DC2019-01-0001: Omnibus Off-Grid Power Development Guidelines
Issued: January 25, 2019 | Secretary: Alfonso G. Cusi | Pages: 16 | Rules: 15
Consolidates all prior off-grid power policy into a single omnibus framework. Repeals DC2004-01-001 (Private Sector Participation in NPC-SPUG Areas, 2004). Partially amended by DC2021-11-0039 (Small Grid SO — Rule 7.1.2).
Coverage
Applies to NPC, Distribution Utilities, New Power Providers (NPPs), Qualified Third Parties (QTPs), RE Developers, and other service providers in off-grid areas — including small grids, isolated low-voltage distribution systems, unviable areas, and new areas identified in the total electrification program [DC2019-01-0001, Rule 1, 2019-01].
Key Definitions
The circular formally defines 25+ terms, of which the most policy-critical are:
| Term | Definition |
|---|---|
| Commercially Viable | Area where TCGR ≤ SAGR (subsidy gap = zero) |
| TCGR | True Cost of Generation Rate — full efficient cost of generating power in an area |
| SAGR | ERC-set socially acceptable generation rate per area/customer class |
| FCRR | Full Cost Recovery Rate — full efficient cost of generating + distributing in unviable areas |
| SARR | ERC-set maximum retail rate for QTP areas |
| Graduation | Cessation of UC-ME subsidy when area becomes commercially viable or interconnects to Grid |
| NPP | Private entity selected via competitive selection for missionary area generation |
| QTP | ERC-authorized integrated generation + distribution provider for unviable areas |
| Small Grid | Interconnected HV or MV off-grid system |
| SO | Party responsible for generation dispatch, ancillary services, and grid security in Small Grid |
| UC-ME | Universal Charge for Missionary Electrification — off-grid cross-subsidy |
| Unviable Area | DU franchise area where immediate distribution line extension is not feasible |
Rule-by-Rule Summary
Rule 3 — MEDP: Annual DOE plan, published every 3 years. NPC submits corporate plans by January; DUs submit DDPs by March, other data by June. Integrates NPC plans, DU plans, TransCo interconnection program, island province PDPs, unviable area electrification, and 5-year UC-ME subsidy allotments.
Rule 4 — Private Sector Participation: All off-grid areas open for PSP. Three modes: NPP full takeover, new/additional capacity, new area service. DUs enjoined to procure PSAs from NPPs via competitive selection.
Rule 5 — NPC-SPUG Privatization: Annual privatization program required. Displaced assets sold via competitive bidding or redeployed. NPPs and DUs may bid on displaced assets; DU bid takes preference on a tie. DU/SO may acquire NPC power lines within its franchise area.
Rule 6 — Capacity Adequacy: Quarterly supply/demand reports from DUs; monthly generation status reports from NPC; quarterly net capability updates from NPPs/QTPs. Power shortage notification protocol (updated PSPP, joint capability declaration, 12-month forward projection).
Rule 7 — System Operation (original): Default SO = distribution entity when one DU + one generator in Small Grid. Third Party SO (NPC-SPUG or ERC-accredited ISO) for complex configurations. TOR minimum requirements specified. Amended by DC2021-11-0039 (mandating TransCo in HV-line areas).
Rule 8 — Reliability and Efficiency: DOE/ERC reliability monitoring; DU long-term modernization programs in DDPs; NPC-SPUG efficiency improvement program.
Rule 9 — Interconnection: TRANSCO responsible for annual interconnection program (in TDP); techno-economic feasibility per project; ERC adjusts transmission charges for cost recovery; assets transferred to TRANSCO at fair market value upon interconnection. Intra-connection requires DOE Secretary approval.
Rule 10 — UC-ME Rationalization: (a) System losses no longer receive UC-ME — effective immediately; (b) DOE 6-month study mandate for full tariff rationalization (eventually produced DC2022-05-0016 in May 2022).
Rule 11 — Government Subsidies: Annual NPC appropriation for missionary electrification.
Rule 12 — Regulatory Support: ERC 90-day window to act on pending NPC UC-ME applications (true-up, ICER, GRAM).
Rule 14 — Repealing: Repeals DC2004-01-001; prospective application.
Significance
This is the master framework for all off-grid power governance. Later issuances amend or build on it:
- DC2021-11-0039 — amends Rule 7.1.2 (TransCo as SO)
- DC2022-05-0016 — fulfills Rule 10’s 6-month study mandate; establishes UC-ME graduation/rationalization framework
- DC2023-05-0014 — off-grid RPS revised rules operate within the MEDP/SAGR/TCGR framework defined here
Full text: Cleaned copy