EPIRA Definition of Terms

• Aggregator:

  • Refers to a person or entity consolidating electric power demand of end-users in the contestable market
  • Purpose is to purchase and resell electricity on a group basis
• Ancillary Services:

  • Necessary to support the transmission of capacity and energy from resources to loads
  • Maintain reliable operation of the transmission system in accordance with good utility practice and the Grid code
• Captive Market:

  • Refers to electricity end-users who do not have the choice of a supplier of electricity
  • Determined by the Energy Regulatory Commission (ERC)
• Central Dispatch:

  • Refers to issuing direct instructions to electric power industry participants by the grid operator
  • Aim is to achieve economic operation and maintenance of quality, stability, reliability, and security of the transmission system
• Co-Generation Facility:

  • Facility that produces electrical and/or mechanical energy
  • Useful thermal energy such as heat or steam used for industrial or commercial heating or cooling purposes
• Concession Contract:

  • Award by the government to a qualified private entity for financing, operating, expanding, maintaining, and managing specific Government-owned assets
• Contestable Market:

  • Refers to electricity end-users who have a choice of a supplier of electricity
  • Determined by the ERC
• Customer Service Charge:

  • Component in the retail rate for cost recovery of customer-related services
  • Includes meter reading, billing administration, and collection
• Demand Side Management:

  • Measures undertaken by distribution utilities to encourage end-users in proper load management
  • Aim is to achieve efficiency in the utilization of fixed infrastructures in the system
• Department of Energy (DOE):

  • Government agency created pursuant to Republic Act No. 7638
  • Expanded functions provided in the text
• Department of Finance (DOF):

  • Government agency created pursuant to Executive Order No. 127
• Distribution Code:

  • Compilation of rules and regulations governing electric utilities in the operation and maintenance of their distribution systems
  • Includes standards for service and performance
• Distribution of Electricity:

  • Refers to the conveyance of electric power by a distribution utility through its distribution system
• Distribution System:

  • System of wires and associated facilities belonging to a franchised distribution utility
  • Extends between delivery points on the transmission or subtransmission system and the point of connection to the premises of the end-user
• Distribution Wheeling Charge:

  • Cost or charge regulated by the ERC for the use of a distribution system and/or related services
• Distribution Utility:

  • Refers to electric cooperatives, private corporations, government-owned utilities, or existing local government units with an exclusive franchise to operate a distribution system
• Electric Cooperative:

  • Distribution utility organized pursuant to Presidential Decree No. 269 or as provided in this Act
• Electric Power Industry Participant:

  • Any person or entity engaged in the generation, transmission, distribution, or supply of electricity
• End-user:

  • Refers to any person or entity requiring the supply and delivery of electricity for its own use
• Energy Regulatory Board (ERB):

  • Independent, quasi-judicial regulatory body created under Executive Order No. 172
• ERC refers to Energy Regulatory Commission.
• Franchise Area:

  • Geographical area exclusively assigned or granted to a distribution utility for the distribution of electricity
• Generation Company:

  • Person or entity authorized by the ERC to operate facilities used in the generation of electricity
• Generation of Electricity:

  • Refers to the production of electricity by a generation company or co-generation facility
• Grid:

  • High voltage backbone system of interconnected transmission lines, substations, and related facilities
• Grid Code:

  • Set of rules and regulations governing the safe and reliable operation, maintenance, and development of the high voltage backbone transmission system
• Independent Power Producer (IPP):

  • Existing power generating entity not owned by NPC
• IPP Administrator:

  • Qualified independent entities appointed by PSALM Corporation to administer, conserve, and manage contracted energy output of NPC IPP contracts
• Isolated Distribution System:

  • Backbone system of wires and associated facilities not directly connected to the national transmission system
• Lifeline Rate:

  • Subsidized rate given to low-income captive market end-users who cannot afford to pay at full cost
• National Electrification Administration (NEA):

  • Government agency created under Presidential Decree No. 269 with additional mandate set forth in the text
• National Power Corporation (NPC):

  • Government corporation created under Republic Act No. 6395
• National Transmission Corporation (TRANSCO):

  • Corporation organized pursuant to this Act to acquire all transmission assets of the NPC
• Open Access:

  • System allowing any qualified person the use of transmission and/or distribution system and associated facilities
• Philippine Energy Plan (PEP):

  • Overall energy program formulated and updated yearly by the DOE and submitted to Congress
• Power Development Program (PDP):

  • Indicative plan for managing electricity demand through energy-efficient programs and for the upgrading, expansion, rehabilitation, repair, and maintenance of power generation and transmission facilities
• Power Sector Assets and Liabilities Management Corporation (PSALM Corp.):

  • Corporation created pursuant to Section 49 of the text
• Privatization:

  • Refers to the sale, disposition, change, and transfer of ownership and control of assets and IPP contracts from the Government or a government corporation to a private person or entity
• Renewable Energy Resources:

  • Energy resources with no upper limit on the total quantity to be used
  • Include biomass, solar, wind, hydro, and ocean energy
• Retail Rate:

  • Total price paid by end-users consisting of charges for generation, transmission, ancillary services, distribution, supply, and other related charges for electric service