Department Order No. 2004-06-007





WHEREAS, pursuant to Section 30 of the Electric Power Industry Reform Act, mandating the Department of Energy (“DOE”) to establish the Wholesale Electricity Spot Market (“WESM”), the DOE has determined the need to constitute an Implementation Steering Committee for WESM to integrate closely and coordinate various efforts of the Philippine Electricity Market Corporation (“PEMC”), TRANSCO – Market Operations Unit (“Transco-MO”) and the TRANSCO Systems Operations Unit (“Transco-SO”), as well as the WESM-Technical Working Group and its Subcommittees, towards the implementation of the WESM.


NOW THEREFORE, a DOE Implementation Steering Committee for WESM is hereby created to oversee the overall implementation of the WESM and ensure the effective coordination of various activities of functional units involved in the establishment of the WESM.


Section 1.  Composition of the Implementation Steering Committee.  –


The Committee shall be composed of:


Chairman                         Undersecretary Cyril C. del Callar, DOE

Co-Chairman                    President Lassi-Matti A. Holopainen, PEMC

Members                          Director Chrysanthus S. Heruela, DOE

Transco – Market Operations representative

Transco – System Operations representative


SEC. 2.  Functions of the Wesm Implementation Steering Committee.  –


The WESM Implementation Steering Committee shall exercise the following functions:


(a)      Monitor the timeline, action plans and overall target implementation schedule of the WESM;


(b)      Monitor the development of projects related to the WESM, including the market management system and metering system, and ensure its timely completion, and identify such other projects necessary for WESM’s successful implementation;


(c)      Direct the coordination of various government agencies or units, industry sectors and such other entities and implement a regular monitoring and feedback mechanism to and from responsible parties;


(d)      Conduct regular assessment or evaluation of the WESM to identify issues and formulate solutions to address such difficulties;


(e)      Assess funding and manpower requirements and recommend the allocation of available resources;


(f)       Provide a forum for any recommendations and/or recommend changes in the WESM Rules, Grid Code, Distribution Code and such other rules to the appropriate rule-making body in order to reconcile any inconsistencies among these Codes; and


(g)      Perform such other functions as may be necessary and delegated to it by the DOE to successfully implement the WESM.


SEC. 3.  Responsibilities of Each Functional Unit.  – The PEMC, Transco-MO and Transco-SO are hereby given the following responsibilities to assist the Committee in the performance of its duties:


(a)      Prepare and implement plans and undertake all activities assigned to each unit pursuant to the WESM Rules under the direction of the WESM Implementation Steering Committee;


(b)      Provide the Committee with periodic updates on the progress and other matters concerning their respective functions under the WESM Rules;


(c)      Ensure mutual cooperation by and among each of the functional units and allow the Committee direct access to information on relevant matters;


(d)      Provide ample manpower and other resources to lend administrative support to the Committee as may be necessary.


Nothing in this Department Order shall be construed as to amend, supplant, or repeal any of the mechanisms or institutions already existing or responsibilities already allocated and provided for under any law, rule, or contract.


SEC. 4.  Meetings.  – In order to perform the above-stated functions, the Committee shall meet twice a month or at such other time as the Chairman directs.  The Committee may direct the presence of any individual or representative to provide expert advice or opinion on relevant matters.


SEC 5.  Submission of Reports.  – The Committee shall submit periodic updates to the DOE Secretary.


This Department Order shall take effect immediately until otherwise revoked.


Fort Bonifacio, Taguig, Metro Manila, 31 May 2004.







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