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)

ENFORCEMENT OF RELIABLITY AND POWER QUALITY STANDARDS, AND RELIABILITY INDEX (QRI) FOR DUs

The Energy Regulatory Commission shall adopt and promulgate the Guidelines for the Enforcement of Reliability Standards pursuant to Section 43 (b) of Republic Act No. 9136, Rule 3 Section 4 (g) of its Implementing Rules and Regulations, and Article 3.3 of the Philippine Distribution Code (PDC).

Republic Act 9136, Section 43 (b)

(b) Within six (6) months from the effectivity of this Act, promulgate and enforce, in accordance with law, a National Grid Code and a Distribution Code which shall include, but not limited to, the following:

  1. Performance standards for TRANSCO O & M Concessionaire, distribution utilities and suppliers: Provided, That in the establishment of the performance standards, the nature and function of the entities shall be considered; and
  2. Financial capability standards for the generating companies, the TRANSCO, distribution utilities and suppliers: Provided, further, That such standards are set to ensure that the electric power industry participants meet the minimum financial standards to protect the public interest. Determine, fix, and approve, after due notice and public hearings the universal charge, to be imposed on all electricity end-users pursuant to Section 34 hereof.

Republic Act 9136, Implementing Rules and Regulations, Rule 3 Section 4 (g)

(g) In order to facilitate the provision of an efficient, reliable and quality service to End-users, the ERC shall promulgate a Grid Code and a Distribution Code that shall include performance standards and the minimum financial capability standards and other terms and conditions for access to and use of the transmission and distribution facilities within six (6) months from the effectivity of the Act.