PEPOA_For-DU-discussion-on-the-Omnibus-Rules_ERC-Resolution-No.13-Series-of-2024_ekgf_clb-4.pptx

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1. OMNIBUS RULES FOR CUSTOMER CHOICE PROGRAMS IN THE RETAIL MARKET Hilltop Convention, Country Club Drive, Clark Freeport, Pampanga 16 January 2025 Private Electric Power Operators Association’s (PEPOA) First Quarterly Meeting of 2025

2. OPENING REMARKS Dir. Sharon O. Montañer Market Operations Service

3. RCOA/CREM & GEOP STATISTICS

4. RCOA/CREM Statistics Classification Count Percentage (%) Actual Demand (MW) TOTAL ELIGIBLE EUs (Luzon, Visayas and Mindanao) 3,644 100% 6,462.90 RCOA/CREM (Switched) 2,081 57.11% 4,422.46 Captive (Remained) 1,563 42.89% 2,040.44 Data as of September 2024

5. RCOA/CREM & GEOP Statistics per Threshold Retail Market No. of Eligible End-users (EUs) / Actual Power Demand per Region RCOA/CREM (Switched) Luzon EUs Actual Demand (MW) Visayas EUs Actual Demand (MW) Mindanao EUs Actual Demand (MW) Phase I (1MW and above ) 1,107 3,181.92 157 518.15 14 63.73 Phase II (750kW to 999kW ) 398 357.35 47 34.98 0.00 Phase III (500kW to 749kW ) 304 219.45 52 39.57 2 8.11 TOTAL 1,809 3,758.92 256 592.70 16 71.84 Data as of September 2024

6. GEOP Statistics Data as of September 2024 Grid No. of GEOP End-users (EUs) Demand (MW) LUZON 337 114.41 VISAYAS 90 40.32 TOTAL 427 154.73

7. RES Weighted Average Price (WAP) DATA AS OF Q3 2024 WAP = PhP 5.75 RES WAP = PhP5.89

8. WAP per RES Group DATA AS OF Q3 2024 RES Groups No. of CREM End-user s Demand (MW) Market Share WAP ( PhP /kWh) Aboitiz Group 526 1,334.78 30.18% 6.16 Ayala Group 210 336.29 7.60% 7.35 San Miguel Group 148 582.30 13.17% 5.56 MERALCO Group 698 1,120.45 25.34% 5.37 FGEN Group 171 345.72 7.82% 5.37 Citicore Group 51 66.23 1.50% 6.15 Others 277 636.69 14.40% 6.06 TOTAL 2,081 4,422.46 100.00% 5.89

9. RE Supplier’s Average Price ( PhP /kWh) DATA AS OF Q3 2024 RE Supplier’s Ave. Price = PhP5.84

10. Renewable Energy (RE) Suppliers with GEOP Supply Contract DATA AS OF Q3 2024 Count RE Suppliers No. of GEOP EUs Demand (MW) 1 ACEN 180 69.46 2 AdventEnergy 7 2.39 3 BGI 35 11.13 4 Citicore 33 16.05 5 DirectPower 58 17.96 6 FGES 10 3.63 7 GCGI 45 15.44 8 MPOWER 13 3.68 9 SEPHRES 44 14.22 10 SNAP-MI 2 0.76 TOTAL 427 154.73

11. OMNIBUS RULES FOR CUSTOMER CHOICE PROGRAMS IN THE RETAIL MARKET

12. List of Modules ERC Resolution No. 13, Series of 2024

13. List of Modules ERC Resolution No. 13, Series of 2024

14. Important Terms to Note Contract Price. The rate agreed upon by the Retail Customer and its chosen Retail Supplier as consideration for the supply and other services for the energy consumption in the Retail Supply Contract, excluding the pass-through and other related charges. Module B of the Omnibus Rules RCOA/CREM. RCOA or Retail Competition and Open Access , refers to the program under the Electric Power Industry Reform Act (EPIRA) that allows consumers to choose their electricity suppliers. In contrast, CREM, or Contestable Retail Electricity Market , describes the competitive market environment where these transactions occur, emphasizing the choices available to consumers and the dynamics of competition within the electricity sector. While RCOA focuses on the regulatory framework, CREM highlights market operations .

15. Important Terms to Note Customer Choice Programs. The various programs offered under the retail market. (e.g., RCOA, GEOP, and RAP) Eligibility Threshold. The demand level that qualifies an End-user to participate set by the ERC for CREM and RAP and threshold level set by the DOE for GEOP. Module B of the Omnibus Rules Retail Customer. An eligible end-user that has entered into a Retail Supply Contract with a Supplier of its choice; shall refer to any of all of the following; (a) CREM End-User (b) GEOP End-User (c ) Directly Connected Customer; and (d) Aggregated Group Eligible End-user. An End-user that has met the eligibility threshold, as indicated by a single revenue meter and who has a choice to switch to the Retail Market.

16. Important Terms to Note Parent or Holding Company. A corporation which owns or is organized to own a substantial portion of another company's voting shares of stock enough to control or influence the latter's management, policies or affairs thru election of the latter's board of directors or otherwise. Player/s. Refers to individuals, groups, or entities that actively participate in a specific activity, system, or market in the electric power industry contributing to and influencing its operations, outcomes, and dynamics. Module B of the Omnibus Rules Letter of Designation. The document issued by the ERC to either a Retail Supplier or a DU to act as Supplier of Last Resort (SOLR) Letter-authority. The document issued by the ERC in lieu of a license, to a Local RES, as proof of its authority to act as a Retail Supplier within its Franchise Area.

17. Important Terms to Note Module B of the Omnibus Rules Tangible Net Worth (TNW). The value of all the assets, excluding intangible assets and goodwill, minus the liabilities of an entity. Virtual Meter. A mathematical model that uses process conditions to estimate flow rates instead of a physical meter. It is used to create a calculated meter point from one or more physical meters.

18. Customer Choice Programs in the Retail Market Based on Renewable Energy (RE) Law (R.A No. 9513) RETAIL MARKET Section 31 of RA No. 9136 (EPIRA of 2001) Retail Competition and Open Access (RCOA) / Competitive Retail Electricity Market (CREM) Green Energy Option Program (GEOP) * Retail Aggregation Program (RAP) Permits and Licenses : RES License Eligible Technologies: Conventional: Coal, Petroleum, Natural Gas, etc. Renewable: Biomass, Geothermal, Solar, Hydro, Wind, Ocean Permits and Licenses: RES License + Operating Permit Eligible Technologies: Renewable: Biomass, Geothermal, Solar, Hydro, Wind, Ocean Based on Renewable Energy (RE) Law (R.A No. 9513)

19. CREM End-user. Electricity end-users who are granted the option to choose their electricity supplier by the ERC are considered part of the Retail Market and are referred to as Contestable Customers . Participants in RCOA/CREM Retail Electricity Supplier (RES). Any person or entity authorized by the ERC to sell, broker, market or aggregate electricity to End-users in the Retail Market. Local Retail Electricity Suppliers (Local RES). The non-regulated business segment of the DU catering to the Retail Market only within its Franchise Area. As such, a license is not required. Module B of the Omnibus Rules Retail Supplier. It refers to the following, singly or collectively: (a) RES (b) Local RES; and (c) RE Supplier.

20. GEOP End-user. Any person or entity requiring the supply and delivery of electricity sourcing one hundred percent (100%) of its electricity requirements from RE resources for its own use. Participants in GEOP Renewable Energy Suppliers (RE Suppliers). Individuals or juridical entities created, registered, or authorized to operate in the Philippines in accordance with existing laws and engaged in the provision or supply of electric power from RE resources to End-user, duly issued operating permits by the DOE. Module B of the Omnibus Rules

21. What is RAP? Retail Aggregation Program The Retail Aggregation Program (RAP) is a scheme where two or more end-users within a contiguous area are joined together and will share the same benefits of CREM End-users in the Retail Competition and Open Access (RCOA) program. Module I of the Omnibus Rules

22. Retail Aggregator. A person or entity engaged in consolidating electric power demand of End-users for the purpose of purchasing and reselling electricity on a collective basis. For purposes of these Omnibus Rules, a Retail Supplier may be a Retail Aggregator . Participants in RAP Aggregated Group. End-users whose demand have been consolidated and supplied by a Retail Supplier to qualify for contestability under current rules issued by the Department of Energy (DOE) and the ERC. Aggregated Member. An End-user that forms part of the Aggregated Group to qualify for contestability under the current rules issued by the DOE and the ERC. Module B of the Omnibus Rules

23. Eligibility Requirement for RAP Module D of the Omnibus Rules Aggregated Members located in a Contiguous Area . Contiguous Area pertains to the geographical boundaries identified and aggregation of End-users may be allowed within any of the following geographical locations: a. Subdivisions ; b. Villages ; c. Business Districts ; d. Special Economic Zones ; and e. Such other location in which supply of electricity of similarly situated End-users can be measured through metering devices: 1. Condominium buildings ; 2. Commercial establishments ; 3. Mixed-use development complexes ; 4. Same Franchise Area of the DU , Provided, that the metering facilities to be aggregated, belong to: a. Same owner ; or b. Businesses covered by the same franchise . 5. Others , as may be determined by the ERC.

24. Eligibility Requirement for RAP Module D of the Omnibus Rules To determine the eligibility of End-users with installed meters that cannot record demand, the following formula will be applied:   Where: Average Consumption is the average kWh consumption for the immediately three (3) preceding months; and Load Factor is the applicable load factor for the End-user as used or determined by the DU where the End-user is located.

25. Retail Aggregation Module D of the Omnibus Rules (SAMPLE SCENARIO) Owner X Business A Business B Business C 300kW 250kW 200kW Total Power Demand = 750kW Franchise Area, Y Business A Business B Business C 450kW 350kW 300kW Business District, Z Total Power Demand = 1,100kW Sample 1 Sample 2 + + + +

26. Eligibility Requirements for End-users RCOA/CREM RAP GEOP EXISTING END-USERS Historical average monthly peak demand equivalent to the prevailing threshold level set by the ERC for the CREM, for the preceding twelve (12) months. Aggregated average monthly peak demand of the Aggregated Members, for the preceding three (3) months is equivalent to or higher than the prevailing demand threshold set by the ERC; Members of the Aggregated Group should be located within a contiguous area *. * Contiguous A rea refers a reas which are located within certain boundaries such as subdivisions, villages, economic zones, business districts and other adjacent areas in which supply of electricity similarly situated End-users in which supply of electricity can be measured through metering devices. Historical a verage monthly peak demand of one hundred kilowatts (100kW) and above for the past twelve (12) months. NEW CONNECTION The forecasted monthly peak demand for the next twelve (12) consecutive months , based on load profiling, is equivalent to or above the prevailing threshold level approved by the ERC. Estimated average monthly peak demand for the next twelve (12) months , based on the load profiling, is three hundred (300kW) or above estimated average monthly peak demand for the next twelve (12) months , based on the load profiling, is from 100kW to below 300kW , and has a registered historical monthly peak demand of at least 100kW for three (3) consecutive months. Note: Migration to Retail Market is voluntar y . Module D of the Omnibus Rules

27. How does Customer know its eligibility? Module D of the Omnibus Rules NSPs shall inform their End-users who are eligible to participate in any of the Customer Choice Programs as provided under the Omnibus Rules. It shall be clearly written and shall be placed in a conspicuous portion in the Eligible End-user’s monthly bill for as long as the End-user is still meeting the demand threshold or until such time it has switched to CREM or GEOP. The NSP shall only include the option for CREM if the demand level of the Eligible End-user meets the threshold level of the CREM; otherwise, it shall only indicate eligibility for GEOP. Your average monthly peak demand has reached ____. You are now an Eligible End-user for GEOP [and/or CREM]. For more details, including procedures for switching to your preferred Retail Supplier, please access the Energy Regulatory Commission – Buy Your Electricity Website (bye.erc.ph).

28. Metering Requirements for Retail Customers: The DU shall be the default RMSP for the Retail Market until the ERC adopts rules that shall govern the process of authorizing other RMSPs other than the NSP. The TransCo /its buyer or concessionaire shall likewise act as the default RMSP for the Directly Connected Retail Customer. The RMSP shall procure, install, maintain and repair on behalf of the Eligible End-user , the appropriate metering facilities, which shall include but are not limited to, the ERC-type approved interval meter and the telemetering devices required to effectively communicate with its automated meter reading facilities for remote or manual data retrieval. The RMSP shall likewise calibrate with the supervision of the ERC these metering devices, conduct meter reading and data dissemination to the CRB. Participation of Eligible End-users to Retail Market Module D of the Omnibus Rules

29. Metering Requirements for Retail Customers (cont.): The cost of the appropriate metering facilities and its installation shall be borne by the Eligible End-user and shall be paid upon execution of a Connection Agreement or an Amendment thereto , in case of existing customers. Participation of Eligible End-users to Retail Market Module D of the Omnibus Rules

30. Metering Requirements for Retail Customers (cont.): The Retail Customer shall likewise be responsible for the settlement of ERC-approved metering charges in accordance with its customer classification, to cover other metering services provided by the RMSP. In the interim, a Retail Customer who was previously classified as a residential customer under the Captive Market shall now pay the metering charges applicable to low-voltage customers or its equivalent classification under private distribution utilities , until such time that the ERC has issued a separate resolution rationalizing metering costs for all customer types within a specific franchise area, Provided , that the DU acting as the default RMSP, shall ensure that there is no cross-subsidization of metering costs between Retail Customers and Captive Customers. No costs or parts thereof, accruing to the metering requirements of the Retail Customers, including the installation, maintenance of such meters, and other related services, shall be charged to Captive Customers. Participation of Eligible End-users to Retail Market Module D of the Omnibus Rules

31. Metering Requirements for Retail Customers (cont.): The RMSP shall install the appropriate metering facilities or enhance existing metering facilities by installing telemetering devices to allow effective communication with its automated meter reading facilities within thirty (30) calendar days from receipt of Eligible End-user’s notice of intention to switch; a longer time may be allowed in the case of an Aggregated Group, provided, that such period shall not exceed sixty (60) calendar days. Module D6.4 shall apply in the settlement of necessary meter installation, maintenance and recurring costs for related services. Metering Requirements shall be in accordance with the applicable provisions of the Philippine Distribution Code (PDC), Philippine Grid Code (PGC), Distribution Services and Open Access Rules (DSOAR), Open Access Transmission Service (OATS) Rules, Rules to Govern the Implementation of Advanced Metering Infrastructure (AMI) by DUs and Other Authorized Entities, other related ERC issuances, and any subsequent amendments thereto, subject to the pertinent provisions of these Omnibus Rules. Participation of Eligible End-users to Retail Market Module D of the Omnibus Rules

32. Metering Requirements for Retail Customers (cont.): Eligible End-users and/or Retail Customers shall have the right to own metering equipment and select their own contractor or equipment vendor provided that it meets the metering requirements . Notwithstanding ownership of the metering facilities, Eligible End-users and/or Retail Customers shall ensure that metering facilities are in areas that are easily accessible by the RMSP, NSP or Retail Supplier and that such access shall not be denied. Participation of Eligible End-users to Retail Market Module D of the Omnibus Rules

33. CUSTOMER SWITCHING PROCESS

34. Switching Procedure Module E of the Omnibus Rules (SAMPLE SCENARIO) Day 90: 26 November 2024 Day 0: 29 August 2024 Day 60: 28 October 2024 Day 61-64: 29 October – 01 November 2024 Day 65-70: 02 – 06 November 2024 Day 71-80: 07 – 13 November 2024 within 5 business days within 7 business days within 90 calendar days 30 calendar days before the switch date (*) For Initial Switching (**) For CREM/GEOP Day 30: 28 September 2024 (DU): attestation of no outstanding balance of Retail Customer Retail Supplier and Retail Customer >> RSC Retail Supplier and NSP >> Wheeling Transmission Service Retail Supplier or Retail Customer and RMSP >> metering service within 3 business days

35. BILLING & PAYMENTS

36. BILL CONTENT Module F of the Omnibus Rules (a) Retail Supplier Charges (b) ERC Approved Charges related to Distribution and Transmission Generation Charge; Supplier’s Charge; WESM Charges, if applicable; Arrears, if any; and Interests or penalty charges, if any. Transmission Charge; Distribution Charge; Metering Charge; System Loss Charge; Local Franchise Tax; Real Property Tax; Senior Citizen Subsidy; Lifeline Rate Subsidy; Value-Added Tax (VAT); Universal Charge; FIT-All Charge; Reinvestment Fund for Sustainable CAPEX Charge, if applicable; Arrears, if any; and Other Government Charges and Adjustments approved by the ERC. Total Electricity Bill = (a) + (b)

37. Retail Customers receive one (1) consolidated bill from the Retail Supplier, including all charges, and separate bills from other Retail Suppliers if applicable. Retail Customers are responsible for paying amounts billed by their Retail Supplier based on the RSC but are not liable for unpaid amounts owed by the Retail Supplier to other market participants. The Retail Supplier acts as a collecting agent for distribution and transmission charges, which are pass-through charges approved by the ERC, and cannot add administrative fees to these charges. Billing Scheme Module F of the Omnibus Rules

38. DISCONNECTION & RECONNECTION PROCESS

39. DISCONNECTION PROCESS Module H of the Omnibus Rules If the Retail Customer fails to pay the Retail Supplier If a Retail Supplier fails to pay the NSP The Retail Supplier must send a written Notice of Disconnection to the customer and the CRB 48 hours before the disconnection date. May be deferred by: Settled prior to scheduled disconnection. Payment at the time of disconnection. Special agreement by parties. The NSP shall send a written Notice of Disconnection to the CRB that the supply of electricity under the wheeling service agreement will be terminated within seven (7) calendar days from the Retail Supplier’s receipt of such notice. The CRB shall forward the Notice of Disconnection to the Retail Supplier within one (1) hour upon receipt of the notice. Thereafter, the CRB shall forward the duly received Notice of Disconnection to the NSP. If the Retail Supplier fails to pay within forty-eight (48) hours following said notice, the NSP shall send a copy of the Notice of Disconnection to the affected Retail Supplier's Retail Customers.

40. DISCONNECTION PROCESS (cont.) Module H of the Omnibus Rules If the Retail Customer fails to pay the Retail Supplier If a Retail Supplier fails to pay the NSP (cont.) The Retail Customer shall enter into a SOLR contract following the provisions under Module G3 and G4 of these Omnibus Rules. If at the time of disconnection is to be made, the Retail Supplier tenders full payment of the unpaid bill to the NSP, the NSP shall desist from disconnecting the supply of electricity and the CRB shall be informed of such development at the soonest possible time. Provided however, that the Retail Supplier can only invoke this provision once for the same unpaid bill.

41. RECONNECTION PROCESS Module H of the Omnibus Rules Any Notice of Reconnection shall be initiated by the entity who requested for the disconnection of the Retail Customer, whether it is a Retail Supplier or an NSP. A Retail Customer shall be reconnected by the NSP within twenty-four (24) hours after the Retail Customer has presented to the Retail Supplier proof that any of the grounds for disconnection as provided in their RSC has been remedied (e.g., proof of pay ment). The Retail Supplier shall then request for a reconnection of its Retail Customer by submitting a Notice of Reconnection to the NSP through the CRB within the same twenty-four (24) hour period from payment of dues. In the case of a disconnected Retail Customer whose disconnection was requested by multiple suppliers, the reconnection will only be executed when the Primary Retail Supplier has issued the Notice of Reconnection to the NSP.

42. RECONNECTION PROCESS Module H of the Omnibus Rules In case of disconnection due to failure to pay by the Retail Supplier to the NSP: The NSP shall issue a Notice of Reconnection to the CRB copy furnished the said Retail Supplier. The CRB shall forward said notice to the Retail Supplier’s Retail Customer at the most practicable time. The Retail Supplier may opt to renegotiate its contract with the affected Retail Customer. The affected Retail Customer shall have the right to continue availing the services of its Retail Supplier or continue to be served by a SOLR until such time that an RSC with a new Retail Supplier has been approved.

43. SUPPLIER OF LAST RESORT (SOLR)

44. Who may act as SOLR? A DU with an ERC-approved BSUP for regulated retail service to operate within their Franchise Area only; and A RES with a valid license and an ERC-approved BSUP for regulated retail service. SUPPLIER OF LAST RESORT (SOLR) Module G of the Omnibus Rules

45. Last Resort Supply Event (LRSE) Module G of the Omnibus Rules RCOA/RAP GEOP The ERC has revoked the RES License or Letter of Authority. Operating Permit issued to an RE Supplier has been revoked by the DOE. The Retail Supplier has ceased to operate. The Transmission Supply Agreement (TSA) or the Distribution Wheeling Supply Agreement (DWSA) between the Retail Supplier and the relevant Network Service Provider (NSP) was terminated. Either party terminated the Retail Supply Contract (RSC) due to a breach of contract, provided the Retail Customer was not responsible for the breach. The Retail Supplier is no longer permitted to trade electric energy through the Wholesale Electricity Spot Market (WESM). The Retail Supplier has notified the ERC that it will cease supplying electricity. The Retail Supplier has terminated the RSC without a valid reason. The Retail Supplier refuses to continue supply if the Retail Customer relocates, and the Customer fails to switch suppliers in time. The Retail Supplier has defaulted on its RSC with an Aggregated Group. Any other situation considered an LRSE by the ERC, subject to a letter-request from the Retail Supplier with relevant details.

46. The SOLR shall charge the applicable WESM nodal energy price, or the price of the power supply agreement (PSA), whichever is applicable, for the energy consumed by the Retail Customer during all hours of the billing period, plus a premium of five percent (5%) to cover incremental administrative and overhead expenses. SOLR RATE & PREMIUM Module G of the Omnibus Rules

47. REVERSION TO CAPTIVE MARKET

48. REVERSION TO CAPTIVE MARKET Module K of the Omnibus Rules RCOA/CREM RAP GEOP CREM End-user with an RSC is considered migrated to the CREM and cannot revert to the Captive Market. Aggregated Members cannot opt-out of the Aggregated Group during their contract term. The Aggregated Group can terminate its contract if the Retail Supplier commits any act of default, including: Breach of confidentiality regarding member information. Overbilling without prompt correction. Revocation of WESM membership. Non-payment of obligations to the DU, Generation Company, or WESM. Final court conviction of the Retail Supplier for fraud or deceit. LRSE issues attributable to the Retail Supplier. Any other act deemed as default by the ERC. If a GEOP End-user’s average monthly peak demand falls to 75% or less of the GEOP threshold for six (6) consecutive months (not due to seasonal demand), the RE Supplier must request the DU to revert the End-user to the Captive Market, with confirmation from the RMSP.

49. REVERSION TO CAPTIVE MARKET (cont.) Module K of the Omnibus Rules RCOA/CREM RAP GEOP Reversion may be allowed if the End-user's average monthly peak demand falls below 25% of the CREM threshold for six consecutive months (not due to seasonal demand). If the Retail Supplier defaults, the Aggregated Group may revert to the Captive Market, either individually or as a group. The Retail Supplier must continue supplying electricity until reversion or switching is completed. Upon mutual agreement, the Aggregated Group may revert to the Captive Market, provided they notify the DU 30 days before termination . The GEOP End-user can only revert to the Captive Market once every 24 months . Upon reversion, the GEOP End-user will be treated as a new customer by the DU.

50. REPORTORIAL REQUIREMENTS

51. All reportorial requirements provided herein shall be submitted to the ERC in accordance with the Rule XIII, Annex A of the ERC Resolution No 09, Series of 2020 , titled “ A Resolution Adopting the Guidelines Governing Electronic Applications, Filings and Virtual Hearings before the Energy Regulatory Commission ,” or any amendments thereto, using the prescribed format posted on the ERC website. Thereafter, reportorial submissions shall be made via the Competitive Retail Electricity Market- Monitoring and Reporting System (CREM-MRS) upon issuance of an official advisory or resolution. REPORTORIAL REQUIREMENTS Module N of the Omnibus Rules

52. Reportorial Requirements (DU) Forms Type of Submission Period Effectivity RS Form 1 Retail Supplier's Quarterly Reportorial Requirements Quarterly 20 October 2024 SOLR Form 1 Supplier Of Last Resort's Quarterly Reportorial Requirements Quarterly 20 October 2024 NSP Form 1 Network Service Provider's Monthly Customer Information Report Monthly 20 October 2024 NSP Form 2 Network Service Provider's Semi-annual Switching Compliance Report Semi-Annual 31 January 2025 Module N of the Omnibus Rules

53. Reportorial Requirements (DU) Module N of the Omnibus Rules (SOLR Reportorial Form 1) Supply Portfolio of SOLR Capacity Allocation for SOLR Customers SOLR Customer Information

54. Reportorial Requirements (DU) Module N of the Omnibus Rules (NSP Reportorial Form 1) Customer Information Customer Information per threshold Metering Installation Compliance

55. Reportorial Requirements (DU) Module N of the Omnibus Rules (NSP Reportorial Form 1 – cont.) Customer's 12-Month Historical Usage ( Average Monthly Peak Demand ) Customer's 12-Month Historical Usage ( Average Monthly Energy Consumption )

56. Reportorial Requirements (DU) Module N of the Omnibus Rules (NSP Reportorial Form 2) Customer Information

57. Reportorial Requirements (DU) INQUIRY RESPONSE General questions on the NSP Reportorial Requirements : New monthly report under Sections N2.1 (a) and (b) shall supersede previously submitted monthly and semi-annual reports on Retail Programs. For confirmation of our understanding that: The new monthly report (NSP Reportorial Form 1) shall supersede the previously submitted Contestability Report (DU Form 2); MSP Compliance Report (DU Form 3) and Actual GEOP End-Users that switched to GEOP. Yes The new Semi-annual report (NSP Reportorial Form 2) shall supersede the submission of DU Form 4. Yes Effectivity and starting period for the submission of the new reports. For the NSP Reportorial Form 1 , submission shall be effective on 20 October 2024 , indicating the data of September 2024 . NSP Reportorial Form 2 , which is the semi-annual submission, shall cover July to December 2024 data and shall be submitted on 31 January 2025 .

58. Reportorial Requirements (DU) INQUIRY RESPONSE Specific Clarifications on the Report Forms: (On NSP Reportorial Form 1): Since the report form shall include also information on customers under RAP: For clarification on the scope of the customer information to be reported. If the intent is to include in the report information on the Aggregated Group , service details will only be available once customer switching confirmation is received from the CRB. On the other hand, if the intent is to report information on the individual end-users/potential aggregated members that will be part of the aggregated group, information may be available, but this information is largely dependent on the Notice to be given by the Retail Supplier / Aggregator to DU. The intent of the customer information report under RAP, is to monitor information of an Aggregated Group, thus, the report shall be submitted once the customer switching confirmation is available.

59. Reportorial Requirements (DU) INQUIRY RESPONSE Specific Clarifications on the Report Forms: (On NSP Reportorial Form 1- cont. ): Since the report form shall include also information on customers under RAP: For clarification on the metering installation compliance status for RAP. Related to the concern above, if Aggregated Group is to be included in the report, there is no specific metering details for the same (i.e. Aggregated Group will only have virtual meter). On the other hand, reflecting metering details and installation compliance status can be done if individual potential Aggregated Members will be reported. Since the report is intended for the information of each Aggregated Group, other details not applicable to virtual meters may be left blank or put “N/A,” particularly in the “Processing Time” column.

60. Reportorial Requirements (DU) INQUIRY RESPONSE Specific Clarifications on the Report Forms: (On NSP Reportorial Form 1- cont. ): On the information to be provided under the threshold level . For clarification if “3MW forecasted” and “1MW for 3 months” are still to be reported, considering that these are no longer indicated as part of the eligibility criteria under Module D2 of the Omnibus Rules . Also the information to be provided be on the initial threshold when the customer first qualified or became eligible or the current threshold based on latest average 12-month demand? Based on Module D2 of the Omnibus rules, eligibility of the end-users in the CREM are those: existing end-user that has a registered historical monthly average peak demand equivalent to the prevailing threshold level (500kW and above); and an end-user whose forecasted monthly peak demand for the next 12 consecutive months is equivalent to or above the prevailing threshold level. Considering that the 3MW forecasted and 1MW for 3 months are no longer part of the criteria, the submission shall indicate the end-users based on the latest average 12-month demand. For the “Threshold Level” column, kindly indicate the current threshold of the end-user based on the monthly average peak demand for the most recent 12 months.

61. Reportorial Requirements (DU) INQUIRY RESPONSE Specific Clarifications on the Report Forms: (On NSP Reportorial Form 1- cont. ): On the Retail Market category. For clarification on how to report if the customer is qualified for more than one (1) program , e.g., an end-user with 500kW monthly peak demand can either be CREM or GEOP. If eligible end-user has not yet switched but is qualified to participate under either CREM/GEOP, then the NSP can indicate “CREM/GEOP”. If such end-user has already switched to a Retail Supplier, NSP shall indicate in the report under which Retail Market category or program the end-user participated.

62. Reportorial Requirements (DU) INQUIRY RESPONSE Additional clarification on NSP Reportorial Requirements under the Omnibus Rules “ Billing Month Notified of Eligibility ” in the NSP Reportorial Form 1 , particularly for Retail Aggregated Groups. For confirmation that issuance of bill with proof of eligibility shall be made one billing period after written notice from the Retail Aggregator. Unless informed by a Retail Supplier / Aggregator (pursuant to Module I1.2), the DU will not be able to identify who are the Aggregated Groups. To illustrate: Under RAP, there is no bill notification requirement to the Aggregated Member of their eligibility to be part of the Aggregated Group after receipt of Notice from Retail Aggregator. Activity Timeline Written Notice from Retail Aggregator September 2024 Bill Notification of Eligibility October 2024 bill NSP Monthly Customer Information Report November 2024 ; October 2024 data

63. Reportorial Requirements (DU) INQUIRY RESPONSE Additional clarification on NSP Reportorial Requirements under the Omnibus Rules (cont.) Terminated Customers to be reported with the “Status” column in the new NSP Reportorial Form 1. We note that qualified customers included in the current monthly submission of the Contestability Report is not a running list of qualified customers, but are those that have qualified based on the defined thresholds considering their latest 12-month average monthly peak demand/consumption. Thus, in reporting terminated qualified customers that were included in previous monthly reports (and not included in the current month’s report), can this be reported either in a separate worksheet or as additional rows during the report month when these were terminated? For example, report for the month of September shall also include terminated qualified customers that were included in previous monthly reports (but may not be included in the current month’s report based on latest average peak demand), but became terminated for the month of September. For terminated end-users, kindly include it in the same worksheet as additional rows, under the reporting month same with the month when such termination has been effective.

64. Reportorial Requirements (DU) INQUIRY RESPONSE Additional clarification on NSP Reportorial Requirements under the Omnibus Rules (cont.) Additional Remarks column in the NSP Reportorial Forms. We note that there is no longer a column to place any Remarks in the current report forms, which was previously utilized for providing notes on certain cases such as when a particular service had a change in name or transfer of service. With this, may we ask if can still add a Remarks column in the reports to be submitted to ERC-MOS? You may also provide under the “Status” column for those who have changed its name or have transferred its service to another entity/end-user. However, if there are additional information other than the status of the end-user, you may include another column.

65. Reportorial Requirements (DU) INQUIRY RESPONSE Additional clarification on NSP Reportorial Requirements under the Omnibus Rules (cont.) Billing/Service Address field in the NSP Reportorial Forms. For clarification on what should be reflected under this field, especially if the billing address is different from the service address. In the previous report templates, these 2 addresses have separate columns. You may add another column for billing and service address if necessary.

66. Reportorial Requirements (DU) INQUIRY RESPONSE Additional clarification on NSP Reportorial Requirements under the Omnibus Rules (cont.) Reporting customer switching timeline for RAP in the NSP Reportorial Form 2. For clarification on how details for RAP will be reported – per Aggregated Group or per services (Aggregated Members)? For RAP, kindly report it per Aggregated Group.

67. TRANSITORY PROVISIONS

68. The following conditions shall apply during the transition period: All NSPs, RMSPs, Retail Customers and Retail Suppliers shall immediately comply with the following Modules upon the effectivity of these Omnibus Rules: Module D, Module K, Module L and Module M. All applications for RES License and Letter Authority, in the case of Local RES, filed subsequent to the Adoption of these Omnibus Rules shall be covered by these Omnibus Rules upon its effectivity, Provided, that in applications for renewal the Retail Supplier Scorecard parameter shall only be applied upon the implementation of the enhanced CREM-MRS and Retail Supplier Scorecard, thus the weight allocation for the Retail Supplier Scorecard. All pending applications for RES Licenses, including applications for renewal, will be covered by the existing licensing requirements under ERC Reso. No. 01, Series of 2011 and shall be issued five (5) years license upon approval. Transitory Provision (Applicability of the Omnibus Rules) Module Q of the Omnibus Rules

69. The following conditions shall apply during the transition period (cont.): All Retail Suppliers shall submit a CHP or an updated CHP within one (1) month from the effectivity of these Omnibus Rules , such that, said CHP shall be implemented immediately and shall appear in all their existing and future RSCs; All Retail Suppliers, DUs, NSPs and RMSPs shall submit the reportorial requirements provided under Module N of these Omnibus Rules in accordance with the existing procedures provided under ERC Resolution No. 09, Series of 2020; All RMSPs, especially in Mindanao, upon effectivity of these Omnibus Rules, shall procure meters for its prospective Retail Customers that are meeting the eligibility thresholds as provided in these Omnibus Rules and related rules issuances by the DOE, subject to the provisions of these Omnibus Rules on settlement of costs for meter installation, maintenance, and other related services; Transitory Provision (Applicability of the Omnibus Rules) Module Q of the Omnibus Rules

70. The following conditions shall apply during the transition period (cont.): All persons or entities with an existing and valid RES License shall be allowed to also operate as a Retail Aggregator and RE Supplier; Provided, that in the case of an RE supplier, the same shall be in possession of a valid Operating Permit issued by the DOE, upon effectivity of these Omnibus Rules, without need for further action; in the case of a Local RES with a valid Letter-Authority from the ERC, it may be allowed to operate as a Retail Aggregator, subject to prior approval of the ERC. Transitory Provision (Applicability of the Omnibus Rules) Module Q of the Omnibus Rules

71. The following conditions shall apply during the transition period (cont.): Upon effectivity of these Omnibus Rules, all Retail Suppliers having retail customers that are residential buildings/condominiums with a single revenue meter , shall notify the respective homeowner’s associations or any group or association recognized by the homeowner’s as their authorized representative , that they need to issue a resolution or agreement, stating its intention to remain in the CREM or revert to being a captive customer. Residential buildings/condominiums having a single revenue meter shall be allowed to exercise this choice at least three (3) months before the expiry of its RSC. Failure to provide such notice shall result in the said Retail Customer continuing to be part of the CREM. Any instance of non-compliance with this requirement shall be grounds for disallowance of reversion to the Captive Market request unless otherwise provided under Module J of these Omnibus Rules. All Retail Suppliers shall submit proof to the ERC that they have informed its Retail Customers of this requirement, and that the latter fully understands this directive. The homeowner’s resolution and/or agreement duly executed, may be attached as part of the Retail Supplier’s compliance; Transitory Provision (Applicability of the Omnibus Rules) Module Q of the Omnibus Rules

72. The following conditions shall apply during the transition period (cont.): All Generation Companies supplying electricity to Directly Connected Customers (DCC) shall secure an RES License within one (1) year from the effectivity of these Omnibus Rules; The CRB and/or MO shall adapt and implement the necessary processes to operationalize Retail Aggregation within 60 calendar days from the effectivity of these Omnibus Rules; The ERC shall issue a separate Resolution rationalizing cost recovery mechanism in the procurement of metering facilities for the different customer choice programs in the retail market and/or demand management programs it is implementing, within ninety (90) calendar days from the effectivity of these Omnibus Rules. Until then, the relevant provisions herein stated shall apply; and Transitory Provision (Applicability of the Omnibus Rules) Module Q of the Omnibus Rules

73. The following conditions shall apply during the transition period (cont.): The ERC shall likewise issue a separate Resolution outlining the regulatory framework to address displaced contracted capacities/energy within one hundred twenty (120) calendar day s from the effectivity of these Omnibus Rules. Transitory Provision (Applicability of the Omnibus Rules) Module Q of the Omnibus Rules

74. In case of DUs with bilateral contract(s) having no energy reduction provisions, the DUs shall be allowed to provisionally implement measures to mitigate the impact of customer switching, including possible renegotiation of power supply agreements and/or assignment of excess contracted energy volumes to Retail Supplier(s), or its Local RES and/or SOLR business segments . In any or all such measures, the DU shall demonstrate to the ERC that there is already a stranding of supply, and that the said measures will result in the least-cost supply and reasonable power rates to the captive customers. The DU may sell its excess contracted supply to WESM, subject to the provisions of ERC Resolution No. 16, Series of 2016 , or any amendments thereto. “xxx where all the gains that the DUs obtain from selling to the WESM, as well as the excess kWh sold back to the WESM, shall be reflected as deduction from the WESM generation cost and kWh purchased; while the losses incurred both in monetary and the corresponding excess kWh sold back to the WESM due to trading of contracts shall be borne by the DUs as a result of the participation in electricity market trading xxx Occurrence of Displaced Contract Capacity/Energy Module Q of the Omnibus Rules

75. The DU may employ other means to reduce the excess contracted energy volumes toward ensuring least cost for the captive consumers . All these measures, implemented provisionally or otherwise, shall be reported to the ERC, as required under these Omnibus Rules, and shall be subject to the same post-implementation evaluation. All DUs may implement such measure/s, subject to post-implementation evaluation by the ERC through submission of necessary report and supporting document/s by the DU demonstrating that the adopted methodology resulted in least cost supply and reasonable cost to remaining captive customers. Occurrence of Displaced Contract Capacity/Energy (cont.) Module Q of the Omnibus Rules

76. Within thirty (30) calendar days from effectivity of these Omnibus Rules, the DUs shall submit a demand and supply assessment report, which shall include but not limited to the following: Total peak demand of all its customers; Total number of eligible end-users and their equivalent peak demand; List of existing Power Supply Agreements with ERC-approved Provisional Authority or Final Authority, whichever is applicable; List of eligible end-users who have signified their intention to switch to the Retail Market and their equivalent peak demand; and Forecasted equivalent of displaced contracted capacities for one (1) year reckoned from effectivity of these Omnibus Rules. Thereafter, the DU shall submit to the ERC its demand and supply assessment report for the succeeding year, every 15th of December of each year. Occurrence of Displaced Contract Capacity/Energy (cont.) Module Q of the Omnibus Rules

77. REDISTRIBUTION IN THE RETAIL MARKET

78. CREM End-user Redistributor. A CREM End-user who redistributes electricity to End-users with sub-meters and connected to a Single Revenue Meter. Participants in the Redistribution Unit-owners/users. Individuals or entities that own or utilize a specific unit within a larger property, such as a condominium, apartment, or commercial complex. Lessee. An individual or entity that rents or leases property from a lessor (the property owner) for a specified period under agreed-upon terms and conditions.

79. Salient Features for Redistribution: A CREM End-user Redistributor shall provide and install individual sub-meters to the units of the individual unit-owners/users, the cost of which shall not be charged or passed-on to the individual lessees/unit users , to accurately measure the latter’s energy consumption; The individual unit-owners/users shall pay their electric bills to the CREM End-user Redistributor as if they are being billed by the Retail Suppliers based on the same classification, thus shall only pay for their actual consumption and the rate to be charged shall not be higher than those imposed by the RES; REDISTRIBUTION IN THE RETAIL MARKET Module J of the Omnibus Rules

80. Salient Features for Redistribution (cont.): Reasonable expenses may be recovered by the CREM End-user Redistributor; Common areas shall be metered separately from the unit-owner/user’s premises. In cases when this would not be possible because of the design of the building, the consumption of the common areas may be estimated using a computation method agreed upon by the CREM End-user Redistributor and the individual unit-owners/users. At no instance shall the CREM End-user Redistributor derive profit from this recovery; REDISTRIBUTION IN THE RETAIL MARKET Module J of the Omnibus Rules

81. Salient Features for Redistribution (cont.): Rebates and refunds that will come from the Retail Supplier or NSP should be passed on to the unit-owners/users. Allocation/computation for rebates to unit-owners/users should be of same manner as that of the NSP. REDISTRIBUTION IN THE RETAIL MARKET Module J of the Omnibus Rules

82. REDISTRIBUTION IN THE RETAIL MARKET Module J of the Omnibus Rules (SAMPLE SCENARIO) sub-meter Single revenue meter sub-meter sub-meter sub-meter Condominium

83. Buy Your Electricity (BYE) Site https://bye.erc.ph

84. Ways Forward - Opportunities Customer Choice Awareness Series of Information, Education and Communication (IEC) Campaigns in 2025 Lowering of Contestability threshold up to household level CREM Monitoring and Reporting System / RES Scorecard

85. Q & A

86. Retail Market Division (RMD) ERC website www.erc.gov.ph BYE website www.buyyourelectricity.com.ph​​ RMD email [email protected]​ Facebook www.facebook.com/ERCgovPH X www.twitter.com/ERCgovPH RMD Telephone [phone] local 5240