On-going 

Electricity Pricing and Regulatory Practice in a Competitive Environment

Proposed

Preparation of Software Programs

Implementation/Supervision of Turnkey Contract to develop and implement the software and hardware system needed to support the market operation (Infrastructure requirements for the Spot Market)

On-going

Development of Market Rules and Appropriate Governance

Proposed

Competition Rules

Consumer Education

On-going

Determination of Government Stranded Cost

MARKAL/Integrated Resource Planning

Restructuring Experts

Overall assistance in IRR Preparation

Under Negotiation

DOE/ERB Institutional Capability Building

EIRC determination

Public Information/Consumer Education

Tariff determination

Proposed

Systems Specification for Market Pooling

The Philippine Distribution Code establishes the basic rules and procedures that govern the operation, maintenance, development, connection, and use of the electric distribution systems in the Philippines. Compliance with the provisions of this Distribution Code is mandatory for all participants in distribution system operations. These include the Distributors and the Users of the distribution system including embedded generators, other distributors connected to the distribution system, and large customers.

The restructuring of the electric power industry in the Philippines as envisioned in Republic Act No. 9136, also known as the “Electric Power Industry Reform Act of 2001,” will result in significant changes in distribution system operations and management. The Act allows end-use consumers belonging to the contestable market to obtain power from independent suppliers who are licensed by the ERC. Electricity consumers will have the option to purchase electric energy from a variety of resources other than those selected by their local distributor.

Distributors must provide wheeling services to such customers. Distributors must also procure energy supplies to serve the remainder of their customers from the Wholesale Electricity Spot Market or through bilateral contracts.

The Act mandated the creation of the Energy Regulatory Commission (ERC). Section 43(b) of the Act provides that the ERC promulgate and enforce a National Grid Code and a Distribution Code which shall include, but not be limited to: (a) Performance Standards for TRANSCO O & M Concessionaire, distribution utilities and suppliers, and (b) Financial Capability Standards for the generating companies, the TRANSCO, distribution utilities and suppliers. The Act also mandates the ERC to enforce compliance to the Grid Code, the Distribution Code, and the Market Rules, and to impose fines and penalties for violations of their provisions.

The Distribution Code defines the technical aspects of the working relationship between the distributors and all the users of the distribution system. Electric distributors must deliver electric energy to the electricity users at acceptable levels of service quality. On the other hand, the users of the distribution systems must comply with certain rules and standards to avoid adverse effect on the distribution system. The reliability of the distribution system depends on the performance of the various components of the distribution network. Thus, major components such as power substations, primary lines, distribution transformers, secondary lines and service lines, must perform satisfactorily.

The policies, decisions and actions of the Distributor on matters involving the operation, maintenance and development of the distribution system will affect industry participants and the users of the distribution system. It is important, therefore, that all affected parties have a voice in making policies and decisions involving the operation, maintenance and development of the distribution system. The Distribution Code provides this mechanism through the Distribution Management Committee that will relieve the ERC from the tedious task of monitoring day-to-day operations of the distribution system.

Combined with the Philippine Grid Code, the Distribution Code will ensure that the total electric energy supply system of the Philippines operates efficiently to provide reliable and economic service to all distribution customers.The Distribution Code is organized into eight (8) Chapters. These are:

          Chapter 1. Distribution Code General Conditions
          Chapter 2. Distribution Management
          Chapter 3. Distribution Connection Requirements
          Chapter 4. Distribution Planning
          Chapter 5. Distribution Operations
          Chapter 6. Distribution Revenue Metering Requirements
          Chapter 7. Distribution Code Transitory Provisions
          Chapter 8. Performance Standards for Distributors & Suppliers

Chapter 1 of the PDC contains the general provisions that apply to all the other Chapters of the Distribution Code. It specifies the authority of ERC to promulgate and enforce the Distribution Code. It also contains articles on construction of references, definition of terms, and abbreviations used in the Distribution Code.

Chapter 2 of the PDC provides the guidelines for Distribution Management, the procedures for dispute resolution, the required Management Reports and the procedures for Distribution Code revision and enforcement.

Chapter 3 of the PDC specifies the minimum technical, design and operational criteria and the procedures to be... Read more

The Philippine Grid Code establishes and documents the basic rules, requirements, procedures and standards that govern the operation, maintenance and development of the high-voltage backbone transmission system in the Philippines. The Grid Code identifies and recognizes the responsibilities and obligations of three (3) key independent functional groups, namely (a) Grid Owner, (b) System Operator and (c) Market Operator. These functional groups and all Users of the Grid must comply with all the provisions of the Grid Code. The Grid Code is intended to be used along with the Market Rules of the Wholesale Electricity Spot Market to ensure the safe, reliable and efficient operation of the Grid.

Republic Act No. 9136, also known as the “Electric Power Industry Reform Act of 2001,” mandated the creation of the Energy Regulatory Commission (ERC). Section 43(b) of the Act also provides that the ERC promulgate and enforce a National Grid Code and a Distribution Code which shall include, but not limited to: (a) Performance Standards for TRANSCO O & M Concessionaire, distribution utilities and suppliers, and (b) Financial Capability Standards for the generating companies, the TRANSCO, distribution utilities and suppliers. The Act also mandates the ERC to enforce compliance to the Grid Code, the Distribution Code and the Market Rules and to impose fines and penalties for violations of their provisions.

The Grid Code was prepared using a functional rather than an organizational format so that it will remain robust and require minimum changes as the Philippine electric power industry is transformed to its new organizational structure.

The safe, reliable and efficient operation of the Grid requires the cooperation of all industry participants. It is important that all Grid Users follow the instructions and orders of the System Operator to ensure the reliable operation of the Grid. The System Operator will work closely with the Market Operator to dispatch day-ahead pool schedules and provide the necessary support in satisfying the technical and operational requirements of real time control of the Grid.

The policies and decisions of the Grid Owner, System Operator and Market Operator on matters involving the operation, maintenance and development of the Grid will affect all industry participants and end-users. It is important, therefore, that all affected parties have a voice in making decisions and policies involving the operation, maintenance and development of the Grid. The Grid Code provides this mechanism through the Grid Management Committee that will relieve the Energy Regulatory Commission from the tedious task of monitoring day-to-day operations of the Grid.

The Grid Code is organized into nine (9) Chapters. These are:

Chapter 1. Grid Code General Conditions
Chapter 2. Grid Management
Chapter 3. Grid Connection Requirements
Chapter 4. Grid Planning
Chapter 5. Grid Operations
Chapter 6. Scheduling and Dispatch
Chapter 7. Grid Revenue Metering Requirements
Chapter 8. Grid Code Transitory Provisions
Chapter 9. Performance Standards for TRANSCO

Chapter 1 of the PGC contains the general provisions that apply to all the other Chapters of the Grid Code. It specifies the authority of the ERC to promulgate and enforce the Grid Code. It also contains articles on definition of terms, abbreviations, and construction of references used in the Grid Code.

Chapter 2 of the PGC specifies the guidelines for Grid Management, the procedure for dispute resolution, the required Operational reports and the process for Grid Code enforcement and revision.

Chapter 3 of the PGC specifies the minimum technical, design and operational criteria and the procedures to be complied with by any User who is connected or seeking connection to the Grid and the minimum technical, design and operational criteria of the Grid Owner at the Connection Site with Users. It also presents a unified listing of all the data required by the System Operator from Users and by Users from the Grid Owner.

Chapter 4 of the PGC specifies the technical and design criteria and procedures to be applied by the System Operator and Grid Owner in planning the development or reinforcement of the Grid and to be taken into account by Users in planning the expansion of their own Systems. Articles on Demand Forecasts and required technical planning studies are also included in this Chapter.

Chapter 5 of the PGC establishes the rules and procedures to be followed by the Grid Owner, System Operator and all Users to ensure the reliability... Read more