Distribution Sector

Distribution Sector. 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, cooperatives, local government units presently undertaking this function and other duly authorized entities, subject to regulation by the ERC. (Sec. 22, RA 9136)

Distribution Utility refers to any electric cooperative, private corporation, government-owned utility or existing local government unit which has an exclusive franchise area to operate a distribution system in accordance with this Act. (Sec. 4 q, RA 9136)

SETTING OF ANCILLARY SERVICE CHARGES

Republic Act 9136, Implementing Rules and Regulations, Rule 4 (e), Ancillary Services

“Ancillary Services” refer to those services that are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the Grid Code to be adopted in accordance with the Act;