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Expanded Rural Electrification Program Implementation Strategies

Published on Friday, 5 June 2015

The Expanded Rural Electrification (ER) Program integrates the rural and missionary electrification efforts of the government in collaboration with the private sector, non-government organizations, and several donor-funded projects with the view to attaining total barangay electrification by 2008 and 90% household electrification by 2017.
 

The Reconstituted ER Program Team

To cope up with the recent developments in the electric power sector, the ER Program Team was reconstituted through the Doe Circular No. 2006-04-003 dated April 2006. The new ER Program Team will continue manage the implementation of rural and missionary electrification program for the purpose of achieving the country’s total electrification, refocus and strengthen rural and missionary electrification through the integrated and synchronized approach.
 

Responsibilities of the Reconstituted ER Program Team

The following are the responsibilities of the reconstituted ER Program Team:

  • Oversee the implementation of ER Program
  • Recommend policy and program directions of the ER Program
  • Formulate and refocus the Program’s goals to address “present” concerns including sitio and household electrification
  • Conduct regular monitoring and evaluation of the Program and feedback system to concerned agencies and participants
  • Develop timeline, reform action plans, targets and detailed implementation schedule for barangay and household electrification
  • Identify the coverage areas of the various stakeholders/key players and set/coordinate with the timetable for project implementation
  • Institute collaborations among players
  • pearhead the promotion of the program

     

    Other Mandates

  • Review and endorse projects and activities in relation to off-grid electrification
  • Serves as clearing house of all rural and missionary electrification initiatives in the country
  • Coordinate with other entities such as QTP’s, financing institutions, NGOs, and private entities, whenever necessary to provide insights and valuable inputs to the ER Program Team in the exercise of its mandate

     

    The New ER Program Team Structure

    A. The Oversight Committee

    This committee is chaired by Undersecretary Melinda L. Ocampo, DOE and co-chaired by Administrator Editha S. Bueno, NEA. Its members are representatives from DOE-Energy Policy and Planning Bureau (DOE-EPPB), DOE-Electric Power Industry Management Bureau (DOE-EPIMB), DOE-Energy Utilization Management Bureau (DOE-EUMB), NPC-Small Power Utility Group (NPC-SPUG). The committee also composed of honorary members from National Economic and Development Authority (NEDA), Department of Finance (DOF), Department of Budget and Management (DBM) and other players if deemed necessary.

    B. Secretariat Support

    The DOE-Rural Electrification Administration and Management Division will serve as the ER Program Team-Secretariat, who will be assisted at the minimum of two (2) representatives from DOE-EPPB, DOE-EUMB, NEA and NPC-SPUG.

    C. Inter-Agency Technical Working Group (TWG)

    The functions of the Inter-Agency TWG is to provide assistance to Oversight Committee and assist in the development of sub-programs, review ans assessment of existing programs, and formulate strategies for the efficient implementation of ER Program. The TWG is composed of three (3) sub-committees namely: Committee on Policy, Committee on Program Implementation and Operations and Committee on Investment and Financing.

    1. Sub-committee on Policy The functions of the Sub-committee on Policy are:

  • Review the objectives of the ER Program and develop guidelines and specific strategies for its implementation;
  • Conduct regular assessment of the implementation of all program components and activities, identify gaps and issues, and recommend the continuation or cessation of certain programs as maybe consistent with law and Government policies;
  • Review existing ER policies and guidelines and evaluate/assess their effectiveness in ensuring the ER targets are achieved as planned in a timely manner;
  • Develop policies to address the isues/gaps affecting program implementation;
  • Provide institutional support to the program implementation.

     

    2. Sub-Committee on Program Implementation and Operations The Sub-Committee on Program... Read more

Guidelines for Rate Reduction of ECs

Published on Friday, 5 June 2015

Guidelines for the Implementation of the Reduction in Rate of the Electric Cooperatives Due to The Condonation of debts

Pursuant to Section 60 of Republic Act No. 9136 or the Act, Rule 31 of the Implementing Rules and Regulations (IRR) of the Act and section 5 and 6 of Executive Order (EO) No. 19, the Energy Regulatory Commission (ERC) hereby adopts these Guidelines to govern the application for rate reduction filed by the Electric Cooperatives (ECs).

Annexes:

 

Ongoing Technical Assistance Projects

Published on Friday, 5 June 2015

ADB Project

On-going 

Electricity Pricing and Regulatory Practice in a Competitive Environment

Proposed

Preparation of Software Programs

Implementation/Supervision of Turnkey Contract to develop and implement the software and hardware system needed to support the market operation (Infrastructure requirements for the Spot Market)

Australia Aid Project

On-going

Development of Market Rules and Appropriate Governance

Proposed

Competition Rules

Consumer Education

US Aid Project

On-going

Determination of Government Stranded Cost

MARKAL/Integrated Resource Planning

Restructuring Experts

Overall assistance in IRR Preparation

Under Negotiation

DOE/ERB Institutional Capability Building

EIRC determination

Public Information/Consumer Education

Tariff determination

US TDA Project US TDA Project

Proposed

Systems Specification for Market Pooling

Philippine Distribution Code

Published on Friday, 5 June 2015

The Philippine Distribution Code establishes the basic rules and procedures that govern the operation, maintenance, development, connection, and use of the electric distribution systems in the Philippines. Compliance with the provisions of this Distribution Code is mandatory for all participants in distribution system operations. These include the Distributors and the Users of the distribution system including embedded generators, other distributors connected to the distribution system, and large customers.

The restructuring of the electric power industry in the Philippines as envisioned in Republic Act No. 9136, also known as the “Electric Power Industry Reform Act of 2001,” will result in significant changes in distribution system operations and management. The Act allows end-use consumers belonging to the contestable market to obtain power from independent suppliers who are licensed by the ERC. Electricity consumers will have the option to purchase electric energy from a variety of resources other than those selected by their local distributor.

Distributors must provide wheeling services to such customers. Distributors must also procure energy supplies to serve the remainder of their customers from the Wholesale Electricity Spot Market or through bilateral contracts.

The Act mandated the creation of the Energy Regulatory Commission (ERC). Section 43(b) of the Act provides that the ERC promulgate and enforce a National Grid Code and a Distribution Code which shall include, but not be limited to: (a) Performance Standards for TRANSCO O & M Concessionaire, distribution utilities and suppliers, and (b) Financial Capability Standards for the generating companies, the TRANSCO, distribution utilities and suppliers. The Act also mandates the ERC to enforce compliance to the Grid Code, the Distribution Code, and the Market Rules, and to impose fines and penalties for violations of their provisions.

The Distribution Code defines the technical aspects of the working relationship between the distributors and all the users of the distribution system. Electric distributors must deliver electric energy to the electricity users at acceptable levels of service quality. On the other hand, the users of the distribution systems must comply with certain rules and standards to avoid adverse effect on the distribution system. The reliability of the distribution system depends on the performance of the various components of the distribution network. Thus, major components such as power substations, primary lines, distribution transformers, secondary lines and service lines, must perform satisfactorily.

The policies, decisions and actions of the Distributor on matters involving the operation, maintenance and development of the distribution system will affect industry participants and the users of the distribution system. It is important, therefore, that all affected parties have a voice in making policies and decisions involving the operation, maintenance and development of the distribution system. The Distribution Code provides this mechanism through the Distribution Management Committee that will relieve the ERC from the tedious task of monitoring day-to-day operations of the distribution system.

Combined with the Philippine Grid Code, the Distribution Code will ensure that the total electric energy supply system of the Philippines operates efficiently to provide reliable and economic service to all distribution customers.The Distribution Code is organized into eight (8) Chapters. These are:

          Chapter 1. Distribution Code General Conditions
          Chapter 2. Distribution Management
          Chapter 3. Distribution Connection Requirements
          Chapter 4. Distribution Planning
          Chapter 5. Distribution Operations
          Chapter 6. Distribution Revenue Metering Requirements
          Chapter 7. Distribution Code Transitory Provisions
          Chapter 8. Performance Standards for Distributors & Suppliers

Chapter 1 of the PDC contains the general provisions that apply to all the other Chapters of the Distribution Code. It specifies the authority of ERC to promulgate and enforce the Distribution Code. It also contains articles on construction of references, definition of terms, and abbreviations used in the Distribution Code.

Chapter 2 of the PDC provides the guidelines for Distribution Management, the procedures for dispute resolution, the required Management Reports and the procedures for Distribution Code revision and enforcement.

Chapter 3 of the PDC specifies the minimum technical, design and operational criteria and the procedures to be... Read more

Philippine Grid Code

Published on Friday, 5 June 2015

The Philippine Grid Code establishes and documents the basic rules, requirements, procedures and standards that govern the operation, maintenance and development of the high-voltage backbone transmission system in the Philippines. The Grid Code identifies and recognizes the responsibilities and obligations of three (3) key independent functional groups, namely (a) Grid Owner, (b) System Operator and (c) Market Operator. These functional groups and all Users of the Grid must comply with all the provisions of the Grid Code. The Grid Code is intended to be used along with the Market Rules of the Wholesale Electricity Spot Market to ensure the safe, reliable and efficient operation of the Grid.

Republic Act No. 9136, also known as the “Electric Power Industry Reform Act of 2001,” mandated the creation of the Energy Regulatory Commission (ERC). Section 43(b) of the Act also provides that the ERC promulgate and enforce a National Grid Code and a Distribution Code which shall include, but not limited to: (a) Performance Standards for TRANSCO O & M Concessionaire, distribution utilities and suppliers, and (b) Financial Capability Standards for the generating companies, the TRANSCO, distribution utilities and suppliers. The Act also mandates the ERC to enforce compliance to the Grid Code, the Distribution Code and the Market Rules and to impose fines and penalties for violations of their provisions.

The Grid Code was prepared using a functional rather than an organizational format so that it will remain robust and require minimum changes as the Philippine electric power industry is transformed to its new organizational structure.

The safe, reliable and efficient operation of the Grid requires the cooperation of all industry participants. It is important that all Grid Users follow the instructions and orders of the System Operator to ensure the reliable operation of the Grid. The System Operator will work closely with the Market Operator to dispatch day-ahead pool schedules and provide the necessary support in satisfying the technical and operational requirements of real time control of the Grid.

The policies and decisions of the Grid Owner, System Operator and Market Operator on matters involving the operation, maintenance and development of the Grid will affect all industry participants and end-users. It is important, therefore, that all affected parties have a voice in making decisions and policies involving the operation, maintenance and development of the Grid. The Grid Code provides this mechanism through the Grid Management Committee that will relieve the Energy Regulatory Commission from the tedious task of monitoring day-to-day operations of the Grid.

The Grid Code is organized into nine (9) Chapters. These are:

Chapter 1. Grid Code General Conditions
Chapter 2. Grid Management
Chapter 3. Grid Connection Requirements
Chapter 4. Grid Planning
Chapter 5. Grid Operations
Chapter 6. Scheduling and Dispatch
Chapter 7. Grid Revenue Metering Requirements
Chapter 8. Grid Code Transitory Provisions
Chapter 9. Performance Standards for TRANSCO

Chapter 1 of the PGC contains the general provisions that apply to all the other Chapters of the Grid Code. It specifies the authority of the ERC to promulgate and enforce the Grid Code. It also contains articles on definition of terms, abbreviations, and construction of references used in the Grid Code.

Chapter 2 of the PGC specifies the guidelines for Grid Management, the procedure for dispute resolution, the required Operational reports and the process for Grid Code enforcement and revision.

Chapter 3 of the PGC specifies the minimum technical, design and operational criteria and the procedures to be complied with by any User who is connected or seeking connection to the Grid and the minimum technical, design and operational criteria of the Grid Owner at the Connection Site with Users. It also presents a unified listing of all the data required by the System Operator from Users and by Users from the Grid Owner.

Chapter 4 of the PGC specifies the technical and design criteria and procedures to be applied by the System Operator and Grid Owner in planning the development or reinforcement of the Grid and to be taken into account by Users in planning the expansion of their own Systems. Articles on Demand Forecasts and required technical planning studies are also included in this Chapter.

Chapter 5 of the PGC establishes the rules and procedures to be followed by the Grid Owner, System Operator and all Users to ensure the reliability... Read more

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