To : ALL ENERGY INDUSTRY PARTICIPANTS

Subject : RE-STATEMENT of the JOINT ENDORSEMENT on the IMO

Date : July 22, 2020

Section 30 of the Republic Act No. 9136 otherwise known as the Electric Power Industry Reform Act (or the EPIRA) pertinently provides:

"Not later than one (1) year after the implementation of the wholesale electricity spot market, an independent entity shall be formed and the functions, assets and liabilities of the market operator shall be transferred to such entity with the joint endorsement of the DOE and the electric power industry participants."

On 28 July 2017, DOE issued Department Order (DO) No. 2017-07-0010 entitled "Creating the Transition Committee for the Interim Management of the Philippine Electricity Market Corporation and the Wholesale Electricity Spot Market" that created the  "TRANSITION TEAM" with the task to review the WESM structure and make recommendations.

On 17 January 2018, DOE issued DC 2018-01-0002 entitled "Adopting Policies for the Effective and Efficient Transition to the Independent Market Operator for the Wholesale Electricity Spot Market" [the TRANSITION DC] which constituted the DOE's endorsement and operationalization of the transition to and establishment of the IMO.

On 3 February 2018, the Philippine Electricity Market Board (PEMB) approved the "Transition to the Market Operator of the WESM Plan" [hereinafter referred to as "the TRANSITION PLAN"] which was prepared by the TRANSITION TEAM pursuant to its power and functions.

On 6 February 2018, the electric power industry stakeholders constituted by the Philippine Electricity Market Corporation (PEMC) approved/ratified the TRANSITION PLAN which constituted the stakeholders' endorsement and operationalization of the transition to and establishment of the IMO.

On 6 February 2018, the DOE Secretary declared the joint endorsement of the TRANSITION PLAN, the transition to and establishment of the IMO by the DOE and the PEMC.

This re-statement is issued as an advisory to all concerned that, pursuant to the above-stated provision of law, the joint endorsement by the DOE and electric power participants has been duly executed and complied with.

For the information and guidance of all concerned.