JOINT RESOLUTION NO. 4

further extending the interim offer price cap in the Wholesale Electricity Spot Market (WESM) to harmonize with the finalization of the permanent pre-empting mitigating measure to be applied in the WESM

WHEREAS, the WESM Tripartite Committee was created on 02 June 2006, composed of the Department of Energy (DOE), the Energy Regulatory Commission (ERC) and the Philippine Electricity Market Corporation (PEMC) to coordinate efforts for the monitoring of price vola tilities and selting of market mitigation or preemptive measures to be implemented in the Philippine Wholesale Electricity Spot Market (WESM);

WHEREAS, pursuant to its authority, on 09 June 2006, the WESM Tripartite Committee adopted the implementation of a bid cap, or otherwise referred to as WESM Offce Pricee Cap of 1'111'62,000 per megawatt-hour (MVVh), equivalent to PhP62,OO per kilowatt-hour (kWh);

WHEREAS, an adjustment to the WESM Offer Price Cap was milde last 27 December 2013, setting an interim level of I'hP32,OOO per MWh for a period of ninety (90) days subjecLto a conduct of public consultation;

WHEREAS, the effectivity of the PhP32,000 per MW WESM Offer Price Cap was extended thrke by the WESM Tripartite Committee, through Joint Resolution Nos. 1, 2 and 3 Series 2014, the last of which prOVided an additional period of ninety days (90) days from the d;'\te of its publication, or until 2,1 October 2014, to provide additional time for the evaluation of the proposals submitted during the conduct of public consultations;

WHEREAS, on 05 August 2014, the Energy Regulatory Conunission (ERC) through its ERC Resolution No. 14, Series of 2014, extended the effectivity of the Secondary Price Cap as an interim mitigating measure in the WESM (or a period of one hundred twenty (120) days from 10 August 2014 or until the establishment by the ERC of a pennanent pre-emptive measure in the WESM, whichever comes earlier;

and

WHEREAS, the WESM Tripartite Convnittee further recognizes that the appropriate level of the WESM Offer Price Cap should complement and be consistent with the permanent pre-emptive measure in the WESM to be issued by the ERC.

NOW, THEREFORE,. premises considered, the DOE,. the ERC and the PEMe hereby jointly adopt the following:

Section 1. Further Extension of the Effectivity of the WESM Orfcr Price cap. Pending the determination of a flew WESM Offer Price Cap whicll ronsiders the permanent mitigating measures to be issued by the ERC, the Interim WESM Offer Price Cap of PhP32.000 per MWh set in the WFSM Tripartite Committee Joint Ressolution No. 2. Series of 2013, is hereby further extended for a period of one hundred and twenty (120) days from 24 October 2014. The new level of WESM Offer Price Cap shall be sct in a manner that considers sustainableeconomic growth in the generation sector which promotes long term efficiency and security of the supply of electric power.

Section 2. Separability Clause. If for any reason, any section or provision of this Joint Resolution is declared unconstitutional or invalid. Such parts not affected shall remmain in full force and effect.

Section 3. Effectivity. This Joint Resolution shall take into effect immediately following its publication in ilt least two (2) newspapers of general circulation and shall remain in effect until otherwise revoked.