GROUP-3-GRID-CODE-AND-DISTRIBUTION-CODE.pptx

Grid Code and Distribution Code

1. EE LAW, CODES AND PROFESSIONAL ETHICS GRID CODE AND DISTRIBUTION CODE

2. Philippine Grid Code 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.

3. Grid Owner- Responsible for owning, maintaining, and expanding the grid’s physical infrastructure, such as transmission lines, substations, and transformers. (b) System Operator - Manages and controls the real-time operation of the power system to ensure a balance between electricity supply and demand. (c) Market Operator- Oversees the electricity market where power is bought and sold between generators, retailers, and consumers. The Grid Code identifies and recognizes the responsibilities and obligations of three (3) key independent functional groups, namely ;

4. The Grid Code is organized into nine (9) Chapters. These are: Chapter 1. Grid Code General Conditions - 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. Grid Management - 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. Grid Connection Requirements - 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.

5. Chapter 4. Grid Planning - 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. Grid Operations - establishes the rules and procedures to be followed by the Grid Owner, System Operator and all Users to ensure the reliability and security of the Grid. Articles such as Operating Principles, Authority and Responsibilities, Control, Protection, Testing, Safety Procedures, Outage/ Maintenance Scheduling and Emergency Procedures are also included in this chapter. Chapter 6. Scheduling and Dispatch - establishes the rules, procedures and requirements for real-time dispatch in the Wholesale Electricity Spot Market in order to compensate for imbalances in active power and to provide the ancillary services that are required to ensure power quality and the reliability and security of the Grid. Articles on Operating Margins, Demand Forecasts and Control are also included in this chapter.

6. Chapter 7. Grid Revenue Metering Requirements - specifies the technical and design criteria associated with the measurement of electric energy. The provision of metering data for the operation of the Philippine Electricity Market is also included in this Chapter. Chapter 8. Grid Code Transitory Provisions - specifies the rules and procedures pertaining to compliance with the provisions of the Grid Code during the transition period from the existing industry structure to the new industry structure. The procedures for the grant of exemption from specific requirements of the Grid Code are also addressed in this Chapter. Chapter 9. Performance Standards for TRANSCO - specifies the standards to ensure the quality, reliability and efficiency of the Transmission System, as well as safety standards for the protection of personnel in the power transmission environment.

7. PHILIPPINE GRID CODE Purpose To cite the legal and regulatory framework for the promulgation and enforcement of the Philippine Grid Code; To specify the general rules pertaining to data and notices that apply to all Chapters of the Philippine Grid Code; To specify the rules for interpreting the provisions of the Philippine Grid Code; and To define the common and significant terms and abbreviations used in the Philippine Grid Code.

8. PHILIPPINE GRID CODE Scope of Application Unless specifically provided otherwise in the succeeding Chapters, this Philippine Grid Code applies to the following entities: (a) Transmission Network Provider; (b) System Operator; (c) Market Operator; (d) Generation Companies; (e) Distribution Utilities; (f) Suppliers; and (g) Any other entity with a User System connected to the Grid.

9. PHILIPPINE GRID CODE Authority The Act provides the Energy Regulatory Commission (ERC) the authority to promulgate the Philippine Grid Code. Applicability The Philippine Grid Code applies to Luzon, Visayas, and Mindanao Grids. Enforcement The Act assigns to the ERC the responsibility of enforcing the Philippine Grid Code.

10. PHILIPPINE GRID CODE Enforcement The Act assigns to the ERC the responsibility of enforcing the Philippine Grid Code. The ERC shall establish the Grid Management Committee (GMC) to monitor Philippine Grid Code compliance at the planning and operations level and to submit regular and special reports pertaining to Grid planning and Grid operations. The GMC shall also initiate an enforcement process for any perceived violations of Philippine Grid Code provisions and recommend to the ERC the appropriate fines and penalties for such violations.

11. PHILIPPINE GRID CODE Functions of the Grid Management Committee - There shall be established a Grid Management Committee (GMC), which shall carry out the following functions: Monitor the implementation of the Philippine Grid Code; Monitor, evaluate, and make recommendations on Grid planning and Grid operations; (c) Review and recommend standards, procedures, and requirements for Grid connection, operation, maintenance, and development;

12. PHILIPPINE GRID CODE (d) Manage queries on the application and/or interpretation in any provisions of the Philippine Grid Code, and make appropriate recommendations to the ERC; (e) Initiate the Philippine Grid Code enforcement process and make recommendations to the ERC; (f) Initiate and coordinate revisions of the Philippine Grid Code and make recommendations to the ERC; and (g) Prepare regular and special reports for submission to the ERC, or as required by the appropriate government agency, or when requested by a User of the Grid.

13. PHILIPPINE GRID CODE (d) Manage queries on the application and/or interpretation in any provisions of the Philippine Grid Code, and make appropriate recommendations to the ERC; (e) Initiate the Philippine Grid Code enforcement process and make recommendations to the ERC; (f) Initiate and coordinate revisions of the Philippine Grid Code and make recommendations to the ERC; and (g) Prepare regular and special reports for submission to the ERC, or as required by the appropriate government agency, or when requested by a User of the Grid.

14. PHILIPPINE GRID CODE Membership of the GMC The GMC shall be composed of the following members who shall be appointed by the ERC: (a) One (1) member nominated by the System Operator; (b) One (1) member nominated by the Transmission Network Provider; (c) One (1) member nominated by the Market Operator; (d) Three (3) members nominated by Large Generation Companies; (e) One (1) member nominated by non-large Generation Companies;

15. PHILIPPINE GRID CODE Membership of the GMC (f) Three (3) members nominated by private and local government Distribution Utilities; (g) Three (3) members nominated by Electric Cooperatives, one (1) each from Luzon, Visayas, and Mindanao; (h) One (1) member nominated by Suppliers; and ( i ) One (1) member nominated by Large Customers.

16. PHILIPPINE GRID CODE Membership of the GMC In addition to the regular members, there shall be five (5) representatives, one (1) each from DOE, NEA, TRANSCO and two (2) from the ERC to provide guidance on government policies and regulatory frameworks and directions. The government representatives shall not participate in any GMC decision-making and in the formulation of recommendations to the ERC.

17. Philippine Distribution Code The Philippine Distribution Code establishes the basic rules, procedures, requirements, and standards that govern the operation, maintenance, and development of electric Distribution Systems in the Philippines. The Distribution Code 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.

18. Philippine Distribution Code Chapter 1: Philippine Distribution Code General Conditions Chapter 2: Distribution Management Chapter 3: Performance Standards for Distribution and Supply Chapter 4: Distribution Connection Requirements Chapter 5: Distribution Planning Chapter 6: Distribution Operations Chapter 7: Distribution Revenue Metering Requirements Chapter 8: Philippine Distribution Code Transitory Provisions

19. Philippine Distribution Code Chapter 1 of the PDC cites the legal and regulatory framework for the promulgation and enforcement of the Philippine Distribution Code. It also specifies the general provisions that apply to all the other Chapters of the Distribution Code and contains articles on definition of terms and abbreviations used in the Distribution Code. Chapter 2 of the PDC specifies the guidelines for Distribution Management, the procedures for dispute resolution, the required operational reports, and the process for Distribution Code enforcement and revision. Chapter 3 of the PDC specifies the performance standards for the distribution and supply of electricity to ensure power quality and the efficiency and reliability of the Distribution System. It also specifies the customer services that are necessary for the protection of the End-Users in both the captive and contestable markets. The safety standards for the protection of personnel in the work environment are also included in this Chapter .

20. Philippine Distribution Code Chapter 4 of the PDC specifies the procedures and requirements to be complied with by any User who is connected or seeking connection to a Distribution System and the minimum technical, design, and operational criteria that applies to Distributors. Chapter 5 of the PDC specifies the technical criteria and procedures to be applied by a Distributor in planning the development or reinforcement of its Distribution System and to be taken into account by Users in planning the expansion of their own Systems. Chapter 6 of the PDC establishes the rules and procedures to be followed by the Distributor and all Users of the Distribution System to ensure the safe, reliable, and secure operation of the Distribution System

21. Philippine Distribution Code Chapter 7 of the PDC specifies the technical requirements pertaining to the measurement of electrical quantities associated with the supply of electricity and the procedures for providing metering data for billing and settlement. Chapter 8 of the PDC specifies the rules and procedures pertaining to compliance with the provisions of the Distribution Code during the transition period from the existing industry structure to the new industry structure. The procedures for the grant of exemption from specific requirements of the Distribution Code are also addressed in this Chapter

22. Philippine Distribution Code PURPOSE (a) To establish regulatory framework for the promulgation and enforcement of the Philippine Distribution Code; (b) To specify the general rules pertaining to data and notices that apply to all Chapters of the Philippine Distribution Code; (c) To specify the rules for interpreting the provisions of the Philippine Distribution Code; and (d) To define the common and significant terms and abbreviations used in the Philippine Distribution Code.

23. Philippine Distribution Code 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 Users of the Distribution System, unless provided otherwise in a particular Chapter or Article, including:

24. Philippine Distribution Code (a) Distribution Utilities; (b) Other Distribution Utilities connected to Distribution Systems; (c) System Operator; (d) Embedded Generation Companies; (e)Metering Service Providers; (f) Suppliers; (g) Entities duly authorized to operate a Distribution System within the Economic Zones; (h) Other duly authorized entities engaged in the Distribution of Electricity; and ( i ) End-Users.

25. Philippine Distribution Code Enforcement The Act assigns to the ERC the responsibility of enforcing the Philippine Distribution Code. The ERC established the Distribution Management Committee (DMC) to monitor the Philippine Distribution Code compliance at the planning and operations level and to submit regular and special reports pertaining to Distribution planning and operations. The DMC shall initiate an enforcement process for any perceived violations of the Philippine Distribution Code provisions and recommend to the ERC the appropriate fines and penalties for such violations.

26. Philippine Distribution Code Suspension of Provisions Any provision of the Philippine 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 Distribution Utility, or pursuant to any directive given by the ERC or the appropriate government agency.

27. Philippine Distribution Code Functions of the Distribution Management Committee There shall be established a Distribution Management Committee (DMC), which shall carry out the following functions: (a) Monitor the implementation of the Philippine Distribution Code; (b) Monitor, evaluate, and make recommendations on Distribution operations; (c) Review and recommend standards, procedures, and requirements for distribution system connection, operation, maintenance, and development; (d) Manage queries on the application and/or interpretation of the provisions of the Philippine Distribution Code, and make appropriate recommendations to the ERC;

28. Philippine Distribution Code Functions of the Distribution Management Committee (e) Initiate the Philippine Distribution Code enforcement process and make recommendations to the ERC; (f) Initiate and coordinate revisions of the Philippine Distribution Code and make recommendations to the ERC; and (g) Prepare regular and special reports for submission to the ERC, or as required by the appropriate government agency, or when requested by a User

29. Philippine Distribution Code 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, one each from Luzon, Visayas, and Mindanao; a Three members nominated by the Electric Cooperatives, one each from Luzon, Visayas, and Mindanao; (b) One member nominated by the largest Distribution Utility; (c) One member nominated by Embedded Generation Companies; (d) One member nominated by industrial Customers;

30. Philippine Distribution Code The DMC shall be composed of the following 15 regular members appointed by the ERC: (e) One member nominated by commercial Customers; (f) One member nominated by residential consumer groups; (g) One member nominated by the Transmission Network Provider; (h) One member nominated by the System Operator; ( i ) One member nominated by the Market Operator; and (j) One member nominated by a government-accredited professional organization of electrical engineers.

31. Philippine Distribution Code In addition to the regular members, there shall be three representatives, one each from ERC, DOE, and NEA to provide guidance on government policy and regulatory frameworks and directions. The government representatives shall not participate in any DMC decision-making and in the formulation of recommendations to the ERC.

32. Philippine Distribution Code DISTRIBUTION MANAGEMENT SUBCOMMITTEES • Distribution Planning Subcommittee • Distribution Operations Subcommittee • Distribution Reliability and Protection Subcommittee • Compliance Subcommittee • Rules Review Subcommittee • Other Distribution Subcommittees

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