Philippine

Distribution
Code
PRESENTED BY: GROUP 8
What is
Philippine
Distribution
Code?
The Philippine Distribution Code establishes
the basic rules, procedures, requirements,
and standards that govern the operation,
maintenance, and development of the electric
Distribution Systems in the Philippines.

This will be used with the Philippine Grid

Code and the Market Rules of the Wholesale
Electricity Spot Market to ensure the safe,
reliable, and efficient operation of the total
electric energy supply system in the
Philippines.
Republic Act No. 9136

• known as the “Electric Power Industry

Reform Act of 2001,”

• The law aims to promote competition,

efficiency, and quality service in the sector,
as well as to ensure transparent and
reasonable prices of electricity1. The law
also provides for a lifeline rate for low-
income consumers, which was extended by
Senate Bill No. 2846 in the 15th
Congress2.
CHAPTER 1:

DISTRIBUTION
CODE GENERAL
CONDITIONS
 Authority
The Act provides the Energy Regulatory Commission
(ERC) the authority to promulgate the Philippine
Distribution Code.

Applicability
The Philippine Distribution Code applies to all
Distribution Utilities, which include Electric
Cooperatives, private Distributors, government-
owned utilities, and existing local government
units that are franchised to operate Distribution
Systems.
 Enforcement
● The Act assigns to the ERC the responsibility of
enforcing the Distribution Code.

● The ERC shall establish the Distribution

Management Committee (DMC) to monitor
Distribution Code compliance at the operations
level and to submit regular and special reports
pertaining to Distribution operations.
Suspension of Provisions
● Any provision of the Distribution Code may be
suspended, in whole or in part, when the Grid
is not operating in the Normal State and the
System Operator has issued an Alert Warning
to the Distributor, or pursuant to any
directive given by the ERC or the appropriate
government agency.
 Data and Notices

● The submission of any data under the

Distribution Code shall be done through
electronic format or any suitable format
agreed upon by the concerned parties.

● Written notices under the Distribution Code

shall be served by hand delivery, registered
first-class mail, or facsimile transfer.
 Confidentiality
● All data submitted by any Distribution
System User to the Distributor in
compliance with the data requirements of
the Distribution Code shall be treated by
the Distributor as confidential. These
include data requirements for connection
to the Distribution System and those that
are required in the planning, operation,
and maintenance of the Distribution
System.
CHAPTER 2:

DISTRIBUTION
MANAGEMENT
Functions of the Distribution Management Committee

• Monitor the implementation of the Philippine

Distribution Code;

• Monitor, evaluate, and make recommendations on

Distribution operations;

• Review and recommend standards, procedures, and

requirements for distribution system connection,
operation, maintenance, and development;

• Manage queries on the application and/or interpretation

of the provisions the Philippine Distribution Code, and
make appropriate recommendations to the ERC;
• Initiate the Philippine Distribution Code enforcement
process and make recommendations to the ERC;

• Initiate and coordinate revisions of the Philippine

Distribution Code and make recommendations to the
ERC; and

• Prepare regular and special reports for submission to the

ERC, or as required by the appropriate government
agency, or when requested by a User.
 Membership of the DMC

• The DMC shall be composed of the following 15 regular

members appointed by the ERC:

• (a) Three members nominated by private and local

government

• Distribution Utilities excluding the largest Distribution

Utility, one each from Luzon, Visayas, and Mindanao;

• (b) Three members nominated by the Electric Cooperatives

excluding the largest Distribution Utility, one each from
Luzon, Visayas, and Mindanao;
● The members of the DMC shall be a registered electrical engineer
and shall have sufficient technical background and experience of
a t lea st 1 0 yea rs i n t h e E l e c t r i c P o w e r I n d u s t r y t o f u l l y
understand and evaluate the technical aspects of distribution
system operation, planning, and
development.
Terms of Office of the DMC Members
● A regular member of the DMC shall have a term of 3 years, and
may be reappointed by the ERC. However, in view of numerous
activities to be accomplished after the approval of the Philippine
Distribution Code’s latest edition, the DMC will require a period of
18 months to finish the same. Consequently, existing members
whose term will expire within the 18-month period shall continue
to serve on holdover capacity until the end of the said 18-month
period, provided that at least two-thirds of the total number of
current members shall remain. In the event that the remaining
membership falls below two-thirds, the period of being on hold-
over capacity shall go beyond the 18-month period until the
successor of the concerned member shall have been appointed.
● Appointment to any future vacancy shall be only for the
remaining term of the predecessor.

● Any member of the DMC may be removed from the Committee,

after due notice, by the ERC upon its own initiative or upon
the recommendation of the DMC for neglect of duty,
incompetence, malpractice, or for unprofessional, unethical, or
d ishonora ble cond uct, or such other gro u n d a s m a y b e
determined by the ERC.
DMC Rules and Procedures
● The DMC shall establish and publish its own rules and procedures
relating to the conduct of its functions.

● The rules and procedures of the DMC shall be approved by the

ERC.

● The DMC is expected to decide on issues based on consensus

rather than by simple majority voting.
DISTRIBUTION MANAGEMENT SUBCOMMITTEES

Distribution Planning Subcommittee

● The DMC shall establish a permanent Distribution Planning

Subcommittee with the following functions:

● (a) Reviewing and revising the Distribution System planning

procedures and standards;

● (b) Evaluating and making recommendations on the

Distribution Development Plan; and

● (c) Evaluating and recommending actions on the proposed

major Distribution System reinforcement and expansion
projects.
Distribution Operations Subcommittee
● The DMC shall establish a permanent Distribution Operations
Subcommittee with the following functions:

● (a) Reviewing and revising the distribution system operation

technical standards, such as:

(1) Equipment standards;

(2) Standard operating procedures;
(3) Performance standards; and
(4) Metering standards.
● Reviewing and revising the Distribution System operating
procedures, such as:

(1) Joint purchases of common Equipment;

(2) Sharing of parts inventories;
(3) Mutual assistance; and
(4) Emergency response.

● Evaluating and making recommendations on Distribution System

operation reports;

● Evaluating and making recommendations on Significant Incidents;

and

● Monitoring the implementation of the Philippines Small Grid

Guidelines.
● The chairman and members of the Distribution
Operations Subcommittee shall be appointed by the
DMC.
● The members of the Distribution Operations
Subcommittee shall have sufficient technical
background and experience in distribution system
operations.
Distribution Reliability and Protection
Subcommittee
● The DMC shall establish a permanent Distribution Protection
and Reliability Subcommittee with the following functions:

(a) Reviewing and revising Distribution System reliability

and protection procedures and standards;
(b) Evaluating and making recommendations on
distribution reliability reports;
(c) Evaluating and making recommendations on
significant distribution system Events or incidents caused
by the failure of protection;
(d) Reviewing and recommending reliability performance
standards; and
(e) Managing reliability data.
● Evaluating and recommending actions on the proposed major
Distribution System reinforcement and expansion projects.

● The chairman and members of the Distribution Planning

Subcommittee shall be appointed by the DMC.

● The members of the Distribution Planning Subcommittee shall

have sufficient technical background and experience in
distribution planning.
Distribution Operations Subcommittee
● The DMC shall establish a permanent Distribution Operations
Subcommittee with the following functions:

● (a) Reviewing and revising the distribution system operation

technical standards.

● Reviewing and revising the Distribution System operating

procedures.

● Evaluating and making recommendations on Distribution System

operation reports;

● (d) Evaluating and making recommendations on Significant

Incidents; and

● (e) Monitoring the implementation of the Philippines Small Grid

Guidelines.
Distribution Reliability and Protection
Subcommittee
● The DMC shall establish a permanent Distribution Protection
and Reliability Subcommittee with the following functions:

● (a) Reviewing and revising Distribution System reliability and

protection procedures and standards;

● (b) Evaluating and making recommendations on distribution

reliability reports;

● (c) Evaluating and making recommendations on significant

distribution system Events or incidents caused by the failure of
protection;

● (d) Reviewing and recommending reliability performance

standards; and

● (e) Managing reliability data.

● The chairman and members of the Distribution Protection
and Reliability Subcommittee shall be appointed by the
DMC.

● The members of the Distribution Protection and Reliability

● Subcommittee shall have sufficient technical background

and experience in Distribution System reliability and
protection.
Compliance Subcommittee
● The DMC shall establish a permanent Compliance
Subcommittee with the following functions:

● (a) Implementing rules and regulations pertaining to

the compliance of Distribution Utilities with the
Philippine Distribution Code;

● (b) Evaluating and making recommendations on the

Distribution Utility’s compliance monitoring report
with the Philippine Distribution Code;
● (c) Conducting actual assessment of Distribution
Utility’s compliance with the Philippine Distribution
Code;

● (d) Implementing rules and regulations pertaining to

the compliance of small grid users with the Philippine
Small Grid Guidelines; and

● (e) Monitoring and conducting actual compliance of

small grid users with the Philippine Small Grid
Guidelines.
Rules Review Subcommittee
● The DMC shall establish a permanent Rules Review
Subcommittee with the following functions:

● (a) Initiating proposals for appropriate amendments to

and/or revisions of the Philippine Distribution Code;

● (b) Evaluating and making recommendations on the

proposed amendments to and/or revisions of the
Philippine Distribution Code; and

● (c) Evaluating and making recommendations on any

rules and regulations to be issued by the ERC and/or
other agencies.
● The chairman and members of the Rules Review
Subcommittee shall be appointed by the DMC.

● The members of the Rules Review Subcommittee shall

have sufficient technical background and experience in
distribution operations and planning, including
regulation of the power industry.
Fines and Penalties
● To effectively enforce the Philippine Distribution Code,
the ERC shall impose the fines or penalties prescribed
by the Act for any non-compliance with or breach of
any provision of the Philippine Distribution Code.

Unforeseen Circumstances
● If a situation arises which the provisions of the
Philippine Distribution Code have not foreseen, the
Distribution Utility shall, to the extent reasonably
practicable, consult promptly all affected Users and
Suppliers in an effort to reach agreement as to what
should be done.
● If an emergency situation arises which the provisions of the
Philippine Distribution Code have not foreseen, the Distribution
Utility shall take whatever step it deems necessary to its best
judgment. A report of the actions taken, results and assessment
shall be furnished to the DMC, affected Users, and Suppliers for
documentation and record purposes.

● If an agreement is reached, the Distribution Utility shall

promptly refer the matter, including the agreement, to the
DMC for review and to make the appropriate recommendations
to the ERC.
 Philippine Distribution Code
Amendment and Revision Process
● Any party who has a proposal to amend any provision
of the Philippine Distribution Code shall submit the
proposal in writing, including the supporting
arguments and data, to the DMC for evaluation.

● If the DMC agrees with the proposed amendment, it

shall make the appropriate recommendations to the
ERC.

● If the DMC disagrees with the proposed amendment,

it shall submit a stating the justifications for its
position to the ERC.
 DISTRIBUTION MANAGEMENT
REPORTS
Quarterly and Annual Reports
● The DMC shall submit to the ERC four quarterly
reports before the end of the month immediately
following the quarter.

● The DMC shall submit to the ERC an annual report for

the previous year by the end of March of the current
year.
Significant Incident Reports
● The following Events are considered Significant
Incidents:

● (a) Outage of at least one substation, whose primary

voltage is 69 kV and above and owned by the
Distribution Utility, for at least 1 hour;

● (b) Service Interruption for at least 15 minutes

affecting at least 25% of previous month’s customers;
and

● (c) Service Interruptions for at least 15 minutes

affecting at least 25% of previous year’s peak demand.
● Within 2 weeks following a Significant Incident in the
Distribution System or the User System, the Distribution
Utility shall submit to the DMC and the ERC a report
detailing the sequence of events and other relevant
information pertaining to the incident. The report shall
describe the cause of the Significant Incident and the amount
and duration of the resulting power Interruptions.

● Within 1 month following the receipt of the Distribution

Utility’s report on the Significant Incident, the DMC shall
validate the report and make recommendations to the ERC.
In cases where any User has violated any provision of the
Philippine Distribution Code, the DMC may recommend to
the ERC sanctions as part of the Significant Incident report.
Special Reports
● The DMC shall prepare special reports as ordered by
the ERC or any appropriate government agency, or at
the request of any User, or as it deems necessary.
Special reports prepared at the request of any User
shall be at the expense of the User.
CHAPTER 3:

PERFORMANCE
STANDARDS FOR
DISTRIBUTION
AND SUPPLY
 POWER QUALITY STANDARDS FOR
DISTRIBUTION UTILITIES
Power Quality Problems
● Power Quality defined as the quality of the voltage, including its
Frequency and the resulting current, that are measured in the
Distribution System during normal conditions.

Frequency Variations
● The nominal fundamental Frequency shall be 60 Hz.

● The Distribution Utility shall design and operate its System to assist
the System Operator in maintaining the fundamental Frequency
within the limits of 59.7 Hz and 60.3 Hz during normal conditions.
Voltage Variations
Short Duration Voltage Variation
● 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 1 minute. A Short
Duration Voltage Variation is a Voltage Swell if the RMS value
of the Voltage increases to between 110% and 180% of the
nominal value.

Long Duration Voltage Variation

● Defined as a variation of the RMS value of the Voltage from
nominal Voltage for a time greater than 1 minute. A Long
Duration Voltage Variation is an Undervoltage if the RMS
value of the Voltage is less than or equal to 90% of the
nominal Voltage.
 Harmonics
● Harmonics defined as sinusoidal Voltages and currents
having Frequencies that are integral multiples of the
fundamental Frequency.

Total Harmonic Distortion

● The (THD) shall be defined as the ratio of the RMS

value of the sum of the squared individual harmonic
amplitudes to the RMS value of the fundamental
Frequency of a complex waveform.
Voltage Unbalance
● Voltage Unbalance 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.
Flicker Severity
● Flicker defined as the impression of unsteadiness of
visual sensation induced by a light stimulus whose
luminance or spectral distribution fluctuates with time.

● The disturbance caused by a Flicker source with a

short duty cycle, the Short Term Flicker Severity shall
be computed over a 10-minute period.
 ● The disturbance caused by a Flicker sources with a long and
variable duty cycle, the Long Term Flicker Severity shall be
derived from the Short Term Flicker Severity levels.

Transient Voltage Variations

● Transient Voltages shall be defined as the high-frequency

Overvoltages that are generally shorter in duration compared
to the Short Duration Voltage Variations.
 RELIABILITY STANDARDS FOR
DISTRIBUTION UTILITIES
Criteria for Establishing Distribution Reliability Standards
● The ERC shall impose a uniform system of recording
and reporting of Distribution System reliability
performance.

● The Distribution Utilities shall be grouped into different

categories, which shall be based on load density, sales
mix, cost of service, delivery voltage, and other
technical considerations that the ERC may deem
appropriate
 Inclusions and Exclusions of
Interruption Events
● A power interruption shall include any Outage in the primary
distribution system, extending from the distribution substation 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 or Users.

● The following Events shall be excluded in the calculation of there

liability 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 Customers or Users have been notified at
least 3 days prior to the loss of power;

● (d) Supply Interruptions made at the request of a customer or

authorized customer representative;

● (e) Outages that are initiated by the System Operator/Market Operator

during the occurrence of Significant Incidents or the failure of their
facilities;

● (f) 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

● (g) Outages due to other events, including Major Events, that the ERC
shall approve after due notice and hearing
Submission of Distribution Reliability Reports
and Performance Targets
● The Distribution Utility shall submit every 3 months the
monthly interruption reports for its Distribution System using
the standard format prescribed by the ERC.

SYSTEM EFFICIENCY STANDARDS FOR DISTRIBUTION

UTILITIES

System Loss Classifications

It is classified into two categories: Technical Loss and Non-

Technical Loss
 Technical Loss
The aggregate of conductor loss, the core loss in
Transformers, and any loss due to technical metering
error.

Non-Technical Loss
the aggregate of the Energy lost due to pilferage, Meter
reading errors, Meter tampering, and any loss that is
not related to the physical characteristics and functions
of the electric system.
 System Loss Cap
● The Distribution Utility shall identify and report separately to
the ERC the Technical and Non-Technical Losses in its
Distribution System.

● The ERC shall, after due notice and hearing, prescribe a cap on
the System Loss that the Distribution Utility can pass on to its
End-Users.
 Distribution Utility Use
● The Distribution Utility Use shall include the Energy that is
required for the proper operation of the Distribution System.

● The Distribution Utility shall submit to ERC an application for

the approval of its Distribution Utility Use. The allowance for
Distribution Utility Use shall be approved by the ERC, after
due notice and hearing, based on connected essential Load.

● Actual Distribution Utility Use shall be treated as part of the

Distribution Utility’s operations and maintenance expenses,
and upon review and approval by ERC, incorporated in its
distribution, metering and supply charges.
Power Factor at the Connection Point
● All Users of the Distribution System shall maintain a Power
Factor of not less than 85% lagging at the Connection Point.

● The Distribution Utility 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.

● The Distribution Utility shall correct feeder and substation

feeder bus Reactive Power Demand to a level, which will
economically reduce feeder loss.
 CUSTOMER SERVICE STANDARDS FOR
DISTRIBUTION UTILITIES AND SUPPLIERS
Customer Service Standards
● The Customer Service Standards for Distribution Utilities and
Suppliers shall include:

● (a) Guaranteed Standards; and

● (b) Overall Standards.

● Guaranteed Standards shall refer to the Customer Services
where a penalty is imposed on the Distribution Utility (or
Supplier) for failing to meet the target level of
performance. The penalty is given to the affected
Customer.

● Overall Standards shall refer to the Customer Services

where it is not appropriate to give a guarantee, but where
the Customers have a right to expect the Distribution
Utility (or Supplier) to deliver a reasonable level of service.
Guaranteed Standards shall refer to the Customer Services
where a penalty is imposed on the Distribution Utility (or
Supplier) for failing to meet the target level of
performance. The penalty is given to the affected
Customer.
Measuring Customer Service Performance
● The evaluation of the Customer Service performance of the
Distribution Utility (or Supplier) shall include:

○ (a) Prescriptive Approach; and

○ (b) Customer Rating Approach.

○ The Prescriptive Approach, the Distribution Utility (or

Supplier) shall file an application with ERC for the
approval of its Customer Service Program including the
specified levels of performance or targets.

○ The Customer Rating Approach, the Distribution Utility

(or Supplier) shall commission an independent entity,
accredited by the ERC, to conduct a Transactions Survey.
Compliance with Republic Act No. 7920

● Users of the Distribution System shall comply with the

requirements of Section 33, Republic Act No. 7920 known as
the “New Electrical Engineering Law”, the relevant
implementing rules and regulations, and any amendments
thereto, as applicable.
 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:

● (a) Exposure to work injuries shall be measured by the total

number of hours of employment of all employees in each
establishment or reporting unit.

● (b) 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.
 Submission of Safety Records and
Reports

● The Distribution Utility (or Supplier) shall submit to

ERC copies of records and reports required by OSHS
as amended. These shall include the measurement
ofperformance .
CHAPTER 4:

DISTRIBUTION
CONNECTION
REQUIREMENTS
 DISTRIBUTION TECHNICAL, DESIGN, AND
OPERATIONAL CRITERIA
Power Quality Standards
• The Distribution Utility shall ensure that at any
Connection Point in the Distribution System, the Power
Quality standards.

• The Embedded Generation Company shall ensure that the

Power Quality standards.

• Users of the Distribution System and Users seeking

connection to the Distribution System or modification of
an existing connection shall ensure that their Equipment
can operate reliably and safely within the limits during
normal conditions, and can withstand the limits specified
in this Article.
 Frequency Variations

• The Distribution Utility shall design and operate its System to

assist the System Operator in maintaining the system Frequency
within the limits.

• In case the system Frequency momentarily rises to 62.4 Hz or

falls to 57.6 Hz, all Embedded Generating Units shall remain in
synchronism with the Grid for at least 5 seconds to allow the
System Operator to undertake measures to correct the situation.

• The Distribution Utility shall take into account the maximum

estimated Frequency Variation during emergency conditions in
the specification of distribution Equipment.
 Voltage Variations

• The Distribution Utility shall consider the maximum estimated

Voltage Swell in the selection of the Voltage ratings of distribution
Equipment.

• Any extension or connection to the Distribution System shall be

designed in such a way that it does not adversely affect the
Voltage Variation in the Distribution System.
 Power Factor

• The User shall maintain a Power Factor of not less than 85%
lagging at the Connection Point in the Distribution System.

• The Distribution Utility shall correct feeder and substation feeder

bus Reactive Power Demand to a level that will economically
reduce Technical Loss.

• The Distribution Utility may establish incentives and penalties for

User Power Factor at the Connection Point based on the target
level.
 Harmonics
• The Total Harmonic Distortion of the Voltage and the Total
Demand Distortion of the current, at any Connection Point, shall
not exceed the limits prescribed.

Voltage Unbalance
• The maximum Voltage Unbalance at any Connection Point in the
Distribution System shall not exceed the limits specified during
normal operating conditions.

• The User shall ensure that its System shall not cause the Voltage
Unbalance in the Distribution System to exceed the limits
specified.
 Flicker Severity
• The User shall ensure that its System shall not cause the Flicker
Severity in the Distribution System to exceed the limits specified

• The Embedded Generation Company shall ensure that its System

shall not cause the Flicker Severity in the Distribution System to
exceed the limits specified

Transient Voltage Variations

• The Distribution System and the User System shall be designed
and operated to include devices that will mitigate the effects of
transient Overvoltages on the Distribution System and the User
System.

• The Distribution Utility and the User shall take into account the
effectof electrical transients when specifying the insulation of
their electrical Equipment.
 Protection Arrangements
• The Distribution System shall be designed and operated with
sufficient protection to ensure safety and to limit the Frequency and
duration of Interruptions to End-Users.

• The requirements for the protection system at the Connection Point

be agreed upon by the Distribution Utility and the User during the
application for connection or modification of an existing connection
and shall be reviewed from time to time by the Distribution Utility,
with the concurrence of the User.

• The User System shall be designed and operated with protective

devices following with the requirem ents of the Distribution
Utility.Unless the Distribution Utility instructs otherwise, the User
shall not use current-limiting protective devices to limit the fault
current infeed to the Distribution System.
 Equipment Short Circuit Rating
• The Distribution Utility shall inform the User of the designed and
existing Fault Levels of the Distribution System at the Connection
Point.

• The User shall consider the designed and existing Fault Levels at the
Connection Point in the design and operation of the User System.

Grounding Requirements
• The Distribution Utility shall inform the User of the Grounding
method used in the Distribution System. The specification of
Distribution Equipment shall consider the maximum Voltage Swell
that will be imposed on the Equipment during faults involving
ground.

• Where there are multiple sources of power, the User shall ensure
that the effects of circulating currents with respect to the grounded
neutral are either prevented or mitigated.
 Monitoring and Control Equipment
Requirements
• The Distribution Utility and the User shall agree on the mode of
monitoring and control.

• The Distribution Utility shall provide, install, and maintain the

telemetry outstation and all associated Equipment needed to
monitor the User System.

• If the User agrees that the Distribution Utility shall control the
switchgear in the User System, the Distribution Utility shall install
the necessary control outstation, including the control interface for
the switchgear.
 PROCEDURES FOR DISTRIBUTION
CONNECTION OR MODIFICATION
Connection Agreement

• The Connection Agreement shall include provisions for the

submission of information and reports, Safety Rules, Test
and Commissioning programs, Electrical Diagrams,
statement of readiness to connect, certificate of approval to
connect, and other requirements prescribed by the ERC.

Amended Connection Agreement

• The Amended Connection Agreement shall include

provisions for the submission of additional information
required by the Distribution Utility and prescribed by
the ERC.
 Distribution Impact Studies

• The Distribution Utility shall develop and maintain a set of

required technical studies for evaluating the impact on the
Distribution System of any proposed connection or
modification to an existing connection.

• The Distribution Utility shall treat this period as the

maximum acceptable impact study duration. In cases where
the Distribution Utility is unable to complete the Distribution
Impact Study within the time period specified, it shall
notifythe User and provide an estimated date of completion
with a justification or explanation for the requirement of
additional Completion Date.
 Commissioning of Equipment and Physical
Connection to the Distribution System

• The User shall then submit to the Distribution Utility a

statement of readiness to connect, which shall include the
Test and Commissioning report and the result of the
capability test.

• Upon acceptance of the User’s statement of readiness to

connect, the Distribution Utility shall, within 15 days, issue
a certificate of approval to connect.

• The physical connection to the Distribution System shall be

made only after the certificate of approval to connect has
been issued by the Distribution Utility to the User.
 REQUIREMENTS FOR ALL EMBEDDED
GENERATION COMPANIES

• The Equipment of the Embedded Generation Company shall

be connected to the Distribution System at the Voltage level
agreed to by the Distribution Utility and the Embedded
Generation Company based on the Distribution Impact
Studies.

• The Connection Point shall be controlled by a Circuit

Breaker that is
• capable of interrupting the maximum short circuit current
at the point of connection.
CHAPTER 5:

DISTRIBUTION
PLANNING
 Distribution Planning Responsibilities
The Distribution Utility shall be responsible for
Distribution Planning, including:

(a) Analyzing the impact of the connection of new

facilities such as Embedded Generating Plants, Loads,
distribution lines, or substations;

(b) Planning the expansion of the Distribution System to

ensure its adequacy to meet forecasted Demand and the
connection of new Embedded Generating Plants; and

(c) Identifying and correcting problems on Power Quality,

System Loss, and Reliability in the Distribution System.
 Submission of Planning Data
As required by the Distribution Utility, a User applying
for connection or a modification of an existing
connection to the Distribution System shall submit to
the Distribution Utility the relevant Standard Planning
Data specified and the Detailed Planning Data specified,
in accordance with the requirements prescribed.

Standard Planning Data

• It shall consist of information necessary for the
Distribution Utility to evaluate the impact of any
User Development on the Distribution System.

Detailed Planning Data

• shall include additional information necessary for the
conduct of a more accurate Distribution Planning
study. This shall cover circuit parameters, switchgear,
and protection arrangements of equipment directly
connected to or affecting the Distribution System.
The Standard Planning Data and Detailed Planning
Data shall be submitted by the User to the Distribution
Utility according to the following categories:
(a) Forecast Data;
(b) Estimated Equipment Data; and
(c) Registered Equipment Data.
• The Forecast Data shall contain the User’s best
estimate of the data, including Energy and Demand,
being projected for the five succeeding years.
• The Estimated Equipment Data shall contain the
User’s best estimate of the values of parameters and
information pertaining to its Equipment.
• The Registered Equipment Data shall contain validated
actual values of parameters and information about
the User’s Equipment, which are part of the
Connected Project Planning Data submitted by the
User to the Distribution Utility at the time of
connection.
 Voltage Drop Studies
• Voltage drop studies shall be performed to
determine the Voltages at the Connection Points
for the forecasted Demand of the exi st i ng
Distribution System and any planned expansion,
reinforcement, or development.
• Voltage drop studies shall be performed to
evaluate the impact of the connection of new
Embedded Generating Plants, loads, or
distribution lines on the Distribution System.
 Distribution Reliability Studies
• Distribution Reliability studies shall be
performed to determine the frequency
and duration of Customer Interruptions
in the Distribution System.
• The historical Reliability performance of
the Distribution System shall be
determined from the Interruptions data
of the Distribution System.
 Energy and Demand Forecast
• The User shall provide the Distribution Utility
with its Energy and Demand forecasts at each
Connection Point for the five succeeding years.
• The Forecast Data for the first year shall include
monthly Energy and Demand forecasts, while
the remaining four years shall include only the
annual Energy and Demand forecasts.
• The Users shall provide the net values of Energy
and Demand forecast after any deductions to
reflect the output of a Customer Self-
Generating Plant. Such deductions shall be
stated separately in the Forecast Data.
 Short Circuit Studies
• Short circuit studies shall be performed to
evaluate the effect on the Distribution System
Equipment of the connection of new Generating
Plants and other facilities that will result in
increased fault duties for the Distribution System
Equipment. These studies shall identify the
Equipment that could be damaged when current
exceeds the design limit of the Equipment. The
studies shall also identify the Circuit Breakers
and fuses, which may fail when interrupting
possible short circuit currents.
• Three-phase short-circuit studies shall be
performed for all nodes of the Distribution
System for the maximum and minimum
generation scenarios of the Grid and for
different system circuit configurations.
• Single line-to-ground fault studies shall also be
performed for critical Distribution System nodes.
These studies shall identify the most
severeconditions that the Distribution System
Equipment may be exposed to.
 System Loss Studies
• System Loss studies shall be performed to
identify, classify, and quantify the losses in the
Distribution System. The various categories and
components of System Loss shall be identified
and quantified in conducting the System Loss
studies.
• System Loss studies shall be performed to
determine the effects of any User Development
and any development in the Distribution System
on the efficiency of the Distribution System
CHAPTER 6:

DISTRIBUTION
OPERATIONS
 Operational Responsibilities of the
Distribution Utility

• The Distribution Utility shall be responsible for

operating and maintaining Power Quality in the
Distribution System during normal conditions, in
accordance with the provision, and in proposing
solutions to Power Quality problems.

• The Distribution Utility is responsible for preparing

the Distribution Maintenance Program for the
maintenance of its Equipment and facilities.

• The Distribution Utility is responsible for providing

and maintaining all Distribution Equipment and
facilities.
● The Distribution Utility is responsible for designing, installing,
and maintaining a distribution protection system that will
ensure the timely disconnection of faulted facilities and
Equipment.

● The Distribution Utility is responsible for ensuring that safe and

economic distribution operating procedures are complied with.

● The Distribution Utility is responsible for maintaining an

Automatic Load Dropping scheme, as necessary, to meet the
targets agreed upon with the System Operator.

● The Distribution Utility is responsible for developing and

proposing Distribution Wheeling Charges to the ERC.
 Operational Responsibilities of Embedded
Generation Companies

• The Embedded Generation Company is responsible

for ensuring that its Generating Units can deliver the
capabilities declared in its Connection Agreement or
Amended Connection Agreement.

• The Embedded Generation Company is responsible

for providing accurate and timely planning and
operations data to the Distribution Utility.

• The Embedded Generation Company is responsible

for executing the instructions of the Distribution
Utility during Normal, Alert or Emergency
conditions.
 Operational Responsibilities of Large VRE
Embedded Generation Companies

• In Normal State, Large VRE Embedded Generating

Plants shall be operated in the Free Active Power
Production control mode (as defined in the latest
edition of the Philippine Grid Code) or at any other
control mode in case the Embedded Generation
Company decides so.

• In Alert State, the System Operator through the

Distribution Utility shall make its best endeavors to
permit Large VRE Embedded Generating Plants to
continue operating in the Free Active Power
Production control mode (as defined in the latest
edition of the Philippine Grid Code).
• In Emergency, Extreme or Restorative
States the System Operator through the
Distribution Utility, or the Distribution
Utility independently, shall issue appropriate
instructions to Large VRE Embedded
Generating Plants regarding the operation
of this type of facilities. For the avoidance of
doubt, these instructions may include the
immediate disconnection of Large VRE
Embedded Generating Plants from the
network.
Scheduling and Dispatch

• Embedded Generation Companies that

intend to register or are registered in the
WESM shall comply with the requirements
of the Scheduling and Dispatch Chapter of
the Philippine Grid Code.
 Operational Responsibilities of Other
Distribution Users
• The User is responsible for assisting the Distribution
Utility in maintaining Power Quality in the
Distribution System during normal conditions by
correcting any User facility that causes Power
Quality problems.

• The User shall be responsible for ensuring that its

System will not cause any Degradation of the
Distribution System. It shall also be responsible in
undertaking all necessary measures to remedy any
degradation that the User System has caused to the
Distribution System.
 OPERATIONAL ARRANGEMENTS

Mutual Assistance
• The DMC shall recommend emergency
procedures to the Distribution Utilities,
including the development of a mutual
assistance program for Distribution Utilities.
• The Distribution Utilities shall cooperate in
the establishment of mutual assistance
procedures and in providing coordinated
responses during emergencies.
 Equipment and Inventory Sharing
• The DMC shall recommend procedures for Equipment
and inventory sharing to the Distribution Utilities,
including the development of an Equipment and
inventory sharing program for Distribution Utilities.

• The Distribution Utilities shall cooperate in the

establishment of procedures for Equipment and
inventory sharing and in the implementation of an
Equipment and inventory sharing program that will
minimize procurement cost.
 Joint Purchases
• The DMC shall recommend procedures for
joint purchase arrangements to the
Distribution Utilities, including the
development of a joint purchase program
for Distribution Utilities.
• The Distribution Utilities shall cooperate in
the establishment of procedures for the joint
purchase of Equipment and in the
implementation of a joint purchase program
to achieve economies of scale in the
procurement of Equipment and supplies.
 Distribution Operations
Communications
• The Distribution Utility and the User shall establish a
communication channel for the exchange of
information required for distribution and open access
operation. The communication channel shall, as much
as possible, be direct between the Distribution Utility
and the User, and between the Distribution Utility
and the Supplier.
• Where it is determined by the Distribution Utility
that a backup or alternative route of communication
and/or emergency communication is necessary for
the safe operation of the Distribution System, the
Distribution Utility and the User shall agree on the
additional means of communication.
 DISTRIBUTION MAINTENANCE
PROGRAM
Preparation of Maintenance Program
• The Distribution Utility shall prepare the following
Distribution Maintenance Programs based on
forecasted Demand, User’s provisional Maintenance
Program, and requests for maintenance schedule:
• (a) Three-Year Maintenance Program;
• (b) Annual Maintenance Program; and
• (c) Monthly Maintenance Program;
• The three-year Maintenance Program shall
be prepared annually for the three
succeeding years. The annual Maintenance
Program shall be developed based on the
maintenance schedule for the first year of
the three-year Maintenance Program. The
monthly Maintenance Program shall provide
the details required by the System Operator
for the preparation of the Grid Operating
Program, as specified in the Philippine Grid
Code.
 • DEMAND AND VOLTAGE CONTROL
Demand Control Coordination
• The Distribution Utility shall implement Demand
Control when the System Operator has issued a Red
Alert notice due to a generation deficiency in the
Grid or when a Multiple Outage Contingency resulted
in Island Grid operation.

• The Demand Control to be implemented by the

Distribution Utility shall include the following:
• (a) Automatic Load Dropping;
• (b) Manual Load Dropping; and
• (c) Voluntary Demand Management.
 Automatic Load Dropping
• The System Operator shall establish the level of Demand
required for Under-Frequency Load Shedding (UFLS) and
Under-Voltage Load Shedding (UVLS) in order to limit the
consequences of Significant Incidents or a major loss of
generation in the Grid. The System Operator shall conduct
the appropriate technical studies to justify the targets
and/or to refine them as necessary.
• To ensure that a subsequent fall in Frequency will be
contained by the operation of UFLS, additional Manual
Load Dropping shall be implemented by the Distribution
Utility so that the loads that were dropped by UFLS can be
reconnected.
• The Distribution Utility shall notify the System Operator
of the actual Demand that was disconnected by UVLS, or
the Demand that was restored in the case of reconnection,
within 5 minutes of the Load dropping or reconnection.
 Manual Load Dropping
• The Distribution Utility shall make arrangements that will
enable it to disconnect its Customers immediately following
the issuance by the System Operator of an instruction to
implement MLD.
• If the System Operator has determined that the MLD
carried out by the User is not sufficient to contain the
decline in Grid frequency, the System Operator may
disconnect the total Demand of the Distribution Utility in
an effort to preserve the integrity of the Grid.
• If the Distribution Utility disconnected its Customers upon
the instruction of the System Operator, the Distribution
Utility shall not reconnect the affected Customer until
instructed by the System Operator to do so.
 Voltage Control
The control of Voltage can be achieved by
managing the Reactive Power supply in the
Distribution System. This shall include the
operation of the following Equipment:
(a) Embedded Generating Units;
(b) Synchronous condensers;
(c) Static VAR compensators;
(d) Shunt capacitors and reactors; and
(e) On-Load tap changing Transformers.
 EMERGENCY PROCEDURES
Preparation for Distribution
Emergencies
• The Distribution Utility shall issue a directive 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) Fortuitous Event.
• Emergency drills shall be conducted at least once a year to
familiarize all personnel responsible for emergencies. The
drills shall simulate realistic emergency situations. A drill
evaluation shall be performed and deficiencies in procedures
and responses shall be identified and corrected.
 Black Start and Resynchronization
Procedures
• If a Significant Incident resulted in a Total System
Blackout or a Partial System Blackout and the isolated
Distribution System has Embedded Generating Units with
Black Start Capability, the Distribution Utility shall
initiate a Black Start procedure in coordination with the
System Operator.

• After a Total System Blackout or a Partial System

Blackout and during the whole restoration process,
Embedded Generation Companies of Large and Medium
Embedded Generating Plants shall strictly follow the
instructions issued by the System Operator through the
Distribution Utility. They shall not reconnect to the
network unless an instruction or an authorization has
been provided by the System Operator or the Distribution
Utility.
 Safety Coordination Procedures
• The Distribution Utility and the User shall adopt and use
a set of Safety Rules and Local Safety Instructions for
implementin Safety Precautions on MV and HV
Equipment. The respective Safety Rules and Local Safety
Instructions of the Distribution Utility and the User shall
govern any work or testing on the Distribution System or
the User System.

• Safety coordination procedures shall be established for the

coordination, establishment, maintenance, and
cancellation of Safety Precautions on MV and HV
Equipment when work or testing is to be carried out in
the Distribution System or the User System.
 Safety Coordinator
• Responsible for the coordination of Safety
Precautions on the MV and HV Equipment at their
respective sides of the Connection Point. Any party
who wants to change its Safety Coordinator shall
notify the other party of the change.

Safety Logs and Record of Inter-System

Safety Precautions
• The Distribution Utility and the User shall maintain
Safety Logs to record, in chronological order, all
messages relating to Safety Coordination. The Safety
Logs shall be retained for at least 1 year.
 DISTRIBUTION TESTING AND
MONITORING
Testing Requirements
• The Distribution Utility shall, from time to time, determine
the need to test and/or monitor the Power Quality at
various points on its Distribution System.

• The requirement for specific testing and/or monitoring by a

Distribution Utility shall be initiated by the receipt of a
complaint relating to Power Quality in the Distribution
System.

• In certain situations, the Distribution Utility may require

the testing and/or monitoring to take place at the
Connection Point of a User to be witnessed by a User
representative.
 System Test Requirements
• System Test, which involves the simulation of conditions or
the controlled application of unusual or extreme conditions
that may have an impact on the Distribution System or the
User System, shall be carried out in a manner that shall
not endanger any personnel or the general public.
• The possibility of damage to Equipment, the Distribution
System, and the System of the Users shall be minimized
when undertaking a System Test on the Distribution
System or the User System.
 System Test Request
• If a User wishes to undertake a System Test on its System,
it shall submit to the Distribution Utility a System Test
Request that contains the following:
(a) The purpose and nature of the proposed System
Test;
(b) The extent and condition of the Equipment
involved; and
(c) A proposed System Test Procedure specifying the
switching sequence and the timing of the
switching sequence.
• The System Test Proponent shall provide sufficient time for
the Distribution Utility to plan the proposed System Test.
The Distribution Utility shall determine the time required
for each type of System Test.
 Site and Equipment Identification
Requirements
• The Distribution Utility shall develop and establish a
standard system for Site and Equipment
Identification to be used in identifying any Site or
Equipment in all Electrical Diagrams, Connection
Point Drawings, distribution operation instructions,
notices, and other documents.

• The identification for Equipment shall be unique for

each Transformer, distribution line, bus, Circuit
Breaker, disconnect switch, Grounding switch,
capacitor bank, reactor, lightning arrester, CCPD,
and other MV and HV Equipment at the Connection
Point.
CHAPTER 7:

DISTRIBUTION
REVENUE
METERING
REQUIREMENTS
Metering Equipment
The Metering Equipment shall consist of:

(a) Revenue Meters;

(b) Instrument Transformers, as may be applicable;
(c) All interconnecting cables, wires, and associated devices,
and protection, i.e., test block or switch, loading resistors,
meter cubicle, security seals, etc.; and
(d) Optional: Integrating pulse Recorder, time source, and
backup battery.
 Metering Point Location
• The Metering Point shall be located at the Connection
Point, unless the installation of the Metering Equipment is
physically difficult, uneconomical or not practical.

• Metering Responsibility
• Be responsible for the design, installation, operation and
maintenance of the metering System and the Component
parts to ensure the integrity and accuracy of the metering
System.
• Be responsible to provide and install all Metering
Equipment at a location specified by the Distribution Utility.
• Maintain records of tests and readings of the Metering
Equipment.
• Make arrangements to seal or secure all Metering
Equipment, data collection Equipment and associated
communication Equipment.
 Active Energy and Demand Metering
• 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.
• Active and Demand metering shall be provided for each
User at each Connection Point and shall be accessible for
inspection and reading.

• Meter Test Block or Switch

• Test block or switch shall be installed inside the meter
enclosure to allow the current and Voltage from each
instrument transformer and each Meter to be individually
determined. The installation shall also be in accordance but
not limited to ANSI C12.8-1981 (R1997, R2002,
R2012) or its equivalent standard.
 Instrument Transformer Testing
• No instrument transformer shall be installed or placed in
service unless it has been tested and certified by the ERC.
• Test on the Instrument Transformers shall be conducted by
the authorized representatives of the Distribution Utility or
the MSP in the presence of the User’s authorized
representative during the Test and 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 Distribution Utility or the MSP or based on
an agreed equivalent international or guidelines set out by
the ERC
 Meter Calibration and Testing
• No Meter shall be installed or placed in service unless it has
been tested, certified and sealed by the ERC.
• Test and calibration of Meters shall be conducted by the
ERC (or its authorized representative) in the presence of
the authorized representatives of the Distribution Utility or
the MSP, based on ERC rules and guidelines
• If both parties cannot agree on the accuracy of the Meter,
only the ERC, shall act as arbiter.
Operation and Maintenance of Metering
Facilities and Equipment
• The Distribution Utility or the MSP shall maintain all
Metering Equipment. Distribution Utility or the MSP shall
keep all test results, Maintenance Programs, and sealing
records for atleast 5 years. The Equipment data and test
records shall be furnished by the Distribution Utility or the
MSP to the User upon request, subject to the Distribution
Utility’s policies in relation to record confidentiality.

Requirements for Metering Data

• The type and format of Metering Data shall be in
accordance with the requirements of the billing and
settlement systems of the Distribution Utilities and
Embedded Generation Companies that sell Energy to
• Customers through the Distribution Systems utilizing the
Distribution System revenue metering facilities.
 Meter Data Collection and Delivery
Recorded meter data consisting of billing parameters shall be
collected/retrieved by the Distribution Utility or the MSP
from each meter by processes that assure the integrity and
security of the retrieved Meter data. The retrieved meter
data shall be delivered by the Distribution Utility or the MSP
to:
(a) The Distribution Utility’s billing system: in accordance with
its billing procedures and the Distribution Services and Open
Access Rules (DSOAR).
(b) Load Customers: in accordance with the DSOAR and
agreements.
(c) Other authorized Meter data users: in accordance with
applicable rules and agreements.
Meter Register Reading
Meter register readings may be used to validate the integrity of Load
Profile meter data, and as a reference in the estimation of un-
recorded energy in the Load Profile meter data.

Validation and Substitution of Metering Data

• The Distribution Utility or the MSP shall be responsible for the
validation and substitution of Metering Data on its System.
• Metering data validation shall be performed in accordance with
established methods, processes and criteria approved by the ERC.
The validation shall confirm the integrity of Meter data, which
include but not limited to:
(a) Missing interval quantities;
(b) Zero values due to power Outages;
(c) Values outside established ranges;
(d) Changes in values outside set limits;
(e) Invalid power flow; and
(f) Meter date and time deviations.
 Storage and Availability of Metering
Data
• The Distribution Utility or the MSP shall maintain both the
“as metered” and the “as corrected” meter data in
separate, controlled data storage systems for a minimum
duration of 5 years, to be made available to authorized
parties for the purpose of serving as reference in settling
disputes and other authorized purposes. No alteration to
the Metering Data stored in the database shall be
permitted.

• Security of Metering Facilities, Equipment

and Data
• The metering facility shall be secured from unauthorized
physical access and activities that can lead to inaccurate
registration or recording of the metered electricity.
• The Distribution Utility or the MSP shall calculate
and submit a recommended correction or adjustment
to the metered quantities that are found to be in
error due to the breach of security. In cases of
disagreements, the ERC shall resolve the same in
accordance with existing laws, rules and regulations.
• The Distribution Utility or the MSP and all other
Parties that are provided with revenue Metering
Data are required to maintain the confidentiality of
such Metering Data.
CHAPTER 8:

PHILIPPINE
DISTRIBUTION
CODE
TRANSITORY
PROVISIONS
 • COMPLIANCE WITH THE PHILIPPINE
DISTRIBUTION CODE 2017 EDITION
• Compliance of Distribution Utilities
and Users
• All Distribution Utilities, Embedded Generation Companies,
Metering Service Providers and other Users shall comply
with all the prescribed technical specifications, performance
standards and other requirements of the PDC 2017
Edition and shall submit to the ERC, through the DMC, a
• Compliance Report to the PDC 2017 Edition, according to
the requirements set forth in the Philippine Distribution
Code and in the ERC Resolution No. 13, Series of 2011,
adopting the Distribution Management Committee Rules to
Govern the Monitoring of Compliance of Distribution
Utilities to the Philippine Distribution Code and future
amendments thereto. The Compliance Report also shall
include all approved requests for Derogations.
• All Embedded Generation Companies shall be required
to fully comply upon the approval and renewal of their
Certificate of Compliance (COC).
• All Distribution Utilities that are not yet compliant to
the PDC 2017 Edition, shall be required to fully
comply upon the application of their next Regulatory
Reset.
• All Metering Service Providers that are not yet fully
compliant to the PDC 2017 Edition, shall be required
to fully comply upon renewal of their
license/registration with the ERC.
• All Metering Service Providers shall correct within 1
year Metering Points that do not comply with Chapter
7 of the PDC 2017 Edition.
 Thank You All
For Listening !
MEMBERS:
ARON JAMES CABAÑAS (LEADER)
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