Definitions

September 30, 2021 7 minutes • 1377 words

Name	Definition
^a Act	EPIRA
^b Accredited Facility	a facility granted the certificate of accreditation by NAPOCOR or DOE pursuant to E0 215 and its implementing rules and regulations
^c Affiliate	anyone, alone or together with any other Person, directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with another Person. Affiliates shall include a subsidiary company and parent company and subsidiaries, directly or indirectly, of a common parent
^d Aggregator	a Person or entity duly licensed by the ERC to engage in consolidating electric power demand of End-users in a Contestable Market for the purpose of purchasing and reselling electricity on a group basis
^e Ancillary Services	These support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the Grid Code to be adopted
^f BIR	The attached agency of the Department of Finance (DOF)
^g Board of Investments or BOI	The attached agency of the DTI created by RA 5186
^h Bonafide Member	Anyone who has met all the requirements set forth under the applicable EC by-laws and has been enlisted as such, with voting rights under the “one-man-one-vote” cooperative principle
ⁱ Build-Operate-Transfer or BOT	Defined by RA 6957 (BOT Law) as amended
^j Buyer or Concessionaire	A qualified party awarded the sale agreement or Concession Contract for transmission assets
^k Captive Market	Electricity End-users who do not have a choice of a Supplier of electricity, as determined by the ERC
^l Central Dispatch	The process of issuing direct instructions to Electric Power Industry Participants by the grid operator to achieve the economic operation and maintenance of quality, stability, reliability and security of the transmission system
^m Competition Rules	The rules promulgated by ERC to promote and ensure competition in the electric power industry
ⁿ Concession Contract	The award by the government to a qualified private entity of the responsibility for financing, operating, expanding, maintaining and managing specific Government-owned transmission assets
^o Condonation	The setting aside or suspension from the ECs’ books of accounts of all their financial obligations to NEA and other government agencies as a result of PSALM’s assumption of the same, subject to their compliance with the Program approved by the President of the Philippines
^p Contestable Market	Electricity End-users who have a choice of a Supplier of electricity, as determined by the ERC
^q Contiguous Area	Areas which are within the same boundaries such as subdivisions, villages, Economic Zones, business districts and other similarly situated End-users in which Supply of Electricity can be measured through metering devices;
^r Control	The power to direct or cause the direction of the management policies of a Person by contract, agency or otherwise
^s Cooperative Development Authority or CDA	An entity created under RA 6939
^t Corporation Code	Batas Pambansa Bilang 68 (The Corporation Code of the Philippines)
^u Demand Side Management or DSM	measures undertaken by DUs to encourage End-users in the proper management of their load to achieve efficiency in the utilization of fixed infrastructures in the system
^v Department of Budget and Management or DBM	the govt agency created by EO 25, as amended
^w DOE	The government agency created by RA 7638
^x Department of Finance or DOF	the govt agency created by EO 127, as amended
^y Distribution Code	A compilation of rules and regulations governing electric utilities in the operation and maintenance of their Distribution Systems, which includes, among others, the standards for service and performance, and defines and establishes the relationship of Distribution Systems with facilities or installations of parties connected thereto
^z Distribution of Electricity	The conveyance of electric power from transmission facilities or Embedded Generators to End-users by a Distribution Utility through its Distribution System
pursuant to the provisions and these Rules
^aa Distribution System	The system of wires and associated facilities belonging to a franchised Distribution Utility extending between the delivery points on the transmission or Subtransmission System or generator connection and the point of connection to the premises of the End-user
^bb Distribution Wheeling Charge	The cost or charge regulated by the ERC for the use of a Distribution System and/or the availment of related services
^cc Distribution Utility or DU	Any EC, private corporation, government-owned utility or existing local government unit which has an exclusive franchise to operate a Distribution System
^dd Economic Zones or EZs	Areas being developed into agro-industrial, industrial, tourist, recreational, commercial, banking, investment and financial centers.
.	An EZ may refer to any of the following: Industrial Estates (IEs), Export Processing Zones (EPZs), Free Trade Zones (FTZs), Information Technology Parks and Tourist/Recreational Centers, such as those managed, administered, or operated by the Bases Conversion Development Authority (BCDA), Cagayan Economic Zone Authority (CEZA), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), Phividec Industrial Authority (PIA), and Zamboanga City Economic Zone Authority (ZCEZA);
^ee Electric Cooperative or EC	a DU organized pursuant to PD 269, as amended
^ff Electric Power Industry Participant	any Person or entity engaged in the generation, transmission, distribution or Supply of Electricity
^gg Embedded Generators	Generating units that are indirectly connected to the Grid through the DUs’ lines or industrial generation facilities that are synchronized with the Grid
^hh End-user	any Person or entity requiring the supply and delivery of electricity for its own use
ⁱⁱ Energized Area	A geographical area enjoying dependable and adequate electric service
^jj Energy Regulatory Board or ERB	The independent, quasi-judicial regulatory body created under EO 172, as amended
^kk ERC	The regulatory agency created by Section 38
^ll Financing for Rural Electrification	Loans and grants extended to ECs to construct or acquire, operate, and maintain distribution, generation, and subtransmission facilities for the purpose of supplying electric service, and those loans
for the restoration, upgrading and expansion of such facilities, in areas which are considered rural at the time of the grant of such loans
^mm Franchise Area	A geographical area exclusively assigned or granted to a DU for Distribution of Electricity
ⁿⁿ Generation Company	Any Person or entity authorized by the ERC to operate facilities used in the Generation of Electricity
^oo Generation Facility	A facility for the production of electricity
^pp Generation of Electricity	The production of electricity by a Generation Company or a co-generation facility pursuant to the provisions
^qq Grid	The high voltage backbone system of interconnected transmission lines, substations and related facilities, located in each of Luzon, Visayas and Mindanao, or as may otherwise be determined by the ERC in accordance with Section 45
^rr Grid Code	The set of rules and regulations governing the safe and reliable operation, maintenance and development of the high voltage backbone transmission system and its related facilities
^ss Independent Market Operator or IMO	A person who is financially and technically capable, with proven experience and expertise of not less than two (2) years as a leading independent market operator of similar or larger size electricity markets endorsed jointly by the DOE and Electric Power Industry Participants to assume the functions, assets and liabilities from the Autonomous Group Market Operator (AGMO), pursuant to Section 30
^tt Independent Power Producer or IPP	an existing power generating entity which is not owned by NAPOCOR as of the effectivity of the Act
^uu Inter-Class Cross Subsidy	An amount charged by DUs to industrial and commercial End-users as well
as to other subsidizing customer sectors in order to reduce electricity
rates of other customer sectors such as the residential End-users,
hospitals, and streetlights
^vv Inter-Regional Grid Cross Subsidy	An amount embedded in the electricity rates of NAPOCOR charged to its customers located in a viable regional grid in order to reduce the electricity rates in a less
viable regional grid

(ww) “Intra-Regional Grid Cross Subsidy” refers to an amount embedded in the electricity rates of NAPOCOR charged to DUs and non-utilities with higher load factor and/or delivery voltage in order to reduce the electricity rates charged to DUs with lower load factor and/or delivery voltage located in the same regional grid; (xx) “IPP Administrator” refers to qualified independent entities appointed by PSALM who shall administer, conserve and manage the contracted energy output of NAPOCOR IPP contracts, including selling the contracted energy output of these contracts and offering Ancillary Services, where applicable;