Workshop on DUs Compliance with the PDC

7/30/2019 Workshop on DUs Compliance with the PDC

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SEMINAR and

WORKSHOP on DUsCompliance with the PDC

November 12 – 13, 2012

Grand Men Seng Hotel, Davao City

Ronaldo T. Garcia



OUTLINEDMC Resolution 46, Series 2010

ERC Resolution 13, Series 2011

Rules to Govern the Monitoring ofCompliance of DUs with the PDC

Regulatory Compliance Officer

Distribution Code Enforcement Fines and Penalties



DMC Resolution No. 46,

Series 2010RATIFICATION OF THE ENDORSEMENT TO

THE ERC OF THE DRAFT "RULES TO GOVERN

THE MONITORING OF COMPLIANCE OF DISTRIBUTION UTILITIES WITH THE PHILIPPINE DISTRIBUTION CODE ”



Background

As mandated, the DMC, in coordination with the ERC,drafted rules governing the monitoring of compliance ofthe DUs with the PDC;

Expository presentations on the draft rules wasconducted on Sept. 22, 2010 (for Visayas & Mindanao)and Sept. 24, 2010 (for Luzon) at Mandaue, Cebu &ERC Hearing Room, respectively to gather inputs andcomments from DUs;

Public consultation was also conducted on Oct. 21, 2010at ERC Hearing Room before finalization of the same

Rules;



Background

The Distribution Technical StandardSubcommittee (DTSSC) gathered the commentsfrom various DUs and requested that the final

draft of the rules be forwarded to the ERC;

On December 6, 2010, the DMC has ratify andendorsed the draft rules to the ERC the draft

"Rules to Govern the Monitoring of Complianceof the Distribution Utilities (DUs) with thePhilippine Distribution Code" for its approval.



DMC Res. 46, Series 2010



ERC Resolution No.

13, Series 2011Resolution Adopting the DMC

Rules to Govern the Monitoring ofCompliance of DUs with the PDC



Legal Basis

Section 43 (b) of RA 9136

Mandates the ERC to promulgate andenforce a National Grid Code and a

Distribution Code;Section 43 (t) of RA 9136

Mandates the ERC to perform such otherregulatory functions that are appropriate andnecessary in order to ensure the successfulrestructuring and modernization of theelectric power industry.



Legal Basis

Section 2.2.5.1 of the PDC

DMC shall establish and publish its ownrules and procedures relating to the

conduct of its business, which include,among others, the monitoring ofdistribution code enforcement;

Section 2.2.5.2 of the PDCThe Rules and procedures of the DMCshall be approved by the ERC



Background

June 21, 2011 - Approval of the Rules

August 8, 2011 - Publication in The DailyTribune, pages 4-5



Salient FeaturesArticle I - General Provisions

Article II - Standards and Measurements

Article III - Prioritization of Compliance withthe Standards

Article IV - Requirements and Procedures

Article V - Final Provisions



General ProvisionsPurpose

Scope of Application

Definition of Terms



PurposeEstablish a monitoring system

Ensure DU compliance

Promote accountability

Protect public interest

Set order of priority

Set a timeline for the compliance



Scope of Application

Privately-owned DUs

Electric Cooperatives

LGU Owned-and–Operated DUs

Consortium of DUs



Scope of Application (Cont…)

Entities duly authorized to own, operateand maintain distribution facilities withineconomic zones

Other duly authorized entities engaged inthe distribution of electricity



DISTRIBUTOR’S COMPLIANCEMONITORING REPORT

The DCMR shall include the currentinformation on compliance with the PDCand Summary of Compliance Plans.

Proofs, justifications and explanation of itsself-assessment on the degree ofcompliance.

ERC through the DMC, shall assess anddetermine the degree or level ofcompliance of the DU.



DISTRIBUTOR’S COMPLIANCEMONITORING REPORT (Cont…)

If the DU’s system does not comply withany of the requirements, the DU shallprepare a reliable and attainable

Compliance Plan.

The Compliance Plan shall indicate

The definite activities or projects to beimplemented by the DU.

The schedule of implementation andcosts associated with the said activities.



Standards and Measurements

45 Standards

DSC-PDC # - Title of the Standard

Reference

References to the PDC Section

Description of the Standard

Measurements



Distributor’s Statement of Compliance

Ref. No.(PDC Sect .)

StandardMeasurements

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DSC-PDC-001

(3.2.3.4;

5.2.3)

Long Duration Voltage VariationsThe DU shall ensure that no undervoltage orovervoltage is present at the connection point ofany user in the Distribution System during normaloperating conditions.

Measurement:

Committed five (5) years statement of DistributionDevelopment Plan (DDP) shall be prepared inaccordance with the required technical analysesspecified in the PDC.

3rd R



Long Duration Voltage Variations

PDC IEEE 1159-1995

Duration Voltage

Magnitude Duration

VoltageMagnitude

1. Undervoltage > 1 min < 90%< 0.9 > 1 min 0.8 to 0.9pu

2. Overvoltage > 1 min> 110%> 1.1

> 1 min1.1 to 1.2

pu



Long Duration Voltage Variations

Undervoltage plot






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DSC-PDC-002

(3.2.3.5;

5.2.3.3)

Voltage Sags in the DistributionSystemThe DU shall ensure that the Distribution Systemhas sufficient capacity so that Voltage Sags whenstarting large induction motors will not adverselyaffect any User facilities or Equipment.

Measurements:Actual measurements, computer simulations,and/or calculations shall be conducted todetermine Voltage Sags at the Connection Pointsof Users with large induction motors.

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Voltage Sags in the Distribution System

PDC IEEE 1159-1995

DurationVoltage

MagnitudeDuration

VoltageMagnitude

1. Sag

0.5 cycleto 1.0min

10% to 90%0.1 to 0.9

Instantaneous

0.5 to 30

cycles

0.1 to 0.9 pu

Momentary 30 cycles to 3s

0.1 to 0.9 pu

Temporary 3 s to 1 min 0.1 to 0.9 pu

2. Swell

0.5 cycleto 1.0min

110% to180%

1.1 to 1.8

Instantaneous0.5 to 30cycles

1.1 to 1.8 pu

Momentary 30 cycles to 3s

1.1 to 1.4 pu

Temporary 3 s to 1 min 1.1 to 1.2 pu



Instantaneous Voltage Sag Caused by a Single-Line-To-Ground Fault




Temporary Voltage Sag Caused by Motor Starting







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DSC-PDC-003

(3.2.4.4)

Total Harmonic Distortion (THD)At any User System, the THD of the voltage at

the Connection Points of the Distribution Systemshall not exceed five percent (5%) during normaloperating conditions.

Measurements:Actual measurements, computer simulations,and/or calculations shall be conducted todetermine the THD of the voltage at theConnection Points of the Distribution System.

3rd NR



Total Harmonic Distortion (THD)

Harmonics - Sinusoidal voltages and currents

having frequencies that are integral multiples ofthe fundamental frequency. (PDC)

Total Harmonic Distortion (THD) – The ratioof the root-mean-square of the harmonics contentto the root-mean-square value of the fundamentalquantity, expressed as a percent of thefundamental. (Proposed PDC)




The total harmonic distortion (THD) is used to define theeffect of harmonics on the power system voltage. It isused in low-voltage, medium-voltage, and high-voltagesystems. It is expressed as a percent of the fundamental

and is defined as

%100×=

voltagel fundamentatheof amplitudetheof square

voltagesharmonicallof amplitudeof squaresallof sumTHD

%100

1

50

2

2

×=

∑=

V

V

THDh

h

Where V h = harmonic component of voltage of the order indicated by the subscript.h = order of harmonic




Composite harmonic waveform






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DSC-PDC-004

(3.2.4.5)

Total Demand Distortion (TDD)At any User System, the TDD of the current at the

Connection Points of the Distribution Systemshall not exceed five percent (5%) during normaloperating conditions.

Measurements:Actual measurements, computer simulations,and/or calculations shall be conducted todetermine the TDD at the Connection Points ofthe Distribution System.

3rd NR



Total Demand Distortion (TDD)

Total Demand Distortion (TDD) – The totalroot-mean-square of the harmonicscurrent distortion, in percent of the

maximum demand load current (15 or 30min demand).

( )

L

h

h

h

I

I

TDD

∑∞=

==

1

2

where I L = rms value of maximum demand load current h = harmonic order (1, 2, 3, 4, etc.)I h = rms load current at the harmonic order h






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DSC-PDC-005

(3.2.5.2)

Voltage Unbalance in theDistribution SystemThe maximum Voltage Unbalance at theConnection Point of any User of the DistributionSystem, excluding the Voltage Unbalance passedon from the Grid shall not exceed 2.5 percentduring normal operating conditions.

Measurements:Actual measurements, computer simulations,and/or calculations shall be conducted todetermine the Voltage Unbalance at theConnection Point.

3rd R



Voltage Unbalance

Voltage Unbalance – Themaximum deviation from the

average of the three phasevoltages divided by the averageof the three phase voltages,

expressed in percent. (PDC)



Voltage Unbalance

Imbalance trend for a residential feeder



Voltage Unbalance

%100max

×=voltageaverage

voltageaverage fromdeviationUnbalanceVoltage

Sample:The phase-to-phase voltage reading

Va = 230 V Vb = 232 V Vc = 225 V

Average voltage = (230 + 232 + 225)÷3 = 229 V.

The max deviation = 4 (for the value of 225,i.e. 230=1; 232=3; 225=4)

Voltage Unbalance = 4÷229 × 100%= 1.7467 %= 1.7 %






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DSC-PDC-006

(3.2.6.4)

Flicker Severity in the DistributionSystemThe Flicker Severity at the Connection Point ofany User of the Distribution System shall notexceed 1.0 unit for short term and 0.8 unit for longterm.

Measurements:Actual measurements, computer simulations,and/or calculations shall be conducted todetermine the Flicker Severity at the ConnectionPoints of the Distribution System.

3rd R






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DSC-PDC-007

(3.2.7.2)

Short Duration Peaks in theDistribution SystemInfrequent short-duration peaks may be permitted toexceed the levels specified in Section 3.2.4 of the PDCfor TDD and THD provided that such increases do notcompromise the service to other End-Users or causedamage to any Equipment at the Connection Points of

the Distribution System.Measurements:Procedures for connection of Users that may imposeshort-duration peaks should show that short-durationpeaks are being measured, monitored, and controlled.

3rd R






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DSC-PDC-008

(3.3.4.1;

3.3.2;

3.3.3)

Submission of DistributionInterruption ReportsThe Distribution Utility shall submit on a quarterlybasis the monthly Interruption Reports for itsDistribution System using the standard formatprescribed by the ERC, as adopted by the DMC.

Measurements:Records of events involving outage of Equipmentand power interruption of Users of the DistributionSystem for the last five (5) years shall bemaintained.

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DSC-PDC-009

(3.4.2.1;

3.4.1.2;

3.4.1.3)

Distribution System Loss ReportThe DU shall identify and report separately the

Technical and Non-Technical Losses in itsDistribution System to the ERC, through theDMC. The report shall include the AdministrativeLoss or Company Use.

Measurements:Records of actual System Losses segregated intoTechnical and Non-Technical, includingAdministrative Loss or Company Use for the lastfive (5) years shall be maintained.

1st R



ERC Issuances on System Loss

Sept. 29, 2004 – ERC issued the Guidelines for the approval ofCaps on the Recoverable Rate of DistributionSystem Loss.

June 7, 2007 – ERC issued Res. No. 19, S.2007, “A Resolution

Embodying the ERC’s Policy for Replacing Existing

System Loss Caps of Distribution Utilities.”Dec. 8, 2008 – ERC promulgated Res. No.17, S.2008, “A Resolution

Adopting a New System Loss Cap for DUs.”

May 6, 2010 – ERC issued Res. No. 11, S.2010 “ A Resolution

Clarifying the Policy on the Treatment of KWHCompany Use by DU’s.”

May 9, 2011 – ERC issued Res. No.11, S.2011 “ A Resolution

Clarifying Resolution No. 17, S.2008 and SuspendingIndefinitely the Filing of the DU’s RespectiveApplication.”






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DSC-PDC-010

(3.4.3.3;

5.2.4.2)

Technical Loss Reduction throughReactive Power CompensationThe DU shall correct feeder and substationfeeder bus Reactive Power Demand to a levelwhich will economically reduce feeder loss.

Measurements:Actual measurements, computer simulations,and/or calculations shall be conducted todetermine feeder losses.

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DSC-PDC-011

(3.5.3.1;

3.5)

Customer Service Program ReportThe DU shall prepare and submit a report to the

ERC, through the DMC, on the Customer ServiceStandards provided in the PDC. The DistributionUtility shall justify the basis for the target levels ofperformance.

Measurements:

Records of Customer Service Program for thelast five (5) years shall be maintained. CustomerService Program shall include target levels andcorresponding justifications.

2nd NR

Table 3 1



Table 3-1

Customer Service Standards for Distribution UtilitiesCustomer Service Measure of Performance

Processing of application including

estimates of charges

Number of days upon submission of complete requirements

Service connection Number of days upon compliance with all government and Distribution Utility

requirements

Restoration of service after a fault

Interruption on the secondary side,

including service drop/lateral

Numbers of hours for 100% restoration

Power Quality complaints a) Visit within x number of working days after receipt of complaint or substantive

answer within y number of days; and

b) Correction of Power Quality problems within z number of months

Informing Customers on schedule of

power Interruptions

Announcements x number of days prior to the scheduled Interruptions

Responding to emergency calls Response within x number of hours after receipt of call

Billing queries and complaints a) Answer to queries within x number of hours; and

b) Correction of errors in billing statement within y number of hours (or days)

Payment queries and complaints a) Answer to queries within x number of hours; and

b) Correction of errors in payments within y number of hours (or days)

Meter complaints a) Visit within x number of working days after receipt of complaint or substantive

answer within y number of days; and

b) Correction of meter problems within z number of weeks

Reconnection of service Reconnect within x hours after payment of all dues, provided payment is made before a

specified cut-off time

Making and Keeping of appointments a) Specific time is given to the Customer; and

b) Seeing the Customer at the appointed time






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DSC-PDC-012

(3.6.1.1;

3.6.1.2;

3.6.1.3)

Distribution System Development,Operation and Maintenance according to

PEC and OSHSThe Distribution Utility shall develop, operate, andmaintain its Distribution System in a safe manner andshall always ensure a safe work environment for its

employees.

Measurements:Review of safety requirements and procedures forDistribution System design, installation, operation andmaintenance shall be conducted to determineconsistency to the provisions of the latest editions ofPEC 1 & 2 and OSHS.

1st NR






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DSC-PDC-013

(3.6.3;

3.6.2;

3.6.3)

Submission of Personnel SafetyRecords and ReportsThe DU shall submit to the ERC, through theDMC, copies of records and reports required byOSHS as amended. These shall include themeasurement of performance specified in Section3.6.2 of the PDC.

Measurements:Records of accidents and illnesses of employeesshall be maintained.

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OutlineI. Rule 1000 – General Provision

II. Rule 1020 - Registration

III. Rule 1033 – Training and Personnel

Complement

IV. Rule 1040 – Health and Safety Committee

V. Rule 1050 – Notification and Keeping of

Records of Accidents and/or

Occupational Illnesses



General ProvisionRULE 1000 - GENERAL PROVISION

Rule 1001: Purpose and Scope:(1) To protect every workingman against the dangers of injury,

sickness or death through safe and healthful workingconditions, thereby assuring the conservation of valuablemanpower resources and the prevention of loss or damage tolives and properties, consistent with national developmentgoals and with the State’s commitment for the totaldevelopment of every worker as a complete human being.

(2) This Standards shall apply to all places of employmentexcept as otherwise provided in this Standard.



RegistrationRULE 1020 - REGISTRATION• 1021: General Provisions:

Every employer shall register his business with the

Regional Labor Office or authorized representativehaving jurisdiction thereof to form part of a databank ofall covered establishments.

• 1022: Registrable Unit:

The establishment regardless of size of economicactivity, whether small, medium or large scale in onesingle location, shall be one registrable unit.



RegistrationRULE 1020 – REGISTRATION (Cont…)

• 1023: Period of Registration:

(1) Existing establishments shall be registered within

sixty (60) days after the effectivity of this Standards.(2) New establishments shall register within thirty (30)

days before operation.




• 1024: Registration:

(1) Registration shall be made in form DOLE-BWC-IP-3

in 3 copies & to be submitted to the Regional LaborOffice or authorized representatives.

(2) Registration shall be free of charge & valid for thelifetime of the establishment except when any of thefollowing conditions exists:

a. change in business name,

b. change in location,

c. change in ownership, or

d. re-opening after previous closing.




• 1024: Registration: (Cont…)

(3) Registration shall include a layout plan of the place of

work floor by floor, in a scale of 1:100 meters white orblue print showing all the physical features of theworkplace including storage, exits, aisles, machinery,clinic, emergency devices and location.

(4) The registration form may be reprinted or reproducedand the back page may be used for other information.



Training & Personnel Complement

RULE 1030 - TRAINING OF PERSONNEL INOCCUPATIONAL SAFETY AND HEALTH

• 1033: Training and Personnel Complement:

(1) The training course prescribed by the Bureau underthis rule shall be a requisite for the appointment ofthe safetyman in place of employment.




• 1033: Training and Personnel Complement: (Cont..)

(2) At least the ff. no. of supervisors or technical personnelshall take the required training & shall be appointedsafety man, full time or part-time depending on thenumber of workers employed, & the type of workplace.

Number of Workers No. of Safety Man

Hazardous Workplace

200 and below 1 part-time safety man

Over 200 to 1000 1 full-time safety man

For every 1000 workers 1 full-time safety man

Non-hazardous Workplace

Less than 1000 1 part-time safety man

For every 1000 1 full-time safety man




RULE 1030 - TRAINING OF PERSONNEL INOCCUPATIONAL SAFETY AND HEALTH

• 1033: Training and Personnel Complement:

(Cont…)(3) Duties of the Safety Man:

A part-time safetyman shall be allotted at least 4hours per week to perform the duties as safetyman.

(4) The employment of a full-time safety man may not berequired if the employer enters into a written contractwith a qualified consultant or consulting organization.



Health and Safety Committee

RULE 1040 - HEALTH & SAFETYCOMMITTEE

• 1041: General Requirements:

In every place of employment, a health and safetycommittee shall be organized within sixty (60) days afterthis Standards takes effect and for new establishmentswithin one (1) month from the date the business starts

operating. In both cases the Committee shall reorganizeevery January of the following year.




RULE 1040 - HEALTH & SAFETY COMMITTEE

1042: Types & Composition of Health & SafetyCommittee:

TYPE No. of Workers Team Composition

A > 400 Chairman, Members (2 DH, 4W), Physician &Sec.

B >200 - 400 Chairman, Members (1 S, 3W), Physician orNurse & Sec.

C 100 - 200 Chairman, Members (1 F, 3W), Nurse & Sec.

D <100 Chairman, Members (3W), Nurse & Sec.

E 2> under 1Bldg. Chairman, Members (2S, 2W) & Sec.





• 1043: Duties of the Health and Safety Committee:

1043.01: Health and Safety Committee:

The Committee is the planning & policymaking group in all matters

pertaining to safety and health. The principal duties of theCommittee are:

(1) Plans & develops accident prevention programs.

(2) Directs the accident prevention efforts in accordance with thesafety programs, safety performance and government regulationsin order to prevent accidents.

(3) Conducts safety meetings at least once a month.

(4) Reviews reports of inspection, accident investigations &implementation of program.





• 1043: Duties of the Health and Safety Committee:


(5) Submits reports to the manager on its meetings & activities.

(6) Provides necessary assistance to gov’t. inspecting authorities inthe proper conduct of their activities.

(7) Initiates & supervises safety training for employees.

(8) Develops and maintains a disaster contingency plan and

organizes such emergency service units as may be necessary tohandle disaster situations pursuant to the emergencypreparedness manual for establishments of the Office of CivilDefense.





• 1044: Term of Office of Members:


The term of office of the department head in the committee may

be one (1) year.

The term of office of the worker members in Type A and Type Bmay be for two (2) years each; in Type C, D and E Committees,may all be one (1) year.

The chairman, physician or nurse and the safety man shall bepermanent members of the committee.



Records of Accidents

• 1054: Keeping of Records:(1) The employer shall maintain & keep an accident or

illness record which shall be open at all times for

inspection to authorized personnel containing thefollowing min. data:

a. Date of accident or illness;

b. Name of injured or ill employee, sex and age;

c. Occupation of injured or ill employee at the time ofaccident or illness;

d. Assigned causes of accident or illness;




• 1054: Keeping of Records: (Cont…)

e. Extent and nature of disability;

f. Period of disability (actual and/or charged);

g. Whether accident involved damaged to materials,equipment or machinery, kind and extent of damage,including estimated or actual cost; and

h. Record of initial notice and/or report to the Regional

Labor Office or authorized representative.




• 1054: Keeping of Records: (Cont…)

(2) The employer shall accomplish an Annual WorkAccident/Illness Exposure Data Report in duplicate

using the prescribed form DOLE/BWC/HSD-IP-6b,which shall be submitted to the Bureau copyfurnished the Regional Labor Office or dulyauthorized representative having jurisdiction on orbefore the 30th day of the month following the end of

each calendar year.






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DSC-PDC-014

(5.2.3.2)

Selection of Voltage Ratings ofDistribution EquipmentThe Distribution Utility shall consider themaximum estimated Voltage Swell in theselection of the voltage ratings of DistributionEquipment.

Measurements:Procedures and criteria for selection of voltageratings of Distribution Equipment.

3rd NR






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DSC-PDC-015

(5.2.8.1;

5.2.8.2;

6.5.2.2)

Transient Overvoltage SuppressionDevices in the Distribution SystemThe Distribution System and the User Systemshall be designed and operated to includedevices that will mitigate the effects of transientovervoltage on the Distribution System and theUser System.

Measurements:Design procedures and criteria for selection andcoordination of insulation Equipment (e.g.,transformers, CB, fuses, DS, CT/PT, couplingdevices, etc.)

1st NR






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DSC-PDC-016

(5.2.9.1;

5.2.9;

7.2.1.4)

Protection of the Distribution SystemThe Distribution System shall be designed and

operated with sufficient protection to ensuresafety and to limit the frequency and duration ofinterruptions to End-Users.

Measurements:Protection policy, requirements, and procedures

shall include but not limited to fault clearance timeand auto reclosing.All Distribution Equipment and devices shall beproperly coordinated and adequately protected.

1st NR






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DSC-PDC-017

(5.2.10.1;

5.2.10.2;

6.3.3.3)

Fault Levels Information in theDistribution SystemThe Distribution Utility shall inform the User of thedesigned and the existing fault levels of theDistribution System at the Connection Point.

Measurements:Short circuit reports shall contain the designedand existing fault levels at each Connection Pointto be considered by the User in the design of theUser System.

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DSC-PDC-018

(5.2.11.1;

5.2.11)

Grounding Method Used in theDistribution SystemThe DU shall inform the User of the grounding methodused in the Distribution System. The specification ofDistribution Equipment shall consider the maximumVoltage Swell that will be imposed on the Equipmentduring faults involving ground.

Measurements:Grounding method used in the DistributionSystem and standards and specifications forcompliance of Users shall be readily available toUsers.

1st NR






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DSC-PDC-019

(5.2.12.2;

5.2.12)

Monitoring and Control ofEquipment for User SystemThe DU shall provide, install, and maintain thetelemetry outstation and all associated Equipmentneeded to monitor the User System.

Measurements:Telemetry outstation and all associatedEquipment needed to monitor the User Systemshall be provided, installed, and maintained. ThisStandard is applicable only to DU with anagreement with at least one (1) User regardingtelemetry.

3rd NR






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DSC-PDC-020

(5.2.13.1;

5.2.13)

Standards for Equipment in theDistribution SystemAll Equipment at the Connection Point shallcomply with the requirements of the IECStandards or their equivalent national standards.

Measurements:All Equipment at the Connection Point of theDistribution System shall be designed,manufactured and tested in accordance with therequirements of the IEC Standards or theirequivalent national standards.

1st NR






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DSC-PDC-021

(5.2.14.2)

Maintenance Logbook for the Equipmentin the Distribution System

The DU shall maintain a logbook containing the testresults and maintenance records relating to itsequipment at the Connection Point and shall make this

logbook available when requested by the User.

Measurements:

Test results & maintenance records of equipment in allConnection Points of the Dist. Sys. shall readily beavailable to determine completeness of records.Records of testing and maintenance of equipment at all

Connection Points of the Dist. Sys. shall be listed.

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DSC-PDC-022

(5.3.5.1;

5.3;

5.9.3)

Application for New Connection orModification of Existing Connection to the

Distribution SystemThe DU shall establish the procedure for theprocessing of applications for connection ormodification of an existing connection to theDistribution System.

Measurements:Procedures and requirements for application ofnew connection or modification of existingconnection to the Distribution System shall beconsistent with Article 5.3 of the PDC.

1st NR

S f C






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DSC-PDC-023

(5.6.3.1;

5.6)

Fixed Asset Boundary Document forEquipment in the Distribution System

The Distribution Utility shall establish theprocedure and forms required for the preparationof the Fixed Asset Boundary Documents.

Measurements:Procedures and forms for preparation of Fixed

Asset Boundary Documents for Equipment at theConnection Point of the Distribution System shallbe in accordance with Article 5.6 of the PDC.

1st NR

Di ib ’ S f C li






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DSC-PDC-024

(5.7.1.1;

5.7)

Electrical Diagrams for the Equipment inthe Distribution System

The DU shall specify the procedure and format tobe followed in the preparation of the ElectricalDiagrams for any Connection Point.

Measurements:Procedures and forms for preparation of Electrical

Diagrams at the Connection Point of theDistribution System shall be in accordance w/ Art.5.7 of the PDC.Electrical Diagrams for all the Connection Pointsof the Distribution System shall be completed.

1st NR

Di ib ’ S f C li






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DSC-PDC-025

(5.8.1.1;

5.8)

Connection Point Drawing in theDistribution SystemThe DU shall specify the procedures and formatsto be followed in the preparation of theConnection Point Drawings for any ConnectionPoint.

Measurements:Procedures and forms for preparation ofConnection Point Drawings at the ConnectionPoint of the Distribution System shall be inaccordance with Article 5.8 of the PDC.

1st NR

Di t ib t ’ St t t f C li






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DSC-PDC-026

(5.9.3;

5.9)

User Data RegistrationThe DU shall develop the forms for all data to be

submitted in accordance with an application for aConnection Agreement or an AmendedConnection Agreement.

Measurements:Procedures and forms for submission of

Distribution System Data to be registered shall bein accordance with Article 5.9 of the PDC.Data relating to Connection Point and UserSystem for all the Connection Points of theDistribution System shall be completed.

1st NR







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DSC-PDC-027

(6.2.1.2;

6.2.5.1;

6.4;

6.5)

Maintenance of DistributionPlanning Data BankThe DU shall consolidate and maintain the Dist.Planning Data according to the ff. categories:

(a) Forecast Data;(b) Estimated Equipment Data; and(c) Registered Equipment Data.

Measurements:Procedures for collection and updating ofDistribution Planning Data shall be in accordancewith Articles 6.4 and 6.5 of the PDC.

1st R







P

r i o’ t y.

R or N R

DSC-PDC-028

(6.2.5.2;

6.2.5;

6.3)

Submission of DDPThe Distribution Utility shall develop and submit

its DDP annually to the Department of Energy(DOE). In the case of an Electric Cooperative,such plan shall also be submitted through theNational Electrification Administration (NEA). Acopy of the DDP shall also be submitted to theDMC.

Measurements:Distribution Development Plan (DDP) preparedduring the preceding year shall be submitted tothe DOE, NEA, and DMC.

1st R







P

r i o’ t y.

R or N R

DSC-PDC-029

(6.3.1.1;

6.3)

Distribution Planning StudiesThe DU shall conduct distribution planning

studies to ensure the safety and reliability of theDistribution System.

Measurements:Procedures for conducting Distribution Planningstudies.

Analytical tools shall include, but are not limited tovoltage drop analysis, short circuit analysis,system loss analysis, reliability analysis andeconomic/ financial analysis, for conductingDistribution Planning and impact studies

1st R







P

r i o’ t y.

R or N R

DSC-PDC-030 (7.2.1.5;

7.4)

Distribution Operating ProceduresThe DU is responsible for ensuring that safe and

economic distribution operating procedures arealways followed.

Measurements:Distribution operating procedures, includingcommunications channels

1st NR







P

r i o’ t y.

R or N R

DSC-PDC-031

(7.4.3.1)

Submission of Monthly ReportsThe DU shall prepare and submit to the DMC

monthly reports on distribution operation.Measurements:Records of Distribution operations (MonthlyOperations Reports) shall be submitted to theDMC using the prescribed format by the ERC as

adopted by the DMC on a quarterly basispursuant to DMC Resolution No. 32, series of2009.

1st R

Distrib tor’s Statement of Compliance






P

r i o’ t y.

R or N R

DSC-PDC-032

(7.4.3.2)

Submission of SIRThe DU shall submit to the DMC the Significant

Incident Reports prepared pursuant to theprovisions of Section 7.7.2 of the PDC.

Measurements:Records of Significant Incidents in the DistributionSystem (all Significant Incident Reports) shall be

submitted to the DMC using the prescribed formatunder the DMC SIR Procedures approved byERC through Resolution No. 5 series of 2010“Resolution Adopting the DistributionManagement Committee Significant Incident

Reporting Procedures”

1st R







P

r i o’ t y.

R or N R

DSC-PDC-033

(7.4.3.3)

Submission of Annual OperationsReportThe DU shall prepare and submit to the DMC anAnnual Operations Report. This report shall include theSignificant Incidents on the Distribution System thathad a material effect on the Distribution System or theSystem of any User.

Measurements:Records of Distribution operations (AnnualOperations Report) shall be submitted to theDMC using the ERC DU-MO2 prescribedtemplate.

1st R




Distributor s Statement of Compliance



P

r i o’ t y.

R or N R

DSC-PDC-034

(7.5.1.1;

7.2.1.2;

7.5)

Distribution Maintenance ProgramThe DU shall prepare the ff. Dist. Maint. Prog’s.

based on forecasted demand, User’s provisionalMaint. Prog. & requests for maintenanceschedule:Records of procedures for preparing the Dist. Maint.

Prog. shall be in accordance w/ Sect. 7.5.1 of the PDC.

Measurements:Records of Maint. Prog’s. shall include the ff:Three (3)-year Maintenance Program;

Annual Maintenance Program; andMonthly Maintenance Program

1st R







P

r i o’ t y.

R or N R

DSC-PDC-035

(7.6.1.1;

7.2.1.6;

7.6)

Distribution Demand and VoltageControl ProgramThe Distribution Utility shall implement DemandControl when the System Operator has issued aRed Alert Notice due to a generation deficiency inthe Grid or when a Multiple Outage Contingencyresulted in island grid operation.

Measurements:Records of procedures for Demand Control.Records shall include responses to theinstructions of the System Operator.

1st NR







P

r i o’ t y.

R or N R

DSC-PDC-036

(7.7.1.3;

7.7)

Distribution Emergency ProceduresThe DU shall develop and maintain a Manual of

Distribution Emergency Procedures, which listsall parties to be notified, including their businessand home phone numbers, in case of anemergency.

Measurements:

Manual of Distribution Emergency Proceduresshall be developed, maintained and distributed,and shall include procedures to be observedduring emergency drills.

2nd NR







P

r i o’ t y.

R or N R

DSC-PDC-037

(7.7.1.4;

7.7)

Distribution Emergency DrillsEmergency drills shall be conducted at least once

a year to familiarize all personnel responsible foremergencies.

Measurements:Emergency drills conducted during the precedingyear.

If an emergency drill has not been conducted yet,schedules and detailed instructions for theemergency drill shall be provided.

2nd R







P

r i o’ t y.

R or N R

DSC-PDC-038

(7.8.1.5;

7.8)

Safety Coordination Procedures forSafety PrecautionsSafety Coordination Procedures shall beestablished for the coordination, establishment,maintenance and cancellation of safetyprecautions on MV and HV Equipment when workor testing is to be carried out on the Distribution

System or the User System.Measurements:Records of procedures for implementing SafetyPrecautions shall be in accordance with Article7.8 of the PDC

2nd NR







P

r i o’ t y.

R or N R

DSC-PDC-039

(7.9.1.1;

3.2;

7.9.1)

Power Quality Testing & Monitoringin the Distribution SystemThe DU shall, from time to time, determine theneed to test and/or monitor the Power Quality atvarious points on its Distribution System.

Measurements:Procedures and schedule of monitoring of Power

Quality of selected nodes of the DistributionSystem.

3rd NR







P

r i o’ t y.

R or N R

DSC-PDC-040 (7.9.2.1;

7.9.2)

Monitoring of Effect of User Systemon the Distribution SystemThe DU shall, from time to time, monitor the effectof the User System on the Distribution System.

Measurements:Procedures and schedule of monitoring the effectof the User System on the Distribution System.

3rd R







P

r i o’ t y.

R or N R

DSC-PDC-041

(7.10.1.1;

7.10)

System Tests on the Distribution Systemor the User System

System Tests w/c involve the simulation of conditionsor the controlled application of unusual or extremeconditions that may have an impact to the Dist. Sys. orthe User Sys. shall be carried out in a manner thatshall not endanger any personnel or the general public.

Measurements:

Records of procedures for implementing Sys. Testsshall be in accordance with Article 7.10 of the PDC.Procedures shall describe the details of therequirements for the Sys. Test Request, Sys. TestGroup, Sys. Test Program and Sys. Test Report.

1st NR







P r i o’ t y.

R or N R

DSC-PDC-042

(7.11.1.1;

7.11)

Capability Tests Procedures forEmbedded Gen. Units

Tests shall be conducted, in accordance with theagreed procedures and standards to confirm thecompliance.

Measurements:Records of procedures to confirm the capability of

Embedded Generating Units shall be inaccordance w/ Article 7.10 of the PGC & Article7.11 of the PDC.Capability Tests shall be conducted for all EmbeddedGenerating Units w/in the Distribution System.

1st NR







P r i o’ t y.

R or N R

DSC-PDC-043

(7.12.1.1;

7.12.1)

Std. Sys. for Site & Equip’t. IDThe DU shall develop and establish a Standard Systemfor Site and Equipment Identification to be used inidentifying any site or equipment in all electricaldiagrams, Connection Point drawings, distributionoperation instructions, notices and other documents

Measurements:Procedures for Standard System for Site and

Equipment Identification shall be in accordancewith Section 7.12.1 of the PDC.Records of all Site and Equipment shall be withassigned identification according to the StandardSystem for Site and Equipment Identification.

3rd NR







P r i o’ t y.

R or N R

DSC-PDC-044

(7.12.2.1;

7.12.2)

Std. labeling Sys. for Site & Equip’t. IDThe Distribution Utility shall develop and establisha Standard Labeling System, which specifies thedimension, sizes of character, and colors of labelsto identify the Sites and Equipment.

Measurements:Procedures for labeling the Sites and Equipment

in the Distribution System shall be in accordancewith Section 7.12.2 of the PDC.

3rd NR







P r i o’ t y.

R or N R

DSC-PDC-045

(7.12.2.2)

Installation of Site & Equip’t. ID.The Distribution Utility or the User shall be

responsible for the provision and installation of aclear and unambiguous label showing the Siteand Equipment Identification at their respectiveSystem.

Measurements:

All Sites and Equipment in the DistributionSystem shall be certified and labeled indicatingthe dates and persons in-charge of labeling inaccordance with the Standard System for Siteand Equipment Identification and Labeling.

3rd NR



PRIORITIZATION



PRIORITIZATION

• First Priority - Compliance within 1 year

• Second Priority - Compliance within 3 years

• Third Priority - Compliance within 5 years

Note: DUs under PBR, compliance within 5 years after its current regulatory reset

ECs under the RSEC-WR, ERC decision on their performance standard would prevail

First Priority



First Priority

Reference StandardDSC-PDC-008 Interruption Report

DSC-PDC-009 System Loss Report

DSC-PDC-010 Technical Loss ReductionDSC-PDC-012 Safety Procedures

DSC-PDC-013 Safety Reports

DSC-PDC-015 Transient Overvoltage

DSC-PDC-016 Protection of the Dist. System

DSC-PDC-017 Fault Levels

DSC-PDC-018 Grounding Method

First Priority



First Priority

Reference StandardDSC-PDC-020 Standards for Equipment

DSC-PDC-021 Maintenance Logbook

DSC-PDC-022 Application for New ConnectionDSC-PDC-023 Fixed Asset Boundary

DSC-PDC-024 Electrical Diagram

DSC-PDC-025 Connection Point Drawing

DSC-PDC-026 User Data Registration

DSC-PDC-027 Planning Data Bank

DSC-PDC-028 DDP

First Priority



First Priority

Reference StandardDSC-PDC-029 Distribution Planning Studies

DSC-PDC-030 Operating procedure

DSC-PDC-031 Submission of Monthly ReportsDSC-PDC-032 Submission of SIR

DSC-PDC-033 Annual Operations Report

DSC-PDC-034 Maintenance Program

DSC-PDC-035 Demand & Voltage Control

DSC-PDC-041 System Tests

DSC-PDC-042 Capability Tests

Total 27

Second Priority



Second Priority

Reference Standard

DSC-PDC-011 Customer Service Program

DSC-PDC-036 Emergency Procedures

DSC-PDC-037 Emergency Drills

DSC-PDC-038 Safety Coordination

Total 4

Third Priority



Third Priority

Reference StandardDSC-PDC-001 Long Duration Voltage Variation

DSC-PDC-002 Voltage Sags

DSC-PDC-003 THDDSC-PDC-004 TDD

DSC-PDC-005 Voltage Unbalance

DSC-PDC-006 Flicker Severity

DSC-PDC-007 Short Duration Peak

Third Priority



Third Priority

Reference Standard

DSC-PDC-014 Voltage Ratings

DSC-PDC-019 Equipment Monitoring & Control

DSC-PDC-039 Power Quality Testing

DSC-PDC-040 Monitoring of the Effect of User SystemDSC-PDC-043 Equipment Identification

DSC-PDC-044Labeling System for Site andEquipment

DSC-PDC-045Installation of Site and EquipmentIdentification

Total 14



Reportorial Requirements




DUs shall submit its Distributor’sCompliance Monitoring Report using theprescribed template (Annex “A”).

Distributor’s Compliance Monitoring Report



Distributor s Compliance Monitoring Report





• The Report shall specify, but not limited to,the following:

a) Standard or the prescribed technical

specifications, performancestandards, financial standards orother requirements of the PDC;

b) Measurements by which thecompliance of the reporting entitywith the Standard will be assessed;





• The Report shall specify, but not limited to,the following: (Cont…)

c) Self-assessment and certification of the

reporting entity concerning its degree orlevel of compliance with the Standard;and

d) Definite activities or projects to beimplemented by the DU to fully complywith the requirements of the PDC.





The DU shall assess the applicability of theStandard to its Distribution System(s). If theStandard is applicable, the self-assessed degreeor level of compliance shall be indicated in the

Report. The degree of compliance with theStandard can be:

Full Compliance - Complies with all the requirements of the

Standard; and

Non-Compliance - Not in compliance with one or more of the

requirements of this Standard but has definite plan and schedule tocorrect all violations or complete all requirements;





Where the DU is in full compliance with the non-recurringStandard, the DU shall submit any proof of compliance inlieu of the required supporting information and/ordocuments. However, should there be any amendments

to the required supporting information and/or documents,these shall submitted as part of the Report.

The non-recurring Standard is a Standard that requiresestablishment of policies, procedures and systems tocomply with technical standards. Table 2 indicates therecurring & the non-recurring Standard.



RECURRING

DSC-PDC-001 Voltage Variations

DSC-PDC-002 Voltage Sags

DSC-PDC-005 Voltage Unbalance

DSC-PDC-006 Flicker Severity

DSC-PDC-007 Short Duration PeaksDSC-PDC-008 Interruption Reports

DSC-PDC-009 System Loss Report

DSC-PDC-010 Loss Reduction - KVAR

DSC-PDC-013 Safety Records & Rpts.

DSC-PDC-017 Fault Levels

DSC-PDC-021 Maintenance Logbook

DSC-PDC-027 Planning Data

DSC-PDC-028 DDP

NON-RECURRING

DSC-PDC-003 THD

DSC-PDC-004 TDD

DSC-PDC-011 Cust. Service Program

DSC-PDC-012 PEC & OSHS

DSC-PDC-014 Voltage RatingsDSC-PDC-015 Transient Overvoltage

DSC-PDC-016 Protection

DSC-PDC-018 Grounding Method

DSC-PDC-019 Monitoring & Control

DSC-PDC-020 Standards for Equip’t.

DSC-PDC-022 App’tn. for New Con’tn.

DSC-PDC-023 Fixed Asset Boundary

DSC-PDC-024 Electrical Diagrams



RECURRING

DSC-PDC-029 Planning Studies

DSC-PDC-031 Monthly Reports

DSC-PDC-032 SIR

DSC-PDC-033 Annual Operations Rpt.

DSC-PDC-034 Maintenance ProgramDSC-PDC-037 Emergency Drills

DSC-PDC-040 Effect of User

DSC-PDC-041 System Tests

NON-RECURRING

DSC-PDC-025 Connection Pt. Draw’g.

DSC-PDC-026 User Data Registration

DSC-PDC-030 Operating Procedures

DSC-PDC-035 Demand & Volt. Cont’l.

DSC-PDC-036 Emergency ProceduresDSC-PDC-038 Emergency Drills

DSC-PDC-039 Power Quality

DSC-PDC-042 Tests Procedures

DSC-PDC-043 Site & Equipment I.D.

DSC-PDC-044 Labeling System

DSC-PDC-045 Installation of I.D.





Where the Standard is not applicable tothe reporting entity or the reporting entityis not in full compliance with the Standard,

the reporting entity shall explain thereasons for such conditions.





The DU entity shall ensure that supportinginformation and/or documents to justify its self-assessment of compliance w/ the Standard arereadily available for verification & inspection by

the ERC, through the DMC. These shall includedocumentations containing procedures, records,reports, programs, plans, actions taken or to be

taken & other information that demonstrate thecompliance of the reporting entity with theStandard.





The Distributor’s Compliance MonitoringReport shall be certified by the authorizedperson of the reporting entity and shall be

submitted under oath to the ERC, throughthe DMC.

Procedures for Reporting




4.2.1 ReportingA reporting entity shall submit to the ERC

not later than May 31 of each year, the

Distributor’s Compliance MonitoringReport (in hard and electronic copies),indicating its performance for the

preceding calendar year against theminimum Standards provided in the PDC.





4.2.2 Self-AssessmentA reporting entity shall conduct self-

assessment through periodic monitoring of

its compliance with the Standards of thePDC and provide in a form and mannerand at such times as may be requested by

the ERC, Distributor’s ComplianceMonitoring Report under oath as set out inSection 4.2.3 of these Rules.





4.2.3 Record KeepingA DU shall maintain records of compliance

and shall be available anytime for

inspection.

A DU shall maintain detailed records of all

technical and economic evaluationconducted to comply w/ the requirementsset out in Chapter 6 the PDC.





4.2.3 Record Keeping (Cont…)

All submitted reports shall be kept by

the DMC and made available to theERC upon request for a period of five

(5) years.




ocedu es o epo t g

4.2.4 Compliance AuditThe ERC, through the DMC, shall conduct

annual Compliance Audit in random

manner, including spot inspections, tomonitor compliance of the reporting entitywith the Standards of the PDC.




p g

4.2.4 Compliance Audit (Cont…)The DU will be provided with a 60-day

notification and all the necessary

documents required by the Audit Team.




p g

4.2.4 Compliance Audit (Cont…) The Audit Team will review the DU’s evidence of

compliance with all the applicable Standards of

the PDC with the technical personnel of thereporting entity and as required, provideadditional information to clarify data previouslysupplied to the Audit Team.

Interviews supplied to the Audit Team, inconjunction with evidence provided, will be thebasis in validating compliance with the PDC.




p g

4.2.4 Compliance Audit (Cont…)At the end of the Compliance Audit, the

Audit Team shall conduct exit briefing with

the reporting entity to discuss thepreliminary audit findings and feedbackfrom the reporting entity.

The Audit Team - composed of DMCBoard Members with DMC technicalsupport staff.




p g

4.2.5 BudgetBudget for the conduct of the monitoring

and Compliance Audit by the ERC,

through DMC, shall be included in theannual budget of the DMC.



Final Provisions



• 5.1 Administrative Sanctions

Violation of these Rules shall be subjectto the imposition of fines and penalties inaccordance with the “Guidelines toGovern the Imposition of AdministrativeSanctions in the form of Fines and

Penalties Pursuant to Section 46 ofEPIRA”, as amended.

Final Provisions



• 5.2 Separability

If for any reason, any provision of theseRules is declared unconstitutional orinvalid by final judgment of a competentcourt, the other parts or provisionshereof which were not affected thereby

shall continue to be in full force andeffect.

Final Provisions



• 5.3 Repealing ClauseAny rule or regulation inconsistent with the provisions of theseRules is hereby repealed and modified accordingly.

• 5.4 Effectivity

These Rules shall take effect immediately upon publication in anewspaper of general circulation in the country and upon postingelectronically.

Let copies of these Rules be furnished the University of thePhilippines Law Center-Office of the National AdministrativeRegister (UPLC-ONAR) and all concerned Distribution Utilities.

Pasig City, June 21, 2011.

ERC Res. No. 19, Series 2006



A Resolution Clarifying Issues on theAppointment of a RCO and Prescribing theDuties and Responsibilities (Cont…) I. No specific requirement as long as he could function as an Internal

Coordinator within the regulated entity for purposes of complyingwith ERC issuances;

II. No need of creation of a new position, as what was required ismerely to designate one of its senior officers to function as such;and

III. Replacement of RCO should not be more frequent than once every2 years & such replacement would only bind the ERC after 7 days

from its receipt of the notice of replacement.




A Resolution Clarifying Issues on theAppointment of a RCO and Prescribing theDuties and Responsibilities (Cont…)

The duties and responsibilities of the RCO are;1. Monitoring of ERC issuances;

2. Assuring the timely compliance of the regulated entityto pertinent ERC issuances;

3. Participation in the Mandatory Regulatory EducationProgram (MREP) courses;




A Resolution Clarifying Issues on theAppointment of a RCO and Prescribing theDuties and Responsibilities (Cont…)

The duties and responsibilities of the RCO are;4. Attending RCO meetings/ seminars/ conferences

scheduled by the ERC;

5. Recipient of all general guidelines/issuances of the

ERC, wherein the receipt of RCO is receipt of theregulated entity rule applies; and

6. Such other duties and responsibilities that the ERCmay, from time to time prescribe.

DISTRIBUTION CODE ENFORCEMENT



2.5 DISTRIBUTION CODE ENFORCEMENT ANDREVISION PROCESS

2.5.1 Enforcement Process2.5.1.1 Any party that has evidence that any other

party has violated or is violating any provision ofthe Distribution Code may file a complaint to theDMC who shall initiate an enforcement process.The DMC may initiate the enforcement processeven if no complaint has been filed but it has

information on possible Distribution Codeviolations. The ERC may also direct the DMC tobegin the enforcement process.

DISTRIBUTION CODE ENFORCEMENT



• 2.5.1 Enforcement Process (Cont…)

2.5.1.2 The steps of the enforcement process are asfollows:

(a) The DMC shall send a written notice to the offending party with thespecifics of the alleged violation and the recommended course of actionneeded to correct the alleged violation;

(b) The offending party shall respond in writing, within 30 days from receipt ofthe notice from the DMC, its reaction to the alleged violation and to statewhether or not it shall comply with the course of action recommended bythe DMC;

(c) If the DMC is satisfied with the response, it shall make a report, including

the recommended course of action, to the ERC who shall render the finaldecision on the matter; and

(d) If the DMC is not satisfied with the response, it shall document thecharges against the offending party and submit a report, including therecommended course of action, fines, and penalties to the ERC.



Fines andPenalties

Outline



ERC Guidelines of 2002ERC Resolution No. 13, Series of 2005

ERC Resolution No. 03, Series of 2009



GUIDELINES TO GOVERN THEIMPOSITION OF ADMINISTRATIVE

SANCTIONS IN THE FORM OFFINES AND PENALTIES

PURSUANT TO

SECTION 46 OF REPUBLIC ACTNO. 9136

Salient Features



ARTICLE I - KEY FUNCTIONS OF THE ERCARTICLE II - SCOPE & DEFINITION OF TERMS

ARTICLE III - ADMINISTRATIVE SANCTIONS

ARTICLE IV – CONTEMPTARTICLE V - COMPROMISE SETTLEMENT

ARTICLE VI - EFFECTIVITY

Article III – Administrative Sanctions



SECTION 4. NON-SUBMISSION OFDOCUMENTS

A penalty P50,000 plus P100 a day for every

day of violation shall be imposed upon anyperson who fails, without any justifiable reason,to submit documents and other documentsrequired and deemed material and pertinent by

the ERC.




SECTION 5. Non-Compliance w/ the Provisions of the Act and its IRR,Grid & Distribution Codes & Rules, Regulations, Orders, Resolutions &Other Laws of the ERC.

A fine of P100,000 plus P100 a day for every day of violation shallbe imposed upon any person who has been found to have

committed a violation of any of the provisions of the Act and itsIRR, the Philippine Grid and Distribution Codes and rules,regulations, orders, resolutions and other laws the implementationand enforcement of which are assigned to the ERC, including butnot limited to the following:

a) Operating as a Generation Company/Facility without a valid Certificateof Compliance (COC) and appropriate clearances.

b) Failure to provide open and non-discriminatory access to theTransmission and Distribution System, as and whenprescribed/required.




SECTION 5. Non-Compliance w/ the Provisions of the Act and its IRR,Grid & Distribution Codes & Rules, Regulations, Orders, Resolutions &Other Laws of the ERC. (Cont…)

c) Non-compliance with the prescribed technical specificationsand performance standards.

d) Non-submission of a plan to comply with technicalspecifications prescribed by the Grid or Distribution Codesand/or failure to implement said plan within three (3) years fromthe effectivity of the said Codes.

e) Operating as an Electricity Supplier without a valid license orpermit.

f) Failure to file an application for unbundling of rates.




SECTION 5. Non-Compliance w/ the Provisions of the Act and its IRR,Grid & Distribution Codes & Rules, Regulations, Orders, Resolutions &Other Laws of the ERC. (Cont…)

g) Operating as a Transmission or Distribution Utility without avalid Certificate of Public Convenience and Necessity (CPCN).

h) Failure to file duly negotiated Transition Supply Contracts withinthe time prescribed by law.

i) Failure to implement the mandated rate reduction.

j) Failure of the Distribution Utility to adopt and implement a lifelinerate.




SECTION 6. ISSUANCE OF NOTICE ANDWARNING

The penalty shall be imposed only after the

offender has been duly informed in writing of saidviolation, has been given an opportunity to presentan explanation and has been duly warned of theconsequences of said violation. The imposition of

any administrative sanction is without prejudice toany criminal action that may be filed, if warranted,under existing laws, rules and regulations.




SECTION 7. ANTI-COMPETITIVE ACTS. A penalty not lower than P50,000 but not exceeding

P50,000,000 shall be imposed upon any person who hasbeen found, after due notice and hearing, to have engaged

in any anti-competitive act including but not limited tocross-ownership, cross-subsidization, price or marketmanipulation or other unfair trade practices.

This monetary sanction shall be without prejudice to the

imposition of price controls, issuance of injunctions,requirement of divestment or disgorgement of excessprofits and any criminal action that may be filed, ifwarranted, under existing laws, rules and regulations.




SECTION 8. FRAUD OR MISREPRESENTATION• A penalty not lower than P50,000 but not exceeding

P50,000,000 shall be imposed upon any DU w/c has beenfound to have committed fraud or misrepresentation in

connection w/ its failure to comply with its obligation tomitigate potential stranded contract costs as providedunder Section 33 of the Act and Rule 17 of its IRR.

This monetary sanction shall be w/o prejudice to the

requirement of divestment or disgorgement of excessprofits and any criminal action that may be filed, ifwarranted, under existing laws, rules and regulations.




SECTION 9. REVOCATION OF FRANCHISE ORPRIVILEGE

• The repeated commission of violations

provided under Sections 5, 7 and 8 hereofshall be a ground for ERC to recommend toCongress the revocation of the franchise orprivilege granted to the offender.

Resolution No. 03, Series of 2009



No. ofViolation

Basic Amount ofPenalty

Additional Penalty to be Imposed for the Delay in theCompliance from Notification

1st violation PhP50,000.00a)More than 1 (one) month but less than three(3) months - 10% of the basic amount of penaltyb)Three (3) months to six (6) months – 50% ofthe basic amount of penalty.c)More than six (6) months - 50% of the basicamount of penalty for every month of delay

2nd and 3rdviolations

PhP100,000.00

4th andsubsequentviolations

PhP200,000.00

“RESOLUTION AMENDING THE GUIDELINES TO GOVERN THE

IMPOSITION OF ADMINISTRATIVE SANCTIONS IN THE FORM OFFINES AND PENALTIES PURSUANT TO SECTION 46 OFREPUBLIC ACT NO. 9136”

• Amends Sections 4 and 5, Article III of the GUIDELINES TO GOVERN THEIMPOSITION OF ADMINISTRATIVE SANCTIONS IN THE FORM OF

FINES AND PENALTIES PURSUANT TO SECTION 46 OF REPUBLICACT NO. 9136 ("Guidelines") approved on May 17, 2002.




No. of Violation

Basic Amount of

Penalty Additional Penalty1st violation PhP200,000.00

a) 50% of the basic amount of penalty if

there were Financial benefits that may

be derived as a result of the violation

b) 75% of the basic amount of penalty ifthe violation is intended to conceal

illegal acts

c) 100% of the basic amount of penalty if

the violation directly affects the

consumers

2nd violation PhP300,000.00

3rd violation and

subsequent

violations

PhP500,000.00 and

Cancellation of the

Certificate of Public

Convenience and

Necessity (CPCN),

License and the Franchise

for Consortium

• If the reports/documents submitted contain

fraudulent information/data, the same shall betreated as non-compliance with the precedingparagraph and shall be subject to the followingsanctions:




No. of Violation Amount of Penalty

1st violation PhP100,000.002nd violation PhP200,000.00

3rd and subsequent violations PhP400,000.00

• The official or personnel of the juridical entity

solely responsible for the submission of thefraudulent reports shall be subject to the followingsanctions:

The responsible officer being referred to, are those who have

directly participated in, or have authorized the preparation ofsuch reports/documents.

No compromise agreement shall be allowed in cases where thesame violation was committed more than once.




SECTION 5. NON COMPLIANCE WITH THEPROVISIONS OF THE ACT AND ITS IRR, GRID ANDDISTRIBUTION CODES, RULES, REGULATIONS,ORDERS, RESOLUTIONS AND OTHER LAWS OF THEERC.

• Any person who has been found to have committed a violation ofany provisions of the Act and its IRR, the Philippine Grid andDistribution Codes (PGDC), rules, regulations, orders, resolutionsand other laws the implementation and enforcement of which aredelegated to the ERC, including but not limited to the following, shall

be subject to the following sanctions:




No. of violation Basic Amount of Penalty

Additional Penalty Shall be

Imposed for Any Willful Delayin the Implementation

1st and 2nd violation PhP100,000.00 a) 10% of the basic amount

of penalty if the compliance

was made after one (1)

month from notice

b) 50% of the basic amount of

penalty if the compliance

was made after two (2)

months from notice

b) 100% of the basic amounto f penalty if the

compliance was made after

three (3) months from

notice.

3rd and 4th violation PhP300,000.00

5th and subsequent

violationsPhP500,000.00and

Cancellation of the

Certificate of PublicConvenience and

Necessity (CPCN),

License and the

Franchise for

Consortium



Thank You



Distribution Management Committee20th Floor Pacific Center Bldg., San Miguel Avenue, Ortigas

Center

www.gmcdmc.phNorth Luzon [email protected]

South Luzon [email protected]

Visayas [email protected]

Mindanao [email protected]

Workshop on DUs Compliance with the PDC

Documents

Transcript of Workshop on DUs Compliance with the PDC