Guiding Principles
- Caps on recoverable system losses are set by ERC based on technical factors (load density, sales mix, cost of service, delivery voltage).
- Distribution System Losses classified into Technical Loss, Non-Technical Loss, and Administrative Loss.
- Distributors must report technical and non-technical losses separately; ERC prescribes caps after hearings.
- ERC approves Administrative Loss based on connected essential load.
Scope of Application
- Covers all electric power Distribution Utilities including:
- Private DUs
- Electric Cooperatives
- Local Government-owned DUs
- Entities operating in economic zones
- Other authorized electricity distributors
Definitions of Key Terms
- Administrative Loss: Energy used by DU for system operation.
- Technical Loss: Losses inherent to physical energy delivery (conductor losses, transformer losses).
- Non-Technical Loss: Losses from human error or pilferage.
- Distribution System Losses: Input energy minus energy delivered to users.
- Distribution Utility/Distributor: Entity with franchise to distribute electricity.
- End-User: Person or entity using electricity supplied.
- Various technical terms like Load, Metering Equipment, Embedded Generating Plant defined.
Segregation of Distribution System Losses
- Losses segregated into Technical, Non-Technical, Administrative.
- Technical Loss includes load & no-load losses in all relevant equipment and metering burdens.
- Administrative Loss accounts for energy used in substations, offices, warehouses, and essential DU loads.
- Non-Technical Loss comprises residual losses mostly due to pilferage and errors.
Calculation Methods
- Total Losses = Energy Input – Energy Output, calculated monthly per billing cycle.
- Administrative Loss based on metered consumption in essential DU facilities.
- Technical Loss calculated by Three-Phase Load Flow simulations using network and load models.
- Non-Technical Loss is residual after subtracting Technical and Administrative Losses.
- Loss recovery through anti-pilferage efforts reduces Non-Technical Loss.
Caps on Recoverable Losses
- ERC sets caps separately on Technical Loss, Non-Technical Loss, Administrative Loss.
- Technical Loss cap (%) based on historical and forecast values; may group DUs by characteristics.
- Non-Technical Loss cap (%) subject to reduction program submission with target and timeline.
- Administrative Loss cap expressed in kWh relating to essential loads.
- Technical Loss reduction expenses recognized as capital or operating costs; possible incentives for under-cap performance.
Filing Requirements and Procedures
- DUs must petition ERC for approval of loss caps, including segregated data for prior year and 5-year estimates.
- Detailed data submissions using prescribed templates covering technical and customer information.
- Distribution system maps and diagrams required.
- Petitions include technical, financial, and economic analyses, submitted in legal and electronic formats.
- ERC’s hearing rules apply to petitions.
Reporting and Monitoring
- Quarterly submission of monthly reports on actual Technical, Non-Technical, and Administrative Losses.
- ERC monitors compliance with approved caps annually.
Administrative Sanctions
- Violations subjected to penalties pursuant to established guidelines under RA 9136 Section 46.
Repeal and Separability
- Inconsistent prior guidelines repealed or amended.
- Invalid provisions do not affect remaining parts of the guidelines.
Effectivity
- Guidelines effective immediately upon publication in two newspapers of general circulation.