PhilDistCode PDF

Department of Energy and Energy Regulatory Commission
PHILIPPINEDISTRIBUTION
PHILIPPINE DISTRIBUTION CODE
CODE
September 2001
[THIS PAGE LEFT BLANK INTENTIONALLY]
FOREWORD
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.
Foreword Philippine Distribution Code
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 seven (7) 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 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 complied with by any User who is connected or seeking
connection to a Distribution System. User data submission requirements are also
included in this Chapter.
Chapter 4 of the PDC specifies the technical and design criteria and procedures to be
applied in planning the development or reinforcement of a Distribution System. Articles
on demand forecasts, planning data, and required technical studies are likewise included
in this Chapter.
Chapter 5 of the PDC establishes the rules and procedures to be followed by all Users of the
Distribution System to ensure that reliable distribution services are achieved for all
distribution customers. Articles on Operational procedures and arrangements, Operational
Liaison, Operational Reports, Demand Control, Emergency Operations, Safety
Coordination, Testing and Monitoring, System Test, Maintenance Procedures, and
Equipment Numbering and Nomenclature are likewise included in this Chapter.
Chapter 6 of the PDC specifies the technical and design criteria associated with the
measurement of electric energy as well as the procedures for providing metering data for
billing and payment.
Chapter 7 of the PDC specifies the rules and procedures pertaining to compliance with
the provisions of the Distribution Code during the transition period from the existing
industry structure to the new industry structure. The procedures for the grant of
exemption from specific requirements of the Distribution Code are also addressed in this
Chapter.
ii September 2001
Suggested PGDC Adoption Statement
Republic of the Philippines
Energy Regulatory Commission

Pasig City, Metro Manila
Resolution No.____
ADOPTION OF THE PHILIPPINE GRID CODE AND THE

WHEREAS, the Congress of the Philippines has enacted Republic Act No. 9136, also
known as the Electric Power Industry Reform Act of 2001, to provide a framework for
the restructuring of the electric power industry, including the privatization of the assets of
the National Power Corporation, the transition to the desired competitive structure, and
the definition of the responsibilities of the various government agencies and private
entities;
WHEREAS, the Act mandated the creation of the Energy Regulatory Commission
(ERC), an independent, quasi-judicial regulatory body that is tasked to promote
competition, encourages market development, ensure customer choice and penalize abuse
of market power in the restructured electric power industry;
WHEREAS, the Act mandated the ERC to promulgate and enforce, in accordance with
law, a National Grid Code and a Distribution Code which shall contain performance
standards for the National Transmission Corporation (TRANSCO) operations and
maintenance concessionaire, distribution utilities and suppliers, and financial capability
standards for the generating companies, the TRANSCO, distribution utilities and
suppliers;
WHEREAS, the Grid Code species the rules, requirements, procedures and standards that
will ensure the safe, reliable, secured and efficient operation, maintenance and
development of the high-voltage backbone transmission system in the Philippines;
WHEREAS, the Distribution Code specifies the rules, requirements, procedures and
standards that will ensure the safe, reliable, secured and efficient operation, maintenance
and development of the distribution systems in the Philippines;
NOW, THEREFORE, by virtue of Republic Act No. 9136, the Commission hereby
RESOLVED, as it so RESOLVES, to adopt the PHILIPPINE GRID CODE and the
PHILIPPINE DISTRIBUTION CODE as part of the Implementing Rules and
Regulations of Republic Act 9136.
Adoption of the Philippine Grid and Distribution Codes Philippine Distribution Code
FURTHER, RESOLVED, that upon approval hereof by the Joint Congressional Power
Commission, this Resolution and the Codes shall be effective 15 days following the
publication of this resolution in at least two (2) national paper of general circulation.
Done in Pasig City, Metro Manila, this ___th day of _____________2001.
___________________________
Chairman
_________________________ _________________________
Commissioner Commissioner
_________________________ _________________________
Commissioner Commissioner
iv September 2001
TABLE OF CONTENTS
Chapter Description Page
Foreword....................................................................................................................... i
Adoption of the Philippine Grid Code and the Philippine Distribution Code ..... iii
1 Distribution Code General Conditions ..................................................................... 1

1.1 Purpose and Scope .................................................................................................. 1
1.1.1 Purpose........................................................................................................... 1
1.1.2 Scope.............................................................................................................. 1
1.2 Authority, Enforcement and Suspension of Provision............................................ 1
1.2.1 Authority ........................................................................................................ 1
1.2.2 Enforcement................................................................................................... 1
1.2.3 Suspension of Provisions ............................................................................... 1
1.3 Data, Notices and Confidentiality........................................................................... 2
1.3.1 Mode of Submission ...................................................................................... 2
1.3.2 Confidentiality ............................................................................................... 2
1.4 Construction of References..................................................................................... 2
1.4.1 References...................................................................................................... 2
1.4.2 Cross-References ........................................................................................... 2
1.4.3 Definitions...................................................................................................... 2
1.4.4 Foreword, Table of Contents and Titles ........................................................ 2
1.4.5 Mandatory Provisions .................................................................................... 2
1.4.6 Singularity and Plurality ................................................................................ 3
1.4.7 Gender............................................................................................................ 3
1.4.8 “Include” and “Including” ............................................................................. 3
1.4.9 “In Writing” and “Written”............................................................................ 3
1.4.10 Rounding-off of Numbers............................................................................ 3
1.4.11 Act of Congress............................................................................................ 3
1.4.12 Statutory and License Obligations ............................................................... 3
1.4.13 Repealing Clause ......................................................................................... 3
1.5 Definitions............................................................................................................... 3
1.6 Abbreviations........................................................................................................ 13
2 Distribution Management ........................................................................................ 15

2.1 Purpose and Scope ................................................................................................ 15
2.1.1 Purpose......................................................................................................... 15
2.1.2 Scope............................................................................................................ 15
2.2 Distribution Management Committee................................................................... 15
2.2.1 Functions of the DMC ................................................................................. 15
2.2.2 Membership of the DMC ............................................................................. 15
Table of Contents Philippine Distribution Code
2.2.3 Terms of Office of the DMC Members ....................................................... 16

2.2.4 DMC Support Staff and Operating Cost...................................................... 16
2.2.5 DMC Rules and Procedures......................................................................... 17
2.3 Distribution Management Subcommittees............................................................ 17
2.3.1 Distribution Technical Standards Subcommittee......................................... 17
2.3.2 Distribution Protection and Reliability Subcommittee ................................ 17
2.3.3 Distribution Tariff Framework Subcommittee ............................................ 18
2.3.4 Distribution Metering and Settlements Subcommittee ................................ 18
2.3.5 Other Distribution Subcommittees .............................................................. 18
2.4 Distribution Code Dispute Resolution .................................................................. 18
2.4.1 Distribution Code Disputes.......................................................................... 18
2.4.2 Distribution Code Dispute Resolution Panel ............................................... 18
2.4.3 First-Stage Dispute Resolution Process ....................................................... 18
2.4.4 Appeals of Dispute Resolution Decisions.................................................... 19
2.4.5 Cost of Dispute Resolution .......................................................................... 19
2.5 Distribution Code Enforcement and Revision Process......................................... 19
2.5.1 Enforcement Process.................................................................................... 19
2.5.2 Penalties ....................................................................................................... 20
2.5.3 Unforeseen Circumstances........................................................................... 20
2.5.4 Distribution Code Revision Process ............................................................ 20
2.6 Distribution Management Reports........................................................................ 21
2.6.1 Annual Reports ............................................................................................ 21
2.6.2 Significant Incident Reports ........................................................................ 21
2.6.3 Special Reports ............................................................................................ 21
3 Distribution Connection Requirements .................................................................. 23

3.1.1 Purpose......................................................................................................... 23
3.1.2 Scope............................................................................................................ 23
3.1.3 Exceptions.................................................................................................... 23
3.2 Procedures for Connection Application or Modification...................................... 23
3.2.1 Application for Connection.......................................................................... 23
3.2.2 Declaration of Load Characteristics............................................................. 24
3.2.3 Capacitive and Inductive Effect................................................................... 24
3.2.4 Detailed Information.................................................................................... 25
3.2.5 Connection Arrangements ........................................................................... 25
3.2.6 Fixed Asset Boundary Document ................................................................ 25
3.3 Distribution Technical, Design and Operational Criteria ..................................... 26
3.3.1 Security Requirements ................................................................................. 26
3.3.2 Distribution Frequency Variations............................................................... 26
3.3.3 Distribution Voltage Variations................................................................... 26
3.3.4 Power Factor ................................................................................................ 26
3.3.5 Harmonics .................................................................................................... 26
3.3.6 Distribution Voltage Unbalance .................................................................. 26
3.3.7 Flicker Severity............................................................................................ 26
3.3.8 Voltage Variation during Fault and Switching Conditions.......................... 27
vi September 2001
Philippine Distribution Code Table of Contents
3.4 Distribution Design Principles and Standards ...................................................... 27

3.4.1 Development of Design Principles and Standards....................................... 27
3.4.2 Distribution Equipment, Overhead Lines, and Underground Cables .......... 27
3.4.3 System Grounding ....................................................................................... 28
3.4.4 Voltage Regulation and Control .................................................................. 28
3.4.5 Protection ..................................................................................................... 28
3.5 Requirements for Equipment at the Connection Point ......................................... 29
3.5.1 Equipment at the Ownership Boundary....................................................... 29
3.5.2 Protection Requirements.............................................................................. 29
3.5.3 Grounding Requirements ............................................................................. 29
3.5.4 Equipment Short-Circuit Rating .................................................................. 29
3.5.5 Monitoring and Control Equipment............................................................. 30
3.5.6 Automatic Load Dropping Equipment......................................................... 30
3.6 Diagram and Drawing Requirements.................................................................... 30
3.6.1 Electrical Diagram Requirements ................................................................ 30
3.6.2 Preparation of Electrical Diagram for a Distributor Site ............................. 31
3.6.3 Preparation of Electrical Diagram for a User Site ....................................... 31
3.6.4 Changes to Electrical Diagrams................................................................... 31
3.6.5 Site Common Drawings............................................................................... 32
3.6.6 Preparation of Site Common Drawings for a Distributor Site..................... 32
3.6.7 Preparation of Site Common Drawings for a User Site............................... 32
3.6.8 Changes to Site Common Drawings ............................................................ 32
3.7 Specific Requirements for Generators .................................................................. 33
3.7.1 Information for Modeling the Distribution System ..................................... 33
3.7.2 Information Required From Embedded Generators .................................... 34
3.7.3 Additional Information Required by System Operator from Embedded
Generators ....................................................................................................... 35
3.7.4 Generating Unit Performance Requirements ............................................... 35
3.7.5 Control Arrangements.................................................................................. 35
3.7.6 Coordination With Existing Protection........................................................ 36
3.7.7 Islanding....................................................................................................... 36
3.7.8 Black Start Capability .................................................................................. 37
3.7.9 Generating Plant Commissioning Tests....................................................... 37
3.8 Specific Requirements for Large Customers ........................................................ 37
3.8.1 Effect of Operations..................................................................................... 37
3.8.2 Information on Significant Changes ............................................................ 37
3.8.3 Automatic Load Dropping System .............................................................. 37
3.8.4 Reactive Power Supply ................................................................................ 37
3.9 Distribution Data Registration .............................................................................. 37
3.9.1 Data Requirements....................................................................................... 37
3.9.2 Procedures and Responsibilities .................................................................. 38
3.9.3 Data to be Registered ................................................................................... 38
4 Distribution Planning ............................................................................................... 43

4.1.1 Purpose......................................................................................................... 43
September 2001 vii

4.1.2 Scope............................................................................................................ 43
4.2 Distribution Development Plan............................................................................. 43
4.2.1 Development of Distribution System........................................................... 43
4.2.2 Submission of Annual Distribution Development Plan............................... 43
4.2.3 Distribution Planning Analysis .................................................................... 44
4.3 Distribution Planning Data Requirements ............................................................ 44
4.3.1 Information to be Provided by Users ........................................................... 44
4.3.2 Information to be Provided to Users............................................................ 44
4.3.3 Information on Reactive Power Compensation ........................................... 45
4.3.4 Information on Fault Infeed Levels ............................................................. 45
4.3.5 Information on Interconnection Impedance................................................. 45
4.3.6 Information on Demand Transfer Capability............................................... 45
4.3.7 Information on Transient Overvoltage Effects ............................................ 45
4.3.8 Other Detailed Information.......................................................................... 46
4.4 Demand Forecasts................................................................................................. 46
4.4.1 Factors to be Considered in Load Forecasting............................................. 46
4.4.2 Data for Load Forecasting ........................................................................... 46
5 Distribution Operations............................................................................................ 47
5.1.1 Purpose......................................................................................................... 47
5.1.2 Scope............................................................................................................ 47
5.2 Operational Authority and Responsibilities.......................................................... 48
5.2.1 Operational Authority and Responsibilities of Distributors ........................ 48
5.2.2 Authority of the ERC ................................................................................... 48
5.2.3 Role of the Distribution Management Committee....................................... 48
5.3 Operational Procedures and Arrangements .......................................................... 48
5.3.1 Mutual Assistance Procedures ..................................................................... 48
5.3.2 Equipment and Inventory Sharing Procedures ............................................ 48
5.3.3 Joint Purchase Arrangements....................................................................... 48
5.4 Operational Liaison............................................................................................... 49
5.4.1 Operational Communications ...................................................................... 49
5.4.2 Required Notification of Operation ............................................................. 49
5.4.3 Mode of Notification of Operations............................................................. 50
5.4.4 Timing of Notification of Operations .......................................................... 51
5.4.5 Required Notification of Events .................................................................. 51
5.4.6 Mode of Notification of Event..................................................................... 51
5.4.7 Timing of Notification of Event .................................................................. 53
5.4.8 Distribution System Control by the System Operator ................................. 53
5.4.9 System Control by the Distributor ............................................................... 53
5.5 Operational Reports .............................................................................................. 53
5.5.1 Significant Incidents .................................................................................... 53
5.5.2 Event Reports by Users to the Distributor ................................................... 54
5.5.3 Event Reports by the Distributor to Users ................................................... 54
5.5.4 Information to be Included in Event Reports............................................... 54
5.5.5 Information to be Included in Significant Incident Reports ........................ 54
viii September 2001

5.5.6 Submission of Written Report ..................................................................... 55

5.5.7 Statutory Reports of Specified Events ......................................................... 55
5.6 Demand Control.................................................................................................... 55
5.6.1 Demand Control Criteria and Procedures .................................................... 55
5.6.2 Coordination of Actions............................................................................... 56
5.6.3 System Demand Reduction Arrangement.................................................... 56
5.6.4 Demand Control by Voltage Reduction....................................................... 56
5.6.5 Automatic Load Dropping ........................................................................... 56
5.6.6 Manual Load Dropping................................................................................ 57
5.7 Emergency Procedures.......................................................................................... 57
5.7.1 Emergency Events ....................................................................................... 57
5.7.2 Coordination During Emergency Events ..................................................... 57
5.7.3 Joint Investigation of Significant Incidents ................................................. 58
5.7.4 Black Start Procedures................................................................................. 58
5.7.5 Resynchronization of Power Islands............................................................ 58
5.8 Distribution Maintenance Program....................................................................... 59
5.8.1 Maintenance Scheduling Procedures ........................................................... 59
5.8.2 Five-Year Maintenance Program................................................................ 61
5.8.3 Three-Year Maintenance Program............................................................... 62
5.8.4 Annual Maintenance Program ..................................................................... 63
5.8.5 Monthly Maintenance Program ................................................................... 63
5.8.6 Weekly Maintenance Program..................................................................... 64
5.8.7 Daily Maintenance Program ........................................................................ 65
5.9 Safety Coordination .............................................................................................. 67
5.9.1 Safety Management Systems ....................................................................... 67
5.9.2 Operational Boundary.................................................................................. 67
5.9.3 Safety Coordinator ....................................................................................... 67
5.9.4 Safety Precautions Document ...................................................................... 67
5.10 Distribution Testing and Monitoring .................................................................. 67
5.10.1 Testing and Monitoring Procedures........................................................... 67
5.10.2 Monitoring of User Effect on the Distribution System.............................. 68
5.11 System Tests ....................................................................................................... 69
5.11.1 System Test Requirements and Procedures ............................................... 69
5.11.2 System Test Request .................................................................................. 69
5.11.3 System Test Coordinator............................................................................ 69
5.11.4 System Test Group..................................................................................... 70
5.11.5 System Test Program ................................................................................. 71
5.11.6 System Test Report .................................................................................... 72
5.12 Equipment Identification .................................................................................... 72
5.12.1 Responsibilities and Procedures ................................................................ 72
5.12.2 Identification of New Equipment............................................................... 72
5.12.3 Identification of Existing Equipment......................................................... 73
5.12.4 Changes in Identification of Equipment .................................................... 73
6 Distribution Revenue Metering Requirements ...................................................... 75

September 2001 ix
6.1.1 Purpose......................................................................................................... 75
6.1.2 Scope............................................................................................................ 75
6.1.3 Exemptions .................................................................................................. 75
6.2 Unbundled Service Provisions.............................................................................. 75
6.2.1 Electricity Service From Supplier................................................................ 75
6.2.2 Procedure for Collection of Metering Data, Billing and Settlement ........... 75
6.3 Metering Requirements......................................................................................... 76
6.3.1 Metering Equipment .................................................................................... 76
6.3.2 Metering Responsibility............................................................................... 76
6.3.3 Active Energy and Demand Metering ......................................................... 76
6.3.4 Reactive Energy and Demand Metering ...................................................... 76
6.3.5 Integrating Pulse Meters .............................................................................. 77
6.4 Metering Equipment Standards............................................................................. 77
6.4.1 Voltage Transformers .................................................................................. 77
6.4.2 Current Transformers................................................................................... 77
6.4.3 Meters .......................................................................................................... 77
6.4.4 Integrating Pulse Recorders Required for Unbundled Service .................... 78
6.4.5 Other Accessories ........................................................................................ 78
6.5 Metering Equipment Testing and Maintenance.................................................... 79
6.5.1 Instrument Transformer Testing .................................................................. 79
6.5.2 Meter Testing and Calibration ..................................................................... 79
6.5.3 Maintenance of Metering Equipment .......................................................... 79
6.6 Meter Reading and Metering Data........................................................................ 79
6.6.1 Meter Reading and Recording Responsibility ............................................. 79
6.6.2 Running Totals of Metered Energy.............................................................. 79
6.6.3 Collection, Processing and Access to Metering Data .................................. 80
6.6.4 Metering Data for Billing and Settlement of Unbundled Services .............. 80
6.6.5 Validation and Substitution of Metering Data ............................................. 80
6.6.6 Storage and Availability of Metering Data.................................................. 81
6.7 Settlement Audit Procedures................................................................................. 81
6.7.1 Right to Request Settlement Audits............................................................. 81
6.7.2 Allocation of Audit Costs ............................................................................ 81
6.7.3 Audit Results................................................................................................ 81
6.7.4 Audit Appeals .............................................................................................. 81
6.8 Settlement Dispute Resolution.............................................................................. 81
6.8.1 Settlement Dispute Resolution Process—First Stage .................................. 81
6.8.2 Settlement Dispute Resolution Process—Second Stage.............................. 81
6.8.3 Settlement Dispute Appeal Process ............................................................. 82
7 Distribution Code Transitory Provisions................................................................ 83

7.1.1 Purpose......................................................................................................... 83
7.1.2 Scope............................................................................................................ 83
7.1.3 Exceptions.................................................................................................... 83
7.2 Mandates of the Act .............................................................................................. 83
7.2.1 Objectives of Power Sector Reform ............................................................ 83
x September 2001
7.2.2 Structure of the Electric Power Industry...................................................... 84

7.2.3 Generation Sector......................................................................................... 84
7.2.4 Transmission Sector..................................................................................... 84
7.2.5 Distribution Sector ....................................................................................... 86
7.2.6 Supply Sector ............................................................................................... 86
7.2.7 Retail Competition and Open Access .......................................................... 86
7.3 Distribution Asset Boundaries .............................................................................. 87
7.3.1 Distributors Connected to the Main Power Grid ......................................... 87
7.3.2 Distributors Not Connected to the Main Power Grid .................................. 87
7.3.3 Disposal of Sub-transmission Functions, Assets and Liabilities ................. 87
7.3.4 Transition Period.......................................................................................... 88
7.3.5 Investment in Equipment and Human Resources ........................................ 88
7.3.6 Completion of Required Equipment Installations and Training .................. 88
7.4 Market Transition.................................................................................................. 88
7.4.1 Establishment of the Wholesale Electricity Spot Market ............................ 88
7.4.2 Membership to the WESM .......................................................................... 88
7.4.3 Market Rules................................................................................................ 88
7.4.4 The Market Operator.................................................................................... 89
7.4.5 Guarantee for the Electricity Purchased by Small Utilities ......................... 89
7.5 Transitional Compliance Plans ............................................................................. 89
7.5.1 Submission of Plans..................................................................................... 89
7.5.2 Transitional Compliance Plans .................................................................... 90
7.5.3 Evaluation and Approval of Plans ............................................................... 90
7.5.4 Failure to Submit Plan ................................................................................. 90
7.6 Exemptions For Specific Existing Equipment...................................................... 90
7.7 Existing Contracts................................................................................................. 90
7.7.1 Effectivity of Existing Contracts ................................................................. 90
7.7.2 New or Amended Contracts......................................................................... 90
September 2001 xi
xii September 2001

CHAPTER 1
DISTRIBUTION CODE GENERAL CONDITIONS
1.1 PURPOSE AND SCOPE

1.1.1 Purpose
(a) To ensure that the various Chapters of the Distribution Code work together in
practice for the benefit of the Distributors and all Distribution System Users;
and
(b) To clarify the meaning of the terms used in the Distribution Code.
1.1.2 Scope
This Chapter applies to all Distribution System participants, including
(a) Distributors;
(b) Other Distributors connected to Distribution Systems;
(c) Embedded Generators;
(d) Large Customers; and
(e) Other Users using unbundled electric services.
1.2 AUTHORITY, ENFORCEMENT AND SUSPENSION OF PROVISION

1.2.1 Authority
The Act provides the Energy Regulatory Commission (ERC) the authority to
promulgate the Distribution Code. The Department of Energy (DOE) is responsible
for the promulgation of the Implementing Rules and Regulations of the Act, including
those governing the Distribution Code, subject to the approval of the Joint
Congressional Power Commission.
1.2.2 Enforcement
The Act assigns the ERC the responsibility of enforcing the provisions of the
Distribution Code. The ERC will use the Distribution Management Committee
(DMC) to monitor Distribution Code compliance at the operation level. The DMC
shall provide regular reports to the ERC and shall recommend to the ERC appropriate
sanctions and penalties against those who fail to comply with the Distribution Code.
1.2.3 Suspension of Provisions
Any provision of the Distribution Code may be suspended, in whole or in part, during
a security period, emergency period or pursuant to any directive given by the
appropriate government agency.
Distribution Code General Conditions Philippine Distribution Code
1.3 DATA, NOTICES AND CONFIDENTIALITY

1.3.1 Mode of Submission
Submission of data under the Distribution Code shall be in an electronic format or
any suitable format agreed upon by the parties. Submission of service notice(s) under
the Distribution Code shall be by hand delivery, registered first-class mail, telex or
facsimile transfer. Exception to these requirements may be made with the agreement
of the parties.
1.3.2 Confidentiality
All data submitted to the Distributor according to the Distribution Code shall be
treated by the Distributor as confidential. These include, but are not limited to
demand forecast, metered data and generating unit’s characteristics. Aggregate data
may be released for planning and evaluation of Distribution reliability and security.
However, no individual User’s data noted as confidential shall be released without the
written consent of the affected User.
1.4 CONSTRUCTION OF REFERENCES

1.4.1 References
Unless the context otherwise requires, all references to a particular article, section,
subsection, appendix or schedule shall be a reference to that article, section,
subsection, appendix or schedule in or to that part of the Distribution Code in which
the reference is made.
1.4.2 Cross-References
A cross-reference to another document or another part of the Distribution Code shall
not on itself impose any additional or further or coexistent right in the part of the text
where such cross-reference is contained.
1.4.3 Definitions
Where the Definitions article refers to any word or term which is more particularly
defined in another part of the Distribution Code, the definition in that part of the
Distribution Code shall prevail over the definition in the Definitions article in the
event of any inconsistency.
1.4.4 Foreword, Table of Contents and Titles
The Foreword, Table of Contents and Titles of the Articles and Sections have been
added for convenience only, and shall be ignored in interpreting the Distribution
Code provisions.
1.4.5 Mandatory Provisions
The word “shall” refers to a rule, procedure, requirement or any provision of the
Distribution Code that requires mandatory compliance.
2 September 2001
Philippine Distribution Code Distribution Code General Conditions
1.4.6 Singularity and Plurality

Unless the context otherwise requires, the singular shall include the plural and vice
versa.
1.4.7 Gender
References to any gender shall include all other genders. References to persons shall
include any individual, body corporate, corporation, joint venture, trust,
unincorporated association, organization, firm or partnership and any other entity, in
each case whether or not having a separate legal personality.
1.4.8 “Include” and “Including”
References to the words “include” or “including” are to be construed without
limitation to the generality of the preceding words.
1.4.9 “In Writing” and “Written”
References to “in writing” or “written” include typewriting, printing, lithography and
other modes of reproducing words in a legible and non-transitory form.
1.4.10 Rounding-off of Numbers
Where there is a reference to an item of data being expressed as a whole number,
fractions below 0.5 shall be rounded down to the nearest whole number and fractions
greater than or equal to 0.5 shall be rounded up to the nearest whole number.
1.4.11 Act of Congress
Unless there is something in the subject matter or the context which is inconsistent
therewith, any reference to an Act of Congress or Senate or other provision of an Act
of Congress or Senate shall be construed at the particular time, as including a
reference to any modification, extension or re-enactment thereof then in force and to
all instruments, orders and regulations then in force and made or deriving validity
from the relevant Act of Congress or Senate.
1.4.12 Statutory and License Obligations
Nothing in the Distribution Code is intended to or shall derogate from the
Distributors’ statutory or license obligations.
1.4.13 Repealing Clause
All existing Codes, rules and regulations, orders, resolutions and other similar
issuances or parts thereof, which are inconsistent with the provisions of the Philippine
Distribution Code are hereby repealed or modified accordingly.
1.5 DEFINITIONS
In the Distribution Code the following words and expressions shall, unless the subject
matter or context otherwise requires or is inconsistent therewith, bear the following
meanings:
September 2001 3
Act. Refers to Republic Act No. 9136 which is known as the “Electric Power Industry
Reform Act of 2001,” which mandated the restructuring of the electricity industry, the
privatization of the National Power Corporation, and the institution of reforms,
including the promulgation of the Philippine Grid Code and the Philippine
Distribution Code.
Active Energy. The integral of the active power with respect to time measured in
Watthour (Wh) or multiples thereof. Unless otherwise qualified, the term “energy”
refers to active energy.
Active Power. The time average of the instantaneous power over one period of the
electrical wave measured in Watts (W) or multiples thereof. For AC circuits or
systems, it is the product of the root-mean-square (RMS) or effective value of the
voltage and the RMS value of the in-phase component of the current. In a three-phase
system, it is the sum of the active power of the individual phases.
Ancillary Service. Support service such as regulating and contingency reserves, reactive
power support and black start capability which are necessary to support the
transmission capacity and energy that are essential in maintaining power quality,
reliability and security.
Apparent Power. The product of the root-mean-square (RMS) or effective value of the
current and the root-mean-square value of the voltage. For AC circuits or systems, it
is the square root of the sum of the squares of the active and reactive power and is
measured in volt-ampere (VA) or multiples thereof.
Authorized Electricity Operator. Any person or entity (other than the System Operator
in its capacity as operator of the Grid) authorized under the Act to generate, transmit
or supply electricity.
Automatic Load Dropping (ALD). Automatic disconnection of User circuit by tripping
Underfrequency Relays to remove the circuit’s load from the system.
Backup Protection. Protection equipment or System which is intended to operate when a
System fault is not cleared in due time because of failure or inability of the Main
Protection or its associated circuit breaker to operate.
Black Start. The process of recovery from Total System Blackout using a Generating
Unit with the capability to start and synchronize without an external power supply.
Black Start Capability. The ability of a Black Start Generating Plant to start from
shutdown and synchronize without an external electrical power supply within a
specified time.
Central Dispatch. The process of issuing direct instructions to electric power industry
participants by the System Operator to achieve an economic operation while
maintaining quality, stability, reliability and security of the Grid.
Circuit Breaker. A mechanical switching device, capable of making, carrying, and
breaking currents under normal circuit conditions, and capable also of making,
carrying for a specified time and breaking currents under specified abnormal circuit
conditions, such as those of short circuit.
Coincident Demand. The demand that occurs simultaneously with any other demand.
Commissioning. Putting into service a new/idled Equipment that has passed all required
tests.
4 September 2001
Commissioning Test. Test applied to an Equipment at site under normal service

conditions to show that the Equipment has been erected and connected in a correct
manner and is able to work satisfactorily.
Connection Agreement. An agreement setting out terms relating to a connection with
the Distribution System (excluding any such agreement with the System Operator).
Connection Point. The point of supply from or to the Grid or the Distribution System by
the User.
Control Center. A facility used for monitoring and controlling the operation of a
Distribution System, the Grid or a User System.
Customer. Any person/entity supplied with electric service under a contract with a
Distributor or Supplier.
Customer Demand Management. The reduction in the supply of electricity to a
Customer or the disconnection of a Customer in a manner agreed for commercial
purpose between a Distributor and its Customer.
Customer Self-Generating Plant. A Customer with one or more Generating Units not
subject to Central Dispatch, to the extent that it operates exclusively to supply all or
part of its own electricity requirements, and does not export electrical power using the
Distribution System.
Demand. The power (active and/or reactive) at a given instant or averaged over a
specified interval of time that is actually delivered or is expected to be delivered by
an electrical equipment or supply system. It is expressed in Watts (W) and/or VAr
and multiples thereof.
Demand Control. Any or all of the methods of achieving reduction in Demand:
(a) Customer Demand Management initiated by Users;
(b) Customer voltage reduction initiated by Users (other than following an instruction
from the System Operator);
(c) Customer Demand Reduction by Disconnection implemented by Users (other
than following an instruction from the System Operator);
(d) Customer Demand Reduction instructed by the System Operator;
(e) Automatic Underfrequency Demand Disconnection or Automatic Load Dropping
(ALD);
(f) Emergency Manual Demand Disconnection or Manual Load Dropping (MLD).
Department of Energy (DOE). Refers to the government agency created pursuant to
Republic Act No. 7638, and which is provided with the additional mandate under the
Act of supervising the restructuring of the electricity industry, developing policies
and procedures, formulating and implementing programs and promoting a system of
incentives that will encourage private sector investments and reforms in the electricity
industry, and ensuring an adequate and reliable supply of electricity.
Derated Capacity. That portion of Registered Capacity which is available in spite of a
Planned Maintenance of auxiliary Equipment.
Design Rating. The maximum current or voltage, or combination of both, which an item
of Equipment is intended to have applied to it, taking into account cyclic variations of
September 2001 5
that voltage or current, together with other parameters as appropriate to specific items
of Equipment.
Disconnection. The opening of an electrical circuit to isolate an electrical system or
equipment from a power source.
Dispatch. The apportioning of the total demand on a power system among the various
generating plants to achieve the objectives of system operations.
Dispute Resolution Panel. A panel appointed by the Distribution Management
Committee to deal with specific disputes related to the provisions of the Distribution
Code.
Dispute Resolution Process. The procedure for the settlement of disputes between or
among parties under the Grid Code or Distribution Code.
Distribution of Electricity. The conveyance of electric power by a distribution utility
through its distribution system.
Distribution Code. The set of rules, requirements, procedures, and standards governing
electric utilities in the operation and maintenance of their distribution systems, and
which defines and establishes the relationship of the distribution systems with the
facilities or installations of the parties connected thereto.
Distribution Code General Condition (DCGC). Chapter 1 of the PDC which contains
the general provisions that apply to all other Chapters of the Distribution Code. It
specifies the authority of ERC to promulgate and enforce the Distribution Code. It
also contains articles on definition of terms and abbreviations used in the Distribution
Code.
Distribution Code Transitory Provisions (DCTP). Chapter 7 of the PDC which
specifies the rules and procedures pertaining to compliance with the provisions of the
Distribution Code during the transition period from the existing industry structure to
the new industry structure. The procedures for the grant of exemption from specific
requirements of the Distribution Code are also addressed in this Chapter.
Distribution Connection Requirements (DCR). Chapter 3 of the PDC which specifies
the minimum technical, design and operational criteria and the procedures to be
complied with by any User who is connected to or seeking connection to a
Distribution System. User data submission requirements are also included in this
Chapter.
Distribution Management (DM). Chapter 2 of the PDC which provides the guidelines
for Distribution Management, the procedures for dispute resolution, required
Operational Reports and the procedures for Distribution Code revision and
enforcement.
Distribution Management Committee. A committee constituted by the ERC, with
equitable representation from the electric power industry participants and end-users,
whose primary function is to monitor the implementation of the Distribution Code.
Distribution Operations (DO). Chapter 5 of the PDC which establishes the rules and
procedures to be followed by all Users of the Distribution System to ensure that
reliable distribution services are achieved for all distribution customers. Articles on
Demand Control, Emergency Operations, Safety Coordination, Testing and
Monitoring, System Test, Maintenance Procedures, Operational Liaison, Operational
6 September 2001
Reports and Equipment Numbering and Nomenclature are likewise included in this
Chapter.
Distribution Planning (DP). Chapter 4 of the PDC which specifies the technical and
design criteria and procedures to be applied in planning the development or
reinforcement of a Distribution System. Articles on the demand forecasts and
required technical studies are likewise included in this Chapter.
Distribution Revenue Metering Requirements (DRMR). Chapter 6 of the PDC which
specifies the technical and design criteria associated with the measurement of electric
energy as well as the procedures for providing metering data for billing and payment.
Distribution System. The system of wires and associated facilities belonging to a
franchised distribution utility extending between the delivery points on the
transmission or subtransmission system or Generator connection and the points of
connection to the premises of the end-user.
Distribution Utility. Refers to any private corporation, Electric Cooperative, existing
local government unit or duly authorized entity, which has an exclusive franchise to
operate a Distribution System, subject to regulation by the ERC.
Distributor. Has the same meaning as Distribution Utility.
Distributor Financial Year. The same as the Calendar Year.
Electric Cooperative. A cooperative or corporation authorized to provide electric
services pursuant to Presidential Decree no. 269, as amended, and Republic Act
No. 6938 within the framework of the national rural electrification plan.
Electric Power Industry Participant. Refers to any person or entity engaged in the
Generation, Transmission, Distribution or Supply of Electricity.
Electrical Diagram. A schematic representation using standard electrical symbols of
electrical equipment or power system components and their connections to each other
or to external circuits.
Electricity Distribution Franchise. The license exclusively granted to a Distributor to
provide electric service to an assigned geographical area for a specific period of time.
Electrical Power Island. Discrete part of the Distribution System capable of generating
and maintaining a stable supply of electricity to the Customers within that area
without any external connection.
Embedded. Having a direct electrical connection to a Distribution System or the System
of other Users to which Customers and/or Power Stations are connected but with no
other connection to the Grid.
Embedded Generator. A person or entity who generates electricity and whose
Generating Units are directly connected to a Distribution System and includes
Customer Self-Generating Plants.
End-User. Refers to any person or entity requiring the supply and delivery of electricity
for its own use.
Energy Regulatory Board (ERB). A quasi-judicial agency created under Executive
Order (E. O.) No. 172 dated May 8, 1987, as amended, mandated to regulate the
electric utilities in the Philippines.
September 2001 7
Energy Regulatory Commission (ERC). Refers to the independent, quasi-judicial

regulatory agency created pursuant to Republic Act No. 9136, which is mandated to
promote competition, encourage market development, ensure customer choice and
penalize abuse of market power in the restructured electricity industry and among
other functions, promulgate and enforce the Philippine Grid Code and the Philippine
Distribution Code.
Equipment. All apparatus, machines, etc. used as part of, or in connection with, an
electrical installation.
Event. An unscheduled or unplanned occurrence of an abrupt change or disturbance in
the System due to fault, equipment outage or adverse weather condition.
Fault Level. Current expected to flow into a short circuit at a stated point on the System,
and which may be expressed in kA or in MVA.
Flicker Severity (Long-Term). A value derived from 12 successive measurements of
Flicker Severity (Short-Term) over a two-hour period calculated as the cube root of
the mean sum of the cubes of 12 individual measurements.
Flicker Severity (Short-Term). A measure of the visual severity of flicker derived from
the time series output of a flicker meter over a ten-minute period, and as such,
provides an indication of the risk of Consumer complaints.
Frequency. The number of complete cycles of alternating current or voltage per unit
time, usually measured in cycle per second or Hertz.
Generating Plant. A plant with one or more generating units wherein electric energy is
produced from some other form of energy by means of suitable apparatus.
Generating System. A system comprising one or more generating units connected and
supplying power to one or more connection points of the Transmission or Distribution
System.
Generating Unit. A conversion apparatus including auxiliary and associated equipment,
functioning as a single entity, used to produce electric energy from some other form
of energy.
Generation of Electricity. The production of electricity by a generation company or a
co-generation facility.
Generation Company. Any person or entity authorized by the ERC to operate facilities
used in the generation of electricity.
Generator. Has the same meaning as Generation Company.
Grid. The high voltage backbone system of interconnected transmission lines,
substations, and related facilities. Also known as the Transmission System.
Grid Code. The set of rules, requirements, procedures, and standards to ensure safe,
reliable, secured and efficient operation, maintenance and development of the high
voltage backbone transmission system and its related facilities.
Grid Owner. The party who owns the Grid and is responsible for maintaining adequate
Grid capacity according to the provisions of the Grid Code.
Grounding. A conducting connection, whether intentional or accidental, by which an
electrical circuit or equipment is connected to the ground or to some conducting body
of relatively large extent that serves in place of the ground.
8 September 2001
High Voltage (HV). A voltage level greater than 34.5 kV, but not exceeding 230 kV.
Isolated Distribution System. Refers to the backbone system of wires and associated
facilities not directly connected to the national Transmission System.
Isolation. The electrical separation of a part or component from the rest of the electrical
system to ensure safety when that part or component is to be maintained or when
electric service is not required.
Large Customer. A customer with a demand of at least 1 MW.
Load. An entity or electrical equipment that consumes electrical energy.
Low Voltage (LV). A voltage level not exceeding 1000 volts AC.
Manual Load Dropping (MLD). The manual disconnection of a User’s circuit by
tripping Underfrequency Relays to remove the circuit’s load from the System.
Market Operator. An autonomous group constituted by the DOE, with equitable
representation from electric power industry participants whose tasks include the
operation and administration of the Wholesale Electricity Spot Market in accordance
with the Market Rules.
Market Rules. The rules that establish the operation of the Wholesale Electricity Spot
Market and the responsibilities of the Market Operator and Market Participants to
ensure an efficient, competitive, transparent and reliable Spot Market.
Material Effect. A resulting condition that would require works or change in the normal
Operation of the Plant and/or Equipment at the Connection Point or site of connection
which would involve considerable incremental cost as agreed between the Distributor
and Users.
Medium Voltage (MV). A voltage level greater than 1000 volts, but not exceeding 34.5
kV.
Minimum Generation. The minimum stable Demand that a Generating Unit can safely
maintain for an indefinite period.
National Electrification Administration (NEA). Refers to the government agency
created under Presidential Decree No. 269, whose additional mandate includes
preparing electric cooperatives in operating and competing under a deregulated
electricity market, strengthening their technical capability, and enhancing their
financial viability as electric utilities through improved regulatory policies.
National Power Corporation. Refers to the government corporation created under
Republic Act No. 6395, as amended, whose generation assets, real estate and other
disposable assets, except for the assets of SPUG and for IPP contracts, shall be
privatized, and whose transmission assets shall be transferred to the Power Sector
Assets and Liabilities Management Corporation (PSALM).
National Transmission Corporation (TRANSCO). Refers to the corporation that shall
assume the authority and the responsibility of planning, maintaining, constructing,
and centrally operating the high-voltage transmission system, including constructing
of grid interconnections and providing ancillary services.
Negative Phase Sequence. A term used within the theory of symmetrical components
which is a method of analyzing an unbalanced AC multiphase System.
September 2001 9
Non-Coincident Demand. Individual maximum demand regardless of time of

occurrence.
Non-Scheduled Generating Plant. A Generating Plant whose generating units are not
subject to central dispatch.
Non-Scheduled Generating Unit. A Generating Unit exporting all or part of its
electrical power whose schedule of operation is not subject to central dispatch.
Nominal Frequency. The Frequency of the System at 60 Hz.
Normal Operating Frequency. The number of Alternating Current cycles per second,
expressed in Hertz, at which the System normally operates, i.e., between 59.4Hz to
60.6Hz.
Operating Program. A statement prepared pursuant to Article 5.9 of the Distribution
Code (Maintenance Programs), showing the expected availability and aggregate
capability of Generating Units to meet forecast Demand.
Operation. A scheduled or planned action relating to the Operation of a System.
Operational Boundary. The boundary between the Equipment operated by the
Distributor or a User and the Equipment operated by another, as specified in the
relevant site responsibility schedules.
Operational Effect. Any effect on the Operation that causes the Systems of the
Distributors, the System Operator or a User to operate differently from the way in
which they would be or may have normally operated.
Outage. The state of a component, such as an equipment or a plant, when it is not
available to perform its intended function due to some event directly associated with
that component.
Out-of-Synchronism. The condition where a System or Generating Unit cannot meet the
requirements for it to be Synchronized with the Grid.
Ownership Boundary. The boundary between the Equipment owned by one Distributor
or User and the Equipment owned by another.
Partial System Shutdown. The condition which applies when all generation has ceased
in part of a System, and there is no interconnection from other parts of the System.
Philippine Electrical Code (PEC). The electrical safety Code that establishes basic
materials quality and electrical work standards for the safe use of electricity for light,
heat, power, communications, signaling, and for other purposes.
Philippine Electricity Market. The wholesale electricity spot market established and
operated by the Market Operator, which is governed by the Philippine Spot Market
Rules. Also referred to as the Spot Market.
Planned Maintenance. An outage of a Generating Plant, of part of the Grid, or of part of
a Distribution System due to maintenance, coordinated by the System Operator,
Distributor, or Generators, as the case may be.
Plant. Fixed and movable items, other than an Equipment, used in the Generation,
Supply, and/or Transmission of Electricity.
Power Development Program (PDP). Refers to the program of the Generation,
Transmission, and Distribution companies in managing electricity demand through
energy-efficient modalities, and in expanding generation and transmission facilities,
10 September 2001
including repowering, upgrading, rehabilitation, repair, and maintenance, as reviewed

and approved by the DOE.
Power Factor. The ratio of Active Power to Apparent Power.
Power Station. Has the same meaning as Generating Plant.
Reactive Energy. The integral of the reactive power with respect to time measured in
VArh, or multiples thereof.
Reactive Power. The component of electrical power representing the alternating
exchange of stored energy (inductive or capacitive) between sources and loads or
between two systems, measured in VAr, or multiples thereof. For AC circuits or
systems, it is the product of the RMS voltage and the RMS value of the out-of-phase
component of alternating current. In a three-phase system, it is the sum of the reactive
power of the individual phases.
Registered Capacity. The normal full-load capacity of a Generating Unit as declared by
the Generator less the MW consumed when producing the same. For a Customer Self-
Generating Plant, this is related to the level of output he expects to export to the
Registered Data. The Data referred to in the schedules of the Distribution Connection
Requirements.
Safety From the System. That condition which safeguards persons from the dangers
therein, when work or testing is carried out on a System.
Safety Management System. The program adopted by the Distributor or a User to
ensure the safe Operation of its System and the safety of personnel required to work
on that System.
Safety Procedures. The procedures specified within a Safety Management System.
Schedule Day. The period from 0000H to 2400H in a day.
Scheduled Generating Plant. Generating Plant with one or more generating units that
are subject to central dispatch.
Scheduled Generating Unit. Generating Unit whose schedule of operation is subject to
central dispatch.
Scheduled Generator. A Generator classified as a Scheduled Generator insofar as its
activities relate to any Scheduled Generating Unit or Plant.
Significant Incident. An event on the Distribution System or the System of the User that
has a significant effect on the other’s system.
Spot Market. Has the same meaning as the Wholesale Electricity Spot Market.
Subtransmission Voltage. A voltage level in the range of 69 kV to 138 kV, where there
is 230 kV and/or 500 kV transmission overlay.
Supplier. Refers to any person or entity authorized by the Energy Regulatory
Commission to sell, broker, market or aggregate electricity to another person or entity
that requires the supply and delivery of electricity for its own use.
Supply of Electricity. The sale of electricity by a part other than a Generator or a
Distributor in the franchise area of a Distribution Utility using the wires of the
Distribution Utility concerned.
September 2001 11
Synchronized. The state where connected alternating current systems, machines, or a

combination of these operate at the same frequency, and where the phase angle
displacements between voltages in them are constant or vary about a steady and
stable average value.
System Control. The administrative and other arrangements established to maintain the
proper operation, safety, and security of the System.
System Operator. The entity responsible for Grid Operations. Its functions will be
carried out by a unit of the National Transmission Corporation in its initial years.
System Reliability. The ability of a power system to continuously supply power to its
consumers.
System Security. The continuous operation of a power system in normal state, ensuring
safe and adequate supply of power to end-users, even when some components of the
System are on Outage.
System Stability. The ability of dynamic components of the power system to return to
normal or stable operation after having been subjected to some form of changes or
disturbances.
System Tests. Those tests which involve simulating conditions or the controlled
application of irregular, unusual, or extreme conditions on the Total System, or any
part of the Total System, but which do not include commissioning or
recommissioning tests, or any other test of a minor nature.
Test Coordinator. A person who is appointed as chairman of the System Test Group.
Test Group. A group, whose composition is detailed in Section 5.11 of the Distribution
Code (System Tests), which is responsible, among others, for considering a proposed
System Test and submitting a Test Proposal.
Test Proponent. A Distributor or a User who submits a Test Request.
Test Request. A notice submitted by the Test Proponent to the Distributor and by/to all
affected Users of the proposed System Test.
Top-up. The supply of electricity by the Distributors to the Customer on a continuing or
regular basis to compensate for any shortfall between the Customer’s total supply
requirements and those met from other sources.
Total System. Refers to the Grid and all User Systems connected to it.
Total System Blackout. The situation existing when all generation has ceased and,
therefore, the Total System has Shutdown such that it is not possible for the Total
System begin functioning again without the System Operator’s directions relating to a
Black Start.
Transformer. An electrical device or equipment that converts voltage and current from
one level to another.
Transmission of Electricity. Refers to the conveyance of electricity through the high
voltage backbone system.
Transmission System. It has the same meaning as Grid.
Underfrequency Relay (UFR). An electrical measuring relay intended to operate when
its characteristic quantity (Frequency) reaches the relay settings on a decrease in
Frequency.
12 September 2001
User. A person or entity that uses the transmission system or distribution system and
related facilities. Also, a person to whom the Grid Code and/or Distribution Code
apply.
User System. Any System owned or operated by a User of the Grid (or Distribution
System) where the User is involved in Generation and/or Distribution of Electricity
and is connected to the Grid.
Voltage Reduction. The method used to temporarily control Demand by a reduction of
System voltage.
Working Day. Any weekday (other than a Saturday, Sunday and Holiday) on which
banks are open for domestic business. Has the same meaning as Business Day.
Voltage. The electromotive force (emf) or electric potential difference between two
points which causes the flow of electric current in an electric circuit.
1.6 ABBREVIATIONS
AC Alternating Current
ALD Automatic Load Dropping
DCGC Distribution Code General Conditions
DCR Distribution Connection Requirements
DM Distribution Management
DMC Distribution Management Committee
DO Distribution Operations
DOE Department of Energy
DP Distribution Planning
DRMR Distribution Revenue Metering Requirements
DTP Distribution Transitory Provisions
ERB Energy Regulatory Board
ERC Energy Regulatory Commission
GW Gigawatt
GWh Gigawatt-hour
HV High Voltage
IEC International Electrotechnical Commission
KA Kiloampere
kW Kilowatt
kWh Kilowatt-hour
LV Low Voltage
MLD Manual Load Dropping
MV Medium Voltage
MVA Megavolt-ampere
MVAr Megavar
MVArh Megavar-hour
September 2001 13
MW Megawatt
MWh Megawatt-hour
NEA National Electrification Administration
PDP Power Development Program
TRANSCO National Transmission Corporation
UFR Underfrequency Relay
W Watt
WESM Wholesale Electricity Spot Market
Wh Watt-hour
X/R Reactance/Resistance
14 September 2001
CHAPTER 2
DISTRIBUTION MANAGEMENT

2.1.1 Purpose
(a) To ensure that Distributors and all Users of the Distribution System are
represented and involved in setting standards and procedures for distribution
system management and operations; and
(b) To specify the process for the settlement of disputes that may arise when a
provision of the Distribution Code is misapplied or violated.
2.1.2 Scope
This Chapter applies to all Distribution System participants including:
(a) Distributors;
(b) Other Distributors connected to the Distribution System;
(e) Other Users using unbundled electric services.
2.2 DISTRIBUTION MANAGEMENT COMMITTEE

2.2.1 Functions of the DMC
There shall be established a Distribution Management Committee (DMC), which
shall carry out the following functions:
(a) Coordinate Distribution Code enforcement;
(b) Review the Distribution Code and its implementation;
(c) Provide guidance to Distributors and Users in the implementation,
performance, and interpretation of the Distribution Code and its provisions;
(d) Review proposals for revision of the Distribution Code and recommend
appropriate action to ERC;
(e) Monitor and report on overall distribution system operation;
(f) Recommend common distribution planning and operating standards and
procedures; and
(g) Assist Distributors in recommending a common tariff framework for
distribution wheeling and ancillary services.
2.2.2 Membership of the DMC
2.2.2.1 The Distribution Management Committee shall be composed of the
following members, who shall be appointed by ERC:
Distribution Management Philippine Distribution Code
(a) A Chairman, appointed by the ERC from three nominees submitted by the
Committee members;
(b) Two members nominated by private Distributors from Luzon, and one
member nominated by private Distributors from Visayas and Mindanao;
(c) Three members nominated by the electric cooperatives, one each from
Luzon, Visayas and Mindanao;
(d) One member nominated by Embedded Generators;
(e) One member nominated by industrial customers;
(f) One member nominated by commercial customers;
(g) One member nominated by residential consumer groups;
(h) One member nominated by the System Operator; and
(i) One member nominated by a government-accredited professional
organization of electrical engineers.
2.2.2.2 In addition to the regular members, there shall be three representatives,
one each from ERC, DOE and NEA, to serve as observers.
2.2.2.3 The members of the Distribution Management Committee shall be
officers or the equivalent in their sponsoring organization, and they shall have
sufficient technical background and experience to fully understand and
evaluate the technical aspects of Distribution System design, planning, and
operations procedures.
2.2.3 Terms of Office of the DMC Members
All members of the Distribution Management Committee shall have a term of three
(3) years, and shall be allowed only one re-appointment. For the first appointees to
the DMC, the chairman shall hold office for three (3) years, six (6) members shall
hold office for two (2) years and the other six (6) members shall hold office for one
(1) year. Appointment to any future vacancy shall be only for the unexpired term of
the predecessor.
2.2.4 DMC Support Staff and Operating Cost
2.2.4.1 A small permanent staff will be required to support DMC operations. The
DMC may elect to contract for such services subject to approval by ERC. The
DMC may, as it deems necessary, establish one or more regional staff offices
to assist local Distributors.
2.2.4.2 Distribution Management Committee operating costs shall be shared
among all Distributors as a function of their annual peak demand and/or
annual energy sales. The components of the cost formula shall be established
by ERC annually. The committee shall submit an operating budget to ERC for
endorsement by September of the year preceding the budget year.
2.2.4.3 Salaries and all expenses of all Distribution Management Committee
members, and of all subcommittee members shall be the responsibility of their
respective full-time employers or sponsoring organizations, except for
honoraria, which shall be included in the operating cost of the DMC.
16 September 2001
Philippine Distribution Code Distribution Management
2.2.5 DMC Rules and Procedures

2.2.5.1 The Distribution Management Committee shall establish and publish its
own rules and procedures relating to the conduct of its business. The
procedures shall include:
(a) Establishment of a regular meeting schedule at frequencies sufficient to do
the business of the Committee;
(b) Developing and submitting an annual Distribution Systems Operating
Report to ERC;
(c) Developing and recommending to ERC appropriate distribution technical
standards; and
(d) Monitoring of compliance to the Philippine Distribution Code and to the
established technical standards.
2.2.5.2 The Committee is expected to operate on a consensus or near consensus
basis rather than by simple majority voting.
2.3 DISTRIBUTION MANAGEMENT SUBCOMMITTEES

2.3.1 Distribution Technical Standards Subcommittee
A standing Distribution Technical Standards Subcommittee shall be established and
maintained. The chairman and members shall be appointed to three-year staggered
terms by the DMC. The subcommittee is responsible for:
(a) Developing and coordinating common technical standards for:
(1) Distribution planning;
(2) Distribution equipment;
(3) Distribution operating procedures; and
(4) Distribution performance standards.
(b) Recommending procedures for:
(1) Joint purchases of common equipment;
(2) Sharing of parts inventories;
(3) Mutual assistance; and
(4) Emergency response.
(c) Reporting on distribution operations.
2.3.2 Distribution Protection and Reliability Subcommittee
A standing Distribution Protection and Reliability Subcommittee shall be established
and maintained. The chairman and members shall be appointed to three-year
staggered terms by the DMC. The subcommittee is responsible for:
(a) Coordinating and recommending standards for distribution protection
systems;
(b) Reviewing and recommending reliability performance standards; and
(c) Managing reliability data.
September 2001 17
2.3.3 Distribution Tariff Framework Subcommittee

A standing Distribution Tariff Framework Subcommittee shall be established and
maintained. The chairman and members shall be appointed to three year staggered
terms by the DMC. The subcommittee is responsible for developing and
recommending to ERC a common framework for establishing tariffs for wheeling and
ancillary services at the distribution level, and proposing revisions to the framework.
DMC can assist smaller distributors in implementing the wheeling tariff framework
approved by the ERC if appropriate.
2.3.4 Distribution Metering and Settlements Subcommittee
A standing Distribution Metering and Settlements Subcommittee shall be established
and maintained. The chairman and members shall be appointed to three-year terms by
the DMC. The subcommittee is responsible for:
(a) Reviewing and recommending metering standards;
(b) Reviewing and recommending settlement procedures; and
(c) Acting as the dispute resolution panel for metering settlement disputes.
2.3.5 Other Distribution Subcommittees
The DMC may form other standing or temporary subcommittees, as necessary, to
deal with the business of the Committee.
2.4 DISTRIBUTION CODE DISPUTE RESOLUTION

2.4.1 Distribution Code Disputes
Disputes will arise from time to time regarding how the Distribution Code is being
administered and interpreted. The Distribution Code dispute resolution process
outlined in this clause applies to the Distributors and all Users of the Distribution
Systems. It does not apply to disputes involving billing and settlements that are
handled according to the settlement procedure in the Distribution Revenue Metering
Requirements Chapter.
2.4.2 Distribution Code Dispute Resolution Panel
2.4.2.1 The Distribution Management Committee shall appoint a Distribution
Code Dispute Resolution Panel (of three or five persons) to deal with specific
disputes. The panel shall include members who have the technical background
to understand and judge the technical merits of disputing parties’ arguments.
2.4.2.2 The panel shall hold formal meetings to hear and receive testimony from
the parties. The positions of the parties and the panel’s decision shall be
documented and provided to both parties and maintained as part of the
Distribution Management Committee records.
2.4.3 First-Stage Dispute Resolution Process
The first-stage Distribution Code dispute resolution process includes the following
steps:
18 September 2001
(a) When a dispute arises between parties which is not resolved informally, one
of the parties shall, if he wishes, register the dispute in writing to the other
party or parties;
(b) The parties shall meet to discuss and attempt to resolve the dispute. If
resolved, the resolution shall be documented, and a written record shall be
provided to all parties;
(c) If the dispute is not resolved, a committee of representatives from both parties
shall be formed to discuss and attempt to resolve the dispute. If resolved, the
resolution shall be documented and a written record provided to all parties;
and
(d) If the dispute is not resolved at step (c), the committee shall, at the request of
one or both parties, refer the dispute to the Distribution Management
Committee for resolution. The Distribution Management Committee may, at
its option, refer the dispute to the Distribution Code Dispute Resolution Panel.
2.4.4 Appeals of Dispute Resolution Decisions
If one or both parties object to the Distribution Code Dispute Resolution Panel’s
decision, an appeal can be filed with ERC. ERC shall hear such appeals only when
the parties can make a strong showing that Distribution Code provisions have been
violated or misinterpreted.
2.4.5 Cost of Dispute Resolution
If a dispute proceeds beyond the first stage of the dispute resolution process the cost
of the process shall be shared in one of the following ways:
(a) If the dispute is resolved, part of the resolution shall include an allocation of
costs of the process; and
(b) If the dispute is not resolved by the process (e.g., the dispute is dropped or
becomes a legal action), the parties shall share equally the costs of the dispute
resolution process.
2.5 DISTRIBUTION CODE ENFORCEMENT AND REVISION PROCESS

2.5.1 Enforcement Process
Any party that has evidence that any other party has violated or is violating provisions
of the Distribution Code may file a complaint to the DMC. If the Distribution
Management Committee concludes that any Distributor or User of a Distribution
System has violated or is violating the terms of the Distribution Code it may initiate
an enforcement process. Any Distribution User who has evidence of Distribution
Code violation may file a complaint to the DMC or the ERC. The legal and regulatory
status of the Distribution Management Committee is defined in the Implementing
Rules and Regulations of the Act. The steps of the enforcement process shall include:
(a) A notice, in writing, shall be sent to the offending party with the specifics of
the violation documented and the course of action requested to correct the
violation;
September 2001 19
(b) The offending party shall respond in writing within thirty (30) days its
reaction to the violation charges and whether or not it will comply to the
instructions of the Distribution Management Committee;
(c) If the Distribution Management Committee is satisfied with the response, it
shall indicate in writing to the offending party that the matter has been
resolved; and
(d) If the Distribution Management Committee is not satisfied with the response,
it shall document the charges against the offending party and recommend to
the ERC sanctions including fines and/or disconnection from the distribution
system.
2.5.2 Penalties
The explicit penalty provisions of the Implementing Rules and Regulations of the Act
related to breaches of the Distribution Code shall apply in order to effectively enforce
this Distribution Code.
2.5.3 Unforeseen Circumstances
If circumstances not anticipated by the provisions of the Distribution Code will arise,
the Distributors shall consult promptly in good faith with all affected Users in an
effort to reach agreements as to what should be done. If an agreement between a
Distributor and the affected Users cannot be reached in the time available, the
Distributor shall determine what is to be done. Whenever the Distributor makes a
determination, it shall do so considering wherever possible, the views expressed by
Users and, in any event, to what is reasonable in all the circumstances. Each User
shall comply with all instructions given to it by the Distributor, following such a
determination, provided that the instructions are consistent with the then current
technical parameters of the particular User’s System registered under the Distribution
Code. The Distributor shall promptly refer all such unforeseen circumstances and any
such determination to the Distribution Management Committee for consideration.
2.5.4 Distribution Code Revision Process
2.5.4.1 If any Distributor, User, or government body believes that changes in the
Distribution Code are necessary, they shall submit their proposed changes and
supporting arguments and data to the Distribution Management Committee or
to the appropriate subcommittee. Any revisions to the Distribution Code that
the Distribution Management Committee recommends shall be submitted to
ERC for approval.
2.5.4.2 If the Distribution Management Committee or its appropriate
subcommittee rejects the proposed changes, it shall justify its decision in
writing to the party proposing the changes. Those parties have the right to
appeal the decision to the ERC.
20 September 2001
2.6 DISTRIBUTION MANAGEMENT REPORTS

2.6.1 Annual Reports
The Distribution Management Committee shall issue an annual summary of
Distribution Operations Report for the previous year at the end of March of the
current year.
2.6.2 Significant Incident Reports
Within one month following a Significant Incident in the Distribution System, the
involved Distributor shall prepare a disturbance report and submit to the DMC and
ERC. The disturbance report should describe the cause of the disturbance or event,
the amount and duration of any outages and recommendations (if any) for changes in
operating procedures, training or Code provisions. In cases where any User has
knowingly violated provisions of the Distribution Code, sanctions may be
recommended as part of the disturbance report. The DMC shall define what
constitutes a Significant Incident.
2.6.3 Special Reports
The Distribution Management Committee shall prepare Special reports as ordered by
the appropriate government agency, or at the request of one or more Users, or as it
deems necessary. Unless exempted by the Distribution Management Committee,
Special Reports prepared at the request of Users shall be at the expense of the Users.
September 2001 21
22 September 2001
CHAPTER 3
DISTRIBUTION CONNECTION REQUIREMENTS

3.1.1 Purpose
(a) To establish the general requirements for all Users seeking to connect to the
Distribution System, or seeking to modify an existing connection;
(b) To specify the technical arrangements required at the Ownership Boundary
between the Distribution System and the User’s plant and equipment that are
applicable at all voltage levels;
(c) To specify the requirements that are applicable to all existing or prospective
Embedded Generators, including Customers Self-Generating Plant; and
(d) To list and collate all data that Users, who are connected at Medium Voltage
or Sub-transmission Voltage, need to provide to the Distributor and all data to
be provided by the Distributor to such Users.
3.1.2 Scope
(a) Distributors;
(e) Any Users using unbundled electric power services.
3.1.3 Exceptions
This Chapter does not apply to small, retail customers being provided bundled service
by the Distributor. Such customers will be governed by rules and procedures
established for individual Distributors under their franchise agreements and in
conformity with applicable rules and regulations issued by the ERC.
3.2 PROCEDURES FOR CONNECTION APPLICATION OR MODIFICATION

3.2.1 Application for Connection
An entity seeking connection to a Distributor’s system or a User modifying an
existing connection shall secure a connection agreement and, if applicable, a
wheeling and ancillary services agreement. These agreements shall include provisions
on the submission of information and data, electrical diagrams, approval-to-connect
certificates, and other requirements set by ERC.
Distribution Connection Requirements Philippine Distribution Code
3.2.2 Declaration of Load Characteristics

3.2.2.1 For Users to be supplied at Low Voltage, it is possible in most cases to
assess whether a proposed connection is acceptable, and to determine the
necessary supply arrangements, from analysis of the following limited data:
(a) Maximum power requirements (kVA);
(b) Type and electrical loading of Equipment to be connected, e.g., number
and size of motors, electrical space conditioning arrangements; and
(c) The date when the connection is required.
These requirements shall be specified on the appropriate application form for
connection obtainable from the Distributor. Should a preliminary examination
of this data indicate that more detailed information is required, then it shall be
provided to the Distributor upon its request.
3.2.2.2 For supplies other than at Low Voltage, it may be necessary to provide
the following more comprehensive information, in addition to that detailed in
Subsection 3.2.2.1.
(a) All Types of Demand:
(1) Maximum Active Power requirements;
(2) Maximum and minimum Reactive Power requirements;
(3) Type of load and control arrangements, e.g., controlled rectifier or
large motor drives, type of starter employed;
(4) System Data necessary for calculating the Users fault contribution to
the Distribution System.
(b) Fluctuating and Cyclical Loads:
Details of the cyclic variation and, where applicable, the duty cycle, of
Active Power (and Reactive Power, if appropriate); in particular:
(1) The rates of change of Active Power and Reactive Power, both
increasing and decreasing;
(2) The shortest repetitive time interval between fluctuations in Active
Power and Reactive Power; and
(3) The magnitude of the largest step changes in Active Power and
Reactive Power, both increasing and decreasing.
3.2.3 Capacitive and Inductive Effect
The User shall, when applying for connection, provide the Distributor with planning
data as detailed in Article 4.3 of this Code. Details of capacitor banks and reactors
proposed to be connected to the Distribution System shall be required by the
Distributor. When requested by the Distributor, data to determine the distributed
circuit capacitance and inductance shall also be provided by the User. Sufficient
detail shall be required:
(a) To verify that the rating of the controlling and protection Equipment of the
Distribution System is adequate;
(b) To show that the performance of the Distribution System is not impaired; and
24 September 2001
Philippine Distribution Code Distribution Connection Requirements
(c) To ensure that arc suppression coils, when used by the Distributor for System
Grounding purposes, are correctly installed and operated.
3.2.4 Detailed Information
In some cases, more detailed information may need to be provided to permit a full
assessment of the effect of the User’s load on the Distribution System. Such
information may include an indication of the pattern of buildup of load and a
proposed commissioning program. This information shall be specifically requested by
the Distributor when necessary.
3.2.5 Connection Arrangements
3.2.5.1 The design of connections between the Distribution System and Users
shall be in accordance with the principles set out in Article 3.3, subject to any
modification to which the Distributor may agree.
3.2.5.2 Each Distributor shall establish Standard Service Voltage Levels.
3.2.5.3 In the process of the application for connection, the Distributor and the
User shall agree on the voltage level to which a User shall be connected in
accordance with the Distributor’s standard practice for the type of load to be
supplied. The Distributor may, on occasion, specify a different connection
voltage from the standard in order to avoid potential disturbances caused by
the User’s Equipment to other Users of the Distribution System or for other
technical reasons or may agree on alternative methods for minimizing the
effects of load disturbance.
3.2.5.4 Regardless of the magnitude of the proposed load, the User shall consult
the Distributor regarding its electrical plans.
3.2.5.5 Before entering into a Connection Agreement, the Distributor shall verify
the User’s compliance with all applicable requirements of the Distribution
Code. When the Distributor has determined that those requirements have been
met, the Distributor shall issue an approval-to-connect certificate and the
physical connection can be made.
3.2.6 Fixed Asset Boundary Document
3.2.6.1 The Distributor and the User shall agree in writing on the Connection
Point between the Distribution System and User’s system. For supplies at Low
Voltage, the general rule is that the point of supply will be at the User’s load
side terminals of the Distributor-owned metering equipment. For Medium
Voltage and Subtransmission Voltage supplies, including connections
between Distributors and Users and, where necessary, busbar connected
supplies at Low Voltage, the points of supply shall be subject to specific
agreement between the parties in each case.
3.2.6.2 The respective ownership of Plant and/or Equipment shall be recorded in
a written agreement between the Distributor and the User. In the absence of a
separate agreement between the parties, the construction, commissioning,
control, operation and maintenance responsibilities shall follow ownership.
September 2001 25
3.2.6.3 For supplies at Medium Voltage and Subtransmission Voltage, the

Distributor shall, with the User’s agreement, prepare a scope of
responsibilities and an Electrical Diagram showing the agreed Ownership
Boundary. Copies of these documents shall be retained by the Distributor and
the User. Changes in the boundary arrangements proposed by either party
shall be agreed in advance and shall be recorded on the Distributor’s Electrical
Diagram.
3.3 DISTRIBUTION TECHNICAL, DESIGN AND OPERATIONAL CRITERIA

3.3.1 Security Requirements
The Distribution System and any User connections to that System shall be designed
consistent with the security requirements of the franchise or such other requirements
as may be required by the ERC from time to time.
3.3.2 Distribution Frequency Variations
Distributors have no control over Distribution System frequency which is determined
by Grid frequency if the Distribution System is connected to the Grid. Distributors
shall design and operate their systems to assist the System Operator in maintaining
satisfactory frequency control.
3.3.3 Distribution Voltage Variations
Distributors shall design and operate their systems to limit normal voltage variation to
±10% from nominal voltage levels. The ERC may require distributors more stringent
voltage variation requirements, which shall be decided, based on technical and
economic studies.
3.3.4 Power Factor
All Distribution Users shall maintain a Power Factor of no less than 85% lagging at
the interconnection point with the Distributor’s system. Distributors shall correct
feeder and substation feeder bus reactive demands to levels which economically
reduce feeder and transmission losses. The Distributor may establish penalties for
User Power Factors less than the target level, and incentives for User Power Factor
greater than the target level.
3.3.5 Harmonics
At any User System, the total harmonic distortion of the voltage and current shall not
exceed 5%.
3.3.6 Distribution Voltage Unbalance
Voltage unbalance shall not exceed 5% during normal condition.
3.3.7 Flicker Severity
The maximum flicker severity shall be 1.0 unit for short term and 0.8 unit for long
term.
26 September 2001
3.3.8 Voltage Variation during Fault and Switching Conditions

Under fault and circuit switching conditions the power frequency voltage may fall or
rise transiently. The fall or rise in voltage will be affected by the method of grounding
of the neutral point of the Distribution System, and this variation in voltage shall be
taken into account in selecting Equipment.
3.4 DISTRIBUTION DESIGN PRINCIPLES AND STANDARDS

3.4.1 Development of Design Principles and Standards
The Technical Standards Subcommittee of the Distribution Management Committee
shall establish and maintain Distribution System Design Principles and Standards.
These principles and standards shall be subject to approval by the ERC.
3.4.2 Distribution Equipment, Overhead Lines, and Underground Cables
3.4.2.1 The principles of design, manufacture, testing and installation of
distribution Equipment, overhead lines, and underground cables, including
quality requirements, shall conform to applicable statutory obligations and
shall comply with the acceptable international standards, IEC, or its equivalent
national standards, whichever is applicable. Further advice shall be made
available upon request to the Distributor.
3.4.2.2 The documents specified in Subsection 3.4.2.1 contain options for
purchaser selection which together with other requirements that are necessary
to meet System design needs, shall be specified so as to provide performances
and ratings as the licensee may adopt from time to time by agreement with the
appropriate regulatory body.
3.4.2.3 The specifications of Equipment, overhead lines, and underground cables
shall be such as to permit Operation of the Distribution System within the
Safety Management System of the Distributor, the details of which shall be
made available by the Distributor upon request.
3.4.2.4 Equipment shall be suitable for use:
(a) At the operating frequency within the intended operating voltage range;
and
(b) At the design short-circuit rating of the Distribution System to which it is
connected with regard to fault current carrying capabilities and making
and breaking duties. When requested, details of the System to which
connection is to be made shall be provided by the Distributor.
3.4.2.5 Equipment, overhead lines, and underground cables shall be operated
within the thermal rating conditions contained in the appropriate standards,
specifications and other relevant publications, taking into account the intended
use. Such information shall be made available by the Distributor upon request.
3.4.2.6 The cost of distribution and transmission losses shall be considered in
selecting overhead and underground cable sizes and in establishing reactive
compensation programs.
September 2001 27
3.4.2.7 The standards, publications and specifications referred to in Subsections

3.4.2.1 to 3.4.2.5 above are such standards, publications, and specifications
current at the time that the Plant and/or Equipment was manufactured (and not
commissioned) or was awaiting use or re-use. If any such Plant/Equipment is
subsequently moved to a new location or used in a different way, or for a
different purpose, or is otherwise modified, then such standards, publications,
and specifications current at the time that the Plant and/or Equipment was
manufactured (and not commissioned) will apply. In applying such standards,
publications and specifications the Plant and/or Equipment shall be reasonably
fit for its intended purpose having due regard to the obligations of the
Distributor and the User under their franchise and license, respectively.
3.4.3 System Grounding
3.4.3.1 The arrangement for grounding the System shall comply with the
Distributor’s Operating Standards.
3.4.3.2 The Distributor shall advise the User of the Grounding method of the
Distribution System. The specification of associated Equipment shall meet the
voltages which will be imposed on the Equipment as a result of the method of
grounding.
3.4.3.3 Design practice for protective multiple grounding shall be detailed in the
Distributor’s engineering publications and in the reference contained in those
publications.
3.4.3.4 Users shall take precautions and install protective devices whenever
applicable in order to limit the occurrences and effects of circulating currents
with respect to the neutral points connected to ground where there is more
than one source of energy.
3.4.4 Voltage Regulation and Control
Any extension or connection to the Distribution System shall be designed in such a
way that it does not adversely affect the voltage control employed by the Distribution
System. Information on the voltage regulation and control arrangements shall be
made available by the Distributor if requested by the User.
3.4.5 Protection
3.4.5.1 The Distribution System and the System of any User connected to the
Distribution System shall incorporate protective devices in accordance with
the requirements of the Distributor.
3.4.5.2 In order to ensure satisfactory operation of the Distribution System,
protection systems (operating times, discrimination and sensitivity) at the
Ownership Boundary shall be agreed between the Distributor and the User
during the application for connection and may be reviewed from time to time
by the Distributor, with the concurrence of the User.
3.4.5.3 Unless the Distributor advises otherwise, it is not acceptable for Users to
use protection and/or associated equipment to limit the fault current infeed to
28 September 2001
the Distribution System by the use of Protection and associated Equipment.

Failure of that Protection and associated Equipment to operate as intended in
the event of a fault, could cause Equipment owned by the Distributor to
operate outside its short-circuit rating.
3.5 REQUIREMENTS FOR EQUIPMENT AT THE CONNECTION POINT

3.5.1 Equipment at the Ownership Boundary
All Equipment at the Ownership Boundary shall meet the design principles contained
in Section 3.4.2. Connections to the Distribution System shall incorporate a means of
Disconnection of the User’s installation by the Distributor.
3.5.2 Protection Requirements
Protection requirements vary widely depending on established standards and the
needs of the particular Distribution System. The basic requirement in all cases is that
Users’ arrangements for Protection at the Ownership Boundary, including types of
Equipment and Protection settings, shall be compatible with standard practices on the
Distribution System, as specified by the Distributor during the application for
connection process. In particular,
(a) Maximum clearance times (from fault current inception to arc extinction) shall
be within the limits established by the Distributor in accordance with
Protection and Equipment short circuit rating policy adopted for the
Distribution System;
(b) The User shall be aware that autoreclosing or sequential switching features
may be in use on the Distribution System. The Distributor shall, upon request
by the User, provide details of the autoreclosing or sequential switching
features so that the User may take this into account in the design of the User
System, including Protection arrangements; and
(c) The User shall also be aware that the Protection arrangements on some
Distribution Systems may cause disconnection of one phase or two phases
only of a 3-phase supply for certain types of fault.
3.5.3 Grounding Requirements
Grounding of a part of the User System that is connected to the Distribution System
shall comply with the arrangements specified in Section 3.4.3.
3.5.4 Equipment Short-Circuit Rating
3.5.4.1 The short-circuit rating of User’s Equipment at the Connection Point shall
not be less than the design Fault Level of the Distribution System to which it
is connected. The choice of Equipment for connection at Low Voltage may
take into account attenuation in the service lines as specified by Distributor.
The Distributor in the design of its System shall take into account the
contribution to Fault Level of the User System and Equipment.
September 2001 29
3.5.4.2 In order to permit these assessments to be carried out, information shall

be exchanged on prospective fault current infeed and X/R ratios where
appropriate at Connection Points to the Distribution System.
3.5.5 Monitoring and Control Equipment
3.5.5.1 The Distributor and the User shall agree on the mode of monitoring and
control.
3.5.5.2 The User shall provide such voltage, current, frequency, Active Energy,
Active Power and Reactive Power pulses and outputs and status points from
its System as are considered reasonable by the Distributor to ensure adequate
System monitoring. In such a situation, the telemetry outstation or equivalent
monitoring equipment or system shall be provided, installed and maintained
by the Distributor. Under the requirements of the Philippine Grid Code, new
scheduled Generating Units and Power Stations shall provide signals to the
System Operator for monitoring purposes.
3.5.5.3 If agreed upon between the parties that the Distributor shall control the
switchgear on the User System, the Distributor shall install the necessary
telecontrol outstation. Notwithstanding the above, it shall be the responsibility
of the User to provide the necessary control interface for the switchgear of the
User which is to be controlled.
3.5.5.4 Special metering systems shall be required for most Users using
unbundled services. These metering systems shall provide outputs for remote
data access.
3.5.6 Automatic Load Dropping Equipment
3.5.6.1 Based on reliability studies and taking into consideration economic
factors, where a load of a Distributor has a significant impact on the System,
the Distributor shall provide and maintain Automatic Load Dropping (ALD)
equipment at levels sufficient to insure generation-load balance during Grid
disturbances. The necessary load dropping shall largely be accomplished by
means of underfrequency load dropping relays on distribution feeders and/or
feeder sections (see Section 5.6.5).
3.5.6.2 Distributors shall exert best effort to restore immediately the critical
facilities included in the ALD program.
3.5.6.3 Distributors may require Large Customers and other Users to participate
in the ALD program by installing and maintaining underfrequency load
dropping relays on some or all of the User load. Users may request
exemptions for their critical load segments.
3.6 DIAGRAM AND DRAWING REQUIREMENTS

3.6.1 Electrical Diagram Requirements
3.6.1.1 An Electrical Diagram shall be prepared for each Connection Site at
Distribution Medium (MV) and Subtransmission (HV) voltages.
30 September 2001
3.6.1.2 The Electrical Diagram shall include all MV/HV Equipment and the
connections to all external circuits and incorporate numbering, nomenclature
and labeling, as set out in Article 5.12 of the Distribution Code. The Electrical
Diagram (and the list of technical details) is intended to provide an accurate
record of the layout and circuit interconnections, ratings and numbering and
nomenclature of MV/HV Equipment and related Plant.
3.6.1.3 The composite Electrical Diagram prepared by the Distributor or the User
shall be the definitive Electrical Diagram for all operational and planning
activities associated with the Connection Site. If a dispute arises as to the
accuracy of the composite Electrical Diagram, a meeting shall be held at the
Connection Site, as soon as reasonably practicable, between the Distributor
and the User, to resolve the matters under dispute.
3.6.2 Preparation of Electrical Diagram for a Distributor Site
3.6.2.1 In the case of a Distributor’s Site, the User shall prepare and submit to the
Distributor an Electrical Diagram for all MV/HV equipment on the User’s
side of the Connection Point, in accordance with the timing requirements
established in the Connection Agreement.
3.6.2.2 The Distributor shall then prepare, produce and distribute, using the
information submitted in the User’s Electrical Diagram, a composite Electrical
Diagram for the complete Connection Site, also in accordance with the timing
requirements established in the Connection Agreement.
3.6.3 Preparation of Electrical Diagram for a User Site
3.6.3.1 In the case of a User Site, the User shall prepare and submit to the
Distributor, an Electrical Diagram for all MV/HV Equipment on the User’s
side of the Connection Point. The Distributor shall provide the User with an
Electrical Diagram for all MV/HV Equipment on the Distributor’s side of the
Connection Point, in accordance with the timing requirements established in
the Connection Agreement.
3.6.3.2 The User shall then prepare, produce, and distribute, using the
information submitted on the User’s Electrical Diagram and the Distributor’s
Electrical Diagram, a composite Electrical Diagram for the complete
Connection Site, also in accordance with the timing requirements established
in the Connection Agreement.
3.6.4 Changes to Electrical Diagrams
3.6.4.1 When a Distributor has decided to install new MV/HV Equipment or
change the existing equipment identification number of its MV/HV
Equipment at the Distributor Site, the Distributor shall (unless it results in a
Modification, in which case the provisions of the Connection Agreement as to
the timing requirement for changes apply), one month prior to the installation
or change, send to the User a revised Electrical Diagram of the Distributor’s
Site, incorporating the new MV/HV Equipment to be installed and its
numbering or the changes.
September 2001 31
3.6.4.2 When a User has decided to install new MV/HV equipment or change the
existing equipment identification number of its MV/HV equipment at the User
Site, the User shall (unless it results in a Modification, in which case the
provisions of the Connection Agreement, as to the timing requirement for
changes apply), one month prior to the installation or change, send to the
Distributor a revised Electrical Diagram of the User’s Site, incorporating the
new User MV/HV Equipment to be installed and its numbering or the
changes.
3.6.5 Site Common Drawings
3.6.5.1 Site Common Drawings shall be prepared for each Connection Site and
shall include Connection Site layout drawings, electrical layout drawings,
common protection/control drawings and common services drawings.
3.6.5.2 The Site Common Drawings for the complete Connection Site prepared
by the User or the Distributor shall be the definitive Site Common Drawings
for all operational and planning activities associated with the Connection Site.
If a dispute arises as to the accuracy of the Site Common Drawings, a meeting
shall be held at the Site, as soon as reasonably practicable, between the
Distributor and User, to resolve the matters under dispute.
3.6.6 Preparation of Site Common Drawings for a Distributor Site
3.6.6.1 In the case of a Distributor Site, the User shall prepare and submit to the
Distributor, Site Common Drawings for the User’s side of the Connection
Point in accordance with the timing requirements of the Connection
Agreement.
3.6.6.2 The Distributor shall prepare, produce and distribute Site Common
Drawings, using the information submitted in the User’s Site Common
Drawings, for the complete Connection Site in accordance with the timing
requirements of the Connection Agreement.
3.6.7 Preparation of Site Common Drawings for a User Site
3.6.7.1 In the case of a User Site, the Distributor shall prepare and submit to the
User, Site Common Drawings for the Distributor’s side of the Connection
Point in accordance with the timing requirements of the Connection
Agreement.
3.6.7.2 The User shall prepare, produce and distribute Site Common Drawings,
using the information submitted in the Distributor’s Site Common Drawings,
for the complete Connection Site in accordance with the timing requirements
of the Connection Agreement.
3.6.8 Changes to Site Common Drawings
3.6.8.1 When a User becomes aware that it is necessary to change any aspect of
the Site Common Drawings at a Connection Site, the User shall
32 September 2001
(a) In the case of a User Site, as soon as reasonably practicable, prepare,

produce and distribute revised Site Common Drawings for the complete
Connection Site; and
(b) In the case of a Distributor Site, as soon as reasonably practicable, prepare
and submit to the Distributor revised Site Common Drawings for the
User’s side of the Connection Point. The Distributor shall then prepare
produce and distribute, using the information submitted in the User’s Site
Common Drawings, revised Site Common Drawings for the complete
Connection Site.
(c) In either case, if in the User’s opinion the change can be dealt with by
notifying the Distributor in writing, the User shall do so. Then both the
Distributor and the User shall amend their copies of the Site Common
Drawings (or if there is only one set, the party holding it shall make the
changes). If the change results in a Modification, the provisions of the
connection agreement related to the timing requirements for changes shall
apply.
3.6.8.2 When a Distributor becomes aware that it is necessary to change any
aspect of the Site Common Drawings at a Connection Site, the Distributor
shall, as soon as reasonably practicable, prepare, produce and distribute
revised Site Common Drawings:
(a) For the complete Connection Site if it is a Distributor Site; and
(b) For the Distributor’s side of the Connection Point if it is a User’s site. The
User shall then prepare, produce and distribute, using the information
submitted in the Distributor’s Site Common Drawings, revised Site
Common Drawings for the complete Connection Site.
(c) In either case, if in the Distributor’s opinion the change can be dealt with
by notifying the User in writing of the change, the Distributor shall do so.
Then both parties shall amend their copies of the Site Common Drawings
(or where there is only one set, the party holding it shall make the
changes). If the change results in a Modification, the provisions of the
connection agreement as to the timing requirements for changes shall
apply.
3.7 SPECIFIC REQUIREMENTS FOR GENERATORS

3.7.1 Information for Modeling the Distribution System
The Distributor shall use the information provided in Article 3.3 to model the
Distribution System and to decide what method of connection shall be employed and
the voltage level at which the connection shall be made. Existing or prospective
Embedded Generators, including Users with self-generating units, shall submit to the
Distributor the additional requirements specified in this Article. If the Distributor
concludes that the nature of the proposed connection or changes to an existing
connection requires more detailed consideration, then further information may be
requested.
September 2001 33
3.7.2 Information Required From Embedded Generators

Embedded Generator shall provide to the Distributors information on the Generating
Plant and the proposed interface arrangements between the Generating Plant and the
Distribution System. The following information may be required by the Distributor
before entering into an agreement to connect any Generating Plant to the Distribution
System.
(a) Generating Plant Data
(1) Terminal Volts (kV);
(2) Rated kVA;
(3) Rated kW;
(4) Maximum and minimum Active Power sent out (kWso) Reactive Power
requirements (kVAr), if any;
(5) Type of Generating Plant—synchronous, asynchronous, etc.;
(6) Type of Prime Mover;
(7) Anticipated operating modes of generation, e.g., continuous, intermittent,
peaking;
(8) Fault Level contribution;
(9) Method of voltage control;
(10) Generator transformer details, if applicable;
(11) Requirements for Top-up supplies and/or standby supplies;
(12) Generator kW/kVAr capability chart (at lower voltage terminals);
(13) Type of excitation system;
(14) Inertia constant kW secs/kVA;
(15) Stator Resistance;
(16) Direct-Axis Reactances (Subtransient, Transient & Synchronous);
(17) Quadrature-Axis Reactances (Subtransient & Synchronous);
(18) Direct-Axis Time Constants (Subtransient, Transient & Synchronous);
(19) Quadrature-Axis Time Constant (Subtransient, Stating either open- or
short-circuit time constant);
(20) Zero Sequence (Resistance & Reactance);
(21) Negative Sequence (Resistance & Reactance);
(22) Generator Transformer (Resistance, Reactance, kVA Rating, Tap
Arrangement, Vector Group, Grounding, Connection & % Impedance);
(23) Automatic Voltage Regulator block diagram, including the data on the
gains (forward and feedback), time constants, and voltage control limits;
and,
(24) Speed Governor block diagram detailing the governor flyball, if
applicable, and control system and Prime Mover time constants, together
with the turbine rating and maximum power.
34 September 2001
(b) Capacity and Standby Requirements

(1) Rated Capacity and Minimum Generation of each Generating Unit and
Power Station in kW.
(2) Generating Unit and Power Station auxiliary Demand (Active Power and
Reactive Power) in kW and kVAr, at rated capacity conditions. For
Customers Self-Generating Plant, this shall include Top-up requirements.
(3) Generating Unit and Power Station auxiliary Demand (Active Power and
Reactive Power) in kW and kVAr, under Minimum Generation conditions.
For Customers Self-Generating Plant this should include Top-up and
Standby requirements.
(c) Interface Arrangements
(1) The means of synchronization between the Distributors and User;
(2) Details of arrangements for connecting to ground that part of the
Generator’s System directly connected to the Distribution System;
(3) The means of connection and Disconnection which are to be employed;
and
(4) Precautions to be taken to ensure the continuance of safe conditions
should any grounded neutral point of the Generator’s System become
disconnected from ground.
3.7.3 Additional Information Required by System Operator from Embedded
Generators
3.7.3.1 Additional information other than those specified above may need to be
provided, subject to the type and size of generation, or to the point at which
connection is to be made to the Distribution System. This information shall be
provided by the Generator at the request of the Distributor.
3.7.3.2 In addition to supplying the Distributors with the details of Embedded
Generating Plant, there is a requirement to provide certain information to
System Operator, under the Philippine Grid Code.
3.7.4 Generating Unit Performance Requirements
For Generators not subject to Central Dispatch, the electrical parameters required to
be achieved at the Generating Unit terminals are defined according to the connection
method and shall be specified by the Distributor with the offer for connection. A
Generating Unit shall be capable of supplying its Rated Capacity within the System
frequency range as required in the Philippine Grid Code. The output power shall not
be affected by voltage changes in the permitted operating range.
3.7.5 Control Arrangements
The Distributor shall specify in writing, if a continuously fast-acting response
automatic excitation control system is required to control the Generating Unit voltage
without instability over the entire operating range of the Generating Unit or Power
Station. This will be dependent on the size and type of Generating Plant or Power
Station and the adjacent part of the Distribution System to which it is connected.
September 2001 35
3.7.6 Coordination With Existing Protection

Protection associated with Embedded Generating Plant shall be coordinated with the
Protection associated with the Distribution System as follows:
(a) For Generating Plant directly connected to the Distribution System, the
Generator shall meet the target clearance times for fault current interchange
with the Distribution System in order to reduce to a minimum the impact on
the Distribution System of faults on circuits owned by Generators. The
Distributor shall ensure that its Protection settings meet its own target
clearance times.
(b) The target clearance times are measured from fault current inception to arc
extinction and shall be specified by the Distributor to meet the requirements of
the relevant part of the Distribution System.
(c) The settings of any Protection controlling a Circuit Breaker or the operating
values of any automatic switching device at any point of connection with the
Distribution System shall be agreed in writing between the Distributor and the
User during the connection consultation process.
(d) The Protection settings or operating values shall not be changed without the
agreement of the Distributor.
(e) The Generating Plant Protection shall be coordinated with any autoreclose
policy specified by the Distributor.
(f) Any Generating Unit or Power Station connected to the Distribution System
shall be required to withstand, without tripping, the Negative Phase Sequence
loading incurred during the clearance of a close-up phase-to-phase fault by
System Backup Protection. The Distributor shall advise the Generator of the
expected Negative Phase Sequence loadings during the Connection
Agreement process.
3.7.7 Islanding
3.7.7.1 During emergency conditions, a part of the Distribution System, to which
Embedded Generators are connected, may become detached from the rest of
the System. The Distributor shall decide, depending on local conditions, if it is
desirable for the Embedded Generators to continue to generate in the isolated
part of the Distribution System.
3.7.7.2 If no facilities exist for the subsequent resynchronization with the rest of
the Distribution System, the Embedded Generator under the Distributor’s
instruction, shall ensure that the Generating Plant is disconnected so that the
isolated island may be reconnected to the rest of the Distribution System.
3.7.7.3 Under emergency conditions, there is an expectation that some generation
will continue to operate outside the statutory frequency limits which could
mean connection within an automatic underfrequency load disconnection
zone. Consequently, Embedded Generators shall ensure that all Protection on
Generating Plant shall have settings to coordinate with those on the automatic
36 September 2001
underfrequency load disconnection equipment which shall be detailed by the

Distributor upon request.
3.7.8 Black Start Capability
An Embedded Generator shall notify the Distributor if its Generating Plant has a
restart capability without connection to an external power supply, unless the
Embedded Generator had previously notified the System Operator in accordance with
the Philippine Grid Code.
3.7.9 Generating Plant Commissioning Tests
Where a Generating Plant requires connection to the Distribution System in advance
of the commissioning date, for the purposes of testing, the Generator shall comply
with the requirements of the Connection Agreement. The Generator shall provide the
Distributor with a commissioning program, approved by the Distributor if reasonable
in the circumstances, to allow commissioning tests to be coordinated.
3.8 SPECIFIC REQUIREMENTS FOR LARGE CUSTOMERS

3.8.1 Effect of Operations
Large Customers frequently impact the operation of distribution systems in ways that
a similar level of demand aggregated from many small customers does not. Such
customers therefore shall cooperate with the Distributors to ensure that their
operations do not adversely affect the Distribution System and other Users and small
customers.
3.8.2 Information on Significant Changes
Large Customers shall inform the Distributor when significant changes in load levels
and/or patterns are expected to occur.
3.8.3 Automatic Load Dropping System
Large Customers shall cooperate with their Distributor in establishing and
maintaining automatic load dropping relay systems.
3.8.4 Reactive Power Supply
Large Customers shall cooperate with their Distributor in establishing and
maintaining customer-owned and -operated reactive supply systems.
3.9 DISTRIBUTION DATA REGISTRATION

3.9.1 Data Requirements
3.9.1.1 Users connected at Medium Voltage and Sub-transmission Voltage shall
provide to the Distributor the data specified in this Article. These data shall be
submitted in accordance with the procedure set in this Article.
3.9.1.2 The data required by the Distributor are divided into two categories,
namely System Planning Data (SPD) and Operational Data (OD).
September 2001 37
3.9.1.3 In order to assess the implications for making a connection, the

Distributor shall require SPD and OD, the precise requirements being decided
on by the Distributor and depending upon the circumstances. Following an
agreement to connect and not less than 6 weeks before the proposed date of
connection, the User shall supply data as requested by the Distributor. This
data shall be referred to as Registered Data.
3.9.2 Procedures and Responsibilities
3.9.2.1 Unless otherwise specified or agreed by the Distributor, each User is
required to submit data as defined in Section 3.9.3 of this Chapter.
3.9.2.2 It is a requirement that data changes are advised within one week to the
Distributor, and in any case, reviewed annually to ensure continued accuracy
or relevance. The Distributor shall initiate this review in writing and the User
shall respond in writing.
3.9.2.3 Where possible, data shall be submitted on standard forms forwarded to
the User by the Distributor.
3.9.2.4 If a User wishes to change any data item, then this shall first be discussed
with the Distributor concerned in order for the implications to be considered
and the change if agreed (such agreement not to be withheld), be confirmed by
the submission of a revised data form or by verbal means with confirmation
by fax or similar if short timescales are involved.
3.9.2.5 From time to time, the Distributor may change its data requirements.
Appropriate Users shall be advised of these changes as they occur and shall be
provided with a reasonable timescale by which to respond.
3.9.3 Data to be Registered
3.9.3.1 The following Generating Unit data shall be submitted by all Embedded
Generators to the Distributor:
(a) Type of Generator (Synchronous or Induction);
(b) Type of Prime Mover;
(c) Rated Capacity (kVA and kW);
(d) Rated Voltage (kV);
(e) Maximum Active Power sent out (kW);
(f) Reactive Power required, if Induction-Type (kVAr);
(g) Anticipated Operating Mode;
(h) Fault level contribution (kVA);
(i) Method of Voltage Control; and
(j) Generator Transformer details.
3.9.3.2 For all Embedded Generators with an aggregate capacity of greater than 1
MW in a connection point, the following detailed generating unit and plant
data shall be su0bmitted to the Distributor:
38 September 2001
(a) Rated kW at Registered Capacity for individual units and the Generating
Plant;
(b) Rated kW at Minimum Generation for individual units and the Generating
Plant;
(c) Auxiliary demand for individual units and the Power Station at Registered
Capacity conditions;
(d) Auxiliary demand for individual units and the Power Station under
Minimum Generation conditions;
(e) Individual Generator information;
(f) Rating;
(g) Generator kW/kVAr Capability Chart;
(h) Inertia Constant;
(i) Stator Resistance;
(j) Direct-Axis Reactance (Subtransient, Transient, and Synchronous);
(k) Quadrature-Axis Reactance (Subtransient and Synchronous);
(l) Time Constants (Direct-axis subtransient, Direct-axis transient, and
Quadrature-axis subtransient);
(m) Zero Sequence Resistance and Reactance;
(n) Negative Sequence Resistance and Reactance;
(o) Generator Transformer (Resistance, Reactance, kVA Rating, Tap
Arrangement, Vector Group, Grounding %, and Z Connection);
(p) A block diagram for the model of the Automatic Voltage Regulator
including data on the gains forward and feedback time constants and
voltage control limits; and
(q) A block diagram for the model of the generating unit speed governor and
turbine time constants together rating and maximum power.
3.9.3.3 Embedded Generators, other Distributors connected to the Distribution
System, and Large Customers shall submit to the Distributor the following
system design information:
(a) Reactive Compensation;
(1) Rating of individual shunt reactors (not associated with cables);
(2) Rating of individual shunt capacitor banks; and
(3) Details of any automatic control logic such that operating
characteristics can be determined.
(b) Lumped Network Susceptance;
(1) Details of the equivalent lumped network susceptance of the User
System referred back to the connection with the Distribution System.
This shall include shunt reactors which are an integrated part of cable
system and which are normally in or out of service independent of the
cable. This shall not include independently switched reactive
compensation connected to the User System.
September 2001 39
(2) And any susceptance of the User System inherent in the active and
reactive Demand.
(c) Fault Infeeds;
(1) Maximum and minimum short-circuit infeeds into the Distribution
System;
(2) X/R ratio under maximum and minimum short circuit;
(3) Contribution from rotating equipment, if any; and
(4) Equivalent network information at the request of the Distributor.
(d) Interconnection Impedance;
(1) Positive Sequence Resistance;
(2) Zero Sequence Resistance;
(3) Positive Sequence Reactance;
(4) Zero Sequence Reactance; and
(5) Susceptance.
(e) Demand Transfer Capability; and
(1) Circuit parameters, switchgear and protection arrangements of User
System;
(2) Circuit parameters, switchgear and protection arrangements including
protection settings of transmission / subtransmission system; and
(3) Transient Overvoltage Effects.
(f) Other System Design Data.
3.9.3.4 Large Customers and other Distributors connected to the Distribution
System shall submit to the Distributor the following load characteristics:
(a) Maximum Active Power Demand;
(b) Maximum and minimum Reactive Power requirement;
(c) Type of load control arrangements, e.g., variable speed motor, type of
starter employed;
(d) Maximum load on each phase at the time of maximum Demand;
(e) Maximum phase unbalance;
(f) Maximum harmonic content; and
(g) Fluctuating Loads.
(1) Rate of change of active and reactive power, both increasing and
decreasing;
(2) Shortest repetitive time interval between fluctuation in active and
reactive power; and
(3) Largest step change in Active and Reactive Power, both increasing and
decreasing.
3.9.3.5 Embedded Generators, other Distributors connected to the Distribution
System, and Large Customers shall submit to the Distributor details of
40 September 2001
Maintenance Program that may affect the performance of the Distribution

System.
September 2001 41
42 September 2001
CHAPTER 4
DISTRIBUTION PLANNING

4.1.1 Purpose
(a) To promote interaction between Distributor and User on any proposed
development of the User System which may affect the safety, security,
reliability and stability of the Distribution System;
(b) To provide exchange of information between Distributor and Users for the
planning and development of their respective systems;
(c) To specify the minimum planning requirements under Operations and System
Planning Standards which will be used by the Distributor; and
(d) To ensure that all Distributors provide acceptable levels of reliable and
economic distribution service to all Users.
4.1.2 Scope
This Chapter applies to all Distribution System participants, including
(a) Distributors;
(c) Embedded Generators (greater than or equal to 1,000 kVA output);
(d) Large Customers (greater than or equal to 1,000 kW demand); and
(e) Other Users receiving unbundled services.
4.2 DISTRIBUTION DEVELOPMENT PLAN

4.2.1 Development of Distribution System
All Distribution Systems shall conform to the statutory requirements and franchise
conditions. The Distributor shall develop and maintain an efficient, secure and
coordinated system of electricity supply that is economical, reliable and safe.
4.2.2 Submission of Annual Distribution Development Plan
The Distributor shall develop and submit to DOE an annual distribution development
plan. In the case of electric cooperatives, such plans shall be submitted through the
National Electrification Administration. A copy of the plan shall also be submitted to
the Distribution Management Committee for reference. The development plan shall
include:
(a) Demand forecasts;
(b) Subtransmission capacity expansion;
(c) Distribution substation capacity expansion;
Distribution Planning Philippine Distribution Code
(d) Distribution reactive power compensation plan;

(e) Feeder routing and sizing;
(f) Other reinforcement plans; and
(g) A summary of the technical and economic analysis performed to justify the
development plan.
4.2.3 Distribution Planning Analysis
4.2.3.1 To maximize the economic efficiency of distribution development, all
Distributors shall conduct distribution planning analysis which shall include:
(a) Establishment of optimum patterns of Distribution Substation and feeder
development;
(b) Establishment of optimum distribution feeder voltages and conductor
sizes;
(c) Development of optimum reactive compensation programs; and,
(d) Development of an optimum mixture of manual, automatic and switching
center control schemes for feeder sectionalization, monitoring and control.
4.2.3.2 Lifecycle cost analysis procedures shall be used in the distribution studies
outlined in Subsection 4.2.3.1. The cost of capital and discount rate used in
such analysis shall be disclosed to ERC.
4.3 DISTRIBUTION PLANNING DATA REQUIREMENTS

4.3.1 Information to be Provided by Users
Users of the Distribution System shall provide sufficient planning data requested by
the Distributor from time to time to enable the Distributor to comply with its
franchise requirements.
4.3.1.1 Users shall notify the Distributor in advance of planned changes to its
system or operating mode to enable the Distributor to prepare its development
plan, budget and implement necessary modifications. Such information shall
include any changes in maximum Demand, transfer requirements or
generating capacity. In the event of unplanned changes in a User System or
operating mode, a User shall promptly notify the Distributor to ensure that any
required contingency measures can be implemented by the Distributor.
4.3.1.2 Users shall provide the Distributor with detailed data relating to the
interface between their System and that of the Distribution System. This shall
cover circuit parameters, switchgear and protection arrangements of
equipment directly connected to or affecting the Distribution System. The data
shall be adequate to enable the Distributor to assess any implications
associated with these points of connection. Reciprocal arrangements shall
apply between the Distributor and its Users.
4.3.2 Information to be Provided to Users
Where the Distributor has received from a User any information or data or where the
Distributor proposes to make modifications to the Distribution System which, in
44 September 2001
Philippine Distribution Code Distribution Planning
either case, in the opinion of the Distributor, may impact upon the System of any
other User, the Distributor shall notify that User of the proposals subject to any
constraints relating to the timing of release of information or confidentiality
provisions.
4.3.3 Information on Reactive Power Compensation
Users shall provide the Distributor with information on any reactive power
compensation Equipment directly or indirectly connected to a Distribution System,
other than at Low Voltage, including:
(a) The kVAr capacitive or inductive rating of the Equipment and operating
range, if variable;
(b) Details of any automatic control logic such that the operating characteristics
can be determined; and,
(c) The Connection Point to the Distribution System.
4.3.4 Information on Fault Infeed Levels
Information shall be exchanged between the Distributor and the User on fault infeed
levels at the point of connection with the Distribution System in the form of:
(a) The maximum and minimum three-phase symmetrical and phase-to-ground
short-circuit infeed;
(b) The X/R ratio under short circuit conditions; and,
(c) In the case of interconnected Systems, adequate equivalent network
information.
4.3.5 Information on Interconnection Impedance
For User interconnections that operate in parallel with the Distribution System, details
of the interconnection impedance shall be exchanged between the Distributor and the
User. This information shall include equivalent single impedance (resistance,
reactance and shunt susceptance) of the parallel User or Distribution System.
4.3.6 Information on Demand Transfer Capability
Information shall be exchanged on Demand transfer capability where the same
Demand may be supplied from alternative Distributor or User points of supply. This
shall include the proportion of Demand normally fed from each point of supply and
the arrangements (manual or automatic) for transfer under planned or forced outage
conditions.
4.3.7 Information on Transient Overvoltage Effects
For User’s busbars connected to the Distribution System, sufficient details may need
to be exchanged with respect to the User/Distributor Ownership Boundary to enable
an assessment, where necessary, of transient overvoltage effects to be made. This
information may relate to physical and electrical layouts, parameters, specifications
and Protection details.
September 2001 45
Distribution Planning Philippine Distribution Code
4.3.8 Other Detailed Information

In certain circumstances where more detailed information may be needed, the User
shall provide the necessary information upon the request of the Distributor.
4.4 DEMAND FORECASTS

4.4.1 Factors to be Considered in Load Forecasting
The following factors shall be taken into account by the Distributor and Users when
forecasting Demand:
(a) Historical Demand data;
(b) Demand trends;
(c) Weather forecasts (Responsibility for weather correction of User’s loads rests
with the User);
(d) Significant Incident;
(e) Customer Self-Generating Schedules;
(f) Demand transfers;
(g) Interconnection with adjacent Distributors; and
(h) Any other factor reasonably considered necessary.
4.4.2 Data for Load Forecasting
Users shall cooperate with the Distributor by supplying the data needed to develop
load forecasts for distribution planning and for submission to the System Operator as
required by the Grid Code. These data shall include:
(a) All planning data required in the Distribution Connection Requirements
chapter for new User connection points;
(b) All changes in the planning data such as plant expansion, new processes or
facilities that will increase or decrease demand or demand characteristics; and
(c) All changes in Embedded Generator capability or operating patterns.
46 September 2001
CHAPTER 5
DISTRIBUTION OPERATIONS

5.1.1 Purpose
(a) To establish rules, procedures and arrangements for efficient and safe
Distribution Operations;
(b) To provide for the exchange of information for Operation actions and/or
Events;
(c) To ensure that communication routes and arrangement are available to enable
Distributor and Users to communicate with each other during Significant
Incidents;
(d) To facilitate the provision of more detailed information in writing and, where
agreed between Distributors and the Users Involved, joint investigation of
Significant Incidents;
(e) To establish procedures that will enable the Distributor to achieve a reduction
in Demand in order to avoid the Outage or overloading of any part of the
Total System in a manner that does not discriminate against any group of
customers;
(f) To achieve the restoration of the Total System and associated Demand, and
resynchronization of parts of the Total System which have become Out of
Synchronism with each other, at the shortest possible time;
(g) To ensure safety of persons and properties while work is being done on the
Distribution System;
(h) To enable the Distributor to coordinate and integrate the maintenance
schedules of its Users and other User Systems to which Generating Plants
and/or Customers are connected;
(i) To establish the Distributor’s requirements in the testing and/or monitoring of
its Distribution System and to ensure that Users are not operating outside the
technical parameters required in this Code;
(j) To ensure that System Tests do not threaten the safety of personnel or the
general public, and minimize the threat to the security of supplies and the
integrity of Equipment; and
(k) To ensure that any site where there is an Ownership Boundary, every item of
equipment has identification that has been mutually agreed and notified
between owners and operators concerned.
5.1.2 Scope
(a) Distributors;
Distribution Operations Philippine Distribution Code
(c) Embedded Generators (greater than or equal to 1,000 kVA output);

(d) Large Customers (greater than or equal to 1,000 kW demand); and
(e) Other Users receiving unbundled service.
5.2 OPERATIONAL AUTHORITY AND RESPONSIBILITIES

5.2.1 Operational Authority and Responsibilities of Distributors
Operating personnel of each Distributor function under the authority of their own
management subject to the laws and regulations of the Republic of the Philippines.
The Philippine Distribution Code provides an important part of those regulations.
Management of each Distributor has primary responsibility for safe, reliable and
efficient operation of their respective distribution system.
5.2.2 Authority of the ERC
The ERC has the regulatory authority and obligation to review operations
performance and take action where Distributors fail to meet acceptable operating
standards.
5.2.3 Role of the Distribution Management Committee
The Distribution Management Committee and its subcommittees have the role of
coordinating joint efforts by Distributors to recommend and maintain effective
common operating standards and procedures. In addition, the DMC may, as it deems
necessary, establish one or more regional staff offices to assist local Distributors.
5.3 OPERATIONAL PROCEDURES AND ARRANGEMENTS

5.3.1 Mutual Assistance Procedures
All Distributors shall cooperate in establishing Mutual Assistance Procedures that
expedite response to emergencies on one or more Distributor systems. Those
procedures shall include methods to fairly compensate (after the fact) responding
organizations for their emergency response efforts.
5.3.2 Equipment and Inventory Sharing Procedures
Distributors may develop procedures that allow sharing of major construction and
maintenance equipment and ways to share equipment and parts inventories. Sharing
spare parts, spare equipment, and inventory data lists are one way to facilitate such
efforts. Establishing common design and equipment standards also are an important
part of efforts to achieve this form of economic efficiency.
5.3.3 Joint Purchase Arrangements
Distributors may establish Joint Purchase Arrangements to achieve economies of
scale in equipment and supply purchases.
48 September 2001
Philippine Distribution Code Distribution Operations
5.4 OPERATIONAL LIAISON

5.4.1 Operational Communications
5.4.1.1 The Distributor and the Users connected to its Distribution System shall
designate officers and agree on communication channels for the exchange of
information required by this Section.
5.4.1.2 Communication shall, as much as possible, be direct between the User
and the operator of the Distribution System to which that User is connected.
5.4.1.3 A suitable communication system shall be established between the
Distributors and other Users to ensure the control function is carried out in a
safe and secure manner.
5.4.1.4 Where the Distributor decides that a back up or alternative route of
communication is necessary to provide for the safe and secure Operation of
the Distribution System, the means shall be agreed with the concerned Users.
5.4.1.5 List of telephone numbers and call signs shall be exchanged by the
Distributors and concerned Users to enable control activities to be efficiently
coordinated.
5.4.1.6 The Distributors and concerned Users shall maintain 24-hour availability
of qualified and duly authorized personnel where the joint operational
requirements demand it.
5.4.1.7 Where, for operational reasons, a Distributor determines that a means of
routine and emergency communication between the Distributor and the User
is required, then the same shall be provided and maintained by Distributor or
User or both parties as agreed.
5.4.2 Required Notification of Operation
5.4.2.1 In the case of an Operation on the User System, which may have an
Operational Effect on the Distribution System, the User shall notify the
Distributor in accordance with this Section.
5.4.2.2 The Distributor shall notify the User in the case of an Operation on the
Distribution System or on receipt of notification of an Operation on the Grid,
which may have an Operational Effect on the User System.
5.4.2.3 A Distribution Operation may be caused by an Operation on another
System. In such case, the information to be provided by the Distributor and/or
the User shall reflect the linkage between the operations.
5.4.2.4 While in no way limiting the general requirement for advance
notification, the following are examples of situations where notification shall
be required, since they may have or have had an effect on the Operation of the
Distribution System or another System:
(a) The implementation of a Scheduled Maintenance Program of Plant and/or
Equipment which has been arranged pursuant to Article 5.8;
September 2001 49
(b) The Operation of any Circuit Breaker or Disconnect Switch or any

sequence or combination of the two including any temporary overstressing
or Generating Unit synchronizing; and,
(c) Voltage control.
5.4.3 Mode of Notification of Operations
5.4.3.1 Although it need not state the reason, the notification under Section 5.4.2
shall be of sufficient detail to describe the Operation. This is to enable the
recipient of the notification to consider and assess the implications and risks.
The notification shall include the name of the individual reporting the
Operation. The recipient may ask questions to clarify the notification.
5.4.3.2 A notification by the Distributor of an Operation which has been caused
by another Operation (the “first Operation”) or by an Event on a User System,
will describe the Operation. It shall contain the information which the
Distributor has been given (in relation to the first Operation or that Event) by
that User.
5.4.3.3 The notification (other than in relation to the information which the
Distributor is merely passing on from a User) shall be of sufficient detail to
enable the recipient of the notification to consider and assess the implications
and consequences arising from the Operation on the Distribution System. The
notification shall include the name of the individual reporting the Operation
on behalf of the Distributor. The recipient may ask questions to clarify the
notification.
5.4.3.4 An Operation originating from another System connected to a User
System may affect another User System. The Distributor shall pass on such
information to effected Users.
5.4.3.5 A notification by a Distributor regarding an Operation which has been
caused by an Event or Operation on the Grid shall describe the effect on the
Distribution System and shall contain the information which the System
Operator has given to the Distributor. Said notification shall be of sufficient
detail to enable the recipient to consider and assess the implications and
consequences arising from the Operation on the Distribution System. The
notification will include the name of the individual reporting the Operation on
behalf of the Distributor. The recipient may ask questions to clarify the
notification.
5.4.3.6 A User shall pass on the information contained in a notification to it from
the Distributor to a Generator connected to the System or to another User
connected to its System (if it is required by contract to do so and/or the
Generator/User will be effected) in connection with an Operation on its
System which was caused by an Operation on the Distribution System.
5.4.3.7 Other than as provided in Section 5.4.3, a User shall not pass on any
information contained in:
(a) A notification to it from the Distributor; and
50 September 2001
(b) A notification to another User from the Distributor to any other User
connected to its System.
The User may only say that there has been an incident on the Total System
and (if known and if power supplies have been affected) an estimated time of
return to service.
5.4.3.8 The notification shall be dictated, faxed or e-mailed to the recipient who
shall record it. On completion of dictation or receipt of the notification, the
User shall check with the sender to ensure that it has been accurately recorded.
5.4.4 Timing of Notification of Operations
A notification under Section 5.4.2 shall be given as soon as possible to allow the
recipient to consider and assess the implications and risks arising.
5.4.5 Required Notification of Events
5.4.5.1 In the case of an Event on the User System connected to the Distribution
System, which has had or may have had an Operational Effect on the
Distribution System or on the Grid, the User shall notify the Distributor in
accordance with the provisions of this Section.
5.4.5.2 The Distributor shall notify the User regarding the following items which,
in the opinion of the Distributor, have an Operational Effect on the System of
a User:
(a) An Event on the Distribution System; and
(b) An Event on the Grid (as notified to the Distributor).
5.4.5.3 An Event may be caused (or aggravated) by another Event or by an
Operation on another’s System and in that situation the information to be
notified is different from that where the Event arose independently of any
other Event or Operation.
5.4.5.4 While in no way limiting the general requirement to notify, the following
are examples of situations where notification shall be required if they have an
Operational Effect:
(a) The actuation of any alarm or indication of any abnormal operating
condition;
(b) Adverse weather conditions being experienced;
(c) Temporary changes in the capabilities of, outage of, or faults on Plant
and/or Equipment, including Protection; and
(d) Increased risk of inadvertent Protection System Operation.
5.4.6 Mode of Notification of Event
5.4.6.1 A notification under Section 5.4.5 of an Event which has arisen
independently of any Event or of an Operation, shall describe the Event
although it need not state the cause of the Event. The notification shall be of
sufficient detail to enable the recipient of the notification to consider and
September 2001 51
assess the implications and risks arising. The recipient may ask questions to
clarify the notification.
5.4.6.2 An Event may be caused (or aggravated) by another Event (the first
Event) or by an Operation on a User System. In this case, notification by the
Distributor shall contain the information which the Distributor has been given
in relation to that first Event or that Operation on the User System. The
notification (other than in relation to the information which the Distributor is
merely passing on from a User) shall be of sufficient detail to enable the
recipient to consider and assess the implications and risks arising from the
Event. It shall include the name of the individual reporting the Event on behalf
of the Distributor. The recipient may ask questions to clarify the notification.
5.4.6.3 An incident or planned action on another System may cause (or
aggravate) an Event to a User System to where it is connected. In this case,
the notification to the Distributor shall contain the information which the User
has been given by the person connected to its System. The User shall require
these information from that person. The Distributor may pass on such
information.
5.4.6.4 A notification by the Distributor of an Event under Subsection 5.4.5
which has been caused (or aggravated) by an Event or an Operation on the
Transmission System, shall describe the Event on the Distribution System. It
shall also contain the information which the Distributor has been given in
relation to such Operation or Event. The notification (other than in relation to
the information which the Distributor is merely passing on from the System
Operator) shall be of sufficient detail to enable the recipient of the notification
to consider and assess the implications and risks from the Event on the
Distribution System. It shall also include the name of the individual reporting
the Event on behalf of the Distributor. The recipient may ask questions to
clarify the notification.
5.4.6.5 A User may pass on the information contained in a notification to it from
the Distributor to a Generator with a Generating Unit connected to its System
or to another Distributor connected to its System if it is required (by a
contract) to do so in connection with an Event on its System (if the Event on
the Distribution System caused or aggravated it).
5.4.6.6 Other than as provided in Subsection 5.4.6.5 a User may not pass on any
information contained in a notification to it from the Distributor to any person
connected to its System. Also, a User receiving information which was
contained in a notification to another User from the Distributor may not pass
on such information to any person connected to its System. Said Users may
only say that there has been an incident on the Total System and (if known
and if power supplies have been affected) an estimated time of return to
service.
5.4.6.7 The notification shall be dictated to the recipient who shall record it and
on completion shall repeat the notification in full to the sender and check that
it has been accurately recorded.
52 September 2001
5.4.6.8 Where an Event has been reported to the Distributor by a Generator under
Section 5.4.5 relating to a Generating Unit and in order for the Generator to
assess more accurately the implication of the Event on its System, it may ask
the Distributor for details of the Fault Levels on infeeds from the Distribution
System to that Generating Unit at the time of the Event. The Distributor shall
give the Generator that information provided that the Distributor has that
information.
5.4.7 Timing of Notification of Event
A notification under Section 5.4.5 shall be given as soon as possible after the
occurrence of the Event or right after the Event is known of or anticipated by the
giver of the notification under this Section.
5.4.8 Distribution System Control by the System Operator
Where a part of a Distribution System is, by agreement, under the System Control of
the System Operator then the requirements and provisions of Article 5.5 of the
Philippine Grid Code shall apply to that situation as though that Distribution System
were the Grid.
5.4.9 System Control by the Distributor
Where a part of a System of a User is, by agreement, under the System Control of the
Distributor then requirements and provisions of this Section shall apply to that
situation as if that System were the Distribution System.
5.5 OPERATIONAL REPORTS

5.5.1 Significant Incidents
5.5.1.1 Where an Event on the Distribution System or the System of a User has
had or may have had a significant effect on another System, the Event shall be
reported in writing to the owner of the System affected in accordance with the
provisions of Article 5.5. Such an Event shall be termed a “Significant
Incident.”
5.5.1.2 Where a Distributor notifies a User of an Event, which the User considers
has had or may have a significant effect on that User’s System, that User shall
require the Distributor to report that Event in writing and shall notify the
Distributor accordingly. Such an Event shall also be termed a “Significant
Incident.”
5.5.1.3 Without limiting the general description set out in Subsection 5.5.1.1 or
5.5.1.2, a Significant Incident shall include Events which result in or may
result in the following:
(a) Incorrect Operation of Equipment either manually or automatically;
(b) Voltage outside statutory limits;
(c) System Frequency outside statutory limits; or
(d) System Stability failure.
September 2001 53
5.5.2 Event Reports by Users to the Distributor

Where an Event has been reported verbally to the Distributor under Section 5.4.5 and
subsequently has been determined by the Distributor to be a Significant Incident, a
written report shall be given to the Distributor by the User in accordance with this
Section. The Distributor shall not pass this report on to other affected Users but may
use the information contained therein in preparing a report to another User in relation
to a Significant Incident on the Distribution System which has been caused (or
aggravated) by the Significant Incident on the User System.
5.5.3 Event Reports by the Distributor to Users
Where an Event has been reported verbally to the User under Section 5.4.5 and
subsequently has been determined by the User to be a Significant Incident, a written
report shall be given to the User by the Distributor in accordance with this Section.
The User shall not pass this report on to other affected Users but may use the
information contained therein in preparing a report for another Authorized Electricity
Operator connected to its System in relation to a Significant Incident which has been
caused (or aggravated by) the Significant Incident on the Distribution System.
5.5.4 Information to be Included in Event Reports
A report under Section 5.5.2 or 5.5.3 shall be sent to the Distributor or User, as the
case may be. It shall contain written confirmation of the verbal notification given
under Article 5.4 together with more details and such further information relating to
the Significant Incident which has become known since the verbal notification. The
report shall, as a minimum, contain those matters specified in the Section 5.5.1, which
is not intended to be exhaustive. The recipient may raise questions to clarify the
notification; and the giver of the notification shall, in so far as it is able, answer any
questions raised.
5.5.5 Information to be Included in Significant Incident Reports
The following information shall be included in the written report of significant
Incidents:
(a) Date and time of Significant Incident;
(b) Location;
(c) Equipment involved;
(d) Brief description of Significant Incident;
(e) Details of any Demand Control undertaken;
(f) Effect on Users and Customers including where appropriate:
(1) Duration of Incident;
(2) Estimated date and time of return to normal service; and
(3) Number of Users affected.
(g) Effect on generation including, where appropriate:
(1) Generation interrupted;
(2) Frequency response achieved;
54 September 2001
(3) MVAr performance achieved; and

(4) Estimated date and time of return to normal service.
5.5.6 Submission of Written Report
A written report under Section 5.5.2 shall be given as soon as practicable after the
verbal notification under Article 5.4 and in any event a preliminary report shall
normally be given within 24 hours of such a Significant Incident.
5.5.7 Statutory Reports of Specified Events
Nothing in this Article shall be construed as relieving Users from their duty to report
Event specified by the ERC in accordance with these Regulations that apply to Users.
5.6 DEMAND CONTROL

5.6.1 Demand Control Criteria and Procedures
5.6.1.1 For a loss of any Generating Unit, Transmission Line or transformer,
there shall be:
(a) Balance of supply and Demand;
(b) No overloading of Transmission/Distribution System Equipment; and
(c) No widespread disturbance.
5.6.1.2 The Distributor or User with Systems connected to the Distribution
System, shall implement demand reduction when the following circumstances
occur:
(a) In the event of insufficient Generating Plant available to meet Total
Demand; or
(b) In the event of Breakdown and/or Overloading on any part of the
Transmission System and/or Distribution System.
5.6.1.3 The Total Demand shall be reduced, following an instruction from the
System Operator or otherwise, in order to avoid a Breakdown or Overloading
of any part of the Total System in a manner that does not duly discriminate
against or unduly prefer any one or group of consumers.
5.6.1.4 Demand shall be reduced using any of the following available methods:
(a) Voltage Reduction;
(b) Customer Demand Curtailment;
(c) Automatic Underfrequency Demand Disconnection or Automatic Load
Dropping;
(d) Emergency Manual Demand Disconnection or Manual Load Dropping;
and
(e) Customer Disconnection.
September 2001 55
5.6.2 Coordination of Actions

5.6.2.1 Where Demand Control is exercised by the Distributor in order to
safeguard the Distribution System, the Distributor shall coordinate with Users
accordingly.
5.6.2.2 Where Demand Control is exercised by the Distributor on instruction or
request from the System Operator in order to safeguard the Total System, then
the Distributor shall respond to these requests promptly and coordinate with
Users accordingly.
5.6.3 System Demand Reduction Arrangement
5.6.3.1 The Distributor shall arrange within the Distribution System a scheme to
reduce load in a controlled manner by reducing voltage and/or by
disconnecting Customers.
5.6.3.2 A system of warnings shall be contained within the load reduction
arrangements to give notice, wherever practical, of possible implementation.
5.6.4 Demand Control by Voltage Reduction
In times of System emergencies or supply deficiency, the Distributor shall be
responsible for reducing and normalizing the voltage within its Distribution System
by switching off/on capacitors to reduce loads of a feeder/circuit.
5.6.5 Automatic Load Dropping
5.6.5.1 The Distributor shall arrange to have available at selected locations a
method to detect progressively underfrequency conditions on the System and
shall provide for 40% of the Distributor Demand based on Peak Value to be
disconnected automatically. The System Operator shall provide System
Stability studies to justify or refine the target as necessary.
5.6.5.2 The Underfrequency Disconnection scheme shall be designed to allow the
Demand Reduction to be uniformly applied throughout the Distribution
System, taking into account any operational requirements and essential loads.
5.6.5.3 Once an automatic Underfrequency Demand Disconnection has taken
place, the Users shall not reconnect until the Distributor instructs them to do
so.
5.6.5.4 Once the Frequency has recovered, each User shall be allowed to
reconnect subject to clearance from the Distributor.
5.6.5.5 The Users shall notify the Distributor of the Demand Reduction which
has occurred under automatic Underfrequency Demand Disconnection and
similarly, notify the restoration as the case may be, in each case within five
minutes of the Disconnection or reconnection.
5.6.5.6 The Users shall furnish the Distributor, in writing, the details of the
amount of Demand Reduction or restoration actually achieved on an hourly
basis.
56 September 2001
5.6.6 Manual Load Dropping

5.6.6.1 The Distributor shall arrange an emergency manual Disconnection
scheme based on Connection Points.
5.6.6.2 The scheme shall be designed to be called into operation irrespective of
System Frequency and to be implemented in predetermined timescales to
disconnect Demand progressively, generally on instructions from the System
Operator.
5.6.6.3 If the System Operator determines that the emergency manual
Disconnection carried out by the Distributor is inadequate, the System
Operator may disconnect Distributors to preserve the integrity of the
Transmission System.
5.7 EMERGENCY PROCEDURES

5.7.1 Emergency Events
5.7.1.1 During Emergency Events, the Distributor shall implement the procedures
specified in this Article. These may include the following procedures:
(a) Black Start: the implementation of recovery procedures following a Total
System Blackout or Partial System Shutdown as recognized by the System
Operator and that the Grid Operator intends to implement Black Start
procedures after having given notification to the Distributor.
(b) Resynchronization of electric power Islands: the resynchronization of
parts of the Total System which have become Out of Synchronism with
each other but where there is no Total System Blackout.
(c) Significant Incident Procedure: the establishment of a communication
route and arrangements between a Distributor and Users involved in or
who may be involved in an actual or potential serious or widespread
disruption to the Total System or parts of the Total System, which requires
or may require urgent response by the Distributor.
5.7.1.2 The Distributor shall give instructions or directives to any User for the
purpose of mitigating the effects of the disruption of electricity supply
attributable to any of the following:
(a) Natural disaster;
(b) Civil disturbance; or
(c) Force majeure.
5.7.2 Coordination During Emergency Events
5.7.2.1 In order to coordinate activities during emergencies, the Distributor and
Users shall appoint qualified senior members of their respective staff to
manage these abnormal situations and shall ensure that there are suitable
communication paths available.
5.7.2.2 Distributors shall participate in all emergency drills organized by the
System Operator and cooperate in establishing and maintaining Grid and
September 2001 57
Distribution System Emergency Procedures. In addition, Distributors shall

establish Mutual Assistance Arrangements.
5.7.3 Joint Investigation of Significant Incidents
5.7.3.1 Where a Significant Incident has been declared and a report submitted
under this Article, either party or parties may request in writing that an
investigation panel shall be formed to conduct a joint investigation.
5.7.3.2 The composition of such an investigation panel shall be appropriate to the
Incident to be investigated and agreed by all parties involved.
5.7.3.3 Where there has been a series of Significant Incidents (that is to say,
where a Significant Incident has caused or aggravated another Significant
Incident), the parties involved may agree to include some or all of those
Significant Incidents in the joint investigation.
5.7.3.4 A joint investigation shall only take place where all parties affected agree
to it. The form and rules of, the procedure for and all matters (including, if
thought appropriate, provisions for costs and for a party to withdraw from the
joint investigations once it has begun) relating to the joint investigation shall
be agreed prior to a joint investigation.
5.7.4 Black Start Procedures
5.7.4.1 In the event of Total System Blackout or Partial System Shutdown, the
System Operator shall inform the Distributor that a Total System Blackout or
Partial System Shutdown exists and that the System Operator intends to
implement a Black Start.
5.7.4.2 Certain Embedded Generating Plants may be identified as having an
ability to start up from shutdown without connections to external power
supplies. Such Plants shall be referred to as Black Start stations.
5.7.4.3 The Distributor shall segregate its Distributor Demand into suitably sized
components to allow progressive re-energization of the Distribution System.
The size of the Demand shall be determined by the System Operator and shall
be commensurate with the size of Generating Plants being restarted.
5.7.4.4 All other restoration procedures from Total System Blackout or Partial
System Shutdown shall conform to the provisions of Chapter 6 (Scheduling,
Dispatch and Control) of the Philippine Grid Code.
5.7.5 Resynchronization of Power Islands
5.7.5.1 The overall strategy of recovery shall be to re-establish stable Electrical
Power Islands and to resynchronize these islands progressively. Embedded
Generating Plants within the Distribution Systems shall follow the
Distributor’s directives.
5.7.5.2 Where there are no Generating Plants with Black Start Capability within
the Distribution System, the restoration of supply may be substantially
58 September 2001
delayed while the System Operator re-establishes the Grid from one or more
restored islands.
5.7.5.3 The Distributor shall establish its priorities in these situations and restore
supplies in accordance with such priorities.
5.8 DISTRIBUTION MAINTENANCE PROGRAM

5.8.1 Maintenance Scheduling Procedures
5.8.1.1 The Maintenance Program involves the matching of generation output
with forecast System Demand by the System Operator through various
timescales to provide a margin, taking into account the Maintenance Schedule
of Generating Units, Grid and Distribution System facilities (including
subtransmission).
5.8.1.2 The coordination of the maintenance schedule of Generating Units,
Transmission Lines or Equipment and Distribution Lines or Equipment for
repair and maintenance shall be done in accordance with the provisions of this
Article.
5.8.1.3 In this Article, the term “User” shall include Embedded Generator not
subject to Central Dispatch.
5.8.1.4 Users shall provide data to the Distributor for the development of
Maintenance Program to allow the Distributor to comply with the
requirements of Philippine Grid Code.
5.8.1.5 The Distributor and the concerned User for each location where either an
operational interface or joint responsibilities exist shall jointly agree schedules
specifying the responsibilities for Operation and maintenance.
5.8.1.6 For those Users with firm supply connections (provided by more than one
circuit) and where said Users so request the Distributor, these schedules shall
indicate those specified Distributor circuits on which there are planned
maintenance work. These specified circuits shall be those where the
Distributor and the User have agreed that during maintenance, the User can
introduce measures to manage critical processes or safety aspects. Said
circuits shall usually operate at the voltage level at which the supply is
provided and shall have a significant effect on the security level of the User’s
supply.
5.8.1.7 Those Users without firm supply connections (provided by more than one
circuit) may seek to obtain maintenance-planning information through
arrangements with the Distributors.
5.8.1.8 Detailed implementation of data gathering and timescales shall be agreed
locally between the Distributor and each of the Users. Due recognition shall
be given by the Distributor to voltage levels and capacities of Plant and Line/
Equipment when assessing information requirements.
September 2001 59
5.8.1.9 All schedules and diagrams shall be maintained by the Distributors and
concerned Users and exchanged as necessary to ensure they reflect the current
agreements and network configuration.
5.8.1.10 In the Maintenance Programs, Year 0 means the current calendar year,
Year 1 means the next calendar year, Year 2 means the calendar year after
Year 1 and so on.
5.8.1.11 The Distributor shall prepare the following Maintenance Programs:
(a) Five-Year Maintenance Program;
(b) Three-Year Maintenance Program;
(c) Annual Maintenance Program;
(d) Monthly Maintenance Program;
(e) Weekly Maintenance Program; and
(f) Daily Maintenance Program.
5.8.1.12 The expected duration of the Maintenance in the Annual, Monthly,
Weekly and Daily Maintenance Programs should consider, if appropriate, the
original agreed duration as shown in the Three-Year Maintenance Program.
5.8.1.13 The Embedded Generating Plant (not subject to Central Dispatch) and
other Users shall specify the following maintenance scheduling information:
(a) The identification of the Users’ Generating Unit, lines, and Equipment;
(b) The kW capacity involved;
(c) The reasons for the Maintenance, whether for statutory, for insurance
inspection, or for other reasons;
(d) The date by which the work shall be completed;
(e) The expected duration of the Maintenance work, in days and weeks;
(f) The preferred start date for the Maintenance work; and
(g) Where there is a possibility of flexibility in the dates, the earliest start date
and the latest completion date.
5.8.1.14 Where information is to be submitted in accordance with this Article on
a particular day and that day is not a Working Day, the information shall be
submitted on the last Working Day before the due day.
5.8.1.15 While the Distributor shall endeavor to accommodate the Users’
requests for Maintenance at particular dates, considerations of Distribution
System reliability and economics may result to the disapproval of the request.
5.8.1.16 Once the User and the System Operator agrees on the schedule of
maintenance, then the schedule shall be final and binding.
5.8.1.17 Information relating to Embedded Generating Plant shall be provided
where specified, directly to the Distributor. This may include Customer Self
Generating Plants where the Distributor considers it appropriate. The
information provided by Users to the Distributor shall be treated as
60 September 2001
confidential. This information may only be released with a written consent of

the involved Generator.
5.8.1.18 Information relating to all Plants and lines/Equipment connected to the
Distribution System or that which may affect its Operation, shall be
coordinated with the Distributor.
5.8.2 Five-Year Maintenance Program
5.8.2.1 Each year the Distributor shall prepare a Long-Term program to be used
by the System Operator in the Five-Year Statement covering five years ahead
which include those Distribution System Maintenance Schedule, Embedded
Generation Maintenance Schedule not subject to Central Dispatch, which may
affect the performance of the Total System.
5.8.2.2 In Week 1 of the current year, each User shall prepare a provisional
Maintenance Program for Years 1 to 5, providing the data specified in
Subsection 5.8.1.13. Information for Years 1 to 2 shall be used for the Annual
Operating Program while information for Years 3 to 5 shall be used for the
Three-Year Operating Program and Five-Year Statement.
5.8.2.3 Between Week 1 of each Year and the end of Week 11 of the calendar
year, the Distributor shall:
(a) Prepare a draft Five-Year Maintenance Program for years 1 to 5, taking
into account the following:
(1) The forecast Demand as established in the Demand Forecast of the
Power Development Program;
(2) The Maintenance Program prepared during the previous year for years
2 and 3;
(3) All requests by Users for changes in their maintenance schedules;
(4) The requirements for Distribution System Maintenance;
(5) The need to minimize, as far as practicable, the total costs to the
Distribution System of the required Maintenance; and
(6) Other factors, which the Distributor believes are relevant.
(b) Provide each User, in writing, and with respect to each of its Generating
Units, lines, or Equipment for which Maintenance was requested, with the
dates when the proposed Maintenance shall start and end.
5.8.2.4 Where a User is not satisfied with the Five-Year Maintenance Program
allocated to any of its Generating Units, lines, or Equipment, it may contact
the Distributor, in writing not later than the end of Week 15 of the calendar
year, to explain its concern. The Distributor and the User shall discuss the
User’s concerns and seek to resolve the problem. Where the Distributor
determines that the change requested by the User does not threaten the
Distribution System security or cause Material Effect or Operational Effect to
the System, the Distributor shall agree to the change. If the possible resolution
of the problem requires the involvement of other Users, the Distributor may
call a meeting of the Users involved to discuss available options.
September 2001 61
5.8.2.5 By the end of Week 25 of the calendar year, each User shall submit to the
Distributor an updated provisional Five-Year Maintenance Program, in the
same form and covering the same information as that submitted under
Subsection 5.8.2.2. The submission shall take into account any revision to that
Generator’s Maintenance requirements and any revision to the Maintenance
Program agreed under Section 5.8.2.4.
5.8.2.6 By the end of Week 31 of the calendar year, the Distributor shall:
(a) Revise the draft Five-Year Maintenance Program for Years 1 to 3, taking
into account:
(1) The Maintenance Program produced under Section 5.8.2.2;
(2) Any changes to the Maintenance Program agreed under Subsection
5.8.2.4;
(3) The requirements for Distribution Maintenance;
(4) The need to minimize, as far as practicable, the total costs of the
requested Maintenance to Distribution Users; and
(5) Any other factors which the Distributor believes are relevant; and
(b) Provide each User, in writing, their approved Five-Year Maintenance
Program, which shall remain confidential.
5.8.2.7 Where a User is not satisfied with the Maintenance Program allocated to
any of its Generating Units, lines, or Equipment, it may contact the
Distributor, in writing and not later than the end of Week 35 of the calendar
year, to explain its concern. The Distributor and the User shall discuss the
User’s concerns and seek to resolve the problem. Where the Distributor
determines that the change requested by the User does not threaten the
Distribution System security or cause Material Effect or Operational Effect to
the System, the Distributor shall agree to the change. If the possible resolution
of the problem requires the involvement of other Users, the Distributor may
call a meeting of the Users involved to discuss available options.
5.8.2.8 By the end of Week 42 of the calendar year, the Distributor, following
consultation with Users shall:
(a) Produce a final version of the Five-Year Maintenance Program, based
upon the revised draft Maintenance Program under Subsection 5.8.2.6 and
incorporating any new changes agreed upon; and
(b) Provide each User, in writing, and with respect to each of its Generating
Units, lines, or Equipment for which a Maintenance schedule was
requested under Subsection 5.8.2.6, with the dates when the proposed
Maintenance shall start and end.
5.8.3 Three-Year Maintenance Program
5.8.3.1 Users shall provide the Distributor with information in accordance with
Section 5.8.2.
62 September 2001
5.8.3.2 The Three-Year Maintenance Program shall be used in the Annual

Operating Program of the System Operator. The availability of Embedded
Generating Plant not subject to Central Dispatch shall be updated.
5.8.4 Annual Maintenance Program
5.8.4.1 By the end of Week 44, the Distributor shall produce and issue the
Annual Maintenance Program based on the schedule prepared for calendar
year 1 of the Three-Year Maintenance program in accordance with Subsection
5.8.2.8.
5.8.4.2 The Distributor shall take account of such review and discussions and any
additional maintenance schedule and the details of each proposed maintenance
work as listed below shall be notified at this stage by the appropriate party:
(a) Time of return-to-service of circuits, Plants and lines/Equipment (if
different from program),
(b) Specific Plant and lines/Equipment to be worked upon, and
(c) Any other information that may be reasonably specified by the Distributor
from time to time.
5.8.4.3 With respect to Maintenance in calendar Year 0 which is either included
in the Three-Year Maintenance Program or for which some parameters have
changed, each User shall promptly inform the Distributor, in writing, with the
details for each of its Generating Units, lines, or Equipment concerned as
specified in Subsection 5.8.1.13.
5.8.4.4 Users shall provide the Distributor with information in accordance with
Subsection 5.8.5.1.
5.8.5 Monthly Maintenance Program
5.8.5.1 With respect to the Annual Maintenance Program which are either not
included in the Three-Year Maintenance Program or for which a request for
Maintenance has been made under Subsection 5.8.4.3, each User shall, by the
end of Week 1 of each month provide the Distributor, in writing, with the
details for the next three complete months and for each of its Generating Units
or lines/equipment for which Maintenance is required as specified in
Subsection 5.8.1.13.
5.8.5.2 During Week 2 of each month of calendar Year 0, the Distributor shall
examine the Maintenance Program for the next three months and revise it as
necessary, taking into account:
(a) The Three-Year Maintenance Program for the relevant month of calendar
Year 0;
(b) Any revision to the Demand Forecast for the relevant month as produced
in accordance with Article 4.4;
(c) Any requests for either new Maintenance or revisions to the Maintenance
Program made by the Users under Subsections 5.8.4.3 and 5.8.5.1; and
(d) The requirements for Distribution System Maintenance;
September 2001 63
(e) The need to minimize, as far as practicable, the total costs to the
Distribution System of the required maintenance; and
(f) Any other factors which the Distributor determines are relevant.
5.8.5.3 During Week 3 of each month, the Distributor shall provide each User, in
writing and with respect to each of its Generating Units or lines/Equipment for
which maintenance work was requested with the dates when the proposed
maintenance work will start and end.
5.8.5.4 When a User is not satisfied with the Maintenance Program allocated to
any of its Generating Units or lines/Equipment, it may contact the Distributor
to explain its concern. Distributor and the User shall discuss the User’s
concerns and seek to resolve the problem. Where, in the Distributor’s opinion,
the change requested by the User does not threaten the security of the
Distribution System or cause Material Effect or Operational Effect to the
System, the Distributor shall agree to the change. If the possible resolution of
the problem requires the involvement of other Users, the Distributor may call
a meeting of the Users involved.
5.8.5.5 By the end of Week 4 of each month, the Distributor shall:
(a) Provide each User, in writing and with respect to each of its Generating
Units or lines/ Equipment for which a maintenance work was requested
with the dates when the proposed maintenance work will start and end;
and
(b) Following consultations with Users, will include these maintenance
proposals in the Monthly Maintenance Program.
5.8.6 Weekly Maintenance Program
5.8.6.1 The Weekly Maintenance Program shall form the basis of the weekly
program to be used in the Weekly Operating Program of the System Operator.
A rolling suggested program for the following week and subsequent one-week
period shall be prepared by the Distributor.
5.8.6.2 The Distributor shall update the program each week and take into account
any additional or varied maintenance.
5.8.6.3 The Distributor shall be immediately notified of any decision to depart
from the Maintenance Schedule and actions determined during this phase. The
Distributor shall inform other affected parties subject to the submission
deadlines in accordance with Subsection 5.8.6.4.
5.8.6.4 For Maintenance included in the Monthly Maintenance Program and for
which dates have been agreed under Subsection 5.8.5.5 or for which a new
request for maintenance has been made, each User shall, by 1600 hour each
Wednesday, provide the Distributor, in writing, with the details for the next
two complete calendar weeks and for each of its Generating Units, lines, or
Equipment for which Maintenance is required as specified in Subsection
5.12.1.10.
64 September 2001
5.8.6.5 Between 1600 hour of Wednesday and 1600 hour of Friday or the last
working day of the week, Distributor shall examine the Maintenance Program
for the next two weeks and revise it as necessary taking into account the
following:
(a) The Monthly Maintenance Program for the relevant week;
(b) Any revision to the Demand Forecast for the relevant week as established
in Article 4.4;
(c) An estimate of the present capacity available from the User’s System and
an assessment of this capacity which may become unavailable for
unplanned reasons;
(d) The requirements for Distribution System maintenance;
Distribution System of the required maintenance work; and
(f) Other factors, which in the Distributor’s opinion, are relevant.
Distribution System or cause Material effect or Operational Effect to the
a meeting of the Users involved or else the requested maintenance work is
deferred to the most opportune time.
5.8.6.7 By 1600 hour of each Friday or the last working day of the week, the
Distributor shall:
and
proposals in the final version of the Weekly Maintenance Program.
5.8.7 Daily Maintenance Program
5.8.7.1 The Weekly Maintenance Program shall form the basis of the Daily
Maintenance Program (to be used in the Daily Generation Schedule of the
System Operator).
5.8.7.2 The Distributor shall update the program each day and take into account
any additional or varied maintenance.
5.8.7.3 The Distributor shall be immediately notified of any decision to depart
from the maintenance schedule and actions planned during this phase. The
Distributor shall inform other affected parties, subject to submission
deadlines.
September 2001 65
5.8.7.4 The Distributor shall obtain Scheduling information from Generators for
other Embedded Generating Plant not subject to Central Dispatch where it
considers appropriate in accordance with Subsection 5.9.7.5.
5.8.7.5 For Maintenance that are included in the Weekly Maintenance Program
and for which dates have been agreed upon under Subsection 5.8.6.7 or for
which a new request for Maintenance has been made, each User shall, on or
before 0900 hour of each day, provide the Distributor, in writing, with the
details for the next day and for each of its Generating Units or lines/equipment
requiring Maintenance as specified in Subsection 5.8.1.13.
5.8.7.6 Between 0900 hour and 1600 hour of each day, the Distributor shall
examine the Maintenance Program for the next 24 hours and revise it as
necessary, taking into account:
(a) The Weekly Maintenance Program for the relevant day;
(b) Any revision to the Demand Forecast for the relevant week as produced in
accordance with Article 4.4;
(c) An estimate of the present capacity available from the User’s System and
an assessment of this capacity which may become unavailable for
unplanned reasons;
(d) The requirements for Distribution System Maintenance;
Distribution System of the required maintenance work; and
(f) Other factors, which in the Distributor’s opinion, are relevant.
Distribution System or cause Material effect or Operational Effect to the
a meeting of the Users involved or else the requested maintenance work is
deferred to the most opportune time.
5.8.7.8 By 1700 hour of each day, the Distributor shall:
and
proposals in the Daily Maintenance Program.
66 September 2001
5.9 SAFETY COORDINATION

5.9.1 Safety Management Systems
A Safety Management System shall be established by the Distributor and Users which
specifies the principles and procedures and, where appropriate, the documentation to
be applied to ensure the health and safety of those who will be working on the
5.9.2 Operational Boundary
At sites or locations where an Operational Boundary exists, the Distributor and Users
shall jointly agree on the adoption of a Safety Management System. This shall include
the provision of personnel who shall operate the System Equipment involved.
5.9.3 Safety Coordinator
5.9.3.1 Distributors and Users shall nominate a person or persons who shall be
responsible for the coordination of Safety Precautions at each Connection
Point when work is to be carried out on a System on which safety from the
system is required.
5.9.3.2 Each User shall, prior to being connected to the Distribution System, give
notice in writing to the Distributor the identity of its representative(s) and
shall update whenever there is a change in its representative(s).
5.9.3.3 Distributors shall, at the time that User is connected to the Distribution
System, give notice in writing to that User of the identity of its
representative(s) and shall update whenever there is a change in its
representative(s).
5.9.4 Safety Precautions Document
5.9.4.1 The Distributors and Users shall maintain a suitable system of
documentation which records all relevant operational events that have taken
place on the Distribution System or any other System connected to it and the
coordination of relevant safety precautions for work.
5.9.4.2 All documentation relevant to the Operation of the Distribution System
and safety precautions taken for work or test, shall be held by the Distributors
and the concerned Users for a period of not less than one year.
5.9.4.3 System Diagrams illustrating sufficient information for control personnel
to carry out their duties shall be exchanged by the Distributors and the
concerned User.
5.10 DISTRIBUTION TESTING AND MONITORING

5.10.1 Testing and Monitoring Procedures
5.10.1.1 The Distributors shall from time to time determine the need to test
and/or monitor the quality of supply at various points on its Distribution
System.
September 2001 67
5.10.1.2 The requirement for specific testing and/or monitoring by a Distributor

shall be initiated by the receipt of complaints as to the quality of supply on
that Distribution System.
5.10.1.3 In certain situations, the Distributor may require the testing and/or
monitoring to take place at the Connection Point of a User to be witnessed by
a User representative.
5.10.1.4 Where testing and/or monitoring is required at the Connection Point, the
Distributors shall advise the User involved and shall make available the
results of such tests to the User.
5.10.1.5 Where the results of such tests show that the User is operating outside
the technical parameters specified in Sections 3.3.5 , 3.3.6 and 3.3.7, the
User shall be informed accordingly.
5.10.1.6 Where the User requests, a retest shall be carried out at the expense of
the User.
5.10.1.7 A User shown to cause the Distribution System to operate outside the
limits specified in Section 3.3.5 shall rectify the situation within a reasonable
period of time as agreed upon with the Distributor.
5.10.1.8 Continued failure to rectify the situation may result in disconnection
from the Distribution System in accordance with the Connection Agreement
either for breach of the Distribution Code or by the authority of the
appropriate regulatory body.
5.10.2 Monitoring of User Effect on the Distribution System
5.10.2.1 The Distributors, from time to time, shall monitor the effect of the User
on the Distribution System.
5.10.2.2 The monitoring shall normally be related to the amount of Active Power
and Reactive Power transferred across the Connection Point.
5.10.2.3 Where the User is exporting to or importing from the Distribution
System Active Power and/or Reactive Power in excess of the parameters in
the Connection Agreement, the Distributors shall inform the User and, where
appropriate, demonstrate the results of such monitoring.
5.10.2.4 The User may request technical information on the method of
monitoring and, if necessary, request another method acceptable to the
Distributors.
5.10.2.5 Where the User is operating outside the parameters as specified under
Chapters 3 and 4, the User shall immediately restrict the Active Power and/or
Reactive Power transfers to within the specified parameters.
5.10.2.6 Where a User’s demand is in excess of the physical capacity of the
Connection Point, the User shall restrict power transfers to those specified in
the Connection Agreement. That restriction shall continue until a modified
Connection Agreement has been requested from the Distributor and the
68 September 2001
necessary changes in the physical capacity of the Connection Point is

established.
5.11 SYSTEM TESTS

5.11.1 System Test Requirements and Procedures
5.11.1.1 System Tests which may have an effect on the Distribution System or
User System shall be arranged and carried out in accordance with the
responsibilities and procedures established in this Article.
5.11.1.2 System Tests shall involve either simulated or the controlled application
of irregular, unusual or extreme conditions on the Total System or any part of
the Total System. It shall not include commissioning or recommissioning test
or any other tests of a minor nature.
5.11.1.3 System Tests, which may have minimal effect on the Distribution
System or User Systems, shall not be subject to this procedure; minimal effect
means variations in voltage and frequency of a value not greater than the
limits defined in Chapter 3.
5.11.1.4 If the System Test proposed by the Distributor or a User connected to
the Distribution System may have an effect on the Grid, the provisions of this
Article and the Philippine Grid Code shall apply and the test proposal shall be
submitted to the System Operator for review and approval.
5.11.2 System Test Request
5.11.2.1 A Distributor or User who intends to undertake a System Test shall
submit a Test Request to the Distributor and to those Users who may be
affected by the proposed System Test.
5.11.2.2 The Test Request shall be in writing and shall contain details of the
nature and purpose of the proposed System Test and shall indicate the extent
and condition of the Plant or Equipment involved.
5.11.2.3 If the information contained in the Test Request is considered
insufficient by the recipient, it shall contact the Test Proponent with a written
request for further information which shall be supplied as soon as practicable.
The Distributor shall not be required to do anything under this Article until it
is satisfied with the details supplied in the Test Request or pursuant to a
request for further information.
5.11.2.4 If the Distributor wishes to undertake a System Test, the Distributor
shall be deemed to have received a proposal for that System Test.
5.11.3 System Test Coordinator
5.11.3.1 The Distributor shall have overall coordination responsibility of the
System Test. Using the information supplied to it under this Article, the
Distributor shall identify which Users other than the Test Proponent, may be
affected by the proposed System Test.
September 2001 69
5.11.3.2 A Test Coordinator shall be appointed by the Distributor with the

concurrence of the Users which may be affected. He shall act as Chairman of
the Test Group referred to in Section 5.11.4.
5.11.3.3 The Test Coordinator shall furnish all Users identified under Subsection
5.11.3.1 a written preliminary notice of the proposed System Test. The
preliminary notice shall contain:
(a) The Test Coordinator’s name and company;
(b) The details of the nature and purpose of the proposed System Test, the
extent and condition of the Plant or Equipment involved and the affected
Users; and
(c) An invitation to each User to nominate within one month a qualified
representative to be a member of the Test Group for the proposed System
Test.
5.11.3.4 The preliminary notices will be sent within one month of the receipt of
the Test Request or the receipt of any further information requested under
Section 5.11.1.4.
5.11.3.5 As soon as possible after the expiry of that one-month period, all
concerned Users and the Test Proponent will be notified by the Test
Coordinator of the composition of the Test Group.
5.11.4 System Test Group
5.11.4.1 A meeting of the Test Group shall take place as soon as possible after
the affected Users and the Test Proponent have been notified of the
composition of the Test Group and, in any event, within one month of the
appointment of the Test Group.
5.11.4.2 The Test Group shall consider:
(a) The details of the nature and purpose of the proposed System Test and
other matters set out in the Test Request (together with any further
information requested in Section 5.11.1.4);
(b) The economic, operational and risk implications of the proposed System
Test;
(c) The possibility of combining the proposed System Test with any other
tests and with Plant and/or Equipment maintenance work which arise
pursuant to the Maintenance Program requirements of the Distributors, the
System Operator and Users; and
(d) Implications of the proposed System Test on the Scheduling and Dispatch
of Generating Plant.
5.11.4.3 Concerned Users and the Distributor (whether or not they are
represented in the Test Group) shall be obliged to supply that Test Group
upon written request with such details as the Test Group requires in the
proposed System Test.
70 September 2001
5.11.4.4 The Test Group shall be convened by the Test Coordinator as often as he
deems necessary to conduct its business.
5.11.5 System Test Program
5.11.5.1 Within two months after the first meeting, the Test Group shall submit a
Test Proposal, which shall contain:
(a) Plan for carrying out the System Test (including the manner in which the
System Test is to be monitored);
(b) Test Procedure to be followed during the test;
(1) Switching sequence; and
(2) Timings.
(c) An allocation of costs (including unanticipated costs) among the affected
parties; and
(d) Such other matters as the Test Group considers appropriate and approved
by management of the affected parties.
All System Test procedures shall comply with all applicable legislation.
5.11.5.2 If the Test Group is unable to agree unanimously on any decision in
preparing its Test Proposal, the proposed System Test shall not take place and
the Test Group shall be dissolved. However, if in the Distributor’s assessment
the Test is necessary to assure the Distribution System’s reliability, the
Distributor shall be given authority to proceed with the Test.
5.11.5.3 The Test Proposal shall be submitted to all those who received a
preliminary notice in Section 5.11.3.
5.11.5.4 Within fourteen days after receipt of the Test Proposal, each recipient
shall respond to the Test Coordinator with its approval or its reason for the
nonapproval of the Test Proposal.
5.11.5.5 In the event of nonapproval by one or more recipients, the Test Group
shall, as soon as practicable, meet in order to determine whether the proposed
System Test can be modified to meet the objection(s).
5.11.5.6 If the proposed System Test can be so modified, the Test Group shall as
soon as practicable and, in any event, within one month of meeting to discuss
the responses to the Test Proposal, submit a revised Test Proposal in
accordance with the provision of Subsections 5.11.5.4 and 5.11.5.5.
5.11.5.7 If the Test Proposal (or the revised version) is approved by all recipients,
at least one month prior to the date of the proposed System Test, the Test
Group shall submit a System Test Program to the Distributor and all recipients
of the Test Proposal. It shall contain a list of the staff involved in carrying out
the System Test, including those responsible for site safety and such other
matters as the Test Group deems appropriate.
5.11.5.8 The program shall bind all recipients to act in accordance with the
provisions contained therein in relation to the proposed System Test.
September 2001 71
5.11.5.9 The Test Coordinator shall be notified in writing as soon as possible of

any problems with the proposed System Test which arise or are anticipated
after the issue of the program and prior to the day of the proposed System
Test. If the Test Coordinator decides that these anticipated problems merit an
amendment to or postponement of the System Test, he shall notify all parties
involved in the proposed System Test accordingly.
5.11.5.10 If on the day of the proposed System Test, any party involved in the
proposed System Test wishes to delay or cancel the System Test, it shall
immediately inform the Test Coordinator of this decision and the reasons for
it. The Test Coordinator shall then postpone or cancel the System Test and
shall, if necessary, agree with all parties involved in the proposed System Test
on another suitable time and date. If agreement cannot be reached, the Test
Coordinator shall reconvene the Test Group as soon as practicable to arrange
for another suitable time and date.
5.11.6 System Test Report
5.11.6.1 At the conclusion of the System Test, the Test Proponent shall be
responsible for preparing a written report of the System Test for submission to
other members of the Test Group.
5.11.6.2 The final report shall include a description of the Plant and/or
Equipment, tested and of the System Test carried out, together with the
results, conclusions and recommendations.
5.11.6.3 The final report shall not be distributed to any party which is not
represented on the Test Group unless the Test Group, having considered the
confidentiality issues, unanimously approved such distribution.
5.11.6.4 When the final report has been submitted, the Test Group shall be
dissolved.
5.12 EQUIPMENT IDENTIFICATION

5.12.1 Responsibilities and Procedures
5.12.1.1 Owners and Operators of power facilities shall be informed of the
identification of Equipment at Ownership Boundaries according to the
responsibilities and procedures established in this Article.
5.12.1.2 The identification of Equipment shall be included in the Electrical
Diagram prepared for each site having an Ownership Boundary.
5.12.2 Identification of New Equipment
5.12.2.1 Proposed numbering and/or nomenclature to be adopted for any new
Equipment to be installed by the Distributor or a User at a site having an
Ownership Boundary shall be notified to the concerned owners/operators.
5.12.2.2 The notification shall be made in writing to the concerned
owners/operators and shall include Electrical Diagrams of new Equipment
with proposed numbering and/or nomenclature.
72 September 2001
5.12.2.3 The notification shall be made to the concerned owners/operators at least

six (6) months prior to the installation of proposed Equipment.
5.12.2.4 The owners/operators shall respond in writing within one (1) month
from receipt of notification in order to confirm:
(a) Receipt of notification;
(b) Whether proposed numbering and/or nomenclature is acceptable or not;
and
(c) What would be acceptable (if proposal is unacceptable or needs
modification).
5.12.2.5 If an agreement cannot be reached between the Distributor and the
owners/operators, the Distributor shall have the right to determine the
numbering and nomenclature to be applied at site considered.
5.12.3 Identification of Existing Equipment
5.12.3.1 The Distributor and all Users of the Distribution System shall coordinate
with each other regarding the details of numbering and/or nomenclature of
Equipment at sites with Ownership Boundary. Such details shall be clear and
unambiguous.
5.12.3.2 Installation at a site having Ownership Boundary shall be the
responsibility of the Distributor and all Users concerned.
5.12.4 Changes in Identification of Equipment
5.12.4.1 For any proposed changes to existing numbering and/or nomenclature,
the provisions of Section 5.12.1 shall apply.
5.12.4.2 A proponent (Distributor or Users) of numbering and/or nomenclature
change, whose proposal has been accepted by all parties concerned, shall be
responsible for the installation of clear and unambiguous labeling as per
agreed change.
September 2001 73
74 September 2001
CHAPTER 6
DISTRIBUTION REVENUE METERING REQUIREMENTS

6.1.1 Purpose
(a) To establish the requirements for metering the Active and Reactive Energy
and Demand input to and/or output from the Distribution System;
(b) To ensure appropriate procedures for providing metering data for billing and
settlement; and
(c) To ensure that settlement dispute processes are established and maintained to
quickly and satisfactorily resolve any billing and payment disputes.
6.1.2 Scope
This Chapter applies to all Distribution System Participants including:
(a) Distributors;
(e) Other Users receiving unbundled services.
6.1.3 Exemptions
Users receiving bundled service from the Distributor are exempt from provisions
required of Users receiving unbundled services. Those exemptions are noted in the
relevant sections.
6.2 UNBUNDLED SERVICE PROVISIONS

6.2.1 Electricity Service From Supplier
The Act allows end-use consumers belonging to the contestable market to obtain
power from independent suppliers authorized by the ERC. The independent power
suppliers may be a member of the WESM, another distributor or an embedded
generator.
6.2.2 Procedure for Collection of Metering Data, Billing and Settlement
If the supplier is a member of the WESM, the distributor shall take delivery of any
such power services at its connection point(s) with the grid and deliver those services
to the end-use consumers (user of the distribution network). The distributor shall
develop procedure for collection of metering data, billing and settlement consistent
with the market rules of the WESM. This procedure shall apply even if the
Distribution Revenue Metering Requirements Philippine Distribution Code
independent power supplier is an embedded generator in order to streamline the

billing process and reduce administrative burden.
6.3 METERING REQUIREMENTS

6.3.1 Metering Equipment
The metering equipment at Connection Points consists of:
(a) Revenue Meters;
(b) Instrument Transformers, as may be applicable;
(c) All interconnecting cables, wires and associated devices and protection, i.e.,
test blocks, loading resistors, meter cubicle, security seals, etc.; and
(d) Optional Integrating Pulse Recorder(s), time source and backup battery.
6.3.2 Metering Responsibility
6.3.2.1 The Distributors shall be responsible for the design, installation, operation
and maintenance of the metering systems and component parts to ensure the
integrity and accuracy of the metering systems.
6.3.2.2 The supply and installation of the metering equipment shall be agreed
upon by both parties concerned in the connection agreement. The Distributor
shall ensure that the metering equipment is provided, installed, operated,
maintained and tested in accordance with this Chapter. The Distributor and
User shall also ensure that the requirements of this Chapter regarding access
to metering equipment by other authorized parties are complied with.
6.3.3 Active Energy and Demand Metering
6.3.3.1 Metering shall be required at any Connection Point where Active Energy
and Demand input to and/or output from the Distribution System by any User
have to be measured.
6.3.3.2 The meter pulses may be required to be made available to allow separate
recording of the input and/or output Active Energy and Active Power at each
Connection Point.
6.3.3.3 Active and Reactive Energy and Demand metering shall be provided for
each User at each Connection Point and shall be accessible for inspection and
reading. If the metering cannot be installed at Connection Point due to the
Distribution System design construction or for other reasons, metering shall
be installed as close as possible to the Connection Point. In this case, a
procedure shall be established to account for the energy loss between the
connection point and point of metering.
6.3.4 Reactive Energy and Demand Metering
6.3.4.1 This is a requirement at all Connection Points in which an input and/or
output connection agreement exists between Distributor and any User wherein
the User has an input and/or output Reactive Energy and Reactive Power. It is
also a requirement for any User receiving unbundled services.
76 September 2001
Philippine Distribution Code Distribution Revenue Metering Requirements
6.3.4.2 The Reactive Energy and Demand metering shall be provided to measure
the input and/or output from the Distribution System. It shall measure all
quadrants in which Reactive Power flow is possible.
6.3.4.3 The meter pulses may be made available to allow separate recording of
the input and/or output Reactive Energy and Demand at each Connection
Point.
6.3.5 Integrating Pulse Meters
6.3.5.1 Integrating Pulse Meters shall be provided at every Connection Point to
record active and reactive integrated demand data for use in billing and
settlement for unbundled energy services. This requirement can be considered
as a preferred option for bundled services.
6.3.5.2 All Integrating Pulse Meters at Connection Points receiving unbundled
energy services shall be capable of electronic downloading of stored data or
manual on-site interrogation of data by the Distributor.
6.3.5.3 All Integrating Pulse Meters shall have fail safe storage for at least two
months of integrated demand data and must be capable of retaining readings
and time of day at least two days without an external power source.
6.4 METERING EQUIPMENT STANDARDS

6.4.1 Voltage Transformers
All Voltage Transformers shall comply with the acceptable international standards,
IEC, or its equivalent national standards for metering and shall have 0.3 accuracy
class or better. The burden in each phase of the Voltage Transformer shall not exceed
the specified burden of the said Voltage Transformer. It shall be connected only to a
revenue meter with a burden that will not affect the accuracy of measurement.
6.4.2 Current Transformers
All Current Transformers shall comply with the acceptable international standards,
IEC, or its equivalent national standards for metering and shall have a 0.3 accuracy
class or better. The burden in each phase of the Current Transformer shall not exceed
the specified burden of the said Current Transformer. It shall be connected only to a
revenue meter with a burden that will not affect the accuracy of measurement.
6.4.3 Meters
6.4.3.1 Meter shall conform to the type of circuit of the Distribution System
where it is connected. The meters shall measure and locally display the kW,
kWh, kVAr, kVArh and cumulative demand with the optional features of
time-of-use, maintenance records and pulse output.
6.4.3.2 A cumulative record of the parameters measured shall be available on the
meter. Bidirectional meters shall have two such records available. If combined
Active and Reactive Energy meters are provided, then a separate record shall
be provided for each measured quantity and direction. For electronic meters,
the loss of auxiliary supply shall not erase these records.
September 2001 77
6.4.3.3 Required for unbundled services and optional for bundled services, pulse
output shall be provided for each measured quantity. The pulse output shall be
from a three-wire terminal with pulse duration of the range 40–80
milliseconds (preferably selectable) and with selective pulse frequency or rate.
Pulse output shall be galvanically isolated from the voltage and current
transformers being measured and from the auxiliary supply input terminals.
6.4.4 Integrating Pulse Recorders Required for Unbundled Service
6.4.4.1 Integrating Pulse Recorders required for unbundled service shall be
capable of recording integrated demand periods adjustable between 15
minutes and 60 minutes.
6.4.4.2 Each such recorder shall be capable of electronic data transfer through
dedicated telephone lines or the Distributor’s communication channels or
manual on-site interrogation of stored data.
6.4.4.3 The integrating pulse recorders shall provide a record for reference at a
future time. The record shall be suitable for reference for a period of one year
after it was generated. The integrating pulse recorder shall be regularly
interrogated and the record be maintained at the recorder for two (2) complete
billing periods between one (1) interrogation or 60 days, whichever is longer.
6.4.4.4 The time reference used with the demand recorder shall ensure that the
demand period accuracy of this integrating pulse recorder is with a time error
of no more than ±1 second.
6.4.4.5 All revenue metering installations shall record time based on Philippine
standard time.
6.4.4.6 The start of each demand period shall be within ± 30 seconds of standard
time.
6.4.4.7 Reprogramming of integrating pulse recorders shall be done as soon as
possible within one billing cycle if there is a time error.
6.4.4.8 The pulse from two or more meters may be combined into one integrating
Pulse Recorder provided all the requirements of this Chapter are met.
6.4.5 Other Accessories
6.4.5.1 The metering equipment shall be placed in a cubicle and shall be secured
with seals and lock to prevent unauthorized interference with a provision for
the register to be visible and accessible for monitoring.
6.4.5.2 All wiring from the Instrument Transformers’ secondary terminal box to
the metering equipment cubicle shall be placed in a rigid conduit.
6.4.5.3 The ERC (or the party authorized by ERC) in the presence of the legal
and authorized representatives of the Distributor and the User shall seal
meters and its accessories. All seals placed or removed on metering systems
shall be recorded and the record signed by both parties and the ERC
representative.
78 September 2001
6.5 METERING EQUIPMENT TESTING AND MAINTENANCE

6.5.1 Instrument Transformer Testing
Test on the Instrument Transformers shall be conducted by the authorized
representatives of the Distributor in the presence of the User’s authorized
representative during the commissioning stage and as the need arises due to questions
on accuracy. The tests shall be carried out in accordance with the practices of the
Distributor or an agreed equivalent international standard or guidelines set out by the
authorized regulatory body.
6.5.2 Meter Testing and Calibration
Tests and calibrations of meters shall be conducted by the ERC (or its authorized
representative) in the presence of the authorized representatives of the Distributor and
the User during the commissioning stage and as the need arises. If both parties can
not agree on the accuracy of the meter, the ERC shall act as arbiter.
6.5.3 Maintenance of Metering Equipment
The Distributor shall maintain all metering equipment. Distributor shall keep all test
results, maintenance programs and sealing records. The equipment data and test
records shall be furnished by the Distributor to the User upon request.
6.6 METER READING AND METERING DATA

6.6.1 Meter Reading and Recording Responsibility
6.6.1.1 Meter reading and recording shall be done by the authorized
representatives of the Distributor and witnessed by authorized representatives
of the User on the date stipulated in a separate agreement.
6.6.1.2 The Distributor shall provide the Grid and Market Operators all metering
data necessary to support operations of the WESM.
6.6.2 Running Totals of Metered Energy
6.6.2.1 Running totals of the energy and demand shall be available for each
measured quantity. Combined meters which measure both the Active Energy
and Power input to and output from the Distribution System shall have the
running totals available for each measured quantity and each direction.
6.6.2.2 At input/output connections, the Reactive Energy and Power metering
shall provide the running totals for each measured quantity. Combined meters
which measure both the Reactive Energy and Power input to and output from
the Distribution System shall have the running totals available for each
measured quantity, each direction and each quadrant or combination of
quadrants.
September 2001 79
6.6.3 Collection, Processing and Access to Metering Data

6.6.3.1 Collection and processing of metering data for bundled energy services
shall follow the billing and settlement procedure and schedule of individual
Distributor.
6.6.3.2 The Distributor shall download Distribution System Integrating Pulse
Meter data for billing and settlement purposes as often as required to support
unbundled service operations.
6.6.3.3 Each User shall be provided full access to the metering data for his
connection point.
6.6.4 Metering Data for Billing and Settlement of Unbundled Services
6.6.4.1 The Market Rules of the WESM set out the weekly billing and settlement
procedure. The Distributor shall develop a consistent procedure for providing
metering data for Users on its distribution system receiving power from power
suppliers of the WESM. The specific timeline includes:
(a) By 1000 hours every Monday or first working day of the week, Distributor
shall collect the metering data of the individual customers receiving
unbundled energy services for the previous week.
(b) By 1200 hours of the same day, the Distributor shall submit to the Market
Operator the hourly metering data at each metering point on its
distribution system to the Market Operator.
6.6.4.2 The Market Operator shall prepare consolidated billing statements based
on the metering data at the user’s metering point provided by the Distributors
and the metering data at the Grid connection points provided by the System
Operator. The consolidated billing statements for an end-use consumer
receiving unbundled power services may include, but not limited to:
(a) Bulk power supply tariff;
(b) Transmission use of system charge;
(c) Distribution use of system charge;
(d) Transmission and distribution loss;
(e) Transmission bottleneck charge;
(f) Ancillary service charges; and
(g) Customer service charge (billing, metering, customer information and
others).
6.6.4.3 The Distributor may opt to handle its own billing and settlement for the
end-use customers on its system receiving unbundled power services. In this
case, the Distribution’s billing and settlement schedule shall be consistent
with the weekly schedule of the WESM.
6.6.5 Validation and Substitution of Metering Data
6.6.5.1 The Distributor shall be responsible for the validation and substitution of
metering data on its system.
80 September 2001
6.6.5.2 In principle, check metering data, if available, shall be used to validate

metering data provided that check metering equipment conforms to the
accuracy requirements set forth in this Chapter.
6.6.5.3 If a check meter is not available or the metering data is missing, then a
substitute value shall be prepared by the Distributor using the data validation
and substitution method approved by the ERC.
6.6.6 Storage and Availability of Metering Data
6.6.6.1 The Distributor shall be responsible for storing the metering data for the
unbundled energy services for five years. No alternation to the metering data
stored in the database shall be permitted.
6.6.6.2 User meter data is considered to be confidential and cannot be released
without a written consent from the user.
6.7 SETTLEMENT AUDIT PROCEDURES

6.7.1 Right to Request Settlement Audits
All Users have the right to request audits of the settlement processes related to their
account(s) and the right to choose an independent third party qualified to perform the
audit. The Distributor shall cooperate in the auditing process. All settlement audits
shall be based on application of the Market Rules.
6.7.2 Allocation of Audit Costs
The requesting party is responsible for all outside auditor costs unless the Distributor
agrees to payment of some or all of those costs.
6.7.3 Audit Results
The audit results shall be issued to the Distributor and the Distributor shall issue a
response to the audit report, including any adjustment in account billing/payments
proposed.
6.7.4 Audit Appeals
If the User disagrees with the Distributor’s response to the audit, that response can be
appealed to an arbitrator selected by the WESM Management Committee.
6.8 SETTLEMENT DISPUTE RESOLUTION

6.8.1 Settlement Dispute Resolution Process—First Stage
If the Distributor’s contract manger and the User’s representative can not resolve a
settlement dispute, both parties shall document their positions and submit them to
their direct supervisors. Those supervisors shall attempt to resolve the dispute.
6.8.2 Settlement Dispute Resolution Process—Second Stage
If no resolution in the dispute is reached at the supervisors’ level, the Distributor’s
position shall prevail. If the User continues to disagree, the issue can, on the Users
September 2001 81
request be submitted to a settlements arbitrator selected by the Market Operator. The

arbitrator shall meet with the parties and attempt to reach an agreement between the
parties. If agreement is not reached the arbitrator shall issue a decision that shall be
honored by both parties.
6.8.3 Settlement Dispute Appeal Process
In rare cases where one party or the other believes that significant error has been
made in an arbitrator’s decision, that party can appeal the decision to the ERC.
82 September 2001
CHAPTER 7
DISTRIBUTION CODE TRANSITORY PROVISIONS

7.1.1 Purpose
(a) To provide guidelines for the transition associated with restructuring of the
power sector;
(b) To establish procedures for Distribution participants to develop and gain
approval for Distribution Code compliance plans where immediate
compliance is not possible; and
(c) To establish procedures which in some cases may allow permanent exemption
from Distribution Code requirements.
7.1.2 Scope
(a) Distributors;
(b) Embedded Generators;
(c) Large Customers (demand at least 1MW); and
(d) Any other entity directly connected to a Distribution System.
7.1.3 Exceptions
This Chapter does not apply to isolated Distribution Systems.
7.2 MANDATES OF THE ACT

7.2.1 Objectives of Power Sector Reform
The Act establishes that the objectives of restructuring the Philippine electricity
sector are to:
(a) To ensure and accelerate the total electrification of the country;
(b) To ensure the quality, reliability, security and affordability of the supply of
electric power;
(c) To ensure transparent and reasonable prices of electricity in a regime of free
and fair competition and full public accountability to achieve greater
operational and economic efficiency and enhance the competitiveness of
Philippine products in the global market;
(d) To enhance the inflow of private capital and broaden the ownership base of
the power generation, transmission and distribution sectors;
(e) To ensure fair and non-discriminatory treatment of public and private sector
entities in the process of restructuring the electric power industry;
Distribution Code Transitory Provisions Philippine Distribution Code
(f) To protect the public interest as it is affected by the rates and services of
electric utilities and other providers of electric power;
(g) To assure socially and environmentally compatible energy sources and
infrastructure;
(h) To promote the utilization of indigenous and new and renewable energy
resources in power generation in order to reduce dependence on imported
energy;
(i) To provide for an orderly and transparent privatization of the assets and
liabilities of the National Power Corporation (NPC);
(j) To establish a strong and purely independent regulatory body and system to
ensure consumer protection and enhance the competitive operation of the
electricity market; and
(k) To encourage the efficient use of energy and other modalities of demand side
management.
7.2.2 Structure of the Electric Power Industry
There are four (4) major sectors of the Industry. These are:
(a) Generation Sector;
(b) Transmission Sector;
(c) Distribution Sector; and
(d) Supply Sector.
7.2.3 Generation Sector
7.2.3.1 Generation of electric power, a business affected with public interest,
shall be competitive and open.
7.2.3.2 Any new generation company shall, before it operates, secure from the
ERC a certificate of compliance pursuant to the standards set forth in this Act,
as well as health, safety and environmental clearances from the appropriate
government agencies under existing laws.
7.2.3.3 Power generation shall not be considered a public utility operation. For
this purpose, any person or entity engaged or which shall engage in power
generation and supply of electricity shall not be required to secure a national
franchise.
7.2.3.4 Upon implementation of retail competition and open access, the prices
charged by a generation company for the supply of electricity shall not be
subject to regulation by the ERC except as otherwise provided in this Act.
7.2.4 Transmission Sector
7.2.4.1 The Act created the National Transmission Corporation (TRANSCO)
which assumed the electrical transmission function of the National Power
Corporation (NPC). The TRANSCO shall have the authority and
responsibility for the planning, construction and centralized operation and
84 September 2001
Philippine Distribution Code Distribution Code Transitory Provisions
maintenance of its high voltage transmission facilities, including grid

interconnection and ancillary services.
7.2.4.2 Within six (6) months from the effectivity of the Act, the transmission
and sub-transmission facilities of NPC and all other assets related to
transmission operations, including the nationwide franchise of NPC for the
operation of the transmission system and the grid, shall be transferred to the
TRANSCO. The TRANSCO shall be wholly owned by the Power Sector
Assets and Liabilities Management Corporation.
7.2.4.3 The TRANSCO shall have the following functions and responsibilities:
(a) Act as the system operator of the nationwide electrical transmission and
sub-transmission system, to the transferred to it by NPC;
(b) Provide open and non-discriminatory access to its transmission system to
all electricity users;
(c) Ensure and maintain the reliability, adequacy, security, stability and
integrity of the nationwide electrical grid in accordance with the
performance standards for the operations and maintenance of the grid, as
set forth in a Grid Code;
(d) Improve and expand its transmission facilities, consistent with the Grid
Code and the Transmission Development Plan (TDP), to adequately serve
generation companies, distribution utilities and suppliers requiring
transmission service and/or ancillary services through the transmission
system;
(e) Subject to technical constraints, TRANSCO shall provide central dispatch
of all generation facilities connected, directly or indirectly, to the
transmission system in accordance with the dispatch schedule submitted
by the market operator, taking into account outstanding bilateral contracts;
and
(f) TRANSCO shall undertake the preparation of the TDP.
7.2.4.4 In the preparation of the TDP, TRANSCO shall consult the other
participants of the electric power industry such as the generation companies,
distribution utilities, and the electricity end-users. The TDP shall be submitted
to the DOE for integration with the Power Development Program and the
Philippine Energy Plan, provided for in Republic Act No. 7638 otherwise
known as ‘the Department of Energy Act of 1992”.
7.2.4.5 Within six (6) months from the effectivity of the Act, the PSALM Corp.
shall submit a plan for the endorsement by the Joint Power Commission and
the approval of the President of the Philippines. The President of the
Philippines thereafter shall direct PSALM Corp. to award in open competitive
bidding, the transmission facilities, including grid interconnections and
ancillary services to a qualified party either through an outright sale or a
concession contract.
September 2001 85
7.2.4.6 The buyer/concessionaire shall be responsible for the improvement,

expansion, operation, and/or maintenance of its transmission assets and the
operation of any related business.
7.2.4.7 The awardee shall comply with the Grid code and TDP as approved. The
awardee shall be financially and technically capable, with proven domestic
and./or international experience and expertise as a leading transmission
system operator. Such experience must be with a transmission system of
comparable capacity and coverage as the Philippines.
7.2.5 Distribution Sector
7.2.5.1 The distribution of electricity to end-users shall be a regulated common
carrier business requiring a national franchise. Distribution of electric power
to all end-users may be undertaken by private distribution utilities,
cooperative, local government units presently undertaking this function and
other duly authorized entities, subject to regulation by the ERC.
7.2.5.2 A distribution utility shall have the obligation to provide distribution
services and connections to its system for any end-user within its franchise
area consistent with the Distribution Code. Any entity engaged therein shall
provide open and non-discriminatory access to its distribution system to all
users.
7.2.6 Supply Sector
7.2.6.1 The supply sector is a business affected with public interest. Except for
distribution utilities and electric cooperatives with respect to their existing
franchise areas, all suppliers of electricity to the contestable market shall
require a license from the ERC.
7.2.6.2 The ERC shall promulgate rules and regulations prescribing the
qualifications of electricity suppliers which shall include, among other
requirements, a demonstration of their technical capability, financial
capability, and creditworthiness.
7.2.6.3 The ERC shall have authority to require electricity suppliers to furnish a
bond or other evidence of the ability of a supplier to withstand market
disturbances or other events that may increase the cost of providing service.
7.2.7 Retail Competition and Open Access
7.2.7.1 Retail competition and open access on distribution wires shall be
implemented not later than three (3) years upon the effectivity of the Act,
subject to the following conditions:
(a) Establishment of the wholesale electricity spot market;
(b) Approval of unbundled transmission and distribution wheeling charges;
(c) Initial implementation of the cross subsidy removal scheme;
(d) Privatization of at least seventy (70%) percent of the total capacity of
generating assets of NPC Luzon and Visayas; and
86 September 2001
(e) Transfer of the management and control of at least seventy percent (70%)
of the total energy output of power plants under contract with NPC to the
IPP Administrators.
7.2.7.2 Upon the initial implementation of open access, the ERC shall allow all
electricity end-users with a monthly average peak demand of at least one
megawatt (1MW) for the preceding twelve (12) months to be the contestable
market.
7.2.7.3 Two (2) years thereafter, the threshold level for the contestable market
shall be reduced to seven hundred fifty kilowatts (750kW). At this level,
aggregators shall be allowed to supply electricity to end-users whose
aggregate demand within a contiguous area is at least seven hundred fifty
kilowatts (750kW).
7.2.7.4 Subsequently and every year thereafter, the ERC shall evaluate the
performance of the market. On the basis of such evaluation, it shall gradually
reduce threshold level until it reaches the household demand level.
7.2.7.5 In the case of electric cooperatives, retail competition and open access
shall be implemented not earlier than five (5) years upon the effectivity of the
Act.
7.3 DISTRIBUTION ASSET BOUNDARIES

7.3.1 Distributors Connected to the Main Power Grid
The Distribution Code applies to the assets at all voltage levels owned by the
Distributors who are connected to the Philippine power grids (Luzon, Visayas and
Mindanao power grids).
7.3.2 Distributors Not Connected to the Main Power Grid
The Distribution Code does not apply to the asset owned by Distributors not
connected to the main grids.
7.3.3 Disposal of Sub-transmission Functions, Assets and Liabilities
7.3.3.1 Within two (2) years from the effectivity of the Act or the start of open
access, whichever comes earlier, the TRANSCO shall negotiate with and
thereafter transfer the sub-transmission functions, assets, and associated
liabilities to the qualified distribution utility or utilities connected to such sub-
transmission facilities.
7.3.3.2 Where there are two or more connected distribution utilities, the
consortium or juridical entity shall be formed by and composed of all of them
and thereafter shall be granted a franchise to operate the sub-transmission
asset by the ERC.
7.3.3.3 The take over by a distribution utility of any sub-transmission asset shall
not cause a diminution of service and quality to the end-users.
September 2001 87
7.3.3.4 The Grid Code shall no longer be applicable to the sub-transmission

facilities once they have been transferred to Distributors. The transferred sub-
transmission facilities shall be subject to the Philippine Distribution Code.
7.3.4 Transition Period
A transition period shall be allowed for Distributor and Users to comply with the
provisions of the Distribution Code related to unbundled energy services.
7.3.5 Investment in Equipment and Human Resources
The investment in the equipment and human resources necessary for the distribution
open access operations will include new integrated pulse recorders, computer
monitoring and control, switching systems, greatly expanded communications
capability and recruitment and training of Distributor operation staff.
7.3.6 Completion of Required Equipment Installations and Training
It will probably take some time for many Distributors and Users to complete all the
required equipment installations and training once the new rules and regulations for
unbundled services to end-use consumers are established by the ERC.
7.4 MARKET TRANSITION

7.4.1 Establishment of the Wholesale Electricity Spot Market
Within one (1) year from the effectivity of this Act, the DOE shall establish a
wholesale electricity spot market composed of the wholesale electricity spot market
participants. The market shall provide the mechanism for identifying and setting the
price of actual variations from the quantities transacted under contracts between
sellers and purchasers of electricity.
7.4.2 Membership to the WESM
7.4.2.1 Subject to the compliance with the membership criteria, all generating
companies, distribution utilities, suppliers, bulk consumers/end-users and
other similar entities authorized by the ERC shall be eligible to become
members of the wholesale electricity spot market.
7.4.2.2 The ERC may authorize other similar entities to become eligible as
members, either directly or indirectly, of the wholesale electricity spot market.
7.4.3 Market Rules
7.4.3.1 Jointly with the electric power industry participants, the DOE shall
formulate the detailed rules for the wholesale electricity spot market. Said
rules shall provide the mechanism for determining the price of electricity not
covered by bilateral contracts between sellers and purchasers of electricity
users.
7.4.3.2 The price determination methodology contained in the Market Rules shall
be subject to the approval of ERC.
88 September 2001
7.4.3.3 The Market Rules shall also reflect accepted economic principles and
provide a level playing field to all electric power industry participants. The
rules shall provide, among others, producers for:
(a) Establishing the merit order dispatch instructions for each time period;
(b) Determining the market-clearing price for each time period;
(c) Administering the market, including criteria for admission to and
termination from the market which includes security or performance bond
requirements, voting rights of the participants, surveillance and assurance
of compliance of the participants with the rules and the formation of the
wholesale electricity spot market governing body;
(d) Prescribing guidelines for the market operation in system emergencies;
and
(e) Amending the rules.
7.4.3.4 All generating companies, distribution utilities, suppliers, bulk
consumers/end-users and other similar entities authorized by the ERC,
whether direct or indirect members of the wholesale electricity spot market
shall be bound by the Market Rules with the respect to transactions in the spot
market.
7.4.4 The Market Operator
7.4.4.1 The wholesale electricity spot market shall be implemented by market
operator in accordance with the wholesale electricity spot market rules. The
market operator shall be an autonomous group, to be constituted by DOE,
with equitable representation from electric power industry participants,
initially under the administrative supervision of the TRANSCO.
7.4.4.2 The market operator shall undertake the preparatory work and initial
operation of the wholesale electricity spot market. 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.
Thereafter, the administrative supervision of the TRANSCO over such entity
shall cease.
7.4.5 Guarantee for the Electricity Purchased by Small Utilities
The NEA may, in exchange for adequate security and a guarantee fee, act as a
guarantor for purchases of electricity in the wholesale electricity spot market by any
electric cooperative or small distribution utility to support their credit standing.
7.5 TRANSITIONAL COMPLIANCE PLANS

7.5.1 Submission of Plans
Distribution utilities shall submit to the ERC a statement of their compliance with the
technical specifications prescribed in the Grid Code and the Distribution Code and the
September 2001 89
performance standards prescribed in the IRR of the Act within six (6) months of the
promulgation of the Grid Code and the Distribution Code.
7.5.2 Transitional Compliance Plans
7.5.2.1 Distribution utilities which do not comply with any of the prescribed
technical specifications and performance standards shall submit to the ERC a
plan to comply, within three (3) years, with said prescribed technical
specifications and performance standards.
7.5.2.2 Distributors and each User filing a noncompliance notice(s) shall prepare
and submit to ERC a transitional compliance plan(s) within six months of
adoption of the Distribution Code. The plans shall include a timetable for
compliance and the provisions and justifications for permanent exemptions
being requested.
7.5.3 Evaluation and Approval of Plans
7.5.3.1 The ERC shall, within sixty (60) days upon receipt of such plan, evaluate
the same and notify the distribution utility concerned of its action.
7.5.3.2 The ERC shall review the submitted transitional compliance plans and
either approve the plans or return them with required revisions.
7.5.4 Failure to Submit Plan
Failure to submit a feasible and credible plan and/or failure to implement the same
shall serve as grounds for the imposition of appropriate sanctions, fines or penalties.
7.6 EXEMPTIONS FOR SPECIFIC EXISTING EQUIPMENT

Requests for permanent exemptions of equipment to Distribution Code provisions shall
be submitted to the Distributor on a case-by-case basis. Exemptions shall be allowed in
the cases where the Distributor has determined that Grid reliability shall not be
compromised and upgrading the equipment cannot be economically justified.
7.7 EXISTING CONTRACTS

7.7.1 Effectivity of Existing Contracts
The Distribution Code shall apply to existing Contracts insofar as it does not impair
the obligations arising therefrom.
7.7.2 New or Amended Contracts
Distributors shall negotiate (according to schedules established in their Transitional
Compliance Plans) for new or amended contracts that shall conform to the provisions
of this Code in order to attain a uniform implementation of Distribution Code
standards.
CHAPTER 8
90 September 2001
CHAPTER 8
PERFORMANCE STANDARDS FOR DISTRIBUTORS AND

SUPPLIERS

8.1.1 Purpose
(a) To ensure the quality of electric power in the Distribution System;
(b) To ensure that the Distribution System will be operated in a safe and efficient
manner, and with a high degree of reliability;
(c) To specify customer services for the protection of the End-Users in both the
captive and contestable markets; and
(d) To specify safety standards for the protection of personnel in the work
environment.
8.1.2 Scope of Application
(a) Distributors;
(b) Suppliers;
(c) Embedded Generators; and
(d) End-Users.
8.2 POWER QUALITY STANDARDS FOR DISTRIBUTORS

8.2.1 Power Quality Problems
8.2.1.1 For the purpose of this Article, Power Quality shall be defined as the
quality of the voltages that are measured in the Distribution System.
8.2.1.2 A Power Quality problem exists when at least one of the following
conditions is present and significantly affects the normal operation of the
System:
(a) The System frequency has deviated from the nominal value of 60 Hz;
(b) Voltage magnitudes are outside their allowable range of variation;
(c) Harmonic frequencies are present in the System;
(d) There is imbalance in the magnitude of the phase voltages;
(e) The phase displacement between the voltages is not equal to 120 degrees;
(f) Voltage fluctuations cause Flicker that is outside the allowable Flicker
severity limits; or
(g) High-frequency Overvoltages are present in the Distribution System.
8.2.2 Frequency Variations
8.2.2.1 The nominal fundamental frequency shall be 60 Hz.
8.2.2.2 Distributors shall design and operate their Systems to assist the System
Operator in maintaining the fundamental frequency within the limits of 59.4
Hz and 60.6 Hz during normal conditions.
8.2.3 Voltage Variations
8.2.3.1 For the purpose of this Section, Voltage Variation shall be defined as the
deviation of the root-mean-square (RMS) value of the voltage from its
nominal value, expressed in percent. Voltage Variation will either be of short
duration or long duration.
8.2.3.2 A Short Duration Voltage Variation shall be defined as a variation of the
RMS value of the voltage from nominal voltage for a time greater than one-
half cycle of the power frequency but not exceeding one minute. A Short
Duration Voltage Variation is a Voltage Swell if the RMS value of the voltage
increases to between 110 percent and 180 percent of the nominal value. A
Short Duration Voltage Variation is a Voltage Sag (or Voltage Dip) if the
RMS value of the voltage decreases to between 10 percent and 90 percent of
the nominal value.
8.2.3.3 A Long Duration Voltage Variation shall be defined as a variation of the
RMS value of the voltage from nominal voltage for a time greater than one
minute. A Long Duration Voltage Variation is an Undervoltage if the RMS
value of the voltage is less than or equal to 90 percent of the nominal voltage.
A Long Duration Voltage Variation is an Overvoltage if the RMS value of the
voltage is greater than or equal to 110 percent of the nominal value.
8.2.3.4 Distributors shall design and operate their Systems so that at the
connection point of any User, no Undervoltage or Overvoltage is present
during normal conditions. The ERC may require Distributors to comply with
more stringent Voltage Variation limits, which shall be determined from
technical and economic studies.
8.2.3.5 Distributors shall consider the maximum estimated Voltage Swell in the
selection of the voltage ratings of distribution equipment.
8.2.3.6 Distributors shall ensure that the Distribution System has sufficient
capacity so that Voltage Sags when starting large induction motors will not
adversely affect any User System.
8.2.4 Harmonics
8.2.4.1 For the purpose of this section, Harmonics shall be defined as sinusoidal
voltages and currents having frequencies that are integral multiples of the
fundamental frequency.
8.2.4.2 The Total Harmonic Distortion (THD) shall be defined as the ratio of the
RMS value of the harmonic content to the RMS value of the fundamental
quantity, expressed in percent.
8.2.4.3 The Total Demand Distortion (TDD) shall be defined as the ratio of the
RMS value of the harmonic content to the RMS value of the rated or
maximum fundamental quantity, expressed in percent.
8.2.4.4 At any User System, the THD of the voltage shall not exceed five percent
(5%). The TDD of the current at any User System shall not exceed five
percent (5%).
8.2.5 Voltage Unbalance
8.2.5.1 For the purpose of this section, Voltage Unbalance shall be defined as the
maximum deviation from the average of the three phase voltages divided by
the average of the three phase voltages, expressed in percent.
8.2.5.2 The voltage Unbalance at any User System, measured at the connection
point, shall not exceed five percent (5%) during normal operating conditions.
8.2.6 Flicker Severity
8.2.6.1 For the purpose of this Section, Flicker shall be defined as the impression
of unsteadiness of visual sensation induced by a light stimulus whose
luminance or spectral distribution fluctuates with time.
8.2.6.2 In the assessment of the disturbance caused by individual sources with
short duty cycle, the Short Term Flicker Severity shall be computed over a 10-
minute period.
8.2.6.3 In the assessment of the disturbance caused by Flicker sources with long
and variable duty cycles, the Long Term Flicker Severity shall be derived
from the Short Term Flicker Severity levels.
8.2.6.4 The Flicker Severity at any connection point shall not exceed 1.0 unit for
short term and 0.8 units for long term.
8.2.7 Transient Voltage Variations
8.2.7.1 For the purpose of this section, Transient Voltages shall be defined as the
high-frequency Overvoltages that are generally shorter in duration compared
to the Short Duration Voltage Variations.
8.2.7.2 Distributors shall design their Systems to include devices that will
mitigate the effects of Transient Voltages on customer equipment.
8.2.7.3 Distributors shall take into account the estimated maximum Transient
Voltages when specifying the voltage rating and insulation of distribution
equipment.
8.3 RELIABILITY STANDARDS FOR DISTRIBUTORS

8.3.1 Criteria for Establishing Distribution Reliability Standards
8.3.1.1 The ERC shall impose a uniform system of recording and reporting of
Distribution System reliability performance.
8.3.1.2 The same reliability indices shall be imposed on all Distribution Utilities.
However, the numerical values or targets shall be unique to each Distributor
and shall be based initially on the particular Distributor’s historical
performance.
8.3.1.3 Distribution Utilities with similar characteristics shall be grouped into
different categories. The categorization shall be based on load density, sales
mix, cost of service, delivery voltage and other technical and geographical
considerations that the ERC may deem appropriate.
8.3.1.4 Distribution Utilities shall be evaluated annually to compare their actual
performance with the targets. A penalty shall be imposed on a Distribution
Utility who fails to comply with the reliability standards.
8.3.2 Distribution Reliability Indices
8.3.2.1 The System Average Interruption Frequency Index (SAIFI) shall be
defined as the total number of sustained customer power Interruptions within
a given period divided by the total number of customers served within the
same period.
8.3.2.2 The System Average Interruption Duration Index (SAIDI) shall be
defined as the total duration of sustained customer power Interruptions within
a given period divided by the total number of customers served within the
same period.
8.3.2.3 The Momentary Average Interruption Frequency Index (MAIFI) shall be
defined as the total number of momentary customer power Interruptions
within a given period divided by the total number of customers served within
the same period.
8.3.3 Inclusions and Exclusions of Interruption Events
8.3.3.1 Any Outage in the primary Distribution System, extending from the
distribution substation to the primary distribution feeders and laterals up to the
distribution transformers, which may be due to the tripping action of
protective devices during faults or the failure of primary distribution lines
and/or transformers, and which results in the loss of service to one or more
customers, shall be included as a power Interruption event.
8.3.3.2 The following events shall be excluded in the calculation of the reliability
indices:
(a) Outages that occur on the secondary lines of the Distribution System;
(b) Outages due to generation, transmission line or transmission substation
failure;
(c) Planned Outages where the customer(s) have been notified at least three
(3) days prior to the loss of power;
(d) Outages that are initiated by the System Operator/Market Operator during
the occurrence of Significant Incidents or the failure of their facilities;
(e) Outages caused by Adverse Weather or Major Storm Disasters which
result in the declaration by the government of a state of calamity in the
franchise area of the Distribution Utility; and
(f) Outages due to other events that the ERC shall approve after due notice
and hearing.
8.3.4 Submission of Distribution Reliability Reports and Performance Targets
8.3.4.1 Distributors shall submit every three (3) months their monthly
Interruption reports using the standard format prescribed by the ERC.
8.3.4.2 The ERC shall set the performance targets for each Distribution Utility
after due notice and hearing.
8.4 SYSTEM LOSS STANDARDS FOR DISTRIBUTORS

8.4.1 System Loss Components
8.4.1.1 System Loss shall be classified into three categories: Technical Loss,
Non-Technical Loss and Administrative Loss.
8.4.1.2 The Technical Loss shall be the aggregate of conductor loss, the core loss
in transformers and any loss due to technical metering error.
8.4.1.3 The Non-Technical Loss shall be the aggregate of the energy lost due to
pilferage, meter-reading errors and meter tampering.
8.4.1.4 The Administrative Loss shall include the energy that is used in the
operation of the Distribution System and any unbilled energy that is used for
community-related activities.
8.4.2 System Loss Cap
8.4.2.1 Distributors shall identify and report separately to the ERC their
Technical and Non-Technical Losses.
8.4.2.2 The ERC shall prescribe a cap on the System Loss that a Distribution
Utility can pass on to its End-Users. Separate caps shall be set for the
Technical and Non-Technical Losses.
8.4.2.3 A Distributor shall submit to ERC an application for the approval of its
Administrative Loss. The allowance for Administrative Loss shall be
approved by the ERC, after due notice and hearing, based on connected
essential load.
8.5 POWER FACTOR STANDARDS FOR DISTRIBUTORS

8.5.1 Power Factor at Connection Point
Distribution Users shall maintain a Power Factor of not less than 85% lagging at the
connection point with the Distributor’s System.
8.5.2 Reactive Power Compensation
Distributors shall correct feeder and substation feeder bus Reactive Power demand to
a level, which will economically reduce feeder loss.
8.5.3 Power Factor Penalty and Incentive Scheme
Distributors may establish penalties for User Power Factors that are less than a
specified target level, and incentives for User Power Factors that are greater than the
target level.
8.6 CUSTOMER SERVICE STANDARDS FOR DISTRIBUTORS AND
SUPPLIERS
8.6.1 Customer Service Program
8.6.1.1 Customer Services shall refer to the day-to-day transactions that transpire
between Distributors (or Suppliers) and their Customers. Customer Services
shall also include any activity that a Distributor (or Supplier) does to add
value to these transactions. The totality of all these transactions shall
constitute a Customer Service Program.
8.6.1.2 Guaranteed Standards shall refer to the Customer Services where a
penalty is imposed on the Distributor (or Supplier) for failing to meet the
target level of performance. The penalty is given to the affected customers.
8.6.1.3 Overall Standards shall refer to the Customer Services where it is not
appropriate to give individual guarantees, but where consumers have a right to
expect the Distributor (or Supplier) to deliver a reasonable level of service.
8.6.2 Measuring Customer Service Performance
8.6.2.1 In the Prescriptive Approach, the Distributor (or Supplier) shall file an
application with ERC for the approval of its Customer Service Program
including the specified levels of performance or targets.
8.6.2.2 In the Customer Rating Approach, the Distributor (or Supplier) shall
commission an independent entity, accredited by the ERC, to conduct a
Transactions Survey.
8.6.3 Customer Service Standards for Distribution Utilities
8.6.3.1 The Customer Service Standards for Distribution Utilities shall include
the following:
(a) Transactions for the Distribution of Electricity to all End-Users;
(b) Transactions for the Supply of Electricity to captive customers; and
(c) Miscellaneous transactions such as making and keeping appointments and
responding to customer letters.
8.6.3.2 All Distributors shall submit to ERC for approval the target levels for the
Customer Services listed in Table 8.1. Distributors shall justify the basis for
the target levels of performance.
8.6.3.3 Distribution Utilities shall be evaluated annually to compare their actual
performance with the targets.
8.6.4 Customer Service Standards for Suppliers
8.6.4.1 The Customer Service Standards for Suppliers shall include the
following:
(a) Transactions for the Supply of Electricity; and
(b) Miscellaneous transactions such as making and keeping appointments and
responding to customer letters.
TABLE 8.1
CUSTOMER SERVICE STANDARDS FOR DISTRIBUTION UTILITIES
Customer Service Measure of Performance

1. Processing of application Number of days upon submission of requirements
including estimates of
charges Note: Different value for residential and large commercial/
industrial customers
2. Service connection Number of days upon submission of Certificate of Electrical
Inspection
3. Restoration of service % of affected Customers restored within x number of hours.
after a fault Interruption
100% restoration within y number of hours
Note: May have different value for fault in the secondary lines,
primary lines, substation, and distribution transformers
4. Power Quality complaints Visit within x number of working days after receipt of complaint
or substantive answer within y number of days
Correction of Power Quality problems within z number of months
Note: May have different values depending on the type and

magnitude of Power Quality problem
5. Informing Customers on Announcements x number of days prior to the scheduled
schedule of power Interruptions
Interruptions
6. Responding to emergency Response within x number of hours after receipt of call
calls
7. Billing queries and Answer to queries within x number of hours
complaints
Correction of errors in billing statement within y number of hours
(or days)
8. Payment queries and Answer to queries within x number of hours
complaints
Correction of errors in payments within y number of hours (or
days)
9. Meter complaints Visit within x number of working days after receipt of complaint
Correction of meter problems within z number of weeks

10. Reconnection of service Reconnect within x hours after payment of dues
11. Making and Keeping of Specific time is given to the customer
appointments
Seeing the customer at the appointed time
12. Responding to Customer Within x number of Working days
letters
TABLE 8.2
CUSTOMER SERVICE STANDARDS FOR SUPPLIERS
Customer Service Measure of Performance

1. Provision of supply and Within x number of days after agreement for supply has been
metering services made
2. Billing queries and Answer to queries within x number of hours
complaints
Correction of errors in billing statement within y number of hours
(or days)
3. Payment queries and Answer to queries within x number of hours
complaints
Correction of errors in payments within y number of hours (or
days)
4. Meter complaints Visit within x number of working days after receipt of complaint
Correction of meter problems within z number of weeks

5. Reconnection of service Reconnect within x hours after payment of dues
6. Making and Keeping of Specific time is given to the customer
appointments
Seeing the customer at the appointed time
7. Responding to Customer Within x number of Working days
letters
8.6.4.2 All Suppliers shall submit to the ERC for approval their target levels for
the Customer Services listed in Table 8.2. Suppliers shall justify the basis for
the target level of performance.
8.6.4.3 Suppliers shall be evaluated annually to compare their actual performance
with the targets.
8.6.4.4 The Customer Service Standards for Suppliers shall serve as a safety net
that will protect the consumers during the early stages of the contestable
market. Once the benefits of competition have been fully realized by the
customers, these standards may be withdrawn by the ERC.
8.7 SAFETY STANDARDS FOR DISTRIBUTION UTILITIES AND SUPPLIERS

8.7.1 Adoption of PEC and OSHS
Distribution Utilities shall safely develop, operate and maintain their Distribution
System and shall always ensure a safe work environment for its employees. In this
regard, the ERC adopts the Philppine Electrical Code (PEC) Part1 and Part 2 set by
the Professional Regulation Commission and the Occupational Safety and Health
Standards (OSHS) set by the Bureau of Working Conditions of the Department of
Labor and Employment. The OSHS aim to protect every workingman against the
dangers of injury, sickness or death through safe and healthful working conditions.
8.7.2 Safety Standards for Electrical Installations
The Philippine Electrical Code (PEC) Parts 1 and 2 shall govern the safety
requirements for electrical installations. Part 1 of PEC pertains to low voltage wiring
Systems in premises of End-users. Part 2 covers electrical equipment and associated
work practices employed by the electric utility. Compliance with these Codes is
mandatory. Hence, Distribution Utilities and Suppliers shall at all times ensure that all
provisions of these safety codes are not violated.
8.7.3 Measurement of Performance for Personnel Safety
Rule 1056 of the OSHS specifies the rules for the measurement of performance for
personnel safety that applies to Distribution Utilities and Suppliers. The pertinent
portions of this rule are reproduced as follows:
8.7.3.1 Exposure to work injuries shall be measured by the total number of hours
of employment of all employees in each establishment or reporting unit. The
exposure of a central administrative office or central sales office of a multi-
establishment-concern shall not be included in the experience of any one
establishment, nor prorated among the establishments, but shall be included in
the over-all experience of the multi-establishment.
8.7.3.2 Employee-hours of exposure for calculating work injury rates are
intended to be the actual hours worked. When actual hours are not available,
estimated hours may be used. Employee-hours shall be calculated as follows:
(a) Actual Exposure Hours. Employee hours of exposure shall be, if possible,
taken from the payroll or time clock records and shall include only the
actual straight time hours worked and actual overtime hours worked.
(b) Estimated Exposure Hours. When actual employee-hours of exposure are
not available, estimated hours may be used. Such estimated hours shall be
obtained by multiplying the total employee days worked for the period by
the average number of hours worked per day. If the hours worked per day
vary among departments, a separate estimate shall be made for each
department, and these estimates added to obtain the total hours. Estimates
for overtime hours shall be included. If the employee hours are estimated,
indicate the basis on which estimates are made.
(c) Hours not Worked. Employee-hours paid but not worked, either actual or
estimated, such as time taken for vacation, sickness, barangay duty, court
duty, holidays, funerals, etc., shall not be included in the total hours
worked. The final figure shall represent as nearly as possible hours
actually worked.
(d) Employee Living in Company-Property. In calculating hours of exposure
for employees living in company property, only those hours during which
employees were actually on duty shall be counted.
(e) Employee with Undefined Hours of Work. For traveling salesmen,
executives and others whose working hours are undefined, an average
eight hours day shall be assumed in computing exposure hours. All stand-
by hours employees, including seamen aboard vessels, who are restricted
to the confines of the employer’s premises, shall be counted as well as all
work injuries occurring during such hours.
8.7.3.3 The Disabling Injury/Illness Frequency Rate shall be based upon the total
number of deaths, permanent total, permanent partial, and temporary total
disabilities, which occur during the period covered by the rate. The rate relates
those injuries/illnesses to the employee-hours worked during the period and
expresses the number of such injuries in terms of a million man-hour units.
8.7.3.4 The Disabling Injury/Illness Severity Rate shall be based on the total of
all scheduled charges for all deaths, permanent total and permanent partial
disabilities, plus the total actual days of the disabilities of all temporary total
disabilities, which occur during the period covered by the rate. The rate relates
these days to the total employee-hours worked during the period and
expresses the loss in terms of million man-hour units.
8.7.4 Submission of Safety Records and Reports
Distributors and Suppliers shall submit to ERC a copy of records and reports required
by OSHS as amended. These shall include the measurement of performance specified
in Section 8.7.3.
8.8 TRANSITORY PROVISIONS
Note: The following provisions shall be added to the Philippine Distribution Code’s
chapter on Distribution Transitory Provisions
8.8.1 Submission for the Initial Distribution Reliability Targets
8.8.1.1 Within six months from the promulgation of the Philippine Distribution
Code, every Distributor shall submit to the ERC each Distribution Reliability
Performance targets, normalized reliability data and performance for the last
five years, using SAIFI, SAIDI and MAIFI.
8.8.1.2 The initial targets for the Reliability Indices shall be equal to the mean
value of the particular Distribution Utility’s reliability performance for the last
five years. The upper and lower cutoff points shall be set at plus or minus one
standard deviation from the mean value.
8.9 DEFINITIONS
Note: The following definitions will be added to the Philippine Distribution Code.
Administrative Loss. The component of System Loss that includes the energy used in
the operation of the Distribution System (station service) and any unbilled energy that
is used for community-related activities.
Adverse Weather. A weather condition, which causes an abnormally high rate of Forced
Outages for exposed Components while such condition persists, but does not qualify
as Major Storm Disaster. An Adverse Weather condition can be defined for a
particular System by selecting proper values and combinations of conditions reported
by the weather bureau: thunderstorms, tornadoes, wind velocities, precipitation,
temperature and other weather variables.
Balanced Three-Phase Voltages. Three sinusoidal voltages with equal frequency and
magnitude and displaced from each other in phase by an angle of 120 degrees.
Component. A piece of equipment, a line, a section of line, or a group of items, which is
viewed as an entity for purposes of reporting, analyzing, and predicting Outages.
Customer Rating Approach. The process of evaluating a Distributor’s (or Supplier’s)
Customer Service Program by using a statistically valid Transactions Survey.
Customer Services. Day-to-day transactions between a Distributor (or Supplier) and its
customers, like payment of bills, application for connection, customer complaints,
etc. It also includes any activity that the Distributor (or Supplier) does to add value or
efficiency to these transactions.
Customer Service Program. The totality of the Customer Services offered by a
Distributor (or Supplier).
Customer Service Standards. A listing of Customer Services that will measure how
effectively a Distributor (or Supplier) conducts its day-to-day transactions with its
customers. Customer Service Standards are intended to measure customer
satisfaction.
Distribution of Electricity. The conveyance of electric power by a Distribution Utility
through its Distribution System.
Distribution System. The system of wires and associated facilities belonging to a
franchised Distribution Utility extending between the delivery points on the
Transmission or Subtransmission System or Generator connection and the points of
connection to the premises of the End-User.
Distribution Utility. Refers to any private corporation, Electric Cooperative, existing
local government unit or duly authorized entity, which has an exclusive franchise to
operate a Distribution System, subject to regulation by the ERC.
Distributor. Has the same meaning as Distribution Utility.
End-User. Refers to any person or entity requiring the supply and delivery of electricity
for its own use.
Exposure Time. The time during which a Component is performing its intended function
and is subject to Outage.
Flicker. The impression of unsteadiness of visual sensation induced by a light stimulus
whose luminance or spectral distribution fluctuates with time [IEEE P1159: 1994].
Forced Outage. An Outage that results from emergency conditions directly associated
with a Component requiring that it be taken out of service immediately, either
automatically or as soon as switching operations can be performed, or an Outage
caused by improper operation of equipment or human error.
Guaranteed Standards. Refer to the Customer Services that will penalize a Distributor
(or Supplier) for failure to provide the required level of service by making payment to
affected customers.
Harmonics. Sinusoidal voltages and currents having frequencies that are integral
multiples of the fundamental frequency [IEC 61000-2-1:1990].
Interruption. The loss of service to one or more consumers. An Interruption is the result
of one or more Component Outages.
Interruption Duration. The period from the initiation of an Interruption to a consumer
until service has been restored to that consumer.
Long Duration Voltage Variation. A variation of the RMS value of the voltage from
nominal voltage for a time greater than one minute.
Long Term Flicker Severity. A value derived from twelve successive measurements of
Short Term Flicker Severity over a two-hour period. It is calculated as the cube root
of the mean sum of the cubes of 12 individual measurements.
Major Storm Disaster. Designates weather which exceeds design limits of plant and
which satisfies all of the following:
(1) Extensive mechanical fatigue to plant;
(2) More than a specified percentage of customers out of service; and
(3) Service restoration times longer than a specified time.
Momentary Average Interruption Frequency Index (MAIFI). The total number of
momentary customer power Interruptions within a given period divided by the total
number of customers served within the same period.
Momentary Interruption. An Interruption of duration limited to the period required to
restore service by automatic or supervisory controlled switching operations or by
manual switching at locations where an operator is immediately available.
Non-Technical Loss. The component of System Loss that is not related to the physical
characteristics and functions of the electrical System, and is caused primarily by
human error, whether intentional or not. Non-Technical Loss includes the energy
lost due to pilferage, tampering of meters and erroneous meter reading.
Normal Weather. Includes all weather not designated as adverse or major disaster.
Outage. Describes the state of a Component when it is not available to perform its
intended function due to some event directly associated with that Component. An
Outage may or may not cause an Interruption of service to customers depending on
System configuration.
Outage Duration. The period from the initiation of the Outage until the affected
Component or its replacement once again becomes available to perform its intended
function.
Overall Standards. Refer to the Customer Services where it is not appropriate to give
individual guarantees but where consumers have a right to expect the Distributor (or
Supplier) to deliver a predetermined reasonable level of performance.
Overvoltage. A Long Duration Voltage Variation where the RMS value of the voltage is
greater than or equal to 110 percent of the nominal voltage.
Power Factor. The ratio of active power to apparent power.
Power Frequency Variation. The deviation of the System fundamental frequency from
its specified nominal value.
Power Quality. The quality of the voltages that are measured in the electric power
System.
Short Duration Voltage Variation. A variation of the RMS value of the voltage from
nominal voltage for a time greater than one-half cycle of the power frequency but not
exceeding one minute.
Short Term Flicker Severity. A measure of the visual severity of Flicker derived from
time-series output of a Flicker meter over a ten-minute period.
Scheduled Outage. An Outage that results when a Component is deliberately taken out
of service at a selected time, usually for purposes of construction, preventive
maintenance, or repair.
Supplier. Refers to any person or entity authorized by the Energy Regulatory
Commission to sell, broker, market or aggregate electricity to another person or entity
that requires the supply and delivery of electricity for its own use.
Supply of Electricity. The sale of electricity by a party other than a Generator or a
Distributor in the franchise area of the Distribution Utility using the wires of the
Distribution Utility concerned.
Sustained Interruption. Any Interruption not classified as a Momentary Interruption.
Switching Time. The period from the time a switching operation is required due to a
Forced Outage until that switching operation is performed.
System. A group of Components connected or associated in a fixed configuration to
perform a specified function.
System Average Interruption Duration Index (SAIDI). The total duration of sustained
customer power Interruption within a given period divided by the total number of
customers served within the same period.
System Average Interruption Frequency Index (SAIFI). The total number of
sustained customer power Interruptions within a given period divided by the total
number of customers served within the same period.
System Loss. In a Distribution System, it is the difference between the electric energy
purchased and/or generated and the electric energy sold by the Distributor.
Technical Loss. The component of System Loss that is inherent in the physical delivery
of electric energy. It includes conductor loss, transformer core loss and technical error
in meters.
Total Demand Distortion (TDD). The ratio of the root-mean-square value of the
harmonic current to the root-mean-square value of the rated or maximum demand
fundamental current, expressed in percent [IEEE Std. 519:1992].
Total Harmonic Distortion (THD). The ratio of the root-mean-square value of the
harmonic content to the root-mean-square value of the fundamental quantity,
expressed in percent [IEEE Std. 100:1988].
Transactions Survey. A statistically valid sample survey of customers who have had
recent interaction with the Distributor (or Supplier), excluding regular payment of
bills.
Transient Voltages. High-frequency Overvoltages shorter than the Short Duration
Voltage Variations that are caused by lightning, switching of capacitor banks or
cables, current chopping, arcing ground faults, transformer energizing, ferroresonance
and other related phenomena.
Undervoltage. A Long Duration Voltage Variation where the RMS value of the voltage
is less than or equal to 90 percent of the nominal voltage.
Voltage Dip. Has the same meaning as Voltage Sag.
Voltage Sag. A Short Duration Voltage Variation where the RMS value of the voltage
decreases to between 10 percent and 90 percent of the nominal value.
Voltage Swell. A Short Duration Voltage Variation where the RMS value of the voltage
increases to between 110 percent and 180 percent of the nominal value.
Voltage Unbalance. The maximum deviation from the average of the three phase
voltages divided by the average of the three phase voltages, expressed in percent.
Voltage Variation. The deviation of the root-mean-square (RMS) value of the voltage
from its nominal value, expressed in percent.
8.10 ABBREVIATIONS
Note: The following abbreviations will be added to the Philippine Distribution Code
MAIFI Momentary Average Interruption Frequency Index
NSUF Negative Sequence Unbalance Factor
SAIFI System Average Interruption Frequency Index
SAIDI System Average Interruption Duration Index
THD Total Harmonic Distortion
TDD Total Demand Distortion
ZSUF Zero Sequence Unbalance Factor

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Department of Energy and Energy Regulatory Commission

Republic of the Philippines

Energy Regulatory Commission

ADOPTION OF THE PHILIPPINE GRID CODE AND THE

Done in Pasig City, Metro Manila, this ___th day of _____________2001.

Chapter Description Page

1 Distribution Code General Conditions ..................................................................... 1

2 Distribution Management ........................................................................................ 15

2.2.3 Terms of Office of the DMC Members ....................................................... 16

3 Distribution Connection Requirements .................................................................. 23

3.4 Distribution Design Principles and Standards ...................................................... 27

4 Distribution Planning ............................................................................................... 43

September 2001 vii

viii September 2001

5.5.6 Submission of Written Report ..................................................................... 55

6 Distribution Revenue Metering Requirements ...................................................... 75

7 Distribution Code Transitory Provisions................................................................ 83

7.2.2 Structure of the Electric Power Industry...................................................... 84

[THIS PAGE LEFT BLANK INTENTIONALLY]

xii September 2001

DISTRIBUTION CODE GENERAL CONDITIONS

1.1 PURPOSE AND SCOPE

1.2 AUTHORITY, ENFORCEMENT AND SUSPENSION OF PROVISION

1.3 DATA, NOTICES AND CONFIDENTIALITY

1.4 CONSTRUCTION OF REFERENCES

1.4.6 Singularity and Plurality

Commissioning Test. Test applied to an Equipment at site under normal service

Energy Regulatory Commission (ERC). Refers to the independent, quasi-judicial

Non-Coincident Demand. Individual maximum demand regardless of time of

including repowering, upgrading, rehabilitation, repair, and maintenance, as reviewed

Synchronized. The state where connected alternating current systems, machines, or a

2.1 PURPOSE AND SCOPE

2.2 DISTRIBUTION MANAGEMENT COMMITTEE

2.2.5 DMC Rules and Procedures

2.3 DISTRIBUTION MANAGEMENT SUBCOMMITTEES

2.3.3 Distribution Tariff Framework Subcommittee

2.4 DISTRIBUTION CODE DISPUTE RESOLUTION

2.5 DISTRIBUTION CODE ENFORCEMENT AND REVISION PROCESS

2.6 DISTRIBUTION MANAGEMENT REPORTS

[THIS PAGE LEFT BLANK INTENTIONALLY]

DISTRIBUTION CONNECTION REQUIREMENTS

3.1 PURPOSE AND SCOPE

3.2 PROCEDURES FOR CONNECTION APPLICATION OR MODIFICATION

3.2.2 Declaration of Load Characteristics

3.2.6.3 For supplies at Medium Voltage and Subtransmission Voltage, the

3.3 DISTRIBUTION TECHNICAL, DESIGN AND OPERATIONAL CRITERIA

3.3.8 Voltage Variation during Fault and Switching Conditions

3.4 DISTRIBUTION DESIGN PRINCIPLES AND STANDARDS

3.4.2.7 The standards, publications and specifications referred to in Subsections

the Distribution System by the use of Protection and associated Equipment.

3.5 REQUIREMENTS FOR EQUIPMENT AT THE CONNECTION POINT

3.5.4.2 In order to permit these assessments to be carried out, information shall

3.6 DIAGRAM AND DRAWING REQUIREMENTS

(a) In the case of a User Site, as soon as reasonably practicable, prepare,

3.7 SPECIFIC REQUIREMENTS FOR GENERATORS

3.7.2 Information Required From Embedded Generators

(b) Capacity and Standby Requirements

3.7.6 Coordination With Existing Protection

underfrequency load disconnection equipment which shall be detailed by the

3.8 SPECIFIC REQUIREMENTS FOR LARGE CUSTOMERS

3.9 DISTRIBUTION DATA REGISTRATION

3.9.1.3 In order to assess the implications for making a connection, the

Maintenance Program that may affect the performance of the Distribution

Done in Pasig City, Metro Manila, this _th day of ___________2001.