Question & AnswerQ&A (ERC)
The primary objectives include promoting transparency and accountability, full disclosure of public interest transactions, protecting public interest in electric rates and services, and establishing a methodology to segregate and calculate Distribution System Losses.
These Guidelines are adopted pursuant to Section 43(f) of Republic Act No. 9136 and Rule 15 Section 5 of its Implementing Rules and Regulations.
The three categories are Technical Loss, Non-Technical Loss, and Administrative Loss.
Technical Loss is the component of Distribution System Losses inherent in the physical delivery of electric energy, including load loss and no-load loss in all distribution equipment, devices, and conductors.
Non-Technical Loss refers to energy loss not related to the physical system but caused primarily by human error, such as electric energy pilferage, tampering of meters, and erroneous meter reading or billing.
All electric power Distribution Utilities including privately owned utilities, electric cooperatives, LGU-owned utilities, entities authorized in economic zones, and other authorized entities engaged in electricity distribution.
Administrative Loss is the electric energy used by the Distribution Utility for the operation of its facilities, such as distribution substations, offices, warehouses, and workshops.
They must file a petition including proposed caps for Technical, Non-Technical, and Administrative Losses, segregated system losses for the prior year, estimates for the next five years, and required data templates along with maps and diagrams of their distribution system.
ERC prescribes caps based on load density, sales mix, cost of service, delivery voltage, technical considerations, historical and forecasted losses, and essential load approval for administrative loss.
The violating party shall be subject to penalties as provided under the Guidelines to Govern the Imposition of Administrative Sanctions pursuant to Section 46 of Republic Act No. 9136.
They must submit quarterly reports on actual monthly Technical, Non-Technical, and Administrative Losses, allowing ERC to monitor compliance annually.
Burden refers to the electrical load of metering equipment including instrument transformers and related wiring.
It is the net difference between all electric energy input to the Distribution System and all energy output delivered to users over a specified billing period.
Technical Loss is calculated through Three-Phase Load Flow simulations of the Distribution System using appropriate Network and Load Models.
Yes, a utility with large Non-Technical Loss must submit a reduction program to ERC specifying costs, timeframe, and target levels; ERC may approve declining caps accordingly.