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Philippine Distribution Code

Published on Friday, 5 June 2015

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

Philippine Grid Code

Published on Friday, 5 June 2015

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

Proposed Amendments to the EPIRA Law (RA9136)

Published on Friday, 5 June 2015

Presentation Materials on EPIRA Consultative Dialogue

Published on Friday, 5 June 2015

Business Sector

Consumers Sector

Distribution Sector

Generation/Supply Sector

Highlights on the Implementation of RA No. 9136, EPIRA of 2001

Published on Friday, 5 June 2015

 

HIGHLIGHTS ON THE IMPLEMENTATION OF REPUBLIC ACT NO. 9136,
ELECTRIC POWER INDUSTRY REFORM ACT OF 2001

For the Period October 2002 - April 2003

 

Wholesale Electricity Spot Market (WESM)

The Asian Development Bank (ADB) has approved the loan to finance the “Electricity Market and Transmission Development Project.” A portion of this loan will be used to finance the following projects: (1) Project Management Consultancy of the Philippine WESM, and (2) Procurement and Installation of the WESM Market Management System (MMS).

The ADB has also approved the bid documents and short listed firms for the Project Management Consultancy Project on 14 April 2003.

Further, the WESM Special Bid and Award Committee (SBAC), created on December 2002 to undertake bid evaluation and selection process for all WESM-related projects, has completed the review and approval of bid documents prepared by the National Transmission Corporation (TRANSCO) for the WESM Turnkey Project.

 

TRANSCO Privatization

Relative to the TRANSCO privatizatio, PSALM has issued and published in newspapers of general circulation on 27, 28, and 29 January 2003 the Public notice for Bidding of Concessionaire. Moreover, PSALM has distributed to interested parties the Information Memorandum last March 2003.

 

Power Rates

The ERC has rendered its decision on the rate unbundling applications of the NPC Small Power Utilities Group (SPUG) on 20 December 2002 and twelve (12) distribution utilities from November 2002 to April 2003, namely: PELCO I, PANELCO I, SORECO II, BATELEC I, SIARELCO and QUIRELCO. The ERC has previously approved NPC’s unbundling rate application on September 2002.

The ERC has likewise rendered its decision on the petition of the NPC-SPUG for the missionary electrification component of the Universal Charge (UC) on 20 December 2002 and petition of NPC for the environmental charge component of the UC on 02 April 2003.

 

Philippine Grid and Distribution Codes

The ERC has appointed the members of the Grid Management Committee (ERC Case No. 2002-204) and Distribution Management Committee (ERC Case No. 2002-205) on 02 December 2002 and 31 March 2003.

 

Condonation of EC’s Rural Electrification Loans

Pursuant to Section 5(g) of Executive Order No. 119, the NEA has issued the Guidelines for the submission of EC Performance Improvement Program (PIP) and/or Rehabilitation and Efficiency Plan (REP). Consistent with these guidelines, NEA approved a total of 117 PIPs/REPs on December 2002.

As a pre-requisite to PSALM assumption of Es’ rural electrification loans, the ERC has issued form March to April 2003 Provisional Authorities to 28 ECs directing to reduce rates as a result of the condonation of their rural electrification loans, to wit: CAPELCO, ANTECO, ILECO I, ILECO II, BATELEC II, TIELCO, ORMECO, QUEZELCO, BANELCO, BOHECO I, CEBECO III, NORECO II, LUELCO, INEC, ISECO, PANELCO I, CANORECO, CASURECO I, CASURECO II, CASURECO IV, ANECO, ASELCO, SIARELCO, SURSECO I, FIBECO, MOELCI I, MOELCI II, MORESCO II

 

Missionary Electrification Development Plan (MDCP)

The DOE has formulated the 2003 MEDP which will be used by the NPC-SPUG in updating its 2002-2006 Missionary Electrification Plan (MEP) and, in turn, will be the basis of ERC’s determination and fixing of the appropriate share of missionary electrification in the Universal Charge. The DOE submitted the 2003 MEDP to ERC on 07 March 2003.

The 2003 MEDP provided, among other things, the following:

      1. Levels of priority Universal Charge (UC) funding;
      2. Subsidy policy for new projects. This policy provides one time up-front capital subsidy or CapEx only since these projects new projects are assumed to be undertaken by the private sector or “Qualified Third Parties” or “QTPs”;
      • Criteria and weights for projects in unviable and unenergized areas. Said weights were agreed to b a balance between economic efficiency and the socio-political components.

Below is the proposed UC for Missionary Electrification under the 2003 MEDP.

    Php/kWh
Based on NPC-SPUG 2002-2006 MEP - 0.0964
Adjustment... Read more

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