Rules for Electrical Power Services Operation

Policy, purpose, and revision intent

The resolution is based on the need to update rules governing public electric power services because economic conditions and technological developments in the industry have changed (WHEREAS).
It is intended to amend and replace the previously embodied rules on the operation of electric power services (WHEREAS clauses and Section 59).
It is designed to make operating rules more responsive to current industry conditions and needs (WHEREAS clauses).

Scope: utilities covered and required compliance

Section 2 covers all electric power utilities under the supervision, control, and jurisdiction of the Energy Regulatory Board, as applicable.
“Electric utility” includes every person—natural or juridical—along with their lessees, trustees or receivers, and municipalities, provinces and cities engaged in the operation of electric power service in the Philippines, for hire or compensation, with general or limited clientele, whether permanent or occasional (Section 2).
Every electric power utility must strictly observe and comply with the terms and conditions of its Certificate of Public Convenience and Necessity (CPCN), ERB rules and regulations memoranda, orders, circulars, Philippine laws, provincial resolutions, city or municipal ordinances, and any other competent authority rules and regulations, and (for franchise grantees) the franchise terms (Section 3).
Every electric power utility must operate, maintain, and provide safe, reliable, adequate, efficient and continuous electric service (Section 4).

Customer information, service connection rules

Every electric utility must, upon request, give customers all information and assistance pertaining to its service to provide reliable, efficient and economical service (Section 5).
It is mandatory for the electric utility to extend electric service after the customer’s full compliance with the utility’s requirements (Section 6).
The connection of the utility’s service lines and meters with the customer’s premises must be free of charge (Section 6).
The point of service connection is designated upon agreement by the electric utility and the consumer (Section 6).
The relationship between the electric utility and customers is governed by an application/service contract containing terms and conditions duly approved by the Board (Section 6).
It is unlawful for any electric utility to give undue preference or make unjust discrimination in its service (Section 6).
Every new consumer must receive a copy of the rate schedule and service terms and conditions; existing customers must be informed of changes in new rates through print/media, and when multiple authorized rate schedules apply, the utility must advise in writing and apply the most advantageous schedule (Section 21).

Facility authorization, equipment control, meters, logs

A utility may not adopt any commercial or business name without first securing Board approval (Section 7).
A utility must install in its plant only the generating or producing units and/or distribution equipment authorized in its CPCN or subsequently authorized by the Board (Section 8).
A utility may not increase, substitute, or withdraw authorized equipment and/or machinery without prior Board authority (Section 8).
It is unlawful to cause, allow, or consent to the fictitious or surreptitious registration in the utility’s name of equipment belonging to another person, or to operate such equipment under the utility’s CPCN (Section 9).
Electric plants covering power plants, transmission and distribution lines, substations, overhead and underground systems (including power and communication cable manholes and conduits), street lighting, service wires and attachments, meters and instruments, and SCADA/control and communication facilities must be constructed, installed, operated, and maintained in accordance with the Philippine Electric Code and Board rules on the subject; where no applicable Philippine Electric Code provisions exist, the U.S. Bureau of Standard National Electrical Safety Code applies (Section 10).

Mandatory station and substation equipment

At each generating station, the utility must install and maintain watthour meters to record (1) kilowatt-hours generated by each generating station and (2) kilowatt-hours purchased from other sources (Section 11).
The utility must install indicating or graphic wattmeters to record the kilowatts load of each generating unit at any time, and to record the kilowatts load of the territory served at any time (Section 11).
The utility must install voltmeters for bus potentials, with AC station voltmeters connected to indicate the potential of each phase (Section 11).
The utility must install ammeters to indicate current in each generating unit and each feeder, with AC station ammeters connected to indicate current in each phase (Section 11).
For AC stations with generating capacity more than 100 kw, the utility must install frequency meter(s) (Section 11).
For AC stations with generating units of over 100 KVA capacity each, the utility must install a power factor meter or VAR meter (Section 11).
For central stations of 251 KW capacity or more, the utility must install an automatic voltage regulator (Section 11).
The utility must install protection and control devices including overcurrent relay, under/over voltage relay, synchronizing device, reverse power relay, and under/over frequency relay, plus other instruments and safety devices necessary for operating characteristics, voltage control, and safe operation (Section 11).
At a receiving end substation where power is taken from a transmission line, the utility must install watthour meter(s) registering total kilowatthours delivered, and indicating/graphic wattmeters, voltmeters per phase, ammeters per phase, and other instruments and devices necessary for demand characteristics and voltage control (Section 12).

Meter testing, standards, and sealing

All station and substation meters and billing instruments must be inspected by an authorized Board representative at least once every two (2) years for testing; each instrument must be accompanied by a test report showing findings, corrections, and the date of last calibration (Section 13).
A utility furnishing metered service must maintain at least one watthour meter standard to check customer watthour meters, and this standard must be calibrated by the Board at least once a year (Section 14).
Every utility must provide at least one portable indicating voltmeter; utilities serving more than 500 customers must provide at least one recording voltmeter placed in continuous service at its power plant or office (Section 15).
No meter may be placed in service unless it has been tested, certified, and sealed by the Board (Section 33).
The ERB seal on a meter provides a warranty that the meter is an acceptable/accepted type and that it operates within allowable tolerance (Section 33).
Every utility must, upon customer request, make a test of the customer’s meter for accuracy free of charge, and must furnish a written report to the customer and the Board (Section 34).

Watthour meter accuracy standards

No watthour meter with an incorrect register constant, gear ratio, or dial train, or a meter that registers on no load (“creeps”) may be placed in service or allowed to remain without adjustment and correction (Section 35).
A watthour meter “creeps” when, with all load wires disconnected, the moving element makes one complete rotation in twenty minutes or less (Section 35).
All watthour meters before being placed in service must be adjusted as closely as possible to zero error; tolerance of plus or minus two percent (2%) is fixed for necessary variations but meters must not be adjusted merely to be within the tolerance (Section 35).
No watthour meter with an error in registration of more than plus or minor three percent (3%) at any load may remain in service (Section 35).

Determining average error

Average error determination uses: Ea = .3 ELL + .7 EFL, where Ea is average error, ELL is error at light load, and EFL is error at full load (Section 36).
For customer requests or referee cases, the method may be modified by admitting tests at a third load when the Board finds such load more representative; in that case, average error is determined by taking one-fifth (1/5) of the algebraic sum of (1) light load error, (2) three times normal load error, and (3) full load error (Section 36).
Light load is taken from five (5) to ten (10) percent of rated test amperes; full load is not less than sixty percent (60%) nor more than one hundred percent (100%) of rated test amperes (Section 36).
Normal load percentages vary by class of installation: residence and apartment lighting 25, elevator service 40, factories (individual drive), theaters, clubs, hallways, entrance, and general store lighting 60, restaurants/pumps/air compressors/ice machines/moving picture theaters 70, and sign and window lighting/blowers/battery charging 100 (Section 36).

Meter records and asset registers; log books

The utility must keep a record of each meter showing make, type and identification marks/number; customer names/addresses; installation/removal dates; adjustment or repair made; and Board certification dates (Section 37).
The utility must keep a comprehensive register of assets indicating installation date, cost, condition, and refurbishment (Section 38).
Each utility must keep a log book in generating stations and record: start/stop times of generating units; feeder switching on/off times; daily watthour meter readings; quarter-hourly readings of wattmeters/voltmeter(s)/ammeter(s) during the three consecutive hours of heavy load and hourly readings for the remainder, including time and magnitude of daily peak load; interruptions with time/duration/extent/cause; and daily consumption of lubrication oil and fuel and fuel waste (Section 18).
At receiving ends, each utility taking power from a transmission line must keep a log book recording feeder switching times; daily watthour meter readings showing kilowatthours delivered; quarter-hourly load readings during the three consecutive hours of heaviest load and hourly readings for the remainder, including time and magnitude of maximum demand; quarter-hourly voltmeter and ammeter readings per feeder during heavy demand hours and hourly readings for the remainder; and interruptions with time/duration/extent/cause (Section 18).
Log books must be signed by the person in charge and must not be removed from the switchboard site or room (Section 18).

Voltage, frequency, poles, and identification requirements

A utility must adopt and file with the Board a standard nominal voltage for its entire secondary systems (Section 16(a)).
Voltage across the main service entrance switch for lighting-contract or primarily lighting service (between sunset and 11:00 o’clock p.m.) must vary not more than five percent (5%) plus or minus of nominal voltage, and voltage regulation must not exceed 6% (Section 16(a)(1)).
For power-contract or primarily power service, voltage variation must not exceed ten percent (10%) above or below nominal voltage at any time when service is furnished (Section 16(a)(2)).
Greater voltage variation may be allowed only for emergency service or in specified scattered-area situations where the Board judges close voltage regulation is unjustified (Section 16(a)(3)).
Excess voltage variations caused by operation of power apparatus on customer premises requiring large starting current, action of elements, and infrequent/unavoidable short-duration fluctuations due to station operation are not considered a violation (Section 16(b)).
Each AC-supplying utility must adopt standard frequency sixty (60) Hertz and maintain it reasonably constant so variation never exceeds one (1) Hertz above or below at all times; short-duration variations due to station operation, elements, or source(s) not within the utility’s control are not violations (Section 17).

Poles and sag limits

No pole located or near a public place may have a one-way sweep exceeding three percent (3%) of its total length, and all horizontal wires attached to it must be pulled up so sag is not greater than that allowed by the Philippine Electrical Code (three percent (3%) of the distance between poles) (Section 19).
Poles, towers, structures, and transformers must be marked and numbered by the utility to facilitate identification (Section 20).

Rates, deposits, service charges, and billing rules

Charges must be governed strictly by the schedule of rates prescribed by the Board; a utility must not change, alter, or modify rates without prior Board authority, and must post a copy in a conspicuous place in its office (Section 39).
Service charges collected by the utility require prior approval of the Board (Section 40).

Deposits and refunds

A bill deposit is required for new and/or additional service from both residential and non-residential customers to guarantee payment of bills; it must be equivalent to the estimated monthly billing (Section 22(a)).
A meter deposit equal to one-half (1/2) of the current cost of the electric meter and other appurtenant equipment must be required (Section 22(a)).
Bill and meter deposits must be refunded within one month from termination of service and must bear interest at ten percent (10%) per annum; refund is made upon customer request upon termination of service provided metering facilities are returned in good condition and all accounts in the name of the customer are paid; the refund amount is based on the customer’s receipts copy or the utility’s record (Section 22(a)).

Bills for metered and flat rate service

Metered service bills must be rendered at reasonably regular intervals and must show at least date of last meter reading, the meter reading on that date, the number and kind of units supplied, reference to the applicable rate schedule, and the bill amount (Section 42(a)).
Flat rate service bills must be rendered at reasonably regular intervals and must show at least the period covered, reference to the applicable rate schedule, and bill amount; the bill must also show the number and kinds of units used for the flat rate bill (Section 42(a)).
Each bill must show any additional factors other than those in the schedule of rates necessary to compute the bill, and must indicate that copies of applicable schedules are furnished upon request (Section 42(a)).

Payment timelines and customer billing in special meter situations

A utility may require bills be paid within a specified time after rendition; when the billing period covers a month or more, the minimum time allowed is ten (10) days unless a longer period is specified, and service may be discontinued for non-payment upon expiration of the specified time (Section 43(a)).
Bills must be rendered monthly and are payable to collectors, area collection offices, or authorized banks within ten (10) days after the customer’s receipt of the bills unless a longer period is allowed (Section 43(a)).
“Month” is defined as the elapsed time between two succeeding meter readings approximately thirty (30) days apart (Section 43(a)).
If a meter stops or fails to register the full energy consumed, the customer must be billed for that period based on estimated consumption using the customer’s average use for the immediately preceding six-month period of like use or based on check meter registration subject to Board approval; if the utility and customer do not agree, the Board resolves the dispute (Section 43(a)).

Receipts model, retention

Every utility must issue receipts in the form or model prescribed by the Board, and must submit a sample for Board approval before adopting the model (Section 44(a)).
Duplicate/office stubs of receipts must be kept safely and must not be destroyed within five (5) years without Board authority (Section 44(a)).

Energy use, rate schedules classification, and load limits

Rate schedules for electric energy are classified by the character of use of the energy (Section 41).
No additions to load connected to the service connection, transformers, meters, and devices supplied by the electric utility for each customer having a definite capacity are allowed except by written consent of the electric utility (Section 41).
This restriction applies only to utilities whose service contract forms between customer and operator impose no such restriction (Section 41).

Service connections, extensions, equipment location, and drops

Extension of lines and facilities (other than service drop) required to serve a prospective customer must be undertaken by the utility as franchise holder at the utility’s own expense; the resulting assets form part of the utility’s rate base (Section 29(a)).
The utility has the right, if necessary, to construct poles, lines and circuits and to place transformers and other apparatus on customer property or within customer buildings at convenient points, and customers must grant suitable space for installation of required metering equipment to protect it from damage by elements or negligence or deliberate acts of persons (Section 24(a)).
When separate buildings or premises require separate delivery, separate contracts between customers and the utility are required for each point of delivery (Section 24(a)).
If the utility erects poles and lines on customer property to service that customer, upon payment of just compensation, the utility may connect any neighbor(s) who apply for service and cannot otherwise be connected or reached (Section 24(a)).

Service drop, service entrance, switches, and underground service

A service drop is defined as the wires with necessary supporting structure between the utility’s distribution lines and the service entrance (Section 25(a)).
All service connections and disconnections must be made by the electric utility (Section 25(a)).
Only one service drop must be installed for each individual building, except as allowed in the Philippine Electrical Code duly certified by a government authority (Section 25(a)).
The service drop normally connects at the utility’s nearest pole carrying electric service facilities to the applicant’s premises and must not exceed thirty (30) meters in length; length is measured from the pole to the nearest point of attachment or connection (Section 25(a)).
The service bracket is supplied and installed by the utility in all cases except where it attaches to a masonry building; in masonry cases, the contractor must secure the bracket issued by the utility and install it during construction (Section 25(a)).
Service entrance is defined as the portion of customer wiring (including necessary conduits/cables/accessories) extending from the customer’s main entrance switch and/or the utility’s metering equipment to and including the point of attachment to the utility’s service drop on the outside of the building; preference is for only one service entrance per building (Section 26(a)).
If service entrance cable is not used, service entrance conductors must be contained in weather-proof armored cable, rigid conduit of type BXL, or flexible conduit (Section 26(a)).
The outside terminal of the service entrance must be located for connection to the service drop at the nearest point to the utility’s existing or proposed electric service facilities (Section 26(a)).
Service entrance cable or conduit must be exposed and be in one continuous run from service drop terminal to the meter, except for large installations where instrument transformers are required; in that case, the service entrance may be concealed (Section 26(a)).
Instrument transformers and the metering channel, which are part of metering facilities, must be furnished by the electric utility (Section 26(a)).
The line side of the service entrance must be separated from the load side as described in the rules, and conductors on the line side (including neutral wire) must be installed in one conduit (rigid or flexible, type BXL only) (Section 26(a)).
The service entrance must terminate near the service drop connection point with not less than two (2) feet of wire extended outside the weatherhead (Section 26(a)).
For “accessoria” wiring, the entrance cable or conduit must be installed like other building entrances, emphasizing exposed entrance cable/conduit and using seal-type “accessoria” boxes without fuses for each separate service connection or group; proper fittings must be used to join cable/conduit to the junction box (Section 26(a)).
The utility must not require existing open wiring service entrances to be changed or replaced with cable/conduit installations except when there is remodeling of the existing installation and/or in cases of proven current diversion in the customer’s premises (Section 26(a)).
Service entrance must meet requirements of the Philippine Electrical Code or local and national government ordinances (Section 26(a)).

Service switches or breakers

A safety switch or circuit breaker approved by the authorized government agency must be installed on the load side of the meter (Section 27(a)).
All safety switches must be externally operated with fuses electrically “dead” when the switch is in the “off” position (Section 27(a)).

Underground service

Underground residential service, including the pole where service terminates, must be provided, installed, and maintained by customers in accordance with PEC specifications (Section 28(a)).
Installation of underground facilities for commercial and industrial purposes requires prior agreement between the customer and the electric utility (Section 28(b)).

Grounding rule

For a three (3) wire single phase service, the neutral conductor of each service entrance must always be grounded to an existing underground water system in accordance with the PEC; driven grounds or their equivalent are accepted only when an underground water system is not available in or near the wired building premises (Section 29(a)).

Meter installations, meter reading guidance

Metering equipment must be furnished and installed by the electric utility (Section 30(a)).
Current transformer cabinets and required gang mounting channels must be furnished by the electric utility; the applicant must install them at a location specified by the electric utility (Section 30(a)).
The applicant must furnish and install meter boards where required (Section 30(a)).
Meters must be installed in a clean place free from vibration and easily accessible for reading and testing; meters must not be located behind doors or where they can be easily broken or jarred by moving furniture or equipment (Section 30(a)).
Meters must be located on the outside wall of the building or private pole at a mounting height not more than three (3) meters and not less than 1.52 meters from the surface on which one would stand to repair or inspect the meter (Section 30(a)).
Generally, meters are installed on the ground floor in suitable space and suitable mounting for large commercial and apartment buildings (Section 30(a)).
Upon customer request, the utility may allow meter location other than the ground floor if meters are installed in a common place accessible to utility personnel for inspection, reading, and maintenance at any time, and a main check meter is installed at a location specified by the electric utility to measure total consumption of the building (Section 30(a)).
After the main check meter, all service entrance and other electrical facilities except electric utility meters are owned and maintained by the customer (Section 30(a)).
Space and mounting must accommodate all metering facilities, and individual cutouts and/or switches must provide at least one (1) meter of clear space in front of the meters (Section 30(a)).
The electric utility must be consulted prior to wiring installation in large buildings (Section 30(a)).
The applicant must secure from the electric utility, upon presentation of the necessary Electrical Wiring Permit, detachable meter sockets; meter sockets must be installed in accordance with utility specifications (Section 30(a)).
When demand exceeds forty (40) kilowatts or where the service entrance is larger than AWG 4/0 or 107.22 mm2, meter installations may include instrument transformers furnished by the electric utility (Section 30(a)).
For installations of forty (40) kilowatts and over, the utility must be consulted before construction starts (Section 30(a)).

Meter reading instructions, meter property control

Every electric utility must inform customers of how meters are read by printing the method on bills, distributing booklets describing such method, or using another suitable manner (Section 32(a)).
Each service meter must clearly indicate the units of service for which charge is made; if dial readings require multiplying by a constant, the constant must be clearly marked on the face or dial; if the quantity is determined by calculation, the utility must provide information showing how units are determined upon request (Section 32(a)).
Every utility must instruct meter readers to leave a card in the premises showing the date of reading, reading made, total consumption in service units as read, and the meter reader’s signature/initials (Section 32(a)).
Meters and metering equipment are the sole property of the electric utility, and the utility must make any changes in location or arrangements (Section 32(a)).

Rates communications, service suspension, refusal/discontinuance, reconnection

A utility must serve notice to the public in advance of any proposed suspension or change affecting customer utilization, efficiency, or safety; when suspension exceeds twenty-four (24) hours, the utility must first obtain authority (Section 47(a)).
A utility must not refuse or discontinue service to an applicant or customer who is not in arrears to the utility even if unpaid charges exist due from premises of a prior tenant, unless there is evidence of conspiracy between the parties to defraud the utility (Section 48(a)).
Service may be discontinued for non-payment as provided in the payment section, but only after forty eight (48) hour written notice of disconnection is given (Section 48(a)).
Disconnections must not be made on Fridays, Saturdays, Sundays and official holidays (Section 48(a)).
If, at the moment disconnection is to be made, the customer tenders payment of the unpaid bill to the agent or employee effecting disconnection, the agent/employee must accept the tender and issue a temporary receipt, and must desist from disconnecting service (Section 48(a)).
A utility may discontinue service when a customer is in arrears in payment of bills; such suspension does not terminate the contract (Section 48(a)).
In cases of arrears, the utility may discontinue service notwithstanding the existence of the customer’s deposit, which serves as guarantee for payment of future bills after reconnection (Section 48(a)).
The utility must reconnect service after the customer settles arrears/obligations and/or complies with government and utility requirements (Section 49(a)).

Board oversight: inspections, tests, meters, accidents, accounts

The Board may conduct inspections and investigations of any electric utility’s operation and examine and test any equipment operated for electric service; refusal, obstruction, or hindrance constitutes a violation (Section 51(a)).
Each utility must keep a chronological record of accidents connected to its operation, showing nature, causes and consequences, and measures taken to avoid recurrence (Section 52(a)).
A detailed report of all accidents must be submitted to the Board on or before the tenth (10th) day of each month (Section 52(a)).
Accidents resulting in death or physical injuries must be reported to the Board within twenty-four (24) hours from occurrence (Section 52(a)).
Every utility must keep accounts, books, and records necessary to afford intelligent understanding of its business; if the Board prescribes a uniform system of accounting, it