelines/rule/methodology on bid-splitting.
d. Assessment of the Retail Market
The MSC assessed the performance of the retail market for the first and second quarter of
2020, as reported under the Annual Retail Market Assessment Report covering the period 26
December 2019 to 25 June 2020 (MAG-RMAR-2020-01 and 02).

As of October 2020
33
As set forth in the Catalogue of Retail Market Monitoring Data and Indices, the Retail Market
Assessment Report discusses the results of monitoring indices and provides indications on
how the retail market performed during the period in review.
The MSC noted that a total of 2,089 qualified electricity end-users were already issued with
the ERC’s Certificate of Contestability. Of these, 1,455 contestable customers or about 70%
have already registered in the market as of June 2020. Quarter-on-quarter, additional 35
Contestable Customers were issued with ERC’s Certificate of Contestability while additional
10 Contestable Customers registered in the market.
In terms of contestability threshold, the market recorded 1,118 registrants or about 77% of the
total registered contestable customers in the 1 MW and above contestability threshold. The
remaining 337 registrants or about 23% were classified under 750-999 kW contestability
threshold.
By the end of June 2020 billing month, about 43% of the consumption of all registrants were
supplied by the MERALCO group. This was followed by the Aboitiz group, the San Miguel
group and the Ayala group at about 21%, 17% and 9% share, respectively.
The MSC’s Retail Market Monitoring Report for the first quarter of 2020, which adopted in full
the MAG-RMAR-2020-01 was submitted to the PEM Board on 16 June 2020, while for the
second quarter of 2020, or the MAG-RMAR-2020-02 was submitted to the PEM Board on 19
August 2020. The Reports were also submitted to the DOE and the ERC and were likewise
published in the PEMC website.
e. MSC Study on the Retail Market
The MSC thoroughly discussed the roadmap on the MSC Study on the Retail Market with the
following objectives: (a) to adopt best practices and enhancements on the procedures of the
RCOA Market; (b) to promote competition in the retail market.
After discussion, the MSC directed MAG to coordinate with the Retail Electricity Supplier
Association (RESA) on the creation of a Technical Working Group (TWG) to complete the
Study. This is to ensure that concerns of RES are considered in the Study, as requested by
RESA during the MSC-RESA Dialogue that was held earlier in the day.
The MSC also held a Dialogue with the officers and representatives of the Retail Electricity
Suppliers Association (RESA) on 13 August 2020, and the ERC Contestable Market Division
on 14 August 2020, to solicit inputs and comments on the MSC Study on the Retail Market.
PEMC Officers and DOE representatives were also present during the MSC-RESA Dialogue.
The Dialogue was in line with the MSC’s recognition that the RESA, being the Suppliers directly
involved in the RCOA Market, and the ERC, as the market regulator, have valuable inputs
which may lead to enhancements to better the experience in joining/participating in the market.
Through the said Dialogues, the MSC likewise expressed its intention to work hand in hand
with the RESA and the ERC in the conduct of the Study.
Another Dialogue with the officers and representatives of the various Contestable Customers
was held on 28 August 2020 to solicit inputs and comments on the Study. PEMC Officers were
also present during the MSC-CC Dialogue.
The Dialogue was in line with the MSC’s recognition that the CC, being the Consumers directly
involved in the RCOA Market, have valuable inputs which may lead to enhancements to better
the experience in joining/participating in the market. Through the said Dialogues, the MSC
likewise expressed its intention to work hand in hand with the CCs in the conduct of the Study.

As of October 2020
34
In September 2020, the MSC was apprised that activities relative to the conduct of the Study,
specifically on the conduct of Dialogue with the Stakeholders, have been successfully done
and documented.
The MSC also took note that the paper for the said study shall be drafted for submission to the
Committee.
f. Assessment of Over-riding Constraints
During the report period, the MSC analyzed the over-riding constraints imposed on generators
for the five (5) billing months of April to August 2020.
The MSC noted that for all the 5 billing months, the over-riding events were on account of non-
security limit events. For April to August 2020, the imposition of over-riding constraints are
mainly attributable to the conduct of testing and commissioning of various generation facilities
for all the trading intervals which is accounted to 95 to 99% of time. For the July to August
2020 billing month, the MSC took note that the higher number of non-security limit events was
mainly due to the increase in the activities of generation facilities related to generating unit
limitation and commercial and regulatory requirements.
The details of submission of these over-riding constraints are listed in the following table:
Table 22. Summary of Over-riding Constraints, May to August 2020

No. of Over-riding No. of Involved No. of Involved
Billing Month
Events Generaors (Luzon) Generaors (Visayas)
April 2020 5,411 16 6
May 2020 5,173 20 5
June 2020 5.987 27 9
July 2020 6,073 21 8
August 2020 5,764 12 0
Source: PEMC
● Deliberation on the Prolonged Testing and Commissioning (T&C) of Generator-TPs in the

WESM
With regard to MSC’s investigation of the prolonged T&C of plants beyond the maximum
two (2)-month period allowed under the ERC Resolution No. 16, Series of 2014, the MAG
as directed by the MSC sent a letter to IEMOP providing an update on the status of plants
on prolonged T&C. This served as a reminder on the provision under the Suspension and
Deregistration in the WESM Registration Manual, to strictly impose sanctions among TPs
which failed to comply with the WESM registration requirements.
Said letter was responded to by IEMOP informing the MSC that it shall proceed with the
issuance of suspension notices among trading participants that are no longer eligible to
remain being WESM members due to non-compliance with a membership criteria or
requirements under the WESM Registration Manual.
The MSC then directed MAG to coordinate with the IEMOP to request for the regular
submission of reports on the status of various Suspension Notices issued due to said non-
compliance with a membership criteria requirement.
Likewise, MAG was directed to furnish the DOE Observers with the MSC list of monitored
WESM generator-trading participants with non-compliances with WESM registration
requirements, relative to its prolonged conduct of testing and commissioning. This is in
relation to the DOE’s ongoing review of the policy on testing and commissioning.

As of October 2020
35
g. Proposed Rules Change on the Proposed Administered Price Determination Methodology
(APDM)
The MSC continued its deliberation on the Administered Price Determination Methodology
(APDM), following its series of discussion on the matter. During the MSC Regular Meeting held
on 13 August, the MSC discussed the proposed rules change for submission to the Rules
Change Committee (RCC).
After discussion, the MSC then approved the submission to the RCC of the proposed
amendments to the following:
 WESM Rules;
 WESM Manual on APDM 6.0; and
 WESM Manual on Price Determination Methodology 2.0.
The MSC further agreed to co-author the proposed amendments together with PEMC.
h. Continuing Discussion on the MSC’s Monitoring of Unusual TTA Outcomes
In May 2020, the MSC reviewed the Total Trading Amount (TTA) of a customer-trading
participant (electric cooperative) for the period October 2019 to March 2020 and found that
results for the covered period showed unusual TTA results. As part of its study, the MSC
convened a meeting with representatives of the IEMOP for a discussion on the possible ways
forward. The MSC then requested the IEMOP for the submission of a report containing the
conclusions and measures undertaken by IEMOP on the matter, as well as a summary on
similar cases.
In July and August 2020, the MSC continued its discussion on the unusual TTA for some
resources, as monitored by the MSC and MAG. The MSC reviewed the response of IEMOP
regarding the MSC’s earlier request for a list of similar cases on resources which recorded the
same unusual TTA results. The MSC likewise requested MAG to coordinate with IEMOP in
this regard and to enhance its monitoring and reporting on nodal analysis by conducting its
pre-assessment/nodal analysis on the preliminary settlement data within the WESM timetable.
i. Discussion on the ERC Decision regarding Avion NGPP
The MSC discussed the highlights of the Decision on ERC Case No. 2019-005 regarding Prime
Meridian Power Corporation (PMPC) – Avion Natural Gas Power Plant. The issue, as identified
in the ERC Order, is whether or not PMPC’s deviation from its typical offer pattern on 16 August
2017 at 1400H is tantamount to an exercise of market power abuse, or anti-competitive or
discriminatory act or behavior (ACB) in violation of Section 45 of the EPIRA.
The MSC took note of the details of the Decision, and regarded the same as an input to its
ongoing study on the monitoring framework on Anti-Competitive Behavior (ACB).
j. Review of the Ongoing Study on the Reserve Market
The MSC continued its discussion on the Competitiveness Study on Reserves and have
reviewed the additional data and information provided by MAG, following the MSC’s
instructions.
The MSC reviewed the data on the NGCP SO-Certified Reserve Plants in Luzon and Visayas,
including their firm and non-firm contracted capacities; data on potential A/S providers per
NGCP SO; and finally, the benchmarking results on the reserve markets in other jurisdictions.

As of October 2020
36
After thorough deliberations, the MSC deferred approval of the Study, and requested the MAG
for a discussion on the results of the simulation on the co-optimization of reserves, to determine
the ideal reserve capacity level and mix of reserve resources that are needed in the reserve
market.
k. Review of Compliance Monitoring and Assessment
Compliances of Generator-Trading Participants (TP) with the Real Time Dispatch (RTD)
schedule, the Must Offer Rule (MOR) and the rule on the Nomination of Loading Level and
Projected Output (NOM) for the billing months of March to July 2020 were deliberated upon by
the MSC. The said compliances were contained in the Compliance Monitoring and
Assessment Reports (CMAR) prepared by the Enforcement and Compliance Office (ECO) for
the MSC.
Following the MSC’s deliberation on the CMAR, the MSC approved the issuance of twenty
three (23) requests for investigations (RFI) covering the billing months of March to July 2020
for possible non-compliance with the RTD schedule, and the MOR.
l. Review of ECO Investigation Reports
During the report period, the MSC discussed the ECO Investigation Reports which were
consolidated into twenty (20) reports involving nineteen (19) generator-TPs. The MSC
reviewed the same with respect to: (a) the ECO’s compliance with the procedures set forth in
the Market Surveillance Committee Enforcement Manual (MSCEM) for the conduct of
investigation, and (b) the validity and completeness of the data and documents upon which
factual findings are based, pursuant to Section 10.7 of the MSCEM Manual.
After its deliberation on the matter, the MSC then agreed to submit the result of the MSC’s
review and recommendation on the ECO IRs, for the PEM Board’s approval.
m. Proposed Timeline/Performance Indicator on the ECO’s Disposition of Case Backlogs
Following the MSC’s series of discussion on the action plan regarding the disposition of
pending investigation cases of ECO covering 2014-2018 cases, the MSC, during its August
Meeting, reviewed the proposed timeline and performance indicators in the implementation of
the said action plan, as presented by the ECO.
The MSC took note of the internal monitoring procedure of the ECO, and likewise noted that
the same shall be presented monthly to the MSC beginning November 2020, to allow the MSC
to monitor the ECO’s progress in the disposition of case backlogs.
n. Review of ECO Recommendation on Motions for Recommendations
On 16 July 2020, the MSC thoroughly discussed the options submitted by the ECO regarding
the disposition of backlog cases from year 2014 and agreed to adopt one of the options
submitted.
During its Special Meeting on 23 July 2020, the MSC discussed the details of the ECO-
proposed action plans on the MSC-approved option/way forward, as presented on 16 July
2020. After due deliberations, the MSC agreed with the action plan presented by ECO and
recommended further improvements in the implementation of the same to ensure the timely
resolution of pending cases.

As of October 2020
37
o. Proposed Compliance Rating for Generators
The MSC reviewed the result of the ECO’s ongoing compliance rating for generators, following
the criteria/guidelines that were deliberated upon and approved by the MSC, and also looked
at the ECO compliance rating online platform that could be accessed by the public through the
PEMC website, which shows the rating and ranking of generators.
The MSC then requested ECO to provide the MSC with monthly updates on the result of the
ECO’s compliance rating.
The MSC also checked the ranking of the generator-TPs in terms of their compliance rating for
the cool dry and hot dry season, based on the MSC-approved Guidelines setting the criteria in
determining high compliance rating.
p. Review of the MI Event on 24 October 2019 from 0400H to 0500H
The MSC met with IEMOP representatives for a discussion on the MSC’s conclusions and
recommendations relative to the MO-initiated market intervention events on 24 October 2019
from 0400H to 0500H.
The MSC Review Report was then submitted for the approval of the PEM Board during its May
2020 Meeting.
q. Review of System Operator (SO) – Initiated Market Intervention (MI) Events
The MSC reviewed the System Operator (SO) – Initiated Market Intervention (MI) Events for
CY 2019, until January 2020. It was noted during the discussion that the MSC has requested
the NGCP-SO to regularly furnish the MSC with its MI Report during its Meeting with SO
representatives in September 2019. However, it was observed that the MSC has yet to receive
the MI Reports from the NGCP-SO for MI events in October, December 2019 and January
2020.
The MSC requested MAG to request the submission of the aforementioned MI Reports from
the NGCP-SO, as prescribed under Chapter 6 of the WESM Rules. Further, MAG was directed
to include in the MI Review Report an analysis on the SO’s dispatching of plants during MI
events.
r. Monitoring of the Grid Operating Program for Q1 2020
In June 2020, the MSC deliberated upon the result of the MAG’s monitoring of the Grid
Operating Program (GOP) Revision 1, a copy of which was provided to PEMC by the NGCP-
SO on 20 April 2020.
The MSC looked at the difference between the NGCP-SO report from the outage monitoring
data being maintained and updated by MAG through the Market Assessment System (MAS).
After deliberation, the MSC recommended further improvements on the monitoring of MAG and
its analysis on the GOP Revision 1.
s. Review of Offer Pattern Analysis
The MSC also reviewed in June 2020 the result of the MAG’s Offer Pattern Analysis (OPA)
during the ECQ period. The analysis made-use of the MSC-approved methodology on OPA to
evaluate the change in offer behavior based on historical data.

As of October 2020
38
t. Review of the Initial Proposal on Nodal Monitoring
The MSC reviewed the MAG’s proposal on the conduct of nodal analysis on settlement data.
This involves the monitoring and analysis of total trading amounts (TTA) for all resources,
including the ex-ante quantity (EAQ), bilateral contract quantity (BCQ) and metered quantity
(MQ).
During the discussion, the MSC noted the unusual MQ data with one of the generator-trading
participants. The MSC then requested MAG to come-up with an analysis of the same, in
coordination with the IEMOP.
u. Discussion on the Study regarding the Concerns Raised by PIPPA
The MSC deliberated upon the Study on the Concerns of the Philippine Independent Power
Producers’ Association’s (PIPPA) on the Economic Viability of the Generation Sector. The
Study, which focused on the following scenarios that were raised by the PIPPA: (a) Removal
of the Must Offer Rule (MOR), (b) Setting the Minimum Stable Load (Pmin) at zero (0), and (c)
Rotational Shutdown of Generators, was approved by the MSC for submission to the DOE and
the ERC. The Study was likewise presented to the PEM Board for information.
2. Technical Committee (TC)
During the covered period, the TC accomplished the following:
a. Study on Embedded Generation for Mindanao
The TC approved the draft MO-SO-DU-EG Coordination Protocol. The subject Protocol will be
finalized as soon as the TC secured the approval of NGCP to the PEMC Standard Release
Form on the inclusion to the Coordination Protocol of the NGCP Dispatch Protocol for
Embedded Generators providing Ancillary Service.
b. TC Study on Demand-Side Participation
The TC finalized the outline for the proposed discussion paper, including the draft methodology
on Demand-Side Participation. The TC will conduct online discussions and invite resource
speaker/s who are knowledgeable on the subject matter in the coming months.
c. DOE Study Request on the Reclassification of Impounding Hydroelectric Power Plant
In July 2020, the TC published a summarized version of their study on the reclassification of
impounding HEPPs as Non-Scheduled Generating Units.
Previously on 16 June 2020, the TC presented their study on the reclassification of impounding
HEPPs as non-scheduling generating units to the DOE via online video conference.
The meeting focused on the recommendations of the TC on the subject matter wherein HEPPs
cannot be re-classified as Non-Scheduled Generating Units. The DOE also provided
suggestions to the study that the TC may look into in their future studies.
d. Proposed framework for Battery Energy Storage System (BESS) including requirements for
Variable Renewable Energy (VRE)
The TC discussed the concepts and features that may be part of their study on the proposed
framework for BESS such as capacity market. As highlighted during the discussion, the

As of October 2020
39
benefits from BESS being connected to VRE generation is more significant when there is a
capacity market.
The study will also cover the value of a capacity market and how the market could operate in
the Philippines in the context of BESS as support to VRE.
e. RCC-TC Joint Resolution on the PEM Board Directive on the Joint Review of GRM 9.2.3.2 of
the 2016 Philippine Grid Code (PGC)
On 05 May 2020, the TC together with the RCC Sub-committee conducted a meeting with
NGCP and MERALCO to discuss their respective positions on the Proposed Amendments to
the WESM Manual on Metering Standards and Procedures (Issues 11.0 and 12.0) regarding
Current Transformer Requirements.
Based on the meeting of the RCC-TC Technical Working Group, the RCC and the TC finalized
their joint resolution in compliance to the PEM Board Directive.
f. MSC Study Request on the Appropriateness of the Price Trigger Factor (PTF) in the current
Price Substitution Methodology (PSM) Manual
On 07 May 2020, the TC received the MSC response letter clarifying their study request. The
TC then finalized their next steps on the MSC Study Request during the TC Regular Meeting
No. 2020-05 held on 13 May 2020. The TC is expected to finish the study by 3rd Quarter of
2020.
g. Call for Comments to the Rules Change Proposal (ORCP-WR-WM-20-12)
The TC submitted to the RCC their response to the proposed amendments to the WESM Rules
and WESM Manual on Billing and Settlement Issue 5.1 on Enhancements to Prudential
Requirements Procedures.
3. Rules Change Committee (RCC)
During the covered period, the RCC accomplished the following:
Proposal Description Status

The proposal essentially intends to Published in the PEMC
establish a default or standing BCQ that website to solicit comments
New proposed shall be considered by the Market from Market Participants
amendments to the Operator in settlement in case the seller and stakeholders. The 30-
WESM Manual on Trading Participant is unable to declare working day commenting
1 Billing and Settlement a BCQ or the buyer Trading Participant period is until 04
Issue 5.1 (version for fails to confirm the BCQ declared. It was September 2020.
enhanced market submitted by Pagbilao Energy
design) Corporation regarding bilateral contract
quantity (BCQ) declaration.

As of October 2020
40
The RCC originally endorsed to the PEM Approved by the PEM
Board, per RCC Resolution No. 2020-07 Board on 29 July 2020 and
dated 21 May 2020, the proposed was submitted to DOE on
changes to the WESM Manual on 20 August 2020.
Guidelines to the Constitution of PEM
Committees regarding, among others,
the number and composition of
Technical Committee members. The
RCC proposed that the TC be
Amendments to the
composed of five (5) independent
Membership
members and one (1) representative
composition of the
each for the Generation sector,
Technical Committee
Distribution Utility sector, System
under the Proposed
Operator and Market Operator.
2 Amendments to the
Guidelines Governing
The PEM Board remanded the matter to
Constitution of the
the RCC twice to further decrease the
PEM Board
proposed number of independent
Committees
members. The RCC first re-submitted to
decrease the number to three (3)
independent members, and finally, upon
further guidance from the PEM Board, to
(1) one independent member in
consideration of future budgetary
requirements. The RCC issued RCC
Resolution No. 2020-15 dated 27 July
2020 documenting the development of
the proposal.
Proposed Abolition of Adopted by the PEM Board
Relevant WESM Aims to terminate relevant WESM (PEM Board Resolution No.
Manuals in View of Manuals for the implementation of 2020-24-06 and was
3 the Implementation of Enhanced WESM Design and subsequently submitted to
Enhanced WESM Operations the DOE on 16 June 2020.
Design and
Operations
Proposed Aims to clarify the types of bilateral Adopted by the PEM Board
Amendments to the contract transactions that will be (PEM Board Resolution No.
WESM Manual on accounted for in settlements in the 2020-24-07) and was
Registration, Wholesale Electricity Spot Market subsequently submitted to
Suspension, and De- (WESM). the DOE on 16 June 2020.
4
Registration Criteria
and Procedures to
Clarify Bilateral
Contracts Accounted
for In Settlements
Proposed Aims to to harmonize the WESM Rules Adopted by the PEM Board
Amendments to the and NSS Manual with the ERC (PEM Board Resolution No.
WESM Rules and Resolution No. 07 Series of 2019. 2020-24-08) and was
WESM Manual on the subsequently submitted to
Management of Net the DOE on 16 June 2020.
5
Settlement Surplus
(NSS) for the
Implementation of
ERC Resolution No.
07 Series of 2019
Proposed Aims to include the procedures for the Adopted by the PEM Board
Amendments to the preparation and updating of load (PEM Board Resolution No.
6 WESM Manual on distribution factors 2020-24-09) and was
Load Forecasting subsequently submitted to
Methodology for the the DOE on 16 June 2020.
As of October 2020
41
Inclusion of the
Procedures for
Preparation and
Updating of Nodal
Load Distribution
Factors
Proposed Pursuant to the DOE’s directive for Adopted by the PEM Board
Amendments to the PEMC to submit proposed amendments (PEM Board Resolution No.
WESM Rules and to the current WESM Rules and relevant 2020-24-10) and was
relevant WESM Market Manual resulting from the ERC subsequently submitted to
Manual on Order dated 17 April 2018 dismissing the DOE on 16 June 2020.
7
Management of Must- ERC Case No. 2016-159RC regarding
Run and Must-Stop the settlement for Displaced Generators
Units regarding
Settlement of
Displaced Generators
Aims to harmonize the WESM Rules Adopted by the PEM Board
Proposed and the Retail Rules with the policies (PEM Board Resolution No.
Amendment to stipulated in Section 8 of the Renewable 2020-24-12) and was
WESM and Retail Energy Act of 2008 (RA 9513) and the subsequently submitted to
8
Rules for Operation of Renewable Energy Market (REM) Rules the DOE on 16 June 2020.
Renewable Energy promulgated under DOE Department
Market Circular no. DC2019-12-0016 in relation
to the implementation of the REM.
Proposed Aims to enhance the rules change Adopted by the PEM Board
Amendments to the process and incorporate policies under (PEM Board Resolution No.
WESM Rules and the DOE Circulars issued on WESM 2020-24-13) and was
Procedures for governance subsequently submitted to
9
Changes to the the DOE on 16 June 2020.
WESM Rules, Retail
Rules and Market
Manuals, Issue 3.0
The proposal intends to provide more Published in the PEMC
Proposed
accurate determination of exposure and website to solicit comments
amendments to the
amount of security, resulting in a more from Market Participants
WESM Manual on
appropriate level of cost for PR and stakeholders. The 30-
Billing and Settlement
10 compliance on the part of Trading working day commenting
on Enhancements to
Participants. It also proposes to provide period is until 30
Prudential
for clearer requirements of security September 2020.
Requirements
forms.
Procedures
The proposal aims to incorporate market PEMC withdrew its
conditions (i.e., supply/demand levels supposed submission of
Proposed
and supply margins) as consideration for proposed amendments
Amendments to the
determining administered price. noting the imminent
WESM Manual on
11 decision of the ERC on the
Administered Price
Price Determination
Determination
Methodology, which
Methodology (APDM)
includes the APDM, for the
enhanced WESM design.
Submitted by Pagbilao Energy Deferred the endorsement
Proposed
Corporation (PEC) regarding of the proposal to PEM
amendments to the
procedures covering instances of non- Board pending PEC’s
WESM Manual on
submission, non-confirmation and submission of additional
12 Billing and Settlement
nullification by the Trading Participant of proposed amendments and
Issue 5.1 (version for
bilateral contract quantity (BCQ). illustration on the BCQ
enhanced market
declaration timeline related
design)
to their proposal.
New Proposed The proposal aims to reduce the Published in the PEMC
13
Amendments to the duration of the financial risks from billing website to solicit comments
As of October 2020
42
WESM Rules and adjustments to the WESM trading from Market Participants
WESM Manuals on participants by providing shorter and and stakeholders. The 30-
the Rationalization of clearer timelines in reporting and working day commenting
Billing Adjustment correcting errors or discrepancies in period is until 02 November
Timelines by IEMOP. settlement. 2020.
Also during the period, the RCC submitted its Semestral Report to the PEM Board covering its
completed and on-going activities from January to June 2020. The Report was published on
the PEMC website for public access.
Earlier on, the RCC conducted a Coordination Meeting in May 2020 with the Technical
Committee (TC), with representatives from MERALCO and NGCP in attendance. The purpose
of the meeting was to clarify the Interpretation of Philippine Grid Code (PGC) 2016 GRM
9.2.3.2, which provides the accuracy class of load metering service and current transformers,
as instructed by the PEM Board.
4. Dispute Resolution Administrator (DRA)
Atty. Jesusito G. Morallos is the Dispute Resolution Administrator (DRA) who is tasked to
administer and ensure the effective implementation and operation of the WESM dispute
resolution process, as well as facilitate in the resolution of disputes within the objectives
established under the WESM Rules.
a. WESM Dispute Resolution Training Materials
The DRA has submitted training materials for inclusion in the PEMC Training Program and
Plan. This is in line with the DRA’s goal to contribute to the awareness of the WESM Dispute
Resolution Framework.
b. Annual Updating of the List of Dispute Management (DMP) Focal Persons
Pursuant to its duty to coordinate with WESM Members and provide them access to
information, updates and other relevant matters in connection with the WESM Dispute
Resolution Processes, the DRA has prepared the notices to be published and to be sent to
the WESM Members for them to update the list of their DMP Focal Persons, who are the
first point of contact for the notification of disputes relating to the WESM.
In response to the DRA’s call for updates, the WESM Members actively participated and
submitted the names and / or updated contact details of their respective of the list of the
Dispute Management Protocol (DMP) Focal Persons who will be their first point of contact
for the notification of disputes relating to the WESM.
The DRA is now collating the notices submitted by the WESM Members in preparation for
the publication of the updated list of the DMP Focal Persons in the WESM website.
c. Contribution in the Submission for Approval of the Renewable Energy Market Dispute
Resolution Manual Issue No. 1
The DRA rendered assistance to the Renewable Energy Market (REM) Governance
Committee by reviewing the provisions and providing valuable comments to the Proposed
New Manual on REM Dispute Resolution Issue 1.0 which was approved by the PEM Board
last 26 August 2020 and subsequently endorsed to the Department of Energy.

As of October 2020
43
d. Proposed Amendments to the WESM Dispute Resolution Manual Issue No. 6
The DRA has finalized the first part of the proposed amendments to the WESM Dispute
Resolution Manual which involves Dispute Resolution Processes under the Retail Rules
for submission to the Rules Change Committee (RCC) to undergo the rules change
process.
The DRA is now finalizing the other proposal to incorporate into the Dispute Resolution
Market Manual the protocol and/or guidelines on the conduct of video conferencing for
remote hearings during arbitration and conferences which will also be submitted to the RCC
for the rules change process.
e. Activities in line with the objective to implement an awareness campaign for the WESM
Dispute Resolution Process among Market Participants and continuous education and
training for the accredited pool of Mediators, Arbitrators and Dispute Management Protocol
(DMP) Focal Persons
On 24 September 2020, the DRA participated in the WESM Compliance Officers’ (WCO)
Summit (Day 4) by giving a brief lecture on Dispute Resolution Updates.
The DRA has also completed its updated list of Frequently Asked Questions (FAQs) on the
WESM Dispute Management Framework for publication in the new PEMC website.
The DRA has created proposals for consideration of PEMC Management in terms of the
logistical and financial requirements of the possible conduct of virtual seminars as part of
its awareness campaign among the Market Participants. There are continuous plans to
regularly collaborate with various networks and the country’s top alternative dispute
resolution practitioners for the conduct of trainings and seminars for the DMP Focal
Persons and the continuing education of the WESM-Accredited Mediators and Arbitrators.
These activities and plans include:
 Continuous coordination with Philippine Institute of Arbitrators (PIArb) for alternative

methods to showcase the processes of WESM Arbitration;
 Continuous coordination with various entities to consider the possibility of featuring

WESM Arbitration in Arbitration Conventions and participation in other ADR-related
programs, lectures or events organized by external strategic partners for the
continuing education of WESM-accredited Mediators/Arbitrators; and
 Preparation for the conduct of seminars for the WESM Pool of Accredited WESM
Mediators and Arbitrators on the topics of Negotiation and Mediation, Emergency
Arbitration, Dispute Avoidance Modes and facilitation of training on the Retail
Market and the Reserve Market as well as updates on changes in the WESM
Dispute Resolution Process.
5. PEM Audit Committee (PAC)
During the report period, the PAC supervised the following activities:
a. Conduct of Market Readiness Assessment for the Implementation of the Enhanced WESM
Design and Operations in Luzon and Visayas and WESM in Mindanao
The Market Readiness Assessment activity is conducted to assess the readiness of the Market
Operator (MO), System Operator (SO), PEMC, Metering Services Providers (MSPs), and

As of October 2020
44
WESM participants for the implementation of the enhanced WESM design and operations in
Luzon and Visayas, and WESM in Mindanao.
The Market Readiness Steering Committee (MRSC), which is led by PEMC President and
composed of members from IEMOP, NGCP, PEMC and PIPPA, conducts regular meetings
with the Work Stream Champions to discuss updates on their respective action plans. It is
noted that while the PAC oversees the MRA activity, the action plans and activities of the
MRSC to address issues arising from the MRA are independent from the PAC.
Based on the discussion and updates during its meeting on 26 May 2020, the PEMC President,
as the MRSC chairperson, recommended during the PEM Board meeting on 27 May 2020 that
the Go-live date for the commercial operations of the enhanced WESM design in Luzon and
Visayas, and WESM Mindanao will be tentatively set on 26 December 2020. The commercial
operations are subject to full participation of all generator-TPs, ERC approval of the PDM and
DOE approval of the submitted amendments to the Market Rules and Manuals. Further, it will
proceed after the official report by the PEM Board that all Go-live conditions have been
completed.
The PEM Board approved the MRSC recommendation and thereafter sent a letter to the DOE
providing the status of the Go-live conditions including the recommendation to move the Go-
live tentative date to 26 December 2020.
The status of remaining Go-live conditions as discussed during the MRSC meeting held on 29
September 2020 was relayed to the DOE on 08 October 2020.
On the other hand, the PAC participated in the Market Participants’ Update conducted by
IEMOP on 03 July 2020.
b. Audit of the New Market Management System (NMMS) and Central Registration and
Settlement System (CRSS)
As of July 2020, the audit of the New Market Management System (NMMS) and the Central
Registration and Settlement System (CRSS) have been completed by Intelligent Energy
Systems Ltd. Pty. (IES) through the supervision of the PAC.
The table below summarizes the dates of completion of the systems including modules/ tools/
enhancements audited by IES:
Table 23. IES Dates of Completion

Items Date Completed
1. New Market Management System
(NMMS)
a. Critical modules Completedin November 2019
b. Fixes and Enhancements Completed in May 2020 and
July 2020, respectively
c. Trading Operations and Central Completed in May 2020
Management System (TOCMS)
enhancements
d. Reassessment of DAP and WAP
Completed in March 2020
Load Forecasts for Luzon and
Visayas (26 October 2019 to 25
January 2020)3
3
In compliance to ERC order dated 10 March 2020, PAC-approved final report and software
certificate was submitted on 16 March 2020
As of October 2020
45
Items Date Completed
e. Assessment of RTD, HAP, DAP and Completed in June 2020
WAP Load Forecasts for Mindanao
(02 Dec 2019 to 01 Mar 20204
2. Central Registration and Settlement
System (CRSS)
a. Remaining critical modules and
Completed in March 2020
enhancements
b. Interim Metering Macro Tools on Site
Specific Loss Adjustment (SSLA) Completed in January 2020
calculation
Source: PEMC
On 06 August 2020, updates on the completion of the market system’s audit was provided to
the ERC for their information.
On 24 September 2020, PAC issued a certificate indicating its acceptance of the final reports
and software certificates for the independent software audit of the Enhancements to the NMMS
and CRSS.
c. Audit of the Enhancements to the NSS Module (5-Min System) and Enhanced NSS Tool (1-Hr
System)
As of July 2020, the IES, through the supervision of the PAC, has completed the audit of the
systems and tools developed and/or enhanced by the IEMOP, in compliance with the ERC
Resolution No. 7 Series of 2019, entitled “A Resolution Adopting Amendments to the Rules for
the Distribution of Net Settlement Surplus,” (2019 NSS Rules).
The final audit report and software certificate for the enhancements to CRSS - NSS module
(5-minute system) was issued by IES on 03 July 2020, while the final audit report and software
certificate for the enhanced NSS/NSD tool (1-hour system) was issued by IES on 29 July 2020.
On 04 August 2020, PAC issued a certificate indicating its acceptance of the final reports and
software certificates, while updates on the completion of the audit of NSS allocations based
on the 2019 NSS Rules was provided to the ERC on 10 August 2020.
d. Joint 7th Market Operations Audit and 4th Review of Metering Installations and Arrangements
Following their submission of documents on 16 July 2020, RSM Australia (External Auditor)
presented the updated draft Inception Reports, particularly the changes in schedule and
remote audit implications in accordance with the PAC and PEMC Management prescribed
Option 1 audit timeline (Market Operations Audit fieldwork to be conducted remotely in 2020
and RMIA to commence in 2021). Here are the notable implications:
i. According to the proposed schedule, RSM shall undertake the Market Operations Audit
remotely during the second half of calendar year 2020 from August to October;
ii. All tasks for the RMIA will be conducted on site and over four main site visits to each of
the 47 MSPs during the first half of calendar year 2021, from January to April (provided
international and domestic travel restrictions are lifted in both Australia and Philippines);
4
In compliance to ERC order dated 10 March 2020, PAC-approved final report and software
certificate was submitted on 17 June 2020
As of October 2020
46
iii. The MO Audit remote fieldwork is initially set to commence in 03 August 2020 but was
changed to within 10-14 August 2020 in consideration of the commenting period for the
parties to be audited;
iv. For Task 3 – Market Monitoring and Assessment and Compliance of Monitoring
Review, Task 3.1 – Procedure/Process and Compliance Review of PEMC may proceed
as proposed (September 2020) while Task 3.2 – Software Certification Audit of PEMC
systems intended for enhanced WESM design is moved from Sept 2020 to Oct 2020
per the auditees’ request in consideration of the readiness of the systems (CPEMS and
NMAS);
v. All required meetings will be held through video conference via Microsoft Teams where
sharing screens may be necessary; and
 If Philippines COVID-19 restrictions are eased, RSM Reyes Tacandong will attend
interviews in person (with RSM Australia on video conference) and complete
testing onsite. This will be dependent and in adherence to PEMC, IEMOP, RSM
Reyes Tacandong and building management security and safety protocols; and
 If attending the MO Offices is not feasible, all testing will be conducted securely
at RSM Australia and/or RSM Reyes Tacandong offices.
vi. Remote audit implications, including COVID-19 protocols for RMIA site inspection,
have been included in the Inception Report’s detailed risk assessments.
To consult the parties to be audited/reviewed, the updated draft inception reports were
presented upon them and circulated for review and comments. The activities that were
undertaken are as follows:
Table 24. Audit ActivityTimeline

Activity Date
PAC clearance on the distribution to parties 17 July 2020
to be audited of updated Inception Report
for their review and comments
Commenting period (for IEMOP and 20-31 July 2020 (10
NGCPMSP) on the draft Inception report working days)
Presentation of Draft Inception Report to 24 July 2020
IEMOP
Presentation of Draft Inception Report to 27 July 2020
NGCPMSP
General presentation to other Retail MSPS 28 July 2020
Source: PEMC
The revised and updated 7th MO Audit Inception Report submitted by RSM on 10 August 2020
incorporating its actions/responses in addressing IEMOP’s comments was presented to and
approved by the PAC on 14 August 2020 during its regular meeting.
With the acceptance of the 7th MO Audit Inception Report dated 14 Aug 2020 and PAC’s
formal notification to IEMOP along with the copy of PAC Approved Inception Report and
requirements listing, the 7th MO audit has officially begun.
Regarding the 4th RMIA Inception Report, RSM provided on 25 Aug 2020 the revised RMIA4
inception report including matrix of NGCP and Meralco comments that require discussion and
confirmation from the PEMC. This is under ongoing perusal by MAG in parallel with PAC while
waiting for RSM’s ongoing review of the previous metering review’s metering inspection forms.

As of October 2020
47
The remote conduct of the 7th Market Operations Audit is ongoing. At most, 60% of the
documentary requirements has been provided by auditees for both PEMC and IEMOP scope.
e. Re-assessment of Luzon and Visayas Load forecasts (WAP and DAP) and Assessment of
Mindanao Load Forecasts (WAP,DAP, HAP, and RTD)
The PAC completed its supervision on the additional testing required by the ERC to re-assess
the load forecast for Luzon and Visayas, and assessment of load forecast for Mindanao. The
PAC approved the final reports and software certificates for the following audit:
● Re-assessment of DAP and WAP forecasts for Luzon and Visayas– approved in March
2020; and
● Assessment of RTD, HAP, DAP and WAP forecasts for Mindanao – approved on 08
June 2020.
f. Market Operator Performance Monitoring Status Report for 26 September 2019 - 25 June 2020
On 18 August 2020, the PAC reviewed and endorsed the results of MO Performance
Monitoring covering the period 26 September 2019 – 25 June 2020 to the PEM Board for
approval.
It was approved by the PEM Board and was submitted to the DOE on 26 and 27 August 2020
respectively.
g. Proposed Market Operator Performance Standards (MOPS) under the Enhanced WESM
Operations
The PAC discussed the comments of the Office of the Chief Governance Officer (OCGO)-
TWG on the proposed MOPS during its August 2020 regular meeting. Consequently, on 20
August 2020, the PAC finalized and endorsed the Proposed MOPS, including IEMOP’s
comments, to the PEM Board.
On 26 August 2020, the PEM Board directed the PAC to further discuss the proposed MO
performance metrics with IEMOP. Coordination meetings were held on 16 and 28 September
2020 to come up with a set of performance standards agreeable among PEMC, PAC and
IEMOP.
C. Market Development Updates
Establishment of the Wholesale Electricity Spot Market (WESM) in Mindanao
The DOE conducts regular monitoring of the on-going activities related to the preparation for
WESM Mindanao commercial operations.
As reported by the IEMOP, it has completed all the major systems fine-tuning activities to improve
the new market systems’ performance and reliability. IEMOP has been able to regularly provide
complete daily market runs starting 18 July 2020. To add, IEMOP has just completed the 2nd
month of the re-launched Trial Operations Program (TOP). Latest TOP information shows the
following participation rates:
1. 63% of Scheduled (Conventional) Generators have submitted offers in the New MMS;
2. 43% of Self-Scheduled (i.e. small generators and VREs) Generators have submitted
nominations in the New MMS; and
3. Only 69% of MSP Data has been processed appropriately by IEMOP. This is currently
being coordinated with the Metering Services Provider (NGCP).
As of October 2020
48
The re-launch of the Mindanao TOP provides a set of activities that aims to re-assess all Mindanao
Stakeholders, specifically PEMC, IEMOP (as Market Operator), NGCP (as System Operator and
Metering Service Provider), Generation Companies, Private Distribution Utilities, Electric
Cooperatives, and Directly Connected Customers for their readiness to implement the WESM in
Mindanao.
IEMOP continues to accept and evaluate registration requirements from WESM Mindanao
participants. As of 25 September 2020, still the same 83 out of the expected 88 participants
(94.3%) have participated in registering for WESM Mindanao. Furthermore, the following table
shows the breakdown of the WESM registration status in Mindanao.
Table 25. WESM Registration Status in Mindanao, September 2020

Signed-Up Pending
Have and Pending On-going Completion
Expected
Membership Type Not Yet Submission of Completion of of PR Registered
Participants
Applied Requirements Requirements (Customers
Only)
Grid Connected
14 2 12
Generator
Embedded 10
29 15 4
Generator
Electric Cooperative 28 1 6 15 6
Private Distribution 3
4 1
Utility
Directly Connected 3
12 4 3 1
Customer
Total Participants 87 5 19 36 9 17
Source: PEMC
The twelve (12) grid-connected Generators registered as WESM Members are:
 Power Sector Assets and Liabilities Management Corporation (PSALM);

 GN Power Kauswagan;
 Therma South, Inc. (TSI);
 Alterpower Digos Solar, Inc. (APDIGOS);
 Hedcor Tudaya, Inc. (HTI2);
 Hedcor Bukidnon, Inc. (HEDBUK);
 Asian Greenenergy Corp. (AGECO);
 Lamsan Power Corporation (LAMSAN);
 Therma Marine, Inc (TMI);
 San Miguel Consolidated Power Corporation (SMCPC);
 Western Mindanao Power Corporation (WMPC); and
 Mapalad Power Corporation (MPC).
Note: EEI Power Corporation (EEIPC) ceased its registration in the WESM since it recently
transferred its facilities to Strategic Energy Development Inc. (SEDI), which in turn is currently
completing its registration requirement.
The four (4) embedded Generators registered as WESM Members are:
 Euro Hydro Power (Asia) Holdings, Inc. (EUROHYDRO);

 Astronergy Development Gensan Inc. (ADGI);
 Surallah Power Generation Inc. (SPGI); and
 HEDCOR Sibulan Inc. (SIBULAN).

As of October 2020
49
There are five (5) participants that should register (mandatory) in the WESM but have yet to file
their applications. These are namely:
 PNOC Exploration Corporation;

 BUSCO Sugar Milling Company;
 MENZI Agricultural Corporation;
 Mindanao State University; and
 Lanao del Sur Electric Cooperative, Inc.
There are no new updates on the approval of the price determination methodology (PDM) for the
enhanced WESM design. The last evidentiary hearing held by the ERC was on 04-05 December
2019, which focused on the discussion of the audit results of the remaining components of the New
Market Management System (NMMS), specifically the Compliance Monitoring and Load
Forecasting. Although there have been discussions and clarifications among IEMOP, PEMC, and
ERC on the different provisions of the PDM this month.
IEMOP has also completed the audit certification for the additional fixes and enhancements on the
New MMS and the Central Registration and Settlement System (CRSS).
Enhanced WESM Design Operation (EWDO)
Due to the Covid-19 pandemic, some of the critical targets and schedules for the commercial
operations of EWDO have been significantly affected. Mobility and manpower limitations have
caused unforeseen delays particularly with the service delivery of the IEMOP’s third-party partners.
The participation of WESM participants in the Parallel Operations Program (POP) was also
observed to be significantly lower than the participation target.
In line with the foregoing, the IEMOP recommended to defer the commercial operations from 26
June 2020 to a later date, in which the Department of Energy (DOE) also conformed with, yet the
latter emphasized that the revised target should determine a realistic date.
In a letter dated 28 May 2020, the PEM Board recommended the revised commercial operations
date for the EWDO to be on 26 December 2020. Nevertheless, the PEM Board stressed that the
said commercial operations date will still be contingent to the active participation of all Generator-
Trading Participants (TPs), the Energy Regulatory Commission’s (ERC) approval of Price
Determination Methodology (PDM) and the DOE’s approval of necessary amendments to the
WESM rules and WESM manuals.
As to date, only few of the identified go-live conditions were not met. Based on the IEMOP’s letter
dated 16 October 2020, it indicated that the New Market Management System (NMMS) and the
Central Registration and Settlement Systems are now ready for commercial use. Critical system
performance fine-tuning and testing activities have already been completed. Nonetheless,
performing system regression testing, as part of the monitoring and evaluation process, will be
continued until Go-Live to ensure that the deployment of the non-critical enhancements and fixes
would not affect the systems.
With regards to the low level of participation by TPs in the POP, which affects the accuracy of the
NMMS’ market results, IEMOP continues to coordinate with the System Operator, Market Services
Providers and the TPs to monitor and evaluate their participation.
Moreover, on the policy approval, out of five (5) proposed amendments related to WESM, the DOE
has already approved and promulgated the proposed amendments on the WESM Market Manual
on Dispatch Protocol for the Implementation of Enhancements to WESM Design and Operations
(Provisions for the WESM Timetable) through Department Circular No. DC2020-10-0020. Three

As of October 2020
50
(3) of which were already subjected to Public Consultations and currently under the finalization
stage while the other one (1) will be subjected to further clarifications from the IEMOP.
On the other hand, the PDM which will set forth the specific details on how the dispatch schedules
and locational marginal prices will be calculated during the implementation of EWDO, is currently
being reviewed by the ERC and still subject to the latter’s approval.
D. Retail Competition and Open Access (RCOA)
The implementation of Enhanced Community Quarantine (ECQ) in the Philippines from 17 March
2020 extending to April 30, 2020, affected the performance of the retail market. The consumption
shifted from a constantly increasing trend to a sudden drop. With the surge from impending
economic downfall due to hampered business activities and citizen’s mobility brought by ECQ, the
Government decided to lift the quarantine guidelines to a less strict Modified ECQ (MECQ) to some
parts of the Philippines on 16 May 2020. It was later eased out to General Community Quarantine
(GCQ) on 01 June 2020 until 31 July 2020. However, due to the continuous rising number of cases
seen in the latter weeks of July, the Government decided to place Metro Manila and adjacent
provinces back to MECQ. It was later reverted to GCQ after 18 August 2020.
There was a 7% increase in the number of prospective participants in September 2020 as

compared from September 2019. However, there was only 0.5% change on the number of
prospective participants in June and September 2020.
Table 26. Summary of RCOA Prospective Participant

Prospective
Membership Category June 2013 Sep 2019 June 2020
Jun-13 Sep-19 Jun-20 Sep-20 vs. Sep vs. Sep vs. Sep
2020 2020 2020
D ≥ 1MW 892 1,444 1,448 1,449 62% 0.35% 0.07%
Contestable 750kW ≥
- 579 641 646 - 12% 0.8%
Customers D > 1MW
Total 892 2,023 2,089 2,095 138% 5% 0.29%
RES 19 30 37 43 126% 43% 14%
Suppliers LRES 13 25 25 25 92% 0% 0%
Total 32 55 62 68 113% 24% 10%
SOLR 9 47 47 47 422% 0% 0%
RMSP 28 54 54 54 93% 0% 0%
Grand Total 961 2,123 2,252 2,264 136% 7% 0.5%
Source: ERC, PEMC
As of September 2020, the total number of RCOA prospective participants gradually improved,
noting significant increase during the GCQ period. The total Contestable Customer (CCs)
comprises 76% customers on 1-MW threshold while 24% is at 750 MW – 1 MW threshold. Within
the observed period from June to September 2020, there were 27 registered entrants. No new
participants were enlisted on the Suppliers, Supplier of Last Resort (SOLR) and Retail Metering
Service Providers (RMSP).

As of October 2020
51
Table 27. Summary of RCOA Registration
Registered
Membership Category June 2013 Aug 2019 June 2020
Jun-13 Aug-19 Jun-20 Aug-20 vs. Aug vs. Aug vs. Aug
2020 2020 2020
Contestable D≥
Customers 240 1,120 1,122 1,124 368% 0.36% 0.18%
1MW
750kW
≥D> - 335 341 355 - 6% 4%
1MW
Total 240 1,455 1,463 1,479 516% 21% 1%
Suppliers RES 15 33 33 33 120% 0% 0%
LRES 3 14 14 14 367% 0% 0%
Total 18 47 47 47 161% 0% 0%
SOLR 0 25 25 25 - 0% 0%
RMSP 29 54 54 54 86% 0% 0%
Grand Total 287 1,581 1,589 1,605 456% 2% 1%
Source: ERC, PEMC
Actual participation in the RCOA as reflected in the list of registered participants from the Central
Registration Body (CRB), increased by 2% from 1,528 registered CCs in September 2019 to 1,611
in September 2020. As of September 2020, the total registered participants are composed of 92%
Contestable Customers, 3% Suppliers, 2% SOLR and about 3% RMSP.
There was a ladder-step increase in the CC’s energy consumption, measured through Metered
Quantity (MWh) from April 2020 to June 2020 after the decline experienced in February (before
ECQ) and March 2020 (initial implementation of ECQ). There was a seen recovery after
transitioning to MECQ in May and GCQ in June from the strictest among guidelines - the full ECQ
implementation in April 2020. The change in quarantine rules provided an avenue for continuation
of, if not most, commercial, and industrial establishments particularly in Metro Manila. The slight
increase was steadily observed between the months of July to September of 2020.
Figure 8 – Total Energy Consumption of Contestable customers from January to September 2020
Source: PEMC

As of October 2020
52
Figure 9 illustrates that the majority of the CCs are situated within the franchise area of MERALCO
at 76%. 6% is in the franchise area of VECO, while NGCP has accounted for the 3% from the Directly
Connected Contestable Customers (DCCC). The Clark Electric Distribution Corporation (CEDC) has
2% as well, and the remaining 13% were distributed among the 46 other franchises.
Figure 9 - Registered Contestable Customers per Franchise Area as of September 2020
Source: PEMC
Of the 45 registered Retail Electricity Suppliers, 32 are currently transacting with CCs, most
associated with the four biggest groups of companies having more than one RES or Local RES.
These affiliated RES/LRES accounts to 71% of the total registered suppliers.
Table 28. List of Suppliers with Contestable Customers as of September 2020

Aboitiz Group Number of
CCs
Aboitiz Energy Soutions, Inc. 202
AdventEnergy, Inc. 59
SN Aboitiz Power – RES Inc. 37
San Fernando Light & Power 1
PRISM Energy, Inc. 41
Mazzaraty Energy Corporation 2
Ayala Group
Ecozone Power Management, Inc. 42
DirectPower Management, Inc. 45
AC Energy, Inc. 94
AC Energy Phils., Corp. (formerly Phinma) 55
San Miguel Group
San Miguel Electric Corp. 22
SMC Consolidated Power Corp. 109
Masinloc Power Partners Co., Ltd. 25
MERALCO Group
Manila Electric Co. (MPower) 472
Vantage Energy Solution and Management, Inc. 54
Clark Electric Distribution Corporation 9
MeridianX Inc. 1
Others
First Gen Energy Solutions 6
Global Energy Supply Corp. 21

As of October 2020
53
GNPower Ltd. Co. 4
TEAM (Phils.) Energy Corp. 24
Manta Energy, Inc. 1
KEPCO SPC Power Corporation 6
Premier Energy Resource Corp. 12
FDC Retail Electricity Sales Corporation 17
Kratos RES Inc. 29
Bac-Man Geothermal, Inc. 55
Citicore Energy Solutions 7
Corenergy, Inc. 5
Anda Power Corporation 4
SEM-Calaca RES Corporation 8
Batangas II Electric Cooperative, Inc. – Local RES 1
Mactan Electric Company 2
MERALCO group has the most number of contracted CCs with 36% of the total share as of
September 2020. Consolidated number of CCs for the Aboitiz group ranked second with 23% and
followed by the Ayala Group with 16%. San Miguel Group garnered 11% while the RES/LRES
without affiliation accounted for the remaining 14%.
Figure 10 - Number of CCs per Suppliers Group as of September 2020
Source: ERC, PEMC
Similarly, MERALCO group has the largest share of energy sales with 39% as of September 2020.
Aboitiz and San Miguel group have 21% and 19% energy shares, respectively, while Ayala group
has 9% of the total energy sales from CCs. The remaining 12% of the share were from Other
Suppliers.

As of October 2020
54
Figure 11 - Sales per Supplier Groups’ as of September 2020
Source: PEMC
The average metered quantity from June 2020 to September 2020 is 1,483 GWh of which 95% of
the contracted energy was accounted through bilateral contracts and the remaining 5% was
transacted through the spot market. The average monthly metered quantities during the ECQ period
was recorded at 1,176 GWh which increased by 184 GWh (20%) during MECQ in May 2020 and
286 GWh (30%) during the GCQ in June and July 2020. It only increased by 1.052 GWh (0.07%) in
August 2020 after placing back to MECQ. The reverting of quarantine rules to GCQ in September
2020 resulted in a 66 GWh (5%) increase in the metered quantities.
There were 81 CCs switching to other Suppliers from June 2020 to September 2020. Among these,
79 out of 81 CCs (98%) can be found in Luzon. The highest number of customers switching were
recorded in the month of June 2020 with 27 switches. Interestingly, there were four instances of
customer switching during the MECQ in May 2020 and 48 during GCQ in June and July 2020.
Constantly, more customers switching in August and September 2020 with 33 CCs involved.
E. Generating Capacity Market Share and Concentration
The market share during the report period was based on the installed capacity indicated in the
Annexes of the ERC Resolution No.02 Series of 2020 entitled “A Resolution Setting the Installed
Generating Capacity and Market Share Limitation per Grid and National Grid for 2020" as well as
the DOE list of existing power plants.
The market share percentage was calculated by identifying the major shareholder of the listed power
generators in the said ERC Resolution which was also compared to the DOE list of existing power
plants. Most of the reference used on ownership were from the respective websites of the power
generators. No distinctions were made even if the company is not the full owner but if it is the majority
shareholder, that capacity is considered already as part of its portfolio. This is to consider that the
major shareholders in many cases manage the day to day operations of a company and undertake
major decisions.

As of October 2020
55
Relatively, following are the updates on the compliances of the generation sector to market share
limitations:
Table 29. Market Share Determination per Grid and National Grid
Installed
% Market Share
Generating
Grid Installed Generating Capacity (MW) Limitation as per
Capacity Limit
R.A. 9136
(MW)
Luzon 16,044,000 30% 4,813,200
Visayas 3,366,558 30% 1,009,967
Mindanao 3,999,096 30% 1,199,967
National 23,409,654 25% 5,852,414
Source: ERC Resolution No. 02, Series of 2020
Below is the graphical presentation of the dominant power market players with their respective
percentage market share:
Figure 12 - Market Share, Grid and National Grid
In Luzon, the San Miguel Power Corporation with 4,556.0 MW total installed generating capacity is
on the top of the list of the power generation business which reaches 28% of the total installed
capacity of 16,044.0 MW in Luzon Grid. It is followed by the Aboitiz Power Corporation with 3,401.7
MW total installed generating capacity or 21% of the Luzon market share. The other generation

As of October 2020
56
company on the top of the list is the FirstGen Power Corporation with a total installed generating
capacity of 2,518 MW or 16% market share. This is followed by the PSALM having an installed
generating capacity of 1,615.8 MW or 10% of the market share. None of the market participants in
Luzon exceeded the market share limitation of 30%.
In Visayas, the FirstGen Corporation with 941.5 MW covers 28% of the total installed generating
capacity of 3,366.6MW. The Aboitiz Power follows with 22% or 730.8 MW installed generating
capacity. No generating company in Visayas exceeded the market share limitation of 30%.
In Mindanao, the Government still holds the main portion of the power generation business through
the IPP contracts of the PSALM and the NPC having an installed generating capacity of 847.1 MW
or 21.2% share in the total installed generating capacity of 3,999.1 MW of the Mindanao Grid. The
Aboitiz Power seconds on the list with 840.9 MW installed generating capacity or 21% followed by
Alsons Power with 12%, AC Energy with 11%, and FDC Utilities with 10%. None of the market
participants in Mindanao exceeded the market share limitation of 30%.
In the National Grid, the Aboitiz Power Corporation gains the largest market share in totality, holding
21.3% of the 23,409.7 MW national installed capacity, followed by the San Miguel Power Corporation
with 20.7% and FirstGen Power Corporation with 15% while the Government thru PSALM still has
11% market share remaining. For the reporting period, no power generation entity has exceeded the
installed generating capacity and market share limitation of 25% for the national Grid.
To measure the current Philippine power market concentration, the DOE uses the Herfindahl-
Hirschman index (HHI) computation. HHI is the most common measure used to assess
concentration from shares of industry participants. In the US, the market with an HHI of less than
1,500 is considered to be a competitive marketplace, an HHI of 1,500 to 2,500 to be a moderately
concentrated marketplace, and an HHI of 2,500 or greater to be a highly concentrated marketplace.
Luzon, Visayas and Mindanao indicate a moderately concentrated market or reasonably competitive
market having an HHI of 1,786, 1,828, and 1,420 respectively.
Generally, the HHI for the national grid of 1,982 reflected a moderately concentrated market which
means that the energy market of the Philippines is still competitive and quite far from a monopoly.
Table 30. HHI Computation Luzon

Luzon
Ranking Market Players Installed Generating Capacity Market Share % Share (squared)
1 SAN MIGUEL 4,556,000 28% 784
2 ABOTIZ 3,401,650 21% 441
3 FIRSTGEN 2,518,000 16% 256
4 PSALM 1,615,782 10% 100
5 DMCI 950,000 6% 36
6 AC ENERGY 557,200 4% 16
7 QPPL 460,000 3% 9
8 OTHERS 1,985,368 12% 144
1,786
Table 31. HHI Computation Visayas

Visayas HHI
Ranking Market Players Installed Generating Market Share % Share (squared)
Capacity
1 FIRSTGEN 941,470 28% 784
2 ABOITIZ 730,840 22% 484
3 GBPC 605,700 18% 324
4 SPC POWER 315,200 9% 81
5 AC ENERGY 223,700 7% 49
6 ABROWN 135,000 4% 16

As of October 2020
57
Visayas HHI
Ranking Market Players Installed Generating Market Share % Share (squared)
Capacity
7 HSEC 108,120 3% 9
8 OTHERS 306,528 9% 81
1,828
Table 32. HHI Computation Mindanao

Mindanao HHI
Installed Generating Market % Share
Ranking Market Players Capacity Share (squared)
1 PSALM 847,100 21% 441
2 ABOITIZ 840,945 21% 441
3 ALSONS POWER 480,211 12% 144
4 AC ENERGY 454,210 11% 121
5 FDC 405,000 10% 100
6 SAN MIGUEL 300,000 8% 64
7 CEPALCO 229,519 6% 36
8 FIRSTGEN 108,400 3% 9
9 OTHERS 333,711 8% 64
3,999,096 1,420
Table 33. HHI Computation National

National
Installed Generating % Share
Ranking Market Players Capacity Market Share (squared)
1 ABOITIZ 4,973,435 21% 441
2 SAN MIGUEL 4,856,000 21% 441
3 FIRSTGEN 3,567,870 15% 225
4 PSALM 2,462,882 11% 121
5 AC ENERGY 1,235,110 5% 25
6 OTHERS 6,314,357 27% 729
1,982

As of October 2020
58
VI. POWER SUPPLY SECURITY AND RELIABILITY
A. Peak Demand
For the first half of 2020, the country’s total peak demand5 was recorded at 15,281 MW, which
is 300 MW or 1.9% lower than the 15,581 MW in the same period last year
For this period, the country’s three main grids showed a decrease in peak demand compared
last year due to the pandemic that hits the country. The Luzon grid contributed 11,103 MW or
72.7% of the total demand of the country with a decrease of 241 MW from the 2019 peak
demand of 11,344 MW. Visayas demand of _2,201 or 14,4 % share of the country’s total
demand also slightly declined by 23 MW from the recorded 2,224 MW peak demand in 2019.,
The Mindanao grid contributed the remaining share of 12.9% or 1,977 MW, a 36 MW decline
from its 2019 peak demand of 2,013 MW.
Based on the 2019-2040 Peak Demand forecast of the DOE, following are the forecasted peak
demand figures per grid for 2020: (1) Luzon at 12,169 MW; (2) Visayas at 2,415 MW; and (3)
Mindanao at 2,274 MW. These peak demand figures were anticipated to occur during the
summer months of 2020 considering the recent observed trend over the past few years.
However, the power sector experienced an abrupt change in electricity consumption patterns,
due to the COVID-19 pandemic and the implementation of community quarantine in the
country, which hampered the momentum built in the first quarter of the year.
B. Electricity Sales And Consumption
Table 34. 2020 and 2019 Comparative Electricity Sales and Consumption of Distribution Utilities,
Philippines (in GWh)
PHILIPPINES
1H 2020 1H 2019 Difference
Consumption by Grid
GWh % Share GWh % Share GWh % Growth
Luzon 30,719 73.4% 32,587 74.1% -1,868 -5.7%

Visayas 5,434 13.0% 5,585 12.7% -150 -2.7%
Mindanao 5,691 13.6% 5,807 13.2% -116 -2.0%
Philippines 41,845 100.0% 43,979 100.0% -2,134 -4.9%
NOTE: Includes Off-grid sales
Excludes Directly Connected Customers (DCC)
Preliminary Data as of 28 October 2020
Despite the halt in several commercial and industrial operations amid the coronavirus disease
2019 (COVID-19) pandemic, the energy sector remained steadfast as the sales and
consumption of Distribution Utilities only decreased by 4.9% from 43,979 GWh in the first half
of 2019 to 41,845 GWh in 2020. This can be attributed to the substantial increase in
consumption by the residential sector, the sector with the highest share in energy sales, since
the imposition of community quarantine throughout the country, preliminary data showed.
Luzon, where the National Capital Region (NCR) is located, had the highest decline among the
three main grids from 32,587 GWh in 2019 down to 30,719 GWh in 2020. A major contributing
factor to the downswing in sales can be traced to when the NCR otherwise known as Metro
Manila, was placed under enhanced community quarantine from 17 March 2020 to 15 May
2020.
5
Total non-coincidental peak demand of Luzon, Visayas and Mindanao grids
As of October 2020
59
On the other hand, the electricity sales and consumption of Distribution Utilities in the Visayas
and Mindanao grids showed stability with only minimal decline in the first half of 2020. Visayas
decreased to 5,434 GWh during January to June of this year, registering a 2.7% decline from
5,585 GWh of the same period last year. Meanwhile, the energy consumption in Mindanao only
dropped by 116 GWh or 2.0% from 5,807 GWh in the first half of 2019 to 5,691 GWh in 2020.
C. Supply
Table 35. 2019 Total Installed and Dependable Capacity per Technology, Philippines (in MW)
as of 30 June 2020
PHILIPPINES
FUEL TYPE Capacity (MW) Percent Share (%)
Installed Dependable Installed Dependable
Coal 10,417 9,743 40.5 42.7
Oil Based 4,328 3,024 16.8 13.2
Natural Gas 3,453 3,286 13.4 14.4
Renewable Energy (RE) 7,515 6,787 29.2 29.7
Geothermal 1,928 1,792 7.5 7.8
Hydro 3,761 3,509 14.6 15.4
Biomass 363 225 1.4 1.0
Solar 1,020 817 4.0 3.6
Wind 443 443 1.7 1.9
TOTAL 25,713 22,841 100.0 100.0
BESS 11 11
NOTE: Includes Off-Grid generators
Source: DOE
Table 36. Newly Operational Power Plants for 1st half 2020
POWER PLANT CAPACITY, MW LOCATION
Municipality/ OPERATOR
Facility Name Subtype Installed Dependable
Province
LUZON 91.6 73.3
Solar
CONCEPCION Ground Mounted Concepcion, Solar Philippines
20.7 16.6
1 SOLAR Solar PVs Tarlac Tarlac Corporation
CONCEPCION Ground Mounted Concepcion , Solar Philippines
70.9 56.7
2 SOLAR Solar PVs Tarlac Tarlac Corporation
VISAYAS 1.2 1.2
Hydro
LOBOC HEPP Run-of-River type Sta. Clara Power
1.2 1.2 Loboc, Bohol
2 HEPP Corporation
MINDANAO 0.0 0.0
TOTAL NEW CAPACITY FOR
92.8 73.3
1H 2020 (MW)
The total power supply, in terms of installed capacity, grew by 0.7% from 25,531 MW in 2019
to 25,713 MW in the first half of 2020. As shown in Table 3, a total of 92.8 MW newly installed
capacities were added to the country’s grid supply which include solar (91.6 MW) and hydro
(1.2 MW) from the Luzon and Visayas grid, respectively. Mindanao has not developed any
additional capacity for the first half of 2020.

As of October 2020
60
Off-Grid generators were also updated to account the changes in capacities of some of the
power plants, particularly diesel, wind, solar, and Battery Energy Storage System (BESS). As
shown in Table 32, coal still dominated the installed capacity mix with a 40.5% share followed
by renewable energy at 29.2%. On the other hand, various oil-based sources contributed
16.8% in the mix, while natural gas is at 13.4%.
D. Generation Figure 13 - 1H 2019 vs. 1H 2020 Gross

Generation, GWh
The gross generation of the country for the
first half of 2020 totaled to 48,392 GWh
registering a decrease of 6.7% from the
previous year. The decrease in the
generation was a result of the
implementation of community quarantine in
the country which heavily affected the
industry and commercial sectors. The Luzon
grid contributed the majority of generation at
70.2%. While Visayas and Mindanao grids
recorded 15.7% and 14.1% share,
respectively. Coal continuously dominated
the power mix in the first half of 2020 by
increasing its share to 56.1%. Even with the
domination of fossil fuels in the mix,
renewable energy technologies retained its
total generation share to 20.7%. Natural gas
contributed 21.1% while oil-based plants
continuously registered the least
contribution in the power mix with a percent
share of 2.2%
E. Power Projects
Table 37. Committed and Indicative Capacities, Philippines, as of 31 December 2019 (in MW)
Committed Indicative
Fuel Type No. of Capacity No. of Capacity
% Share % Share
Proponents (MW) Proponents (MW)
Coal 8 3,991.0 60.6 15 9,803.0 22.7
Oil-Based 3 414.6 6.3 9 1,086.3 2.5
Natural Gas 2 1,750.0 26.6 9 8,758.0 20.3
Renewable Energy
15 432.5 6.6 200 23,529.4 54.5
(RE)
Geothermal 0 0.0 0.0 6 497.0 1.2
Hydro 0 0.0 0.0 76 5,289.5 12.3
Biomass 12 197.5 3.0 19 262.6 0.6
Solar 3 235.0 3.6 72 12,261.9 28.4
Wind 0 0.0 0.0 27 5,218.4 12.1
TOTAL 28 6,588.1 100.0 233 43,176.7 100.0
Battery Energy
7 989.0 16 1,143.5
Storage System
Source: DOE List of Private Sector – Initiated Power Projects as of 30 June 2020
As of October 2020
61
Despite the pandemic in 2020, the DOE encourages the private sector to invest in power
generation and continue their development of putting up generation facilities to augment the
needed capacity of the power system in the coming years. As shown in Table 4, capacities
from committed power projects reached 6,588 MW by the 1st half of 2020. About 60.6% of
these capacities are from coal-fired power projects that will provide baseload capacity in the
system in the coming years.
The indicative power projects capacity amounted to 43,177 MW by the 1st half of 2020. Coal-
fired power projects contributed 22.7% and Natural gas projects are at 20.3%, while 54.5% is
expected to come from renewable energy technologies.
With the recent issuance of the Energy Storage Systems (ESS) policy of the Department of
Energy in the last quarter of 2019, ESS facilities development grew in the 1st half of 2020 as
committed BESS projects increased to 989 MW from seven proponents, while 1,144 MW
additional BESS capacity under indicative status from sixteen proponents were applied to the
Department and are expected to contribute to the grid in the coming years.
F. Significant Incidents
COVID-19 Pandemic impact to the Electric Power Industry (March 2020 - Present)
When the COVID-19 pandemic hit the country and became a national concern in March 2020,
the government issued a Community Quarantine measure starting 18 March 2020 to limit the
spread of the virus all around the country. With this implementation, the entire power industry
was affected in terms of operation of facilities, development of projects, payment of
consumption by the consumers to the utilities and even the entry of foreign technical
contractors to the country to perform maintenance or repair of power plants .
To ensure unimpeded energy services to the Filipino in this time of pandemic, the Department
of Energy continues to provide assistance to the power sector stakeholders through the
following issuances:
1. Advisories on the deferment of payments of the Distribution Utilities;

2. Issuance of IATF IDs and Rapidpass QR Codes for better cross-province/city travel
of essential power sector stakeholders;
3. Issuance of COVID-19 Response Protocol to all Energy Stakeholders; and
4. Endorsement for Foreign Workers of the contractor to the Department of Foreign
Affairs and Bureau of Quarantine to enter the country.
Following are the significant incidents that occurred in the first semester of 2020 by main grid:
Luzon
Luzon grid experienced two (2) Yellow Alerts on 16 January 2020 and 4 June 2020. The 16
January 2020 Yellow Alert was caused by the unplanned outages and derated output of power
plants due to line constraints. While the 4 June 2020 Yellow Alert was mainly attributed to the
higher demand due to the mild El Niño phenomenon, and the series of unplanned outages and
derated output of power plants due to the Malampaya gas restriction. Furthermore, the
expected additional capacity from committed power projects were not able to ease the power
situation as a result of the delayed commissioning and commercial operation of power plants
which were affected by the nationwide community quarantine.

As of October 2020
62
Visayas
One (1) occurrence of Yellow Alert was recorded in the Visayas Grid on 28 January 2020. This
was triggered by capacity reserves being below the system reserve requirement due to forced
outages of power plants.
A few grid disturbances were also experienced because of power plant and line trippings which
resulted in load droppings and momentary power interruptions.
Mindanao
There were no yellow and red alerts during the first half of 2020 in Mindanao. Despite the
COVID-19 pandemic, Mindanao grid continued to provide enough supply to its reduced
demand. The decrease in demand and the current over-supply capacity situation of this grid
resulted in various power plants to be on reserve shutdown.
G. Status of Government Generating Assets
Agus VI HEPP (Units 1 & 2) Uprating Project
During the report period, among the outstanding deliverables of the Joint Venture of Guangxi
Hydroelectric Construction Bureau and ITP Construction, Inc. is the installation of Annunciator
Alarm Panel, the commissioning of which was completed on 10 October 2019, and copy of the
Operation & Maintenance Manuals for the said equipment was submitted to PSALM. In
November 2019, the Joint Venture likewise submitted to PSALM the Computer Control &
Supervision System Diagram, Operation and Maintenance Manual of the Annunciator Alarm
Panel, and Factory inspection and test report.
The turn-over of the Agus VI Units 1 and 2 to NPC was undertaken on 14 February 2020. The
Agus VI units 1 & 2 (uprating project) are under warranty until November 2020.
On 15 April 2020, notice of defects was issued to the Joint Venture of Guangxi Hydroelectric
Construction Bureau and ITP Construction, Inc. advising them to correct/rectify the discovered
defects within sixty (60) days from the lifting of Enhanced Community Quarantine in Iligan City.

As of October 2020
63
H. Status of Transmission Projects
During the report period, following are the ongoing Transmission Projects:
1. LUZON GRID
Power Quality
● TUGUEGARAO–
LAL-LO (MAGAPIT)
230 kV T/L (PQ, LG)
The Tuguegarao–Lal-lo
(Magapit) 230 kV
Transmission Line
project aims to address
the imminent
overloading of the
Tuguegerao– Magapit
69 kV Line due to the
forecasted load growth
(LG) in the northern part
of Cagayan Province. It
also aims to improve the power quality (PQ) and reliability of supply in the area, which is
presently being served by a very long 69 kV line. As of 30 June 2020, the Transmission
Line portion is 49.86% complete and the Substation Portion is 83.19% complete. Due to
the implementation of community quarantine due to COVID-19, the expected time of
completion of the project was moved from May 2021 to March 2020.
System Reliability
● AMBUKLAO–BINGA
230 kV T/L
UPGRADING
The Ambuklao–Binga
230 kV Transmission
Line Upgrading project
aims to upgrade the
existing line in order to
address its old age
condition and also to
maintain the N-1
contingency provision
taking into consideration
the repowering of
Ambuklao HEPP and the
proposed generation
capacity additions in the
Cagayan Valley area. Thus, during maximum generation of the power plants, this project
will prevent the overloading under N-1 contingency conditions, i.e, outage of one 230 kV
circuit. As of 30 June 2020, the Substation Portion is 94.35% complete which is expected
to be completed in November 2021.

As of October 2020
64
● BINGA–SAN MANUEL
230 kV T/L
The Binga–San Manuel 230

kV Transmission Line
upgrading project aims to
provide N-1 contingency
during maximum dispatch of
the generating plants. The
existing line, as well as the
power circuit breakers at
Binga Substation, which
were constructed/installed in
1956 have already
surpassed the economic life.
Moreover, there are
developments in the power
plants affecting the power
flow at Binga–San Manuel 230 kV line. As of 30 June 2020, the Transmission Line Portion
is in Tendering Stage for the preparation of its bidding documents and the Substation
Portion is 95.02% complete. The project is expected to be completed in November 2021.
● SAN MANUEL –
NAGSAAG 230 kV T/L
The project aims to address

the overloading of the San
Manuel– Nagsaag 230 kV
tie line, Pantabangan–
Cabanatuan 230 kV Line,
and the Nagsaag 500/230
kV transformer. During
Maximum North condition
and the hydro plants are
maximized, outage of the
San Manuel–Nagsaag 230
kV tie line will result in the
overloading of the single
circuit Pantabangan–
Cabanatuan 230 kV line.
Conversely, the outage of Pantabangan–Cabanatuan 230 kV line will result in
overloading of the San Manuel–Nagsaag 230 kV tie line. As of 30 June 2020, the
transmission line portion is 43.68% complete while the substation portion is 69.03%
complete. Nonetheless, the project is expected to be completed in June 2021.

As of October 2020
65
● SAN JOSE–
QUEZON 230 kV
LINE 3
The San Jose–Quezon

230 kV Line 3 project
intends to address the
projected overloading
problem during an
outage of one of the San
Jose–Quezon circuits at
peak load condition.
Without this project, the
dispatch of the power
plants delivering power
to the 500kV system will
have to be limited to
maintain the N-1
contingency for the line and this may result in supply adequacy issue and load dropping.
As of 31 August 2020, the Transmission Line Portion is 98.69% complete. Due to the
COVID-19 pandemic situation in the country, the target date of project completion was
moved from June 2020 to a later date within the year.
● SAN JOSE–ANGAT
115 KV LINE
UPGRADING
PROJECT
The San Jose–Angat

115 kV Line Upgrading
Project aims to ensure
the reliability of the
existing 115 kV
transmission lines
connecting Angat HEPP
to the Luzon Grid. The
300 MVA capacity per
circuit of the project
would be sufficient to
provide N-1 contingency
during maximum
dispatch of the 246 MW Angat HEPP. As of 30 June 2020, the Transmission Line Portion
is 88.86% complete and is expected to be fully constructed by March 2021, less than a
year delayed from its original target date completion of March 2021 due to the COVID-19
pandemic.

As of October 2020
66
● TIWI 230 KV
SUBSTATION
PROJECT
The project aims to

upgrade the old and
deteriorated substation
equipment at Tiwi A and
C Substations to improve
the reliability of the
system. It is also
intended to augment the
power requirement of
Malinao/Ligao LES by
installation of additional
power transformer at Tiwi
C Substation and will
clearly identify asset
boundaries within the Tiwi Geothermal Power Plant Complex through construction of
NGCP's own control facilities. As of 30 June 2020, the Primary Equipment is already
88.33% completed while and the Secondary Equipment is 27.24% completed. Because
of COVID-19, the expected time of completion of the project has to change from
December 2020 to December 2021.
● TOWER
STRUCTURE
UPGRADING OF
BICOL
TRANSMISSION
FACILITIES
The restoration project of

Bicol transmission
facilities offers the
reconstruction of the
affected transmission
lines destroyed by
Typhoon Nina, namely
the Naga–Daraga–Tiwi
A and Naga–Tiwi C 230
kV Transmission Lines. It
will provide a permanent
solution to address the
limitations of the emergency restoration that made use of provisional light-weight modular
tower and steel pole structures. The project will involve the erection of 82 new steel tower
structures, which are in conformity with the required design standards considering higher
wind design criteria replacing the old and toppled structures. As of 30 August 2020,
Schedule 1 is already 100% completed while Schedule 2 is nearly completed at 95.41%,
which is expected to be fully completed within the year.

As of October 2020
67
Load Growth
● CLARK-MABIGA 69
KV TRANSMISSION
LINE PROJECT
The Clark–Mabiga 69 kV
Line Project aims to
provide transmission
capacity reinforcement to
the Mexico–Clark 69 kV
Line, which is currently
serving PRESCO,
PELCO I, PELCO II,
Angeles Electric
Corporation (AEC),
Quanta Paper
Corporation and Clark
Electric Development
Corporation (CEDC).
This project will address not only the load growth in the area of Angeles and Mabalacat
together with the new industries in Clark Freeport Zone but also improve the power quality
of supply in the area. As of 30 June 2020, the Substation Portion is 93.76% complete.
On the other hand, its Transmission Line Portion is for re-routing due as the proposed
original route was affected by the Malolos-Clark Railway Project. Due to the COVID-19
pandemic situation, the expected time of completion of the project was moved from
December 2020 to December 2021.
● NAVOTAS 230KV
SUBSTATION
PROJECT
The Navotas 230 kV

Substation aims to cater
the load growth in
Sector 1 of MERALCO
and to serve as a
connection point for
power plants in the area
such as the TMO and
Millennium Power
Plants. With the further
increase in load, the
existing 230/115 kV
substations in Metro
Manila become heavily
loaded and have been losing the provision for N-1 contingency. This will expose the Metro
Manila loads to supply reliability risk as well as power quality concerns during system
peak load condition. The proposed Navotas 230 kV Substation will be initially linked to
the grid through cut-in connection along the existing Marilao–Quezon 230 kV
Transmission Line and will ultimately terminate in the future Marilao 500 kV Substation.
As of 30 June 2020, the project is 85.7% complete. With the circumstances brought about
by COVID-19, the expected project completion date was changed from June 2020 to
June 2021.
As of October 2020
68
● ANTIPOLO 230 KV
SUBSTATION
PROJECT
The Antipolo 230 kV

Substation aims to cater
the load growth in Sector
2 of MERALCO. It
involves the construction
of a new 230 kV
substation that will bus-in
along the existing Steel
Tower- Double Circuit
San Jose-Taytay 230 kV
line. Initially, the
substation will also be
installed with capacitor
banks for voltage
support.
As of 30 June 2020, the following is the status of the project’s components:1)Site

Development Portion is 18.85% complete; 2)Erection of its Primary Equipment is awaiting
the completion of the site development; and 3)Secondary Equipment is 57.19% complete.
Due to COVID-19, the projected completion date has to change from March 2021 to April
2022.
● TAGUIG 500 KV
SUBSTATION
PROJECT
The Taguig 500 kV

Substation intends to
provide another
500/230 kV drawdown
substation to decongest
San Jose EHV
Substation and provide
higher level of reliability
to the 500 kV system of
the Luzon Grid. It will
also address the
criticality of the existing
230 kV single-circuit line
from Quezon to
Muntinlupa during N-1 contingency. Further, this project will address the severe low
voltage of the Metro Manila 230 kV Substations due to the single-circuit configuration and
heavy loading condition of the Quezon–Muntinlupa 230 kV Line. As of 30 June 2020, the
Transmission Line Portion is 23.81% complete while the Substation Portion is 26.17%
complete. . Due to the circumstances brought about by COVID-19, the expected time of
completion of the project was moved from May 2021 to April 2022.

As of October 2020
69
Generation Entry
● WESTERN LUZON
BACKBONE STAGE 1
(Castillejos–Hermosa
500kV T/L Project)
The Western Luzon

Backbone (Stage
1:Castillejos–Hermosa 500
Project) pertains to the
construction of a
transmission facility to
connect the 2x300 MW RP
Energy CFPP to the Luzon
Grid through the Hermosa
Substation. It is part of the
proposed long-term plan for
500 kV backbone loop
development from Bolo (Kadampat) down to Hermosa Substation. As of 30 June 2020,
the Transmission Line Portion is 61.21% complete. Due to the circumstances brought
about by COVID-19, the expected time of completion of the project was moved from
December 2020 to June 2021.
● HERMOSA–SAN
JOSE 500 KV
TRANSMISSION
LINE PROJECT
The Hermosa–San Jose

500 kV Transmission Line
Project will serve as a
new 500 kV corridor for
the bulk power generation
coming from the existing
Limay CCPP, Petron
RSFF, Subic Enron DPP,
Mariveles CFPP and the
programmed generation
capacity additions which
include RP Energy CFPP
and SMC CFPP. As of 30
June 2020, the Transmission Line portion is 14.67% complete while the Site
Development of its Substation Portion is 64.39% complete and the Substation Portion
10.18% complete. Due to COVID-19, the expected time of completion of the project was
adjusted from March 2021 to December 2021.

As of October 2020
70
● MARIVELES-
HERMOSA 500 KV
TRANSMISSION
LINE PROJECT
The Mariveles–Hermosa
500 kV Transmission
Line Project aims to allow
the connection of
incoming generations in
Bataan Peninsula, which
include 2x668 MW GN
Power Dinginin CFPP
and 8x150 MW SMC
Consolidated Power
Corporation CFPP.
While the Bataan 230 kV
Grid Reinforcement
Project can increase the capacity of the existing 230 kV corridor in the area, the huge
generation capacity addition cannot be accommodated unless a new transmission
highway is developed. This new backbone will form part of the loop from Hermosa to
Mariveles then to Cavite/Metro Manila upon completion of the future submarine cable. As
of 30 June 2020, the Transmission Line Portion is 51.84% complete and the Substation
Portion is 6.26% complete. Due to the circumstances brought about by COVID-19, the
expected time of completion of the project was adjusted from March 2021 to October
2021.
● PAGBILAO 500 KV
SUBSTATION
PROJECT
The Pagbilao 500 kV

Substation Project will
accommodate the
connection of incoming
power plants in Quezon
Province. The Pagbilao
EHV Substation Project
will address the
overloading of Tayabas
500/230 kV transformers
and the fault level issue
at Tayabas 230 kV
Substation As of 30 June
2020, the Transmission
Line Portion is 75.60% complete and the Substation Portion is 10.45% complete. Due to
the circumstances brought about by COVID-19, the expected time of completion of the
project was adjusted from March 2021 to January 2022.

As of October 2020
71
● TUY 500/230 KV
SUBSTATION
PROJECT/TUY-
DASMARIÑAS
500KV T/L
PROJECT
The Tuy 500 kV

Substation (Stage 1)
aims to accommodate
the connection of the
2x350 MW SRPGC Coal
Plant and allow full
dispatch of bulk
generation capacity
addition in Batangas.
The generation capacity
addition will turn Calaca
Substation into a merging point of more than 2,000 MW of power generation. As of 30
June 2020, the NGCP has yet to issue the Notice-to-Proceed for the Transmission Line
component while the Substation component is already 16.83% completed. With the
restrictions brought about by COVID-19, the expected time of completion of the project
was moved from December 2021 to March 2023.
Island Interconnection
● BATANGAS-MINDORO INTERCONNECTION PROJECT
The proposed
interconnection of
Mindoro Island with the
Luzon Grid was
envisioned to provide
access to bulk generation
sources in the main grid,
while at the same time
providing the means to
export possible excess
power once the
generation potentials,
including RE-based
plants, within the island
have been developed.
The nearest connection
point in the Luzon Grid for
the planned island
interconnection project is
the proposed Pinamukan 500 kV Substation, while Calapan would serve as the
interconnection point in Mindoro Island. As of 30 June 2020, the NGCP is awaiting the
approval of the ERC to commence implementation.

As of October 2020
72
2. VISAYAS GRID
Generation Entry
● CEBU-NEGROS-
PANAY 230KV
BACKBONE
PROJECT – STAGE
1, GE & SR
To ensure the effective

transmission of excess
power generation from
Panay towards Negros, a
high capacity
transmission corridor is
being proposed.
Strategically, the project
will be designed
consistent with the long-
term transmission master
plan of having a 230 kV
transmission backbone in the Visayas by establishing a 230 kV interconnection from
Panay to Cebu. The Transmission Line portion is 84.33% complete while the Substation
component is already 100% completed. However, with the COVID-19, the expected time
of completion of the project was moved from July 2020 to April 2021.
● CEBU-NEGROS-
PANAY 230KV
BACKBONE
PROJECT – STAGE
2, GE & SR
In order to ensure the

effective full generation
dispatch of the new
power plant, a new
transmission corridor,
which includes high-
capacity transmission
line and new substation
facilities, is being
proposed towards Metro
Cebu. As of 30 June
2020, following is the
status of the project’s components: 1) Transmission Line portion is 93.78% complete; 2)
Substation Portion is 0.77% complete; 3)Underground Cable is 10.15% complete; and
4)Multi-storey facility is 16.68% complete. Due to the circumstances brought about by
COVID-19, the expected time of completion of the project was adjusted from December
2020 to December 2021.

As of October 2020
73
● CEBU-NEGROS-
PANAY 230KV
BACKBONE
PROJECT – STAGE
3
The development of new

power plants, including
baseload and renewable,
in Panay and Negros
Islands will result in the
increase in power
exchange between the
islands of Panay, Negros
and Cebu. To ensure the
effective transmission of
excess power generation
from Panay and Negros
towards Cebu, a high capacity transmission corridor is being proposed and this will serve
as the stage 3 or the final stage for the Cebu–Negros–Panay 230 kV Backbone Project.
As of 30 June 2020, the Submarine Cable portion is 94.96% complete, the
Reconductoring/Bundling of 138kV Transmission Line is 96.34% complete, the E.B.
Magalona–Cadiz 230kV Transmission Line is 0.60% complete, the Magdugo–Cebu
230kV Transmission Line is 38.83% complete, the Barotac Viejo Substation is 72.06%
complete and the Bacolod Substation is 12.48% complete, all of which forms part of the
project’s Phase 1. Phase 2 of the project which includes Cadiz Substation, Calatrava
Substation, E.B. Magalona Substation and Magdugo Substation have been issued with
Notice-to-Proceed by the NGCP. On the other hand, Phase 3 of the Project which
includes the Cebu Substation and Quiot Substation is currently Manufacturing its
equipment. With COVID-19 pandemic situation, the expected time of completion of the
project was changed from December 2021 to December 2022.
Load Growth
● CEBU-BOHOL 230KV INTERCONNECTION PROJECT
Currently, Cebu, Leyte

and Bohol are
connected radially. As
such, an outage of the
Leyte–Bohol 138 kV
Interconnection will
cause power delivery
interruption towards the
entire Bohol Island.
Since the existing power
plants in Bohol do not
have sufficient
generation capacity to
cater the power demand
in the island during N-1
contingency conditions,
there is a need to
provide additional
transmission backbone towards Bohol. As of 30 June 2020, the Corella Substation project

As of October 2020
74
component is for issuance of Notice-to-Proceed and is currently waiting for the approval
of the ERC. The project is expected to be completed in March 2022.
● NAGA (VISAYAS)
SUBSTATION
UPGRADING
PROJECT
To improve the reliability

of the Naga Substation,
which was
commissioned in 1977,
equipment shall be
replaced. The project
involves the construction
of new steel tower
structures and
installation of associated
overhead line
components. It also
involves the use of steel
tower structures with higher wind design capability. As of 30 June 2020, its Primary and
Secondary equipment is 81.96% complete. Due to the circumstances brought about by
COVID-19, the expected time of completion of the project was moved from December
2020 to December 2021.
● NEW NAGA
(COLON)
SUBSTATION
PROJECT
To accommodate the
projected demand of
Colon Substation, there
is a need to increase the
substation capacity. The
project involves the
installation of 100 MVA
transformer at Colon
Substation and the
transfer of the Naga–
Sibonga–Dumanjug and
VECO Naga 69 kV
feeders from Naga
Substation to Colon Substation As of 30 June 2020, the project is already 81.96%
completed. However, because of the restrictions imposed due to COVID-19, the expected
time of completion of the project was adjusted from December 2020 to December 2021.

As of October 2020
75
● SAN CARLOS –
GUIHULNGAN 69
KV
TRANSMISSION
LINE PROJECT
The San Carlos-

Guihulngan 69kV
Transmission Line
project is intended to
accommodate power
demand in the
northeastern part of
Negros island by
building a 69 kV
transmission loop from
Cadiz to Amlan. As of 30
June 2020, the project is
almost completed at 97.84%. Because of the circumstances brought about by COVID-
19, the expected time of completion of the project was changed from June 2020 to a later
date within the year.
System Reliability
● CEBU-LAPULAPU
230KV
TRANSMISSION
PROJECT
The existing
transmission corridors
serving the major load
centers in Mandaue and
Mactan in Cebu do not
have N-1 contingency
provision. Thus a new
transmission corridor,
composed of overhead
transmission line and
submarine/underground
cable system, is
proposed between Cebu
Substation and Lapulapu Substation. As of 31 January 2020, the Substation portion is
97.40% complete. On the other hand, both the Submarine Cable and Overhead
Transmission Line components of the project are at the Tendering stage. Due to the
circumstances brought about by COVID-19, the expected time of completion of the
project was moved from December 2021 to June 2022.

As of October 2020
76
● PANITAN – NABAS
138 KV
TRANSMISSION
LINE – LINE 2 (2ND
CIRCUIT
STRINGING)
The northwestern part of

Panay, which includes
the Boracay Island, is
served by Nabas
Substation which
normally draws power
from the grid through the
existing Panitan–Nabas
138 kV Transmission
Line. The Nabas
Substation is also linked
to the San Jose
Substation by a 69 kV transmission line. However, during the outage of the 138 kV line,
the 69 kV line will have limited transmission capacity to cater the entire load of the area,
hence, will result in power curtailment. To cater the entire power requirement of Nabas
Substation even during N-1 condition, a new 138 kV circuit will be installed from Panitan
Substation and Nabas Substation. As of 30 June 2020, the Transmission Line component
is ready for Energization while the Substation Portion is 51.86% complete. Due to the
project was moved from December 2020 to June 2021.
● STA.RITA–
QUINAPONDAN 69
KV TRANSMISSION
LINE
This project involves the

construction of a 97 km
69 kV line connecting
Sta. Rita and
Quinapondan Substation
to improve system
reliability and power
quality in Eastern Samar
Area. As of 30 June
2020, the Transmission
Line project is almost
complete at 99.67%.
However, due to the
project has to change from December 2020 to June 2021.

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77
3. MINDANAO GRID
System Reliability
● BUTUAN – PLACER
138KV
TRANSMISSION
LINE PROJECT
The Butuan-Placer 138

Project provides the
needed line
reinforcement to achieve
reliable and continuous
power supply to
northeastern Mindanao.
The project not only
satisfies the compliance
of the transmission line
facility to the single-
outage contingency
criterion of the PGC but also improves the voltage level in the served area. As of 31
August 2020, the Substation Portion is already 100% completed while the Transmission
Line component is 94.96% complete. Due to the circumstances brought about by COVID-
19, the expected time of completion of the project was moved from June 2020 to a later
date within the year.
● AGUS 2 SWITCHYARD UPGRADING/REHABILITATION PROJECT
The project enhances

the operational stability
of the grid that ensures
the continuity of service
of the power plant’s
transmission corridor. It
involves the replacement
of obsolete power circuit
breakers, capacitive
potential transformers,
telecom equipment and
other secondary devices.
As of 30 June 2020, the
transmission project is
94.78% complete.
However, with the
restrictions brought
about by COVID-19, the
expected time of completion of the project was adjusted from December 2020 to February
2022.

As of October 2020
78
Generation Entry
● MINDANAO 230KV
TRANSMISSION
BACKBONE
PROJECT
The project upgrades the

thermal capacity of the
existing transmission
backbone. It entails two
(2) major
activities:1)Construction
of the Matanao-Toril-
Bunawan 230 kV Line;
and 2)Energization of the
existing Balo-i-
Villanueva-Maramag-
Bunawan Line to 230 kV
voltage level.
The transmission line portion of the project utilizes the existing 230 kV PCBs in Matanao
Substation and the installation of transformers in the substations of Toril and Bunawan.
However, the energization of the whole stretch of the backbone to 230 kV level requires
the installation of additional transformers in the substations of Culaman, Toril, Bunawan,
and Villanueva. As of 30 June 2020, the Transmission Line Portion is 97.85% complete,
Culaman Substation is 90.90% complete, Matanao Substation is 89.35% complete, Toril
Substation is 97.97% complete and Bunawan Substation is 97.20% complete. Due to the
project was moved from March 2020 to December 2020.
System Reliability
● MINDANAO SUBSTATION UPGRADING

PROJECT (MSUP)
The MSUP will provide additional

transformers, install capacitor banks, and
replace defective, old, obsolete and
underrated power circuit breakers (PCBs) to
ensure adequate, reliable, and high-quality
power transmission system in Mindanao. It
also involves the installation of a total of 875
MVA power transformers, 52.5 MVAR
capacitor banks, nineteen (19)-138 kV PCBs
and twenty-one (21)-69 kV PCBs. Also
included as project component is the
replacement of eleven (11)-138 kV and
twenty-seven (27)-69 kV PCBs in various
substations in the grid.
The Project is divided into two (2) Stages.

Segments of Stage 1 of the Project have
already been completed and energized in
2019 except for Bislig Substation and General Santos Substation which as of 30 June
As of October 2020
79
2020 are already 63.18% and 29.12% completed respectively. On the other hand, Stage
2 of the MSUP is already on-going at 40.74%. The MSUP is expected to be completed in
September 2021.
● MINDANAO SUBSTATION
REHABILITATION PROJECT (MSRP) –
STAGE 1
Mindanao Substation Rehabilitation Project

(MSRP) will replace power circuit breakers
(PCBs) in various substations in Mindanao
due to defectiveness, old age, obsolescence
and low fault level capacity. Implementation
of the project will increase the reliability of the
network, reduce/prevent unserved energy,
avoid costly maintenance expenses, improve
personnel safety and decrease incidents of
breaker failures. As of 30 June 2020, Stage 1
of the project is already 51.74% completed.
Due to the circumstances brought about by
COVID-19, the expected time of completion of
the project was adjusted from August 2020 to
October 2021.
Island Interconnection
● MINDANAO-VISAYAS
INTERCONNECTION PROJECT
The implementation of the MVIP will

also allow export of power to the other
major grids. From a technical
standpoint, the MVIP will provide
benefits to the system in terms of added
supply security, improved system
reliability and improvement in the quality
of power supply. The MVIP through an
interconnected power network shall
optimize utilization of indigenous energy
sources, such as natural gas in Luzon,
geothermal in the Visayas and hydro in
Mindanao, thus, reducing the overall
generation of pollution as well as the
dependency on the importation of fossils
fuel, where its availability and price are
sensitive to the price in the world
market.

As of October 2020
80
Due to the circumstances brought about by COVID-19, the expected time of completion
of the project was moved from December 2020 to December 2021.
I. Distribution Infrastructure Projects
ERC-Approved Capital Expenditure (CAPEX) Projects
Section 43 (f) of the Republic Act No. 9136, otherwise known as the EPIRA, provides that
any significant operating costs or projects investment of DU which shall become part of the
rate base shall be subject to verification by the ERC to ensure that the contracting and
procurement of the equipment, assets and services have been subjected to transparent and
accepted industry procurement and purchasing practices to protect the public interest.
On the other hand, the accompanying application for authority to secure loan from the NEA
in connection with the funding source for the proposed projects, is being filed pursuant to
Section 20 e) of Commonwealth Act No. 146 otherwise known as the Public Service Act,
which requires every public service to secure the approval and authorization of the ERC for
issuance of any bonds or other evidence of indebtedness payable in more than one year.
During the report period, the ERC approved the Capital Expenditure (CAPEX) Projects
applications filed by five (5) Distribution Utilities namely: 1) Cebu III Electric Cooperative, Inc.
(CEBECO III); 2) Pangasinan I Electric Cooperative, Inc. (PANELCO I); 3) South Cotabato II
Electric Cooperative, Inc. (SOCOTECO II); 4) Tarlac II Electric Cooperative, Inc. (TARELCO
II); and 5) Tarlac Electric, Inc. (TEI). Details of these projects are shown in Annex 3.

As of October 2020
81
VII. TOTAL ELECTRIFICATION
Under Sec. 2(a) of the EPIRA 2001, it is the declared policy of the State to ensure and accelerate
the total electrification of the country. Said law also mandates the DUs to provide universal service
in their franchise areas including unviable areas at a reasonable time. The Government has
implemented a massive and focused action to increase and accelerate access to electricity services
by the country’s unenergized communities and households while contributing to poverty alleviation.
Previous programs and activities of the Government resulted in almost 100% barangay
electrification, with only six (6) barangays out of the total of 41,974 potential barangays remaining
as unenergized due to geographical and security reasons. The current program of the Government
aims to attain 90% household electrification by 2017.
1. Status of Household Electrification
For the report period, the household electrification level of the country is estimated at 92.96% based
on the latest status of energization provided by the National Electrification Administration, Local
Government Unit-Owned Utilities and Private-Investor Owned Utilities. Said level corresponds to
23.23 million energized households surpassing the 22.98 million identified and targeted household
population based from the 2015 Census of the Philippine Statistics Authority (PSA).
Table 38. Household Electrification Level
Total Household
Unserved HHs, actual
Distribution Utility Population Served HHs %HH Level[b]
per DU per Province[a]
(2015 Census)
Electric Cooperatives 14,305,751 13,628,992[c] 1,546,265 89.19%

MERALCO 6,478,982 7,405,728 - 100.00%
Other PIOUs/LGU Owned
2,171,932 2,170,099 63,459 97.08%
Utilities
Total 22,984,971 23,229,866 1,618,264 92.96%
Source: DOE
Note: [a] Unserved HHs per DU per Prov = (Pot. HHs – Served HHs)per DU per Prov
[b] %HH Level = (Pot. HHs – Unserved HHs per DU per Prov) / Pot. HHs
[c] Total count of served households for ECs includes households served by QTPs and
NPC-SPUG which are not included in December 2019 NEA Report
NEA Report: 13,628,992 HHs; QTP/NPC-SPUG Report: 25,047 HHs
On previous reports, the electrification level only accounts for the served households of all DUs and
it results in higher level since some DUs have already exceeded the total potential number of
households as reported by PSA thus, compensating the DUs with low electrification level. With the
new computation, it accounts the actual number of unserved households per DUs per province. This
formula provides accurate representation of the status of household electrification level of the
country.
2. On-going and Planned Programs and Activities
● Grid Electrification
a. NEA’s Expanded Sitio Electrification Program (Expanded SEP)
This refers to NEA’s program of attaining 100 percent sitio electrification in the country
while providing house wiring and connection assistance to eligible HHs. SEP is the
energization of unlit sitio/purok/zone defined as a territorial enclave that forms part of
barangay, the location of which may be distant from the center of barangay itself, by
providing funds for the construction of distribution lines and house wiring facilities to the
beneficiaries. This provision covers for the two (2) bulbs, 1 (one) convenient outlet, a

As of October 2020
82
kwh meter, and thirty (30) meters of service drop wire, including the cost of house wiring
service).
Under the Sitio Electrification Program (SEP) and the off-grid solar project for 5,000
households, the programs are currently experiencing delays due to the continuing
restrictions imposed by the government. NEA revised the number of sitios to be included
in the SEP this year from the original target of 964 sitios to 635 sitios. As of June 30,
2020, NEA, through the ECs, has completed the energization of 181 sitios (86 in Luzon,
74 in Mindanao, and 21 in Visayas).
To help in the country's fight against this global pandemic, the DOE and NEA remitted
P1.5 billion to the Bureau of Treasury, as requested by the Department of Finance. Of
the amount, P1.26 billion represents unutilized subsidy funds received in 2016, while the
P85.71 million given earlier represents dividends to the national government for 2019
operations and the allocated P500 Million of the DOE-Approved LFP-TEP 2019. Hence,
implementation of the fund allocated targets for the year may not be met due to this.
b. NEA’s Barangay Line Enhancement Program (BLEP)
This aims to rehabilitate those barangays previously energized through solar home
system, generator sets and other off-grid solutions but deemed unsustainable. To
enhance the program, it shall only cover those off-grid barangays that are already
economically feasible for distribution line extension. Funds are provided for grid
extension projects such as overhead lines, submarine cable, underground cable and
enhancement /upgrading of distribution lines.
Please take note that no budget allocation on BLEP Projects for CY2018-2019 hence,
NEA has no targets for CY2019. However, as of 31 December 2019, there are 72
barangays nationwide that need enhancement. NEA managed to complete 26 BLEP
projects as of 31 December 2019 amounting to PhP300,198,890.39.
c. Rationalization of Implementation of Energy Regulations 1-94 Electrification Funds
Under this concept, DOE shall effectively administer ER 1-94 EF to support the total
electrification of the identified host barangays and municipalities consistent with the
policies set forth under the guidelines. This aims of bringing electricity to all households
in the communities hosting the power generating facilities and/or energy resources
following the radiating order, prioritizing the host cities/municipalities project proposal for
DOE’s funding approval under the ER 1-94 Electrification Fund.
As part of the DC2018-08-0021 “Providing for the Amendments of Rule 29 Part (A) of
the Implementing Rules and Regulations of Republic Act No. 9136”, the DOE have
conducted its last leg of Information, Education and Communication (IEC) Campaign in
Marquis Events Place, BGC, Taguig City on 05 November 2019. The discussion on the
said IEC mainly focuses on the computation and allocation of financial benefits,
requirements to facilitate the transfer of financial benefits and the projects to be
covered/funded under electrification fund.
For the period of May 2020 to October 2020, due to the COVID-19 outbreak in the
Philippines, and the declarations of State of Public Health Emergency and State of
Calamity throughout the Philippines, through Proclamation Nos. 922 and 929,
respectively, the DOE issued Department Circular No. DC2020-04-0008 “Rationalizing
the Utilization of ER1-94 Funds by Local Government Units in Response to COVID-19
Public Health Emergency” which aims to provide additional fund sources for Host LGUs
to combat COVID-19. Under the Circular, all available and unremitted ER 1-94 Funds
with the Department and concerned power generation companies (GenCos) shall be
As of October 2020
83
immediately distributed to the host LGUs for them to have readily available funding to
undertake their duty to contain COVID-19 in their respective areas. An Advisory for the
Implementation of DC2020-04-008 was issued last 14 July 2020 to provide clarification
on particular sections of said DC for the continuity of processes and activities. However,
with this effort, the allocated electrification fund under ER 1-94 due for the DUs will be
suspended until the State of Public Health Emergency in the country is lifted.
Table 39. Summary of Transfer of ER1-94 Funds to Host LGUs

No. of Host Total Amount
Fund Type
LGUs Transferred
Electrification Fund 309 1,594.88 M
Development and Livelihood Fund 428 825.57 M

Reforestation, Watershed Management,
Health and/or Environment Enhancement 426 805.09 M
Fund
Source: DOE
d. Nationwide Intensification of Household Electrification (NIHE) Program
Approved in 2014, the NIHE project is a 3-year program that aims to implement
measures and grant assistance to intensify household electrification. Under NIHE, DUs
are encouraged to adopt more pro-active and innovative marketing strategies to fast-
track electrification of the remaining unelectrified households both in rural and urban
areas of the country. Technical assistance to be undertaken by the NIHE Project include
streamlining of connection process, LGU-DU partnership for assistance in connection
permits, and policy support to address the issue of slum electrification and flying
connections, among others.
However, during the Budget Deliberations in Congress, the House of Representatives

has allotted another budget for the program under General Appropriations Act CY2018
to accommodate more requests amounting to PhP300,000,000.00.
For the 2015 NIHE Program, 25,563 households are reported energized out of 30,512
approved and allocated with house-wiring and KWH meter subsidy as of 08 September
2020.
2020.
2020.
2020.
Early this year, the Department of Energy encountered some administrative concerns
about the implementation of the NIHE Program that affected the timely releases of
project funds to the concerned ECs. This delay was further worsened during this COVID-
19 pandemic. Other factors that affected the release of these funds to concerned ECs
includes the delayed submission of the pertinent bidding documents from the concerned
ECs as well as the closeout of previous completed projects by the concerned ECs.

As of October 2020
84
Recently, DBM issued a Notice of Cash Allocation that can cover some of the NIHE
projects. However, the disbursement to the concerned ECs will be subject to their
compliance of the required documents and/or liquidation of previous project/fund.
Also, project close-out activities such as technical inspection and financial audit of
completed projects were put on hold due to the travel restrictions imposed during the
community quarantine.
Following are the lists of NIHE projects with pending releases from the DOE:
1. NIHE Projects with Pending Release of 15% of Approved Amount
Funding Distribution Approved

Region Reason for Delay
Year Utility Amount
2018 1 PANELCO III 24,885,000.00 Pending close-out of 2015 NIHE Project
2017 3 ZAMECO II 3,641,250.00 Pending close-out of 2016 NIHE Project
2018 6 ILECO II 28,691,250.00 Pending close-out of PVM Project
2018 8 LEYECO V 43,125,000.00 Pending close-out of 2015 NIHE Project
2. NIHE Projects with Pending Release of 85% or 100% of Approved A mount
Funding Approved
Region Distribution Reason for Delay
Year Amount
Utility
2018 1 ISECO 12,626,250.00 NCA for LFP from DBM
2017 4A QUEZELCO I 14,910,000.00 Lacking Bid Documents
2015 4B BISELCO 375,000.00 Lacking Bid Documents
2017 4B PALECO 2,392,500.00 NCA for LFP from DBM
2018 4B MARELCO 15,442,500.00 NCA for LFP from DBM
2017 5 CANORECO 21,663,750.00 Lacking Bid Documents
2017 6 AKELCO 4,620,000.00 NCA for LFP from DBM
2017 8 LEYECO III 39,637,500.00 Lacking Bid Documents
2016 9 ZANECO 9,221,250.00 Pending close-out of 2016 NIHE Project
2018 9 ZAMSURECO I 83,505,000.00 Lacking Bid Documents
2017 10 FIBECO 3,858,750.00 Pending close-out of 2016 NIHE Project
2017 10 FIBECO 25,800,000.00 Pending close-out of 2016 NIHE Project
2018 10 MORESCO I 22,226,250.00 Pending close-out of 2015 NIHE Project
2017 12 COTELCO- 81,881,250.00 Lacking Bid Documents

PPALMA
2016 CAR BENECO 19,095,000.00 NCA for LFP from DBM
2018 CARAGA ANECO 8,163,750.00 NCA for LFP from DBM
The DOE is currently preparing advisory guidelines for the ECs on the implementation
of Locally Funded Projects in view of the current crisis the country is facing. The DOE is
experiencing difficulty in timely releases of the project funds due to the delayed issuance
of Notice of Cash Allocation by the DBM and EC’s submission of complete bid
documents. Also, the DOE received various reports from Distribution Utility (DU) Project
As of October 2020
85
Implementers regarding the suspension of majority of activities because of the
community quarantine rules imposed by different localities.
As part of IATF’s minimum health safety protocol in ensuring safety during Covid-19
pandemic, some of the major activities restrict the completion of projects and likewise
conduct technical inspections of completed projects. Thus, thorough, and proper
documentation of the project's completion will be required from the corresponding DU
implementers.
Despite the current crisis, the DOE assures that it is coordinating with the concerned
ECs and continues processing of documents for the release of funds.
● Off-Grid Electrification
1. PV Mainstreaming (PVM) Program:
Below is the status of the PV Mainstreaming Program with the corresponding funding
sources.
a. DOE Locally-Funded Project
Funding under this Project was distributed to six (6) Electric Cooperatives for electricity
service provision through 50 Wp solar home systems (SHS) to highly remote and
unviable areas in the six (6) Provinces in the country. Breakdown of this Project and
status to date are presented below.
Fundin
Province Distribution Utility No. of HHs Status
g Year
2017 Quezon QUEZELCO II 1,333 Completed
Palawan BISELCO 3,711 Completed
Bohol BOHECO II 530 Completed
2018 Sulu SULECO 2,575 On-going
Iloilo ILECO II 706 For final technical
inspection & financial
audit
Zamboanga del ZAMSURECO I 1,129 On-going
Sur
2019 Palawan BISELCO 1,129 Procurement concluded;
installations to commence
2Q 2020
Total 11,113
2. European Union –Philippines’ Access to Sustainable Energy Program (EU-PHIL ASEP)
As previously reported, this EU-PHIL ASEP grant proceeds provide investment support
to 40,500 households in the inland and mountainous remote areas in Mindanao who
cannot be connected to the main distribution lines of the Electric Cooperatives (ECs). A
total of 10,000 households were already experiencing the benefits of solar PV
electrification since 2019.
For the reporting period, preparatory activities were undertaken to proceed with the
procurement of the remaining 30,500 solar home systems. The participating ECs have
also started the ground works such as identification and enlistment of household
beneficiaries, social marketing of the Project through barangay assemblies, among
others. It is expected that Project implementation will commence immediately after this
global crisis on COVID-19 is over.

As of October 2020
86
Below is the list of the provinces benefitting from this EU-PHIL ASEP: PVM
subcomponent.
Province Electric Cooperative No. of Households

Davao del Sur DASURECO 10,000
South Cotabato SOCOTECO II 10,000
Sultan Kudarat SUKELCO 8,400
North Cotabato COTELCO 7,500
BUSECO 2,500
Bukidnon
FIBECO 2,100
Total 40,500
3. Qualified Third Party (QTP) Approach
Under Sec. 59 of EPIRA, areas deemed unviable and waived by the DUs may be offered
to QTPs as part of the missionary electrification program. There is now a growing interest
among the private sector to enter into QTP operations with the entry of renewables in
off-grid electrification. On 22 November 2019, the DOE issued Department Circular No.
DC2019-11-0015 provides a streamlined participation procedure for QTP, greater role
for the Distribution Utilities in the selection process of QTP, and harmonized guidelines
with the Renewable Energy Law.
In July 2020, the DOE conducted a Virtual Orientation with the Electric Cooperatives on
the Amended QTP Circular. Strong emphasis was given on the guidelines to be observed
on the conduct of Competitive Selection for the QTPs to serve the declared unviable
areas. The National Electrification Administration provides strong technical assistance to
support the Electric Cooperatives in the conduct of said competitive selection process.
Following are the updates on the QTP Program being spearheaded by the DOE:
a. Barangay Rio Tuba in the Municipality of Bataraza, Palawan
In June 2020, the QTP Service Contract between the National Power Corporation
(NPC) and PowerSource Philippines, Inc. (PSPI). To avoid disruption of electricity
service in the barangay, the Energy Regulatory Commission (ERC) extended the
Authority to Operate to PSPI to continue operating as QTP for a period of six (6)
months, beginning 18 June 2020. The Palawan Electric Cooperative (PALECO) is
closely coordinating with key stakeholders and exerting efforts to ensure the continuity
of electricity service once the said termination takes effect in December 2020.
For the reporting period, PSPI Rio Tuba has a recorded peak and off-peak load of
856 kW and 535 kW, respectively, with an average load of 696 kW. PSPI has recorded
19 new connections, totalling to 2,009 of HHs connections. There were a total 69.2
outage hours recorded in Rio Tuba.
b. Malapascua Island in the Municipality of Daanbantayan, Cebu
PSPI continues to operate its existing diesel gensets with a total capacity of 1.26 MW
in the Island. As approved by the ERC, it charges PHP12.00/kWh for consumers with
monthly consumption of 40kWh or less and PHP15.00/kWh for monthly consumption
greater than 40kWh.
During the report period, 102 additional households were electrified making the total
household connections of 1,270, achieving 94.5% electrification level. Malapascua
has a recorded peak and off-load of 312 kW and 171 kW, respectively, and an
average load of 238 kW with a reported total 11 outage hours.

As of October 2020
87
c. Barangay Liminangcong in the Municipality of Taytay, Palawan
Residents of Brgy. Liminangcong were among the first beneficiaries of the QTP
Program enjoying 24/7 access to electricity for only PHP8.50/kWh. To date. PSPI is
serving 987 households with an additional 36 new connections. It recorded peak and
off-peak demand of 244 kW and 112 kW, respectively.
The benefits of the electricity service will soon be extended to the adjacent island of
Brgy. Tumbod. The ERC is still to approve the PSPI’s application to extend its QTP
operations in the subject barangay to serve an additional 942 households.
d. Barangays Candawaga and Culasian in the Municipality of Rizal, Palawan
In Candawaga-Culasian grid, PSPI will upgrade the existing distribution line and
extend it to unreached areas in Rizal within the year to accommodate the still large
number of unconnected households in the area. PSPI is only serving 43.9% of the
total 2,203 households in the area.
The system has an installed capacity of 460 kW with a recorded peak and off-peak
demand of 119 kW and 48 kW, respectively and a demand growth of 4.15%. PSPI is
authorized by the ERC through interim relief issued in April 2018 to collect Subsidized
Approved Retail Rate (SARR) of 9.9082 pesos per kilowatt-hour to its household
consumers.
e. Barangay Cabayugan (Sabang), Puerto Princesa City, Palawan
SREC continues to provide 24/7 electricity to its customers and is set to connect more
significant customers to grow its demand load and economic activity in the service
area pending support from the local government and financial easing given the effects
of COVID-19 on the local economy.
Currently, SREC is providing 24/7 electricity service to 535 consumers consisting of

both commercial and residential customers. Connecting its largest institutional
consumer, Sheridan Hotel and Resort, which will support the long-term viability of the
operations, is underway.
SREC has recorded a peak load of about 10 kW and an off-peak load of almost 60
kW with 26 unscheduled power outages due to adverse weather conditions. SREC is
authorized by the ERC to collect PhP12/kwh to the residential and public buildings
and PhP 15/kwh for commercial establishments.
To date, SREC is yet to secure the Certificate of Compliance (COC) from the ERC.
Once secured, SREC will now be able to claim the ERC-approved subsidy from the
Universal Charge-Missionary Electrification to the NPC.
f. Lahuy and Haponan Islands in Caramoan and Quinalasag Island in Garchitorena,

Camarines Sur
The ERC issued Provisional Authority to Operate to the First Philippine Island Energy
Corporation (FPIEC) in June 2019. FPIEC is authorized to collect PhP12.00/kwh and
PhP15.00/kWw for the residential/public buildings and commercial consumers,
respectively for all the areas.
Because of Covid-19 related delays, the delivery of the materials and equipment to
FPIEC’s warehouses in Metro Manila which began in late 2019 was only completed
in August 2020. Due to weather conditions, all materials and equipment only reached
As of October 2020
88
Quinalasag at the start of September. Deliveries to the other two (2) islands are
expected to be completed by the second week of September. FPIEC expects the
construction of facilities and the installation of equipment to commence in October.
Most of the permits and licenses necessary for the QTP Project, from both the national
government agencies and the local government units, have already been acquired.
The Project’s timeline has been considerably delayed due to the global pandemic
such that FPIEC now expects to start commercial operations in March 2021.
For the report period, below is the summary status of the QTP projects:
PROJECT TECHNOLOGY TARGET Served Electrification PROPONENT STATUS
LOCATION HHs HHs Level %
Rio Tuba, 1.05 MW Diesel 5,103 1,990 39% PSPI Operation

Bataraza, - Biomass al,
Palawan Authority
to
Operate
(ATO)
issued by
ERC ,
2010
Malapascua, 750 kW Diesel 1,342 1,168 87% PSPI Operation

Daan- al,
Bantayan, Permane
Cebu nt
ATO issu
ed by
ERC,
2016
Sabang, Hybrid : 1.4 MW 769 535 69.57% SREC Authority

Puerto Solar + 1.2 MW to
Princesa City, Diesel + 2.3 Operate
Palawan MWh Battery (ATO)
issued by
ERC
05
October
2016
Candawaga 268 kW Diesel 2,151 946 44% PSPI Interim

& Culasian, Relief ,
Rizal, April
Palawan 2018
Balut Island, 690 kW Diesel 4,003 PSPI Interim

Saranggani, Relief ,
Davao April
Occidental 2018
Liminangcong 108 kW Diesel 1,199 951 79.3% PSPI Provision

, Taytay, al ATO
Palawan issued by
ERC,
2016
Brgy. Line extension 395 PSPI Expositor

Tumbod, from Brgy. y Hearing
Taytay, Liminangcong conducte
Palawan d on 25
April
2019

As of October 2020
89
PROJECT TECHNOLOGY TARGET Served Electrification PROPONENT STATUS
LOCATION HHs HHs Level %
Lahuy Island, Lahuy Island: Lahuy: 550 FPIEC Endorsed

Haponan 246 kWp Solar HHs to ERC
Island in + 400 kW (23 Jan
Municipality Diesel + 79kWh 2018)
of Caramoan Battery
and Haponan:
Quinasalag Haponan 87 HHs
Island in the Island: 51.4
Municipality kWp Solar +
of 100 kW Diesel
Garchitorena, + 19 kWh
Camarines Quinalasag
Battery
Sur : 705 HHs
Quinalasag
Island: 331 kWp
Solar + 500 kW
Diesel + 80kWh
Battery
Bgy. Hybrid: 132.8 497 PSPI Endorsed

Poblacion, kWp Solar + to ERC
Dumaran, 144 kW Diesel (18
Palawan + 351.1 kWh March
Battery 2019)
Bgy. 216 kW Diesel 605 PSPI Endorsed

Manamoc, to ERC
Cuyo, (18
Palawan March
2019)
Bgy. Port Hybrid: 200 1,259 PSPI Endorsed

Barton, San kWp Solar + to ERC
Vicente, 609.5 kW (18
Palawan Diesel + 200 March
kWh Battery 2019)

As of October 2020
90
VIII. PROMOTION OF RURAL ELECTRIFICATION
Pursuant to Section 58 of the EPIRA, as additional mandate, the National Electrification

Administration (NEA) shall develop and implement programs in strengthening the technical capability
and financial viability of the rural ECs as electric utilities and to prepare the said ECs to operate and
compete in deregulated electricity market, specifically in environment open access and retail
wheeling.
1. Financial Assistance
During the report period, NEA released a total of PhP60.82 Million loans to six (6) ECs with the
following breakdown:
Particulars No Electric Cooperatives Project Amount

. (In PhP Million)
Capital 1 Misamis Oriental-1 Rural Electric For the supply, delivery, 38.8
Projects Service Cooperative, Inc. installation &
commissioning of 3 units,
2MW Modular Gensets
2 Masbate Electric Cooperative Construction of Cataingan 20.3
10MVA substation at
Curvada, Cataingan (final
release)
3 Misamis Oriental-1 Rural Electric Construction of Line 21.3
Service Cooperative, Inc. Enhancement Projects
4 Davao Del Norte Electric Contruction of two storey 24.5
Cooperative, Inc. building
5 Surigao del Sur I Electric Uprating of San Fernando 2.1
Cooperative, Inc. substation from 5MVA to
10MVA
TOTAL 60.82
2. Competency Seminars and Training Programs for EC Personnel
In increasing the learning curve of NEA and ECs through competency programs for EC personnel,
NEA conducted the following activities accordingly:
Date Title of Training/Seminar No. of Participants

Leading in Times of Crisis via Zoom
June 22 – 26, 2020 30
Video Conferencing
July 14 - 17 Supervisory Development Course 34
July 27 - 31 Leading in Times of Crisis 39
Supervisory Development Course
August 10 - 13 34
(Batch 2)

As of October 2020
91
IX. POLICY ISSUANCES
The Department of Energy under Section 37 of the EPIRA is mandated to formulate rules and
regulations as may be necessary to implement its objectives; and exercise such other powers as
may be necessary or incidental to attain the objectives of the Act.
Despite the limitations in movement brought about by the community quarantine, the DOE was
able to continue its consultative process of policy-making through the conduct of virtual public
consultations and posting of draft policies in the DOE website.
Following are the policies promulgated in 2020 and other proposed policies in different stages of
developments:
A. Policies Adopted and Promulgated
1. Department Circular (DC) No. DC2020-04-0008 “Rationalizing the Utilization of ER

1-94 Funds by Host Local Government Units in Response to COVID-19 Public Health
Emergency” at Philippine Star newspaper.
Under the Circular, all available and unremitted ER 1-94 Funds with the Department and
concerned power generation companies (GenCos) as of 31 December 2019 shall be
immediately distributed to the host LGUs for them to have readily available funding to
undertake their duty to contain COVID-19 in their respective areas.
2. Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM)

Rules and Market Manual on Registration, Suspension and De-Registration Criteria
and Procedures for the Implementation of Enhancements to WESM Design and
Operations (Provisions for Registration of New Facility and Harmonization with
Republic Act No. 11234 entitled “An Act Establishing the Energy Virtual One-Stop
Shop Act”)
The policy enhances the WESM’s Registration processes and requirements for generation
companies. The policy was promulgated as Department Circular No. DC2020-06-0013 on
01 June 2020 and was published in a newspaper on Published on 17 June 2020.
3. Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM)

Rules and Market Manual on Billing and Settlement for the Implementation of
Enhancements to the WESM Design and Operations (Provisions for Prudential
Requirements)
The policy introduced an appropriate formula for the computation of the initial prudential
requirements in line with the target commercial operation of WESM in Mindanao and
implementation of enhancement to the WESM design and operations. The poliy was
promulgated as Department Circular DC2020-06-0014 on 02 June 2020 and was
published on 17 June 2020.
B. Policies Proposed
1. Draft Department Circular (DC) Prescribing Revised Guidelines for Disconnection

of Electric Power Industry Participants
The proposed policy is an amendment to DC2010-08-0010 “Prescribing the Implementing

Rules and Procedures for DC No. DC2010-05-0006: Terminating the Default Wholesale
As of October 2020
92
Supplier Arrangement for the Philippine Wholesale Electricity Spot Market (WESM) and
Declaring a Disconnection Policy”.
The following are its objectives:
a. To establish a disconnection policy to ensure that all electric power industry participants
comply with the EPIRA; its IRRs, and all other related rules and regulations with the
end goal of encouraging new power generation investments in the country; and
b. To minimize if not avoid existing leakages in the electric power systems due to
unauthorized withdrawal of electricity as well as unmetered and unbilled consumptions
of facilities connected to the grid.
Rationale for the Amendments are as follows:
a. The policy is not applicable to Visayas and Mindanao Grid since the Circular was
initially intended to address issues regarding start of commercial operations of WESM
in Luzon;
b. Some provision on the Circular needs to be amended to realign with the current rules;
and
c. Additional grounds for disconnection are identified necessary for inclusion in the
Circular.
2. Draft DC Adopting a General Framework Governing the Test and Commissioning of

Generation Facilities
The said draft DC aims to address the concerns on the extended conduct of Test and
Commissioning of several plants, specifically exceeding the prescribed two-month period of
the Energy Regulatory Commission (ERC) in its Resolution No. 16 Series of 2014 (“2014
Revised Rules for the Issuance of Certificate of Compliance for Generation Companies,
Qualified End-Users and Entities with Self-Generation Facilities). Moreover, the said draft DC
considered the following initial recommendations gathered from the stakeholders during the
Focus Group Discussions:
a. Various test and commissioning activities are conducted by the different entities (i.e.
plant contractor, Transmission Network Provider) to meet various specifications and
standards;
b. Allowable period for the conduct of Test and Commissioning should be differentiated
for various technologies;
c. Revisit the definition of Test and Commissioning in the COC Rules; and
d. Need to develop definite procedures for the conduct of Test and Commissioning.
3. Draft DC Adopting General Guidelines for the Conduct of PAA for the Electric Power
Industry Participants
The proposed policy is supplemental to the DC2017-05-0008 which provides for policies and
guidelines, and mandates the conduct of PAA of all Power Generation, Transmission and
Distribution Systems and Facilities; and DC2017-12-0016 which adopts guidelines and
As of October 2020
93
provides relevant entities for continuing conduct of respective PAA to direct Electric Power
Industry Participants to implement PAA activities.
The following are its objectives:
a. The DOE proposed policy aims to institutionalize the conduct PAA on Power
Generation, Transmission and Distribution Systems and Facilities through the entities
mandated by law, specifically the ERC ; and
b. To establish a comprehensive and sustainable mechanism to confirm and validate the

level of compliance, by adopting the proposed policies and guidelines on the conduct
of Performance Assessment and Audit.
The Rationale for the policy proposal are as follows:
a. Abolition of ERC’s technical arms, i.e. Grid Management Committee and Distribution
Management Committee;
b. Government’s limited human power and expertise; numerous number of Electric Power
Industry Participants;
c. Voluminous compliance reports;
d. Credibility, reliability and independency of assessment and audit findings; and
e. Streamlining processes of compliance, the DOE commenced study on the

development of guidelines and parameters which was subjected to a series of public
consultations.
Annex 4 provides the additional list of other policy proposals.

As of October 2020
94
ANNEXES

As of October 2020
95
Annex 1. TransCo Inspection Report Based on Concession Agreement (June 2020 to August 2020)
Inspection
No. Location Name of Project/ Transmission Facilities Inspection Date
Report No.
LUZON
SLR-D3-20-22 District 3 Daraga, Naga, & Labo Substations, Sta. June 16-19, 2020
Magadalena Cable Terminal Station, Bulan,
1 Balogo, Ligao, Iriga, Libmanan, & Talisay
Load-end Stations, and Bicol Area Control
Center
SLR-D1-20-23 District 1 Dasmariñas - Tayabas 500kV Transmission June 16-19, 2020
2
Line
3 NLR-AC-20-25 North Luzon North Luzon Area Control Center (Benguet) June 23-26, 2020
4 SLR-RS-20-28 South Luzon South Luzon Repeater Station (Calapan) June 30- July 02, 2020
San Manuel, Nagsaag, Labrador, Bolo, &
5 NLR-D3-20-31 North Luzon June 30- July 03, 2020
Balingueo Substations
6 SLR-RS-20-29 South Luzon Looc Repeater Station July 02-03, 2020
7 SLR-RS-20-37 South Luzon Regional Control Center, Majic & Busay RS July 28-30, 2020
San Jose, Malaya, Quezon, Doña Imelda,
8 NLR-D7-20-39 District 7 Taytay Substations, Angat & San Mateo July 28 – August 4, 2020
Repeater Stations, and Angat Power House
9 NLR-D2-20-40 District 2 North Luzon La Trinidad, Binga, Itogon, Ambuklao August 4-7, 2020
Santiago, Tuguegarao, Gamu & Bayombong
10 NLR-D4-20-41 District 4 North Luzon Substations and Ilagan & Lagawe Load End August 4-7, 2020
Substations
Maintenance & Testing Division-A, South
11 SLR-MA-20-42 South Luzon August 4- 7, 2020
Luzon
National Control Center (NCC) & Luzon
12 NLR-NC-20-43 North Luzon August 11-14, 2020
System Operations (LSO)
Meco SS, Concepcion SS, San Rafael SS,
13 NLR-D6-20-45 District 6 North Luzon Cabanatuan SS, Pantabangan SS, August 11-14, 2020
Pantabangan LES, CLACC & Fatima RS
Hermosa, Limay, Olongapo, Botolan, SBMA
14 NLR-D5-20-47 District 5 North Luzon & Subic Substations and BCCPP Switching August 11-14, 2020
Station
Bauang, Bacnotan, San Esteban, Currimao,
15 NLR-D1-20-50 District 1 North Luzon August 25-28, 2020
Bantay, Laoag
16 NLR-PR-20-03 North Luzon Luzon PCB Replacement Project 1 August 25-26, 2020
VISAYAS
Panay Area Control Center and Jordan
1 VIS-AC-20-20 Visayas June 16-18, 2020
Repeater Station
2 VIS-RS-20-26 Visayas Visayas Repeater Station (Cebu) June 23-26, 2020
3 VIS-MA-20-32 Visayas Visayas MTD-A June 30- July 03, 2020
Corella SS, Tagbilaran SS, Ubay SS, West
Poblacion CBS, Garcia Hernandez LES,
4 VIS-D2-20-35 District 2 Visayas Trinidad CBS and CP Garcia (Tugas) CTS July 14 - 17, 2020
and VCA of Bohol ACC, Loon and Jagna
Repeater Stations
Visayas Regional Conrol Center, Minglanilla &
5 VIS-RC-20-36 Visayas July 28-30, 2020
Babag Repeater Stations
Sta. Barbara, Barotac Viejo, Dingle, Panit-an,
Nabas, Concepcion & San Jose Substations,
6 VIS-D4-20-38 District 4 Visayas July 28 – August 4, 2020
San Juan Cable Terminal Station and
Boracay Load-End Station
7 VIS-MB-20-46 Visayas Maintenance & Testing Division-B, Visayas August 11-14, 2020
Corella, Tagbilaran, & Ubay Substations, West
Poblacion & Trinidad Capacitor Bank Stations,
8 VIS-D2-20-49 District 2 Visayas August 25-28, 2020
Garcia Hernandez Load End Station and C.P.
Garcia Cable Terminal Station
Ormoc, Maasin, Tabango, Babatngon,
Calbayog, Paranas (Wright) & Sta. Rita
(Bagolibas) S/S, Guadalupe CTS, Hilongos
9 VIS-D1-20-51 District 1 Visayas August 25-28, 2020
PCB Station, Albuera Electrode Station,
Tolosa Capacitor Bank Station and Ormoc
HVDC Station
MINDANAO
Butuan, Nasipit, Bislig, San Francisco and
1 MIN-D4-20-21 District 4 June 16-19, 2020
Placer Substations
2 MIN-RC-20-24 Mindanao Mindanao Regional Control Center (Cagayan) June 23-26, 2020
3 MIN-MA-20-27 Mindanao Mindanao MTD-A June 23-26, 2020

As of October 2020
96
Inspection
No. Location Name of Project/ Transmission Facilities Inspection Date
Report No.
North Western Mindanao Repeater Station
4 MIN-RS-20-30 Mindanao June 30- July 03, 2020
(Dinas, Ozamiz, and Lopez Jaena)
Iligan, Balo-i, Agus 6/7 & Lugait Substations
5 MIN-D2-20-33 District 2 Mindanao June 30- July 03, 2020
and Agus 5 HEP & Switchyard
“General Santos Area Control Center,
6 MIN-AC-20-34 Mindanao Calumpang, Malalag, and Tupi Repeater July 14 - 17, 2020
Stations"
General Santos, Tacurong, Kidapawan & August 11-14, 2020
7 MIN-D6-20-44 District 6 Mindanao
Sultan Kudarat Substations
Pitogo, Zamboanga, Naga & Aurora August 25-28, 2020
8 MIN-D1-20-48 District 1 Mindanao Substations and Tumaga (Lunzuran) Capacitor
Bank Station
Source: Transco

As of October 2020
97
Annex 2. NGCP Related Petitions to ERC as of August 2020
DECISION/CASE NO./ DATE OF FILING NATURE OF PETITION GROUNDS FOR FILING STATUS
Interim Maximum Annual Revenue for CY ● Immediately ISSUE an Order provisionally On August 17, 2020, TransCo received a
ERC Case No. 2019-086RC/October 29, 2019 2020 with Prayer for the Urgent Issuance of approving the collection of the iMAR202o in copy of NGCP’s Urgent Motion (to conduct
Provisional Authority the amount of PhP58,846Mn effective Virtual hearing) dated July 20, 2020.
January 2020 billing month (December 26,
2019 to January 25, 2020); and On August 24, 2020, the ERC promulgated
● APPROVE, after notice and hearing, the ERC Order dated August 17, 2020 wherein
authority to collect the iMAR2020 in the the Commission sets virtual hearings on the
amount of PhP58,846Mn. following dates:
September 3, 2020 – expository presentation

for the Visayas stakeholders
- September 10, 2020 – expository for the
Mindanao stakeholders
- September 17, 2020 – pre-trial and
Evidentiary
September 24, 2020 – continuation of
Evidentiary hearing
ERC Case No. 2019-051RC/21 June 2019 Application for Approval of the Ancillary  APPROVE the ASPA between NGCP and On July 7, 2020, TransCo received copy of
Services Procurement Agreement (ASPA) PMPC dated 14 May 2019 pursuant to the NGCP's Compliance dated June 11, 2020.
Between the National Grid Corporation of Decision dated 03 October 2007 in ERC
the Philippines and Prime Meridian Case No. 2006-049RC entitled “In the On August 12, 2020, TransCo received
Powergen Corporation (PMPC) Matter of the Application for the Approval of PMPC’s (Co-applicant) Manifestation dated
Ancillary Services-Cost Recovery August 12, 2020 submitting to the
Mechanism of the Ancillary Service Commission the Accreditation Certificate
Procurement Plan with Prayer for issued by NGCP on August 1, 2020 which
Provisional Authority”. certifies that Unit 2 of PMPC has been tested
and proven its capability of providing
Regulating Reserve of 40 MW.
ERC Case No. 2019-100RC/ December 27, 2019 Application for Approval of the Ancillary ● Immediately ISSUE a provisional authority On July 7, 2020, TransCo received copy of
Services Procurement Agreement between to implement the subject ASPA executed NGCP's Compliance dated June 11, 2020.
the National Grid Corporation of the on 18 November 2019; and
Philippines and AP Renewables Inc. For ● APPROVE, after notice and hearing, the
Makban A subject ASPA.
ERC Case No. 2019-092RC/ December 17, 2019 Application for the Approval of the ● Immediately ISSUE an Order provisionally On July 30, 2020, TransCo received copy of
Implementation of the Cebu - Bohol 230 kV authorizing the implementation of the NGCP’s Urgent Motion.
Interconnection Project. Cebu – Bohol 230 kV Interconnection
Project; and
● After notice and hearing, APPROVE the
Application for the implementationof the
Cebu – Bohol 230 kV Interconnection
Project.

As of October 2020
98
ERC Case No. 2019-086RC/ October 29, 2019 Interim Maximum Annual Revenue for CY ● Immediately Issue an Order provisionally On July 29, 2020, TransCo received a copy of
2020 with Prayer for the Urgent Issuance of approving the collection of the IMAR2020 NGCP's Opposition to TransCo's presentation
Provisional Auhtority in the amount of PhP58,846 Million of Expert witness during the July 15, 2020
effective Janaury 2020 billing month Hearing.
(December 26, 2019 to January 25, 2020)
Hearing on the case was conducted by ERC
● Approve, after notice and hearing the on July 15, 2020; TransCo presented its
authority to collect the IMAR 2020 in the Expert Witness, Dr. Joel C. Yu, Ph.D.
amount of PhP58,846 Million.
On July 7, 2020 – TransCo submitted its reply
to NGCP’s Comments on TransCo’s MR.
On June 23, 2020, TransCo Received

NGCP’s Comments on TransCo’s MR dated
June 16, 2020.
ERC Case No. 2019-085RC/ October 29, 2019 Application for the Approval of the Force ● Declare the occurrence of Typhoon NGCP’s compliance and Manifestation
Majeure Event Regulated FM Passthrough “Rosita” in Luzon which resulted in an relative to the directive of the ERC during the
for Typhoon “Rosita” in Luzon In increase in costs incurred by the NGCP to 12 February 2020 hearing.
Accordance With The Rules For Setting restore, repair and rehabilitate various
Transmission Wheeling Rates affected transmission assets and facilities
in the NGCP North Luzon Operations and
Maintenance District 4, as a Force Majeure
Event (FME).
● Immediately grant Provisional Authority to
implement and bill the following FM Pass-
Through Amounts to Luzon customers
starting the billing month of January 2020
to December 2020, or until such time that
the amounts incurred are fully recovered.
● Approve the FME CAPEX and OPEX
amounting to One Million Nine Hundred
One Thousand Seven Hundred Eleven
Pesos (PhP1,901,711.33) incurred NGCP
for the repair, restoration, and rehabilitation
of the damaged transmission assets and
facilities due to FME Typhoon “Rosita”.
● Approve and allow the partial recovery of
the Net Fixed Asset Value (NFAV) of the
transmission assets and facilities damaged
by the FME Typhoon “Rosita” amounting to
Seven Hundred Fifty Thousand Four
Hundred Five Pesos and Eighty Five
Centavos (PhP750,405.85) given that it
would have been fully recovered by NGCP
if these transmission assets and facilities
have not been damaged or destroyed by

As of October 2020
99
the said FME; and the NFAV of other
assets and facilities affected by the same
typhoon which are yet to be retired, be
considered during the updating of the costs
prior to the evaluation/approval of the case
or during the next Reset Process.
● Approve, after due notice and hearing the
proposed FM Pass-Through Amounts to be
collected from the Luzon customers
starting January 2020 billing month to
December 2020, or until such time that the
amounts incurred are fully recovered.
● Exclude the proposed Pass-Through
Amounts from the side constraint
calculation.
ERC Case No. 2016-179RC/ October 10, 2016 Application of the National Grid Corporation ● Declare Typhoon Lando in Luzon and NGCP’s compliance and Manifestation
of the Philippines for the Approval of Force Sabotage Incidents in Mindanao as relative to the directive of the ERC during the
Majeure Event Regulated FM _Pass- Force Majeure Events (FMEs). 12 February 2020 hearing.
Through for Typhoon Lando in Luzon and ● Immediately grant Provisional Authority
Sabotage Incidents in Mindanao, In to implement and bill the FM Pass-
Accordance With the Rules for Setting Through Amounts to Luzon and
Transmission Wheeling Rates. Mindanao customers starting November
2016 billing month to December 2020
billing month or until such time that the
amount incurred is fully recovered.
● Approve the CAPEX and OPEX
amounting to PhP13,448,010.87
incurred by NGCP for the repair,
restoration and rehabilitation of the
damaged transmission assets and other
facilities due to FMEs Typhoon Lando
and sabotage incidents in Mindanao.
● Approve, after due notice and hearing,
the proposed FM Pass-Through Amount
to be collected from the Luzon and
Mindanao customers starting November
2016 billing month or until such time that
the amount incurred is fully recovered.
● Approve and allow the recovery of the
NFAV of the transmission assets and
other related facilities damaged by the
FMEs Typhoon Lando in Luzon
amounting to PhP2,184,071.30 given
that it would have been fully recovered
by NGCP if these transmission assets

As of October 2020
100
and other related facilities have not been
damaged or destroyed by said FME.
● Exclude the proposed Pass-Through
mount from the side constraint
calculation.
Source: Transco

As of October 2020
101
Annex 3. ERC Approved Capital Expenditure Projects
PROJECT COST
ERC CASE NO. DATE FILED/
APPLICANT PROJECT DESCRIPTION RATIONALE (PhP)
APPROVED
CAPITAL EXPENDITURE PROJECTS
Replacement of Out Modeled Secondary This project involves the installation of circuit
Protection Devices, Severed Primary breakers, protective relays, and the respective
14,423,016.00
Protection Devices and Severed Panel panel boards in Palanis, Tara, Bani, and Dasol
Board Secondary Protection Devices. substations.
This project involves the relocation of 69 kV
Relocation of 69 kV Line (DPWH To be funded by
distribution line affected by the road widening
Widening Project). DPWH
project of the DPWH.
This project involves the relocation of the primary
Relocation of Electrical Lines due to (13.8 kV facilities) and secondary (low voltage To be funded by
Road Widening (DPWH Project). facilities) distribution lines affected by the road DPWH
widening project of the DPWH.
This project involves the relocation of the existing
Rerouting of 13.2 kV Three Phase
3-phase line from Brgy. Catubig, Bolinao to Brgy. 874,117.86
Primary Line (Catubig to Malong, Anda).
Mal-Ong, Anda road right-of-way (Anda Bridge).
This project involves the rehabilitation of
Extension of Secondary Line overextended service drop wire through the
8,391,689.60
Requirement. extension of PANELCO I’s secondary distribution
10 November 2017/
PANELCO I line. 2017-105 RC
8 May 2020
This project involves the replacement of
Replacement of PCB Contaminated
Polychlorinated Biphenyls (PCB) contaminated 3,238,000.00
Electrical Equipment.
distribution transformers using new equipment.
This project involves the testing of suspected PCB
PCB Equipment Storage Facility and contaminated equipment, construction of storage
427,786.98
PCB Equipment Disposal. facility, and disposal of PCB contaminated
equipment.
This project involves the procurement of personal
Personal Protective Equipment and protective equipment (i.e. hard hat, safety shoes,
2,444,034.29
Safety Tools Requirement. safety goggles, etc.) and safety tools (i.e. telescopic
stick and hot stick).
The subject project involves the following activities:
1. Rerouting/relocation of the existing 1-phase
Rerouting and Upgrading from Single
primary line from Gais Guipe to Uli, Dasol,
Phase to Three Phase the Primary Line 23,288,094.19
Pangasinan; and
from Gais Guipe to Lake Uli.
2. Construction of 3-phase line from Bobonot to
Gais Guipe, Dasol, Pangasinan.
Acquisition and Installation of Additional The subject project involves the following activities:
10 MVA Power Transformer to the 1. Installation of an additional 10 MVA power 60,631,254.72
Existing Bani substation. transformer in PANELCO I’s Bani substation;

As of April 2020
102
PROJECT COST
APPROVED
2. Construction of the necessary gantry and
supporting structures including the installation
of the appropriate protective devices for the new
power transformer; and
3. Construction of out-going feeders for the new
power transformer.
1. Installation of a 20 MVA Substation in Bolinao,
Pangasinan, approximately 5.5 km away from
the existing Tara Substation;
Acquisition and Installation of Additional
2. Construction of 5.5 km 69 kV distribution line;
20 MVA substation 5.5 km from Tara 121,807,329.02
3. Construction of 3 km 13.8 kV outgoing feeder
Substation.
line; and
4. Connection of the distribution network of
Santiago Island to the new 20 MVA Substation
in Bolinao, Pangasinan.
1. Installation of an Additional 10 MVA power
transformer in PANELCO I’s Palamis
Substation;
Acquisition and Installation of Additional 2. Construction of the necessary gantry and
10 MVA Power Transformer to the supporting structures including the installation 48,075,311.54
Existing Palamis Substation. of the appropriate protective devices for the new
power transformer; and
3. Reconfiguration of the existing 13.8 kV outgoing
feeder circuit of Palamis Substation to a double
circuit three phase line.
kWh-meter New Connection This projects involves the procurement of kilowatt-
39,250,394.80
Requirement. hour meters and associate accessories.
This project involves the installation of service drop
Service Drop Wires Requirement. 5,717,200.00
wires.
This project involves the extension of primary and
Electrical Lines Requirements. 35,204,514.94
secondary distribution lines.
This project involves the procurement and
Distribution Transformer Requirement. installation of distribution transformers for new 33,510,643.92
customers.
This project involves the procurement and
Replacement of Busted Distribution
installation of distribution transformers as 14,470,146.24
Transformers.
replacement for damaged/deteriorated equipment.
This project involves the extension and construction
Rural Electrification Projects. of primary and secondary distribution lines in 56,224,574.70
remote and unviable areas.
Replacement of Cut-Outs in Strategic This project involves the installation of autolink
2,928,640.00
Places. sectionalizers.

As of October 2020
103
PROJECT COST
APPROVED
This project involves the installation of one-hundred
Installation of Fault Indicator on Strategic
twenty (120) units of fault indicators in PANELCO 3,462,000.00
Places.
I’s distribution lines.
This project involves the procurement of poles,
Acquisition of Buffer Stock for Line
conductors, distribution transformers, electric kWh 16,028,216.00
Hardware.
meters, and service drop wires as buffer stock.
This project involves the procurement of
compression connectors and re-tightening of
Crimping of Service Drop Wires. electrical bonding/connection between PANELCO 1,149,400.00
I’s distribution lines and the customer’s service drop
wires.
This project involves the installation of new feeder
Installation and Replacement of Existing meters to those unmetered feeders and
411,587.00
Feeder Metering. replacement of the existing feeder meters in all
substations of PANELCO I.
This project involves the replacement of defective
kwh-meter Replacement Requirement. 4.997.020.00I
kilowatt-hour meters.
This project involves the installation of check
Installation of Distribution Transformer
meters (metering facilities) to identify distribution 8,720,093.25
Check-meters (kWH-meter).
transformers in PANELCO I’s distribution system.
This project involves the procurement of manlift
Utility Vehicle Requirement. 26,474,700.00
trucks, utility vehicles and service vehicles.
This project involves the construction of PANELCO
Construction of Sub-office Building in the
I’s sub-office in the City of Alaminos, Province of 4,792,038.11
Town of Alaminos.
Pangasinan.
This project involves the construction of PANELCO
Construction of an Administrative
I’s new main office building in Brgy. San Jose, Bani, 89,426,472.96
Building.
Pangasinan.
Replacement of Network Switch and Old
This project involves the procurement of desktop
Unserviceable Computers with Brand 1,146,496.62
computers and network switches.
New Units.
This project involves the installation of wireless
Acquisition of Wireless Communication
communication facilities in PANELCO I’s main 5,348,805.00
System.
office and its respective sub-offices.
This project involves the acquisition and installation
Acquisition and Installation of Back-up
of a 125 kVA diesel generator at PANELCO I’s main 2,373,120.43
Power Generation System.
office.
This project involves the procurement of labelling
Labelling Requirements. materials (reflectorized stickers with appropriate 1,648,003.50
markings).
This project involves the procurement of associated
Software (Accounting System,
software for PANELCO I’s accounting system,
Consumer Management System, Electric
consumer management system, electric billing and 9,793,110.00
Billing & Collection Integrated System,
collection system, and warehouse management
Warehouse & Inventory).
system.

As of October 2020
104
PROJECT COST
APPROVED
This project involves the procurement of the
following test instrument: Insulation power factor
Procurement of Testing Measuring
tester, Transformer turns ratio tester, Dielectric
Equipment for Substations, Power 3,392,618.00
breakdown voltage tester, Insulation resistance
Quality and Metering.
tester, Relay tester, Contact resistance tester,
Portable multi-tester, and Clamp ammeter.
This project involves the procurement of tools and
Procurement of Tools and Line equipment such as adjustable wrench, chain saw,
4,984,726.99
Equipment for Maintenance. crimping tool, electrical pliers, rachet, post hole
digger, etc.
ELECTRIC UNPLANNED CAPITAL EXPENDITURE PROJECTS
Construction of a new substation at Magunting, Sto.

Construction of new 5 MVA S/S in
Rosario, Concepcion, Tarlac utilizing TARELCO II’s
Magunting, Sto. Rosario, Concepcion, 26,219,000.00
spare 5 MVA power transformer and installation of
Tarlac.
approximately 0.35 km of 69 kV line. 19 July 2018/
TARELCO II 2018-079 RC
27 May 2020
Construction of new 10 MVA substation in
Construction of new 10 MVA S/S in
Zaragoza, Nueva Ecija and installation of 52,235,473.76
Zaragoza, Nueva Ecija.
approximately 6.5 km of 69 kV line.
Procurement of service vehicle to facilitate delivery

Purchase of Service Vehicle. 959,998.00
of service to customers.
MAJOR CAPITAL EXPENDITURE PROJECTS
69kV Line Rehabilitation and Upgrading The said rehabilitation is necessary due to the
to 795 MCM ACSR Conductor from deterioration of said lines and structures resulting
NGCP Concepcion to Tarlac Junction via from the normal wear and tear of the assets since 56,117,314.51
Maliwalo Line; and Conversion to Ring the said lines have been in service for more than
Type System. thirty (30) years.
The project is a compliance to DENR Administrative
Distribution Transformers Replacement
Order No. 01, Series of 2014, requiring the 16 December 2014/
TEI and Proper Disposal for DENR Safety 104,573,589.79 2014-184 RC
replacement of all non-compliant DTs or DTs that 10 June 2020
Compliance.
are not PCB-free.
Construction of New Warehouse with
The project intends to promote improvement and
Office Spaces for the Retail Services 14,187,921.15
efficiencies in the delivery of services by TEI.
Division.
The project intends to improve the service
Installation of Data Domain back-up. 13,483,670.12
efficiency of TEI.
Refurbishment of Non-Supervisory
The project is necessary to accurately monitor the
Control and Data Acquisition (SCADA)- 18,406,041.19
system, thus allowing TEI to immediately act on
Ready Meters and Relays.

As of October 2020
105
PROJECT COST
APPROVED
abnormal situations through remote fault isolation
and service restoration.
INTERIM CAPITAL EXPENDITURE PROGRAM
The uprating of the 10/12.5 MVA Polomolok

Relocation of 25 MVA Power
Substation will address the overloading capacity of
Transformer from Main Office Substation 10,000,000.00
the said substation brought about by the
to Polomolok Substation.
development in the affected area.
This project will maximize the usage of the 12-
hectare piece of land owned by SOCOTECO II,
where the New Society Substation is installed, to
Modification of New Society Substation. give way to other future development in the area, 22,173,452.65
including the development of a 20MW diesel power
plant, and the expansion of the main office building
and the warehouse of SOCOTECO II.
The protective reach of the feeders’ breaker is
limited in that when a high impedance fault occurs
Installation of Automatic Circuit
in various Feeders, the existing protection 11,250,000.00
Reclosers.
component in the substation could not sense the
minimum fault.
Procurement of adequate stocks of
SOCOTECO II must maintain adequate stocks of
critical spare parts such as 15kV outdoor- 19 June 2014/
SOCOTECO II critical spare parts. Insufficient stocks affects the 2014-088 RC
type circuit breaker, battery charger 48 30 June 2020
overall performance of physical assets, as lack of 4,040,000.00
VDC and 125 VDC, industrial batteries
spares may result in its inability to respond to
and sets of station class 69 kV and 13.2
emergencies and contingencies on a timely basis.
kV lightning arresters.
The installation of new meters will expedite the
Installation of IEC-Compliant Three-
preparation of the data needed for its regulatory 1,006,632.00
Phase Meters.
compliances, including the PGC and PDC.
The implementation of this project will
Acquisition of 24sets of 70:1 Potential accommodate the incoming new large load
Transformer; 15kV Single Bushing; and industrial customers of SOCOTECO II in its system.
7,200,000.00
24sets of 200:5 Extended Range Current The metering equipment is also necessary to
Transformer 15kV. measure the power consumption of these new
customers.
Acquisition of 10kVA, 15kVA, 25kVA,
37.5kVA, 50kVA, 75kVA and 100kVA This project will accommodate its load growth. 6,983,779.00
Distribution Transformers.
Construction of 47 kilometers low voltage With the implementation of this project, new
secondary lines using 1/0 ACSR and 30- customers will be provided with the necessary low 9,296,412.00
feet poles. voltage secondary lines.
Installation of kWh-meters, class 200, This project is needed to accommodate new
11,249,600.00
2W, 240V, form 1S, socket-type customers.

As of October 2020
106
PROJECT COST
APPROVED
electronic for 6,809 add-on residential
customers.
Installation of Close Circuit Television
This project will help enhance security measures in
(CCTV) security camera and radio 2,118,681.00
the properties of SOCOTECO II.
frequency repeater.
CAPITAL EXPENDITURE PROJECTS
Installation of 4 units of Gang Type

Disconnect Switches in lieu of the The project is intended to maintain the security of
1,038,000.00
individually-operated disconnect the distribution system.
switches.
Installation of Disconnect Switches on
both three-phase and single-phase
To provide a safe and reliable distribution system. 767,360.00
lateral lines that could loop two or more
power sources.
Installation of Fuse Cutouts with arrester
Fuse Cutouts will absorb the impact of the threshold
on all lateral sections to provide
breaching and self-destruct, thus, preventing any
protection for the feeder and isolate the 1,112,540.00
damage on the distribution assets during fault
faulted section from the unfaulted
incidence.
sections.
Construction of 5/6.25 MVA substation at
Address the power quality issues of Balamban
Guinabasan, Asturias with two (2) 26,051,319.58
Feeder 4.
outgoing feeders. 13 June 2016/
CEBECO III 2016-140 RC
Installation of Amorphous Distribution To address the forecasted growth in demand 30 June 2020
10,649,960.00
Transformers. requirement and customer load growth.
Installation of Service Drop Wire using Address increasing customer requirements within
5,513,366.00
insulated #6 ACSR, AWG 6/1. the franchise.
Procurement of 17,538 units of kWh This project intends to address the forecasted
17,309,500.00
meters. growth in consumer base.
Installation of SCADA Remote Terminal
To improve service efficiency. 4,155,737.00
Units (RTU) and Fiber Optics.
Procurement of Service Vehicles. To improve service efficiency. 18,596,545.63
Procurement of three (3) units of load The procurement of measuring instruments is
logger and one (1) unit of transformer necessary to properly monitor the condition of 3,665,000.00
loss tester. CEBECO III distribution assets.
Procurement of a variety of basic tools CEBECO III’s line personnel should be fully
and gears used in electrical line equipped with complete and appropriate tools and 808,480.50
maintenance. gears vital in the performance of their duties.
Procurement of protective garments to equip new
technical personnel of CEBECO III and replace the
Purchase of Safety Apparel. 1,770,007.00
existing damaged and worn out safety apparels
used by the existing personnel.

As of October 2020
107
PROJECT COST
APPROVED
Purchase of an 800-square meter lot for 5 MVA
Acquisition of Lot and Site Development
Asturias Substation and site development/ 1,485,530.43
for Asturias Substation.
perimeter fence for the said substation.
The proposed project is intended to provide a
Acquisition of Lot for Asturias Area Office convenient and safe place for the normal
2,534,877.32
and Asturias Area Office Building. transactions of the member-consumers of
CEBECO III and its personnel.
Procurement of tools and equipment
used for motor pool department and To improve service efficiency. 86,335.00
construction activities.
Acquisition and replacement of IT To ensure an efficient and reliable service to its
1,506,799.32
hardware and software assets. customers.
Procurement of handheld radio and To ensure an efficient and reliable service to its
202,304.00
mobile radios. customers.
Procurement of android cellphones for
To ensure an efficient and reliable service to
CEBECO III as meter reading device for
customers by providing remote meter reading and
field meter reader personnel upon 181,583.00
sending information directly to the main server of
installation of a meter reading
CEBECO III.
application.
Procurement of Complete Furniture and
To improve service efficiency. 232,890.00
Equipment Facilities.
Source: ERC

As of October 2020
108
Annex 4. Policy Proposals
No. Title of Policy Objectives Status
1 Adopting Further Amendments to the Wholesale Electricity Spot The amendments aim to enhance the WESM’s Promulgated with Department Circular No.
Market (WESM) Rules and Market Manual on Registration, Registration processes and requirements for DC2020-06-0013 on 01 June 2020
Suspension and De-Registration Criteria and Procedures for the generation companies
Implementation of Enhancements to WESM Design and Published on 17 June 2020
Operations (Provisions for Registration of New Facility and
Harmonization with Republic Act No. 11234 entitled “An Act
Establishing the Energy Virtual One-Stop Shop Act”)
2 Adopting Further Amendments to the Wholesale Electricity Spot The amendments aim to introduce an Promulgated with Department Circular
Market (WESM) Rules and Market Manual on Billing and appropriate formula for the computation of the DC2020-06-0014 on 02 June 2020
Settlement for the Implementation of Enhancements to the initial prudential requirements in line with the
WESM Design and Operations (Provisions for Prudential target commercial operation of WESM in Published on 17 June 2020
Requirements) Mindanao and implementation of enhancement
to the WESM design and operations
3 Adopting Further Amendments to the Wholesale Electricity Spot The proposed amendments aim to include Done Virtual Public Consultations on 15, 17,
Market (WESM) Market Manual on Constraint Violation additional Constraint Violation Coefficients to 19 June 2020
Coefficients and Pricing Re-runs for the Implementation of reflect the dispatch and curtailment hierarchy
Enhancements to WESM Design and Operations (Provisions for for non-scheduled, priority dispatch and must-
Self-Scheduled Generation) dispatch generating unit classifications.
4 Adopting Further Amendments to the Wholesale Electricity Spot The proposed amendments aim to adopt minor Promulgated with Department Circular No.
Market (WESM) Market Manual on Dispatch Protocol for the adjustments on the timeline of market run DC2020-10-0020 on 06 October 2020
Implementation of Enhancements to WESM Design and activities for the Day Ahead Projections (DAP), pending its publication.
Operations (Provisions for the WESM Timetable) Hour Ahead Projections (HAP) and Real Time
Dispatch (RTD) to ensure that the market runs
will be completed on time.
5 Adopting Further Amendments to the Wholesale Electricity Spot The proposed amendments aim to fine tune the Done Virtual Public Consultations on 15, 17,
Market (WESM) Rules, Retail Rules and Market Manuals responsibilities of the PEM Audit Committee in 19 June 2020
(Provisions for the Audit and Performance Monitoring) the conduct of market audit and reviews, and
enhance the preparation of market audits and
performance monitoring of WESM service
providers.
6 Adopting Further Amendments to the Retail Rules and Retail The proposed amendments aim to harmonize Done Virtual Public Consultations on 15, 17,
Market Manuals for the Implementation of Rules Supplementing Retail Rules and Retail Manuals on Market 19 June 2020
the Switching and Billing Process and Adopting a Disconnection Transactions and on Registration Procedures
Policy for Contestable Customers with ERC Resolution No.9 Series of 2018, or
the “ERC Rules Supplementing the Switching
and Billing Process and Adopting a

As of October 2020
109
Disconnection Policy for the Contestable
Customers”
This was integrated in the Draft Department

Circular Adopting Further Amendments to the
WESM Rules, Retail Rules and Various Market
Manuals for the Implementation of
Enhancements to WESM Design and
Operations (Provision to Promote Participation
in the Retail Competition) with the following
objectives:
a) Optional registration of Contestable

Customers in the wholesale market;
b) Streamlining of the submission of
customer information; and
c) Reduction of the minimum switch
processing timeframes.
7 Adopting Further Amendments to the Wholesale Electricity Spot The proposed amendments aim to prevent the Promulgated with Department Circular No.
Market (WESM) Market Manuals on Registration, Suspension, possible discrepancies or disputes on DC2020-10-0019 on 06 October 2020
and De-registration, and Market Network Model Development scheduling and settlement processes of the pending its publication
and Maintenance for the Implementation of Enhancements to WESM caused by the non-registration of new
WESM Design and Operations (Provisions for the New Load load facilities.
Facility of a Registered WESM Member)
8 Adopting Further Amendments to the Wholesale Electricity Spot The proposed amendments aim to: a) amend Done Virtual Public Consultations on 22 and
Market (WESM) Rules and New Manual on WESM Compliance the WESM Rules; and b) adopt New WESM 29 July 2020
Officers Accreditation Compliance Officers (WCO) Accreditation
Manual in order to ensure that the WCOs
possess the right competencies and
knowledge, thus empowering them to
effectively ensure compliance with their
obligations in the WESM.

As of October 2020
110
9 Adopting Further Amendments to the Wholesale Electricity Spot The proposed amendments aim to amend the Done Virtual Public Consultations on 22 and
Market (WESM) Manual on Metering Standards and Procedures WESM Market Manual on Metering Standards 29 July 2020
Issue 12.0 to Harmonize with the Site-Specific Loss Adjustment and Procedures in order to: a) harmonize the
Procedures of the Wholesale Metering Services and to Align procedure for the calculation of the Site-
Technical Requirements for Metering Facilities in accordance Specific Loss Adjustment with the procedures
with Philippine Grid Code 2016 Edition, Philippine Distribution of the MSP; b) align and clarify the rated burden
Code 2017 Edition, and other Applicable References of Current Transformers based on PGC 2016
Rules and latest version of IEC 61869-2 which
supersedes IEC 60044-1 and to update the
term ANSI C57.13 to IEEE C57.13; and c) align
the Metering Manual with the procedures and
standards set forth in the PGC and PDC,
issuances from the DOE and Energy
Regulatory Commission (ERC).
Market (WESM) Market Manual on Protocol for Central WESM Market Manual on Protocol for Central 29 July 2020
Scheduling and Dispatch of Energy and Contracted Reserves Scheduling and Dispatch of Energy and
Contracted Reserves in order to: a) harmonize
with enhanced WESM design and operations
such as 5-min dispatch interval; and b) address
observed operations issues since 2015.
Market (WESM) Rules and Market Manual on Information WESM Rules and Market Manual on 29 July 2020
Disclosure and Confidentiality (Provisions for Exceptions and Information Disclosure and Confidentiality in
Conditions for Confidentiality) order to: a) provide exceptions for the DOE and
ERC as oversight bodies, in receiving
confidential market data and exempting them in
executing a non-disclosure agreement with the
Market Operator; and b) facilitate a more
efficient market data provision to the DOE and
the ERC.
Market (WESM) Manual on Dispatch Protocol (Issue 13.0) to WESM Market Manual on Dispatch Protocol in 29 July 2020
Enhance Procedures in Must-Run Unit (MRU) Accounting order to improve the accounting of energy
produced due to a must-run unit dispatch
instruction and processing of discrepancy
reports.

As of October 2020
111
13 Draft DC Adopting General Guidelines for the Conduct of PAA for The proposed policy is supplemental to the Done Virtual Public Consultation on 1 and 3
the Electric Power Industry Participants DC2017-05-0008 which provides for policies July 2020
and guidelines, and mandates the conduct of
PAA of all Power Generation, Transmission and
Distribution Systems and Facilities; and
DC2017-12-0016 which adopts guidelines and
provides relevant entities for continuing conduct
of respective PAA to direct Electric Power
Industry Participants to implement PAA
activities.
14 Draft Department Circular (DC) Prescribing Revised Guidelines The proposed policy is an amendment to Done Virtual Public Consultation on 1 and 3
for Disconnection of Electric Power Industry Participants DC2010-08-0010 “Prescribing the July 2020
Implementing Rules and Procedures for DC No.
DC2010-05-0006: Terminating the Default
Wholesale Supplier Arrangement for the
Philippine Wholesale Electricity Spot Market
(WESM) and Declaring a Disconnection Policy”
15 Draft DC Adopting a General Framework Governing the Test and The said draft DC aims to address the concerns Done Virtual Public Consultation on 1 and 3
Commissioning of Generation Facilities on the extended conduct of Test and July 2020
Commissioning of several plants, specifically
exceeding the prescribed two-month period of
the Energy Regulatory Commission (ERC) in its
Resolution No. 16 Series of 2014 (“2014
Revised Rules for the Issuance of Certificate of
Compliance for Generation Companies,
Qualified End-Users and Entities with Self-
Generation Facilities).
Source: DOE

As of October 2020
112

37th Epira Report October 2020

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37th Electric Power Industry Reform Act (EPIRA)

Implementation Status Report

With Contributions from

Energy Regulatory Commission

Annex 1. TransCo Inspection Report Based on Concession Agreement…………………...........96

37th Status Report on EPIRA Implementation

37th Status Report on EPIRA Implementation

37th Status Report on EPIRA Implementation

A. Generating Assets and Independent Power Producer (IPP) Contracts

Table 1. Schedule of Privatization for Generating Assets as of 30 June 2020

37th Status Report on EPIRA Implementation

B. Other Disposable Assets

1. Disposal of Real Estate Assets (REA) through Public Bidding

37th Status Report on EPIRA Implementation

The commencement of the disposal is pending due to ECQ.

PSALM received OGCC’s comments/recommendations on the draft bidding

e. Maco and Agusan Properties

37th Status Report on EPIRA Implementation

2. Disposal of REA through Other Modes

b. Reconveyance of Gensan Property

37th Status Report on EPIRA Implementation

D. Concession of the National Transmission Network

37th Status Report on EPIRA Implementation

Table 5. Financial Obligations (FOs) as of 30 June 2020

Table 6. Financial Obligations by Currency as of 30 June 2020

37th Status Report on EPIRA Implementation

A. Average Electricity Rates

Meanwhile, the ECs’ average systems

Source: Monthly Operations Report of PDUs

Figure 4 - Private Distribution Utilities' Average Systems Rate

37th Status Report on EPIRA Implementation

Table 7. ECs’ Unbundled Average Residential Electricity Rates, June 2020

LUZON VISAYAS MINDANAO NATIONAL

Source: Monthly Operations Report of PDUs

Table 8. Summary of MERALCO Unbundled Power Rates, September 2020 (PhP/kWh)

0 to 200 201 to 300 301 to 400 Over 400

Generation 4.22 49.4% 4.22 47.6% 4.22 46.0% 4.22 43.3%

Table 10. MERALCO/PSALM Generation Costs

37th Status Report on EPIRA Implementation

Meanwhile, transmission charges, on the average, comprised around 7% to 9% of a DU’s average

Figure 6 - Transmission Cost

37th Status Report on EPIRA Implementation

During the report period, following were issued:

1. Department of Energy (DOE)

i. For Electricity Consumers: A grace period in the payment of electricity consumption

 Payments due to NPC, PSALM, NGCP;

iii. Suspension of the Fit-All;

iv. Encouraged negotiations between a contestable customers and Retail Electricity

c. DOE Advisory dated 23 September 2020 provides the implementation of a minimum of

i. Fuel/Resource suppliers with respect to their Generation Company customers being

ii. Generation Companies, whether public or private corporation, with respect to

2. Energy Regulatory Commission (ERC)

37th Status Report on EPIRA Implementation

i. The collection of Universal Charge-Environmental Charge (UC-EC) equivalent to

v. Availment of Prompt Payment Discount (PPD) may be subjected to negotiation

37th Status Report on EPIRA Implementation

C. Universal Charge (UC)

1. Universal Charge Remittances, Interests & Disbursements Charge Remittances,

Below are the details of UC remittances, interests and disbursements: