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Republic of the Philippines
DEPARTMENT OF ENERGY

(Kagawaran ng Enerhiya)

BAGONG PILIPINAS

DEPARTMENT CIRCULAR NO. bc <O<5-o¢~- 008 -

PROMULGATING THE REVISED RULES GOVERNING THE PROCESSING AND
EVALUATION OF DIRECT CONNECTION APPLICATIONS OF INDUSTRIAL,
COMMERCIAL AND OTHER ELECTRICITY END-USERS

WHEREAS, Republic Act (RA) No. 7638, otherwise known as the “Department of
Energy Act of 1992”, mandates the Department of Energy (DOE) to prepare, integrate,
coordinate, supervise and control all plans, programs, projects and activities of the
Government relative to energy exploration, development, utilization, distribution and
conservation, among others;

WHEREAS, RA 9136, otherwise known as the “Electric Power Industry Reform Act of
2001” or EPIRA, states that it is the policy of the State to: (i) ensure the quality,
reliability, security, and affordability of the supply of electric power; (ii) ensure
transparent and reasonable prices of electricity in a regime of free and fair competition
and full public accountability to achieve greater operational and economic efficiency
and enhance the competitiveness of Philippine products in the global market;
(iii) protect the public interest as it is affected by the rates and services of electric
utilities and other providers of electric power; and, (iv) encourage the efficient use of
energy and other modalities of demand side management,

WHEREAS, Section 37 of the EPIRA mandates the DOE, among others, to:
(i) supervise the restructuring of the electric power industry; (ii) formulate rules and
regulations as may be necessary to implement the objectives of the EPIRA; and,
(iii) exercise such other powers as may be necessary or incidental to attain the
objectives of the EPIRA;

WHEREAS, Section 9 of the EPIRA states that the National Transmission Corporation
(TransCo) or its Buyer/Concessionaire shall provide open and non-discriminatory
access to its transmission system to all electricity users;

WHEREAS, Section 23 of the EPIRA states that Distribution Utilities (DU) shall
provide universal service within their franchise, over a reasonable time from the
requirement thereof, in a manner that shall sustain the economic viability of the utility,
subject to the approval by the Energy Regulatory Commission (ERC) in the case of
private or government-owned utilities;

WHEREAS, on 08 May 2014, the ERC endorsed to the DOE all direct connection
applications in compliance with the ruling in Mactan Electric Company, Inc. (MECO)
v. NPC, et al, (G.R. No. 172960, March 26, 2010), where the Supreme Court (SC)
held that the DOE has jurisdiction over disputes relative to the distribution of energy
resource, specifically the direct supply of electricity, and that it was neither within the
authority of the ERC nor the Regional Trial Court to resolve such matter;

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tel. No. (Trunkline) (632) 8479-2900
Website: http://www.doe.gov.ph; E-mail: infocenter@doe.gov.ph

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WHEREAS, in the case of National Power Corporation and Fine Chemicals (Phils.),
Inc. v. Court of Appeals (CA) and the Manila Electric Company (G.R. No. 84695,
May 8, 1990) the SC, citing their ruling in Alger Electric, Inc. v. CA (G.R. No. L-34298,
February 28, 1985) stated:

“Exclusivity is given by law with the understanding that the company enjoying
it is self-sufficient and capable of supplying the needed service or product at
moderate or reasonable prices. It would be against public interest where the
firm granted a monopoly is merely an unnecessary conduit of electric power,
jacking up prices as a superfluous middleman or an inefficient producer which
cannot supply cheap electricity to power intensive industries. It is in the public
interest when industries dependent on the heavy use of electricity are given
reliable and direct power at the lowest costs thus enabling the sale of nationally
marketed products at prices within the reach of the masses.”

WHEREAS, Section 5 of RA 11032, otherwise known as the “Ease of Doing Business
and Efficient Government Service Delivery Act of 2018”, mandates all offices and
agencies which provide government services to regularly undertake cost compliance
analysis, time and motion studies, undergo evaluation and improvement of their
transaction systems and procedures and reengineer the same if deemed necessary
to reduce bureaucratic red tape and processing time;

WHEREAS, Section 5 of RA 11234, otherwise known as the “Energy Virtual One-Stop
Shop Act”, established the Energy Virtual One-Stop Shop (EVOSS) under the
supervision of the DOE and mandated the agency to operate and maintain an effective
information technology infrastructure system which shall be updated regularly;

WHEREAS, on 09 January 2020, the DOE promulgated Department Circular (DC) No.
DC2020-01-0001 titled “Prescribing the Rules Governing the Review and Evaluation
of Direct Connection Applications of Industrial, Commercial and Other Electricity End-
users’;

WHEREAS, on 10 May 2022, the DOE promulgated DC No. DC2022-05-0014 titled
“Amending Department Circular No. DC2020-01-0001 on Rules Governing the Review
and Evaluation of Direct Connection Applications of Industrial, Commercial and Other
Electricity End-users”; and

WHEREAS, the DOE deemed it necessary to provide supplementary guidelines to
address the issues and concerns on the process and requirements for applications for
Direct Connection and to facilitate the compliance of Directly Connected Customers
(DCCs) with existing laws and regulations.

NOW THEREFORE, in consideration of the foregoing, the DOE hereby issues and
adopts the following revised rules and regulations for Direct Connection, thereby
superseding DOE DC No. DC2020-01-0001, as amended by DC No. DC2022-05-
0014:

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Rule 1
General Provisions

Section 1. Title and Scope. This Circular shall be known as the “Revised Rules
Governing the Processing and Evaluation of Direct Connection Applications of
Industrial, Commercial and Other Electricity End-users”, hereinafter referred to as the
“Revised DCC Rules’.

Section 2. Purpose. The Revised DCC Rules sets the general rules and procedures
to guide End-users and all other concerned stakeholders, such as the Distribution
Utility (DU) and the Transmission Network Provider (TNP), in facilitating their
application for Direct Connection or the renewal of such arrangement.

Section 3. General Principles. The following principles shall be adopted in the review
and evaluation of applications for Direct Connection:

3.1. Direct Connection may be afforded to the following:
3.1.1 Existing DCC as follows:
3.1.1.1. Previously waived by the DU;

3.1.1.2 Previously approved by the ERC or confirmed by an order by
the court as a duly qualified End-user to be directly connected
to the TNP; or

3.1.1.3. Considered a DCC by virtue of an original supply agreement
with the National Power Corporation (NPC) or the Power
Sector Assets and Liabilities Management Corporation
(PSALM).

3.1.2 End-users applying for Direct Connection. |In addition to Section 12 of
these Rules, Direct Connection Applications shall refer to:

3.1.2.1. High demand and energy-intensive new End-users with at
least 5 MW monthly projected demand for at least three (3)
consecutive months, requiring delivery voltage of at least 69
kV, where the DU cannot provide the technical facilities;

3.1.2.2. Manufacturing End-users whose production is sensitive to
sudden power fluctuations regardless of the demand;

3.1.2.3. Government entities or its representative operating hospitals,
irrigation systems, mass_ transportation system, water
treatment facilities, or other Critical Infrastructures situated
within the DU’s franchise area; and

3.1.2.4. Any other entities applying for Direct Connection that have
been waived by the franchised DU.

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3.2.

3.3.

3.4.

3.5.

3.6.

3.7.

3.8.

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The approval of Direct Connection shall not compromise the stability and
reliability of the Grid.

The approval of the Direct Connection shall be determined on the basis of
DU’s issuance of a Waiver or the DU’s failure to provide the required services
of an End-user, subject to sufficient documentation by the latter, or an
exemption granted by the DOE in accordance with these Rules, as the case
may be.

The Applicant's connection facility requirements shall not form part of the
regulatory asset base of the TNP.

All DCCs that have successfully acquired approval from the DOE shall
continue to enjoy their DCC status until such time that the DU revokes the
issued Waiver, as provided in Section 12 of these Rules.

All DCCs shall comply with the applicable provisions of the Philippine Grid
Code and other requirements of the TNP.

Any dispute arising from seeking Direct Connection shall not result in the
disconnection of any End-user. This notwithstanding, the application shall be
evaluated and resolved by the DOE in accordance with these Rules. A
dispute concerning the reliability of services of a DU shall be referred to the
ERC. The decision of the ERC on a dispute concerning the reliability of a
DU's services may be considered by the DOE in the evaluation of the
application for Direct Connection.

For End-users within an Economic Zone, the Ecozone Developer and/or
Operator or an entity acting as a distributor of electricity in the Ecozone,
whichever is applicable, may issue the Waiver as defined under these Rules.

Section 4. Coverage. The evaluation of applications for Direct Connection of an End-
user that has secured a Waiver from its franchised DU, or whose application has been
Deemed Waived, or qualified for exemption as indicated in these Rules, shall cover
the following:

4.1.

4.2.

4.3.

4.4.

Any existing DCC that has not secured prior approval from the DOE but has
an authorization from the ERC or is a previous customer of NPC/PSALM,
intending to renew its Transmission Service Agreement (TSA) with the TNP;

Any End-user already connected to the transmission facility of the TNP but
has not secured prior approval from the DOE, ERC, or was not a customer
of NPC/PSALM;

A new Eng-user requiring delivery voltage of 69 kV and above, and is willing

to shoulder the cost of associated infrastructure as determined by the TNP,
if not yet available;

DU;

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4.5.

4.6.

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TNP; and

ERC.

Section 5. Definition of Terms. For the purpose of these Rules, the following terms
are defined, as follows:

o:1.

5.2.

5.3.

5.4.

5.5.

5.6.

Oils

5.8.

5.9.

5.10;

Action refers to a final decision (approval or disapproval) of a DU on an
application for Direct Connection by an End-user,

Applicant refers to an End-user or its duly authorized representative who
applied for Direct Connection either for renewal or approval;

Critical Infrastructure refers to any publicly-owned or operated systems
and assets, whether physical or virtual, so vital to the Republic of the
Philippines that the incapacity or destruction of such systems or assets would
have a detrimental impact on national security, and other such vital services
as may be declared by the President of the Philippines;

Deemed Waived refers to a situation wherein the DU surrendered its
obligation to serve the End-user as provided in Section 12.3 of these Rules;

Directly Connected Customer (DCC) refers to an End-user who is supplied
with electricity through the Grid or sub-transmission assets operated by the
TNP;

Direct Connection refers to an arrangement for the supply of energy to an
End-user directly connecting to the Grid or sub-transmission assets that are
operated by the TNP. Said arrangement shall be based on: (1) Earlier
approval by the ERC, (2) Earlier contract with NPC or PSALM, or
(3) Approval by the DOE;

Distribution Utility (DU) refers to an Electric Cooperative, private
corporation, government-owned utility, or existing local government unit that
has an exclusive franchise to operate a distribution system. This includes
Ecozone Utilities under the Philippine Economic Zone Authority (PEZA), as
defined under Section 2 of the Implementing Rules and Regulations of RA
7916;

End-user refers to any person or entity requiring the supply and delivery of
electricity for its own use;

Grid refers to the high voltage backbone system of interconnected
transmission lines, substations and related facilities, located in each of
Luzon, Visayas and Mindanao, or as may be determined by the ERC in
accordance with Section 45 of the EPIRA;

Sub-transmission Asset refers to the facilities related to the power delivery
service operating below the transmission voltages, and based on the
functional assignment of assets, including but not limited to, step-down

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transformers used solely by load customers, associated
switchyard/substations, control and protective equipment, reactive
compensation equipment to improve customer power factor, overhead lines
and the land on which such facilities/equipment are located. For this purpose,
this includes the assets of TransCo or its Buyer/Concessionaire linking the
transmission system and the distribution system which are neither classified
as a generation nor transmission asset;

5.11. Transmission Network Provider (TNP) refers to the party that is
responsible for maintaining adequate Grid Capacity, in accordance with the
provisions of the Philippine Grid Code; and

5.12. Waiver refers to the duly notarized document stating that the DU does not
pose any objection to the application for Direct Connection of the End-user,
which is executed by any duly authorized representative of the DU Board
and supported by a notarized Secretary's Certificate.

Rule 2
Procedures for Submission and Evaluation of Applications

Section 6. Requirements for Application. An Applicant intending to avail of or to
renew a Direct Connection arrangement shall apply through the DOE’s EVOSS
System.

6.1. An application is considered as new if the Applicant:
a. Does not fall under Section 3.1.1 of these Rules;
b. Is anew End-user seeking an electricity connection; or
c. Is an existing electricity End-user currently being served by its DU.

6.2. An application is considered a renewal if the Applicant falls within Section
3.1.1 of these Rules.

Section 7. Submission and Acceptance of Application

7.1. The DOE shall only accept Direct Connection applications with complete
documentary requirements as provided in Annex “A” of these Rules.

7.2. Anew application pursuant to Section 6.1 of these Rules shall comply with
the Waiver requirement as defined herein.

7.3. Incase the new application falls under the Deemed Waived provision under
Section 12.3 of these Rules, the Applicant must initially exhaust all
appropriate services for an electricity connection to the DU prior to
submission of a Direct Connection application. In case of failure by the DU
to render the required services within the specified timeline, the Applicant
shall execute an attestation, attached to these Rules as Annex “B”, together
with complete supporting documentary evidence, which must be furnished

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7.4.

4.5.

7.6.

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to the DU not less than thirty (30) working days before the filing of a Direct
Connection application in the EVOSS System. The corresponding attestation
shall be recognized in lieu of a Waiver to evaluate the application.

Existing DU-connected End-users intending to apply for Direct Connection
on the grounds of alleged unreliable service by the DU shall seek first the
ERC’s determination of the DU’s capability to provide reliable services. In
such case and until the ERC has decided on the reliability of the DU’s
services, the DOE shall not accept any Direct Connection application relative
thereto. Should the ERC decide in favor of the End-user, the End-user may
submit its application for Direct Connection pursuant to these Rules.
Otherwise, the ERC may compel the DU to provide reliable services to the
End-user, subject to the corresponding approval of capital expenditure
requirements by the DU, or promulgate other just and equitable resolution
thereto.

All existing DCCs falling under Section 3.1.1 of these Rules shall apply
for the renewal of their DCC status not later than three (3) months from
the expiration of the TSA with TNP.

Failure of the DCC to file a renewal application with the DOE for its DCC
status within said period shall result in the non-renewal by the TNP of the
TSA and subsequent disconnection of its service. However, the 7NP may
allow an extension of the TSA for a period not exceeding ninety (90)
calendar days for a DCC whose application is undergoing evaluation by
the DOE. The DCC shall submit proof to the TNP of its DOE-accepted
application.

Upon the DOE’s acceptance of the application, an Applicant shall pay the
corresponding processing fee in accordance with the Schedule of Fees and
Charges in compliance with Administrative Order No. 31 dated 01 October
2012, and its Implementing Rules and Regulations, and submit a proof
thereof in a manner required by the DOE.

Section 8. Site Inspection.

8.1.

G2.

The DOE may conduct site inspection for an accepted application particularly
on the facilities: (1) intended for Direct Connection; (2) TNP connection point;
and/or (3) the DU proposed connection point in case of objection, to verify
the assertions of the Applicant, and to gather any other relevant information
necessary for the review and evaluation.

In cases where the site inspection will not be feasible due to force majeure,
i.e., typhoons, tsunamis, earthquakes, volcanic eruption, or other cases
where the conduct of inspection may jeopardize the safety of the personnel,
the DOE can stall the processing of the application for Direct Connection or
may request for a virtual site inspection, as it may deem necessary.

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Section. 9. Evaluation of an Application.

9.1.

9.2.

9.3.

9.4.

9.5.

In all instances, the DOE shall approve or deny any application for Direct
Connection based on the completeness of documents submitted by the
Applicant, site inspection evaluation, and other gathered information within
fifty (560) calendar days from the day after the site inspection in accordance
with the procedure enrolled in the EVOSS System.

In case there are additional requirements to be completed by the Applicant,
upon advice by the DOE, the same shall have the effect of stalling the
running of the 50-calendar day period for the DOE to complete the evaluation
and issuance of a decision letter. The remainder of the time frame shall
resume as soon as the additional requirement is completed by the Applicant.

The evaluation period for an application shall commence after the conduct
of site inspection and shall be completed within (50) calendar days
culminating with the issuance of decision letter signed by the Secretary or
his/her designated representative.

Applications with complete documentary requirements shall be evaluated in
respect of the veracity of the submitted documents, as indicated in Annex
“A” of these Rules.

The DOE may render a disapproval and/or cause the termination of
evaluation of the Direct Connection application on the following basis:

9.4.1. Submission of tampered or falsified data/documents; or
9.4.2. Non-existing location and/or facilities of the End-user.

In its application for Direct Connection, the End-user shall attach a notarized
attestation that any of the applicable instances indicated below may already
warrant the acceptance of the application:

9.5.1. The DU has not responded to the application for electric service filed
by the End-user within the period prescribed in Section 10.1 of these
Rules or has not connected the End-user within a reasonable period
agreed upon by the DU and End-user, and

9.5.2. The DU has failed to file its position on the application for Direct
Connection of an End-user within seven (7) working days from the
DOE’s acceptance of such application.

The DOE shall evaluate the application for Direct Connection within fifty (50) calendar
days after the conduct of site inspection; Provided, that complete documentary
requirements including additional requirements, if any, are submitted by the Applicant
within the time frame specified under these Rules, unless an extension is granted by
the DOE.

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Section. 10. DU Objection on the Application.

In case the DU submits a written claim to the DOE that it is revoking or modifying the
previous Waiver, the DOE shall provide seven (7) working days from receipt of the
written claim for the DU to submit its final decision through a notarized attestation on
its action on the Waiverand include, among others, a work plan to provide the required
service of the End-user which shall be completed not later than ninety (90) working
days or on a later date agreed upon by the parties reckoned from the DOE’s decision
on the application. During this period, the 7NP shall continue to serve the existing
DCCs.

Rule 3
Waiver Requirement and Exemptions

Section 11. Issuance of Waiver by the Distribution Utilities. A new End-user
seeking Direct Connection may request a waiver or any equivalent document
indicating that the DU poses no objection to the Direct Connection application of the
End-user. Upon receipt of the request for a Waiver or similar document by the End-
user, the DU is given thirty (30) calendar days to act on such request and release its
decision. The DU may utilize the no objection template, attached as Annex “C” herein.
Should the DU require additional time to respond to said request, the DU must duly
notify the End-user of the extension no later than three (3) days before the lapse of
the 30-calendar day period; Provided, That the DU shall issue its decision within the
additional fifteen (15) calendar days. In any case, failure of the DU to respond to the
request within the specified timeline shall be construed as the DU’s non-objection to
the Direct Connection of the End-user which shall be contained in the notarized
attestation of the new End-user.

To be considered a valid waiver, the DU must have expressed in writing that it
interposes no objection to the application for the Direct Connection of the End-user or
it cannot meet the required connection of the latter.

Section 12. Non-Waiver of Obligations by Distribution Utilities. A new End-user
seeking Direct Connection but has been refused to be waived by the DU, or an existing
DCC whose application for renewal has been objected to by the DU, shall seek the
services of the DU in accordance with its required specifications/connections and
reliability requirements on a timeline mutually agreed upon. Accordingly, the DU shall
ensure the following:

12.1. Release its Action on the application of the End-user for DU service within
thirty (30) working days from the DU’s receipt of the complete application;

12.2. Asubmission is considered complete when the DU accepts the End-user’s
submission as complete in form and in substance and notifies the End-user
of its decision. The notification of such decision shall be made not later than
thirty (30) working days from the DU’s receipt of the application, with an
explanation in writing on the grounds if the DU decided not to accept;
Provided further, That the failure of the DU to issue its notification of decision
on the End-user’s connection application within the 30-working day period

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shall be considered as having waived the DU’s right to connect such End-
user.

12.3. Incase of an accepted submission by the DU, the responsibility to serve the
End-user shall be Deemed Waived when the DU fails to complete the
connection of an approved application within ninety (90) working days from
the DU’s acceptance or on a later date agreed in writing by the DU and the
End-user.

Within ninety (90) working days from the DU’s acceptance of the submission
or on the agreed date of the parties, the DU shall process the electrical
connection requirement of the End-user. In case there are additional
processes required to be completed by the End-user, such as obtaining
clearance or certificates from other agencies or entities, or fulfill other
separate processes not within their authority, which include installations of
facilities needed by the End-user which are not within the standard
connection pursuant to applicable ERC regulations, the same shall have the
effect of stalling the running of the 90-working day period or the date agreed
by the parties to complete the connection. The remainder of the time frame
shall commence to run as soon as the separate processes are completed by
the End-user. The End-user shall ensure proper documentation of all matters
concerning its application for connection with the DU.

During this period, the DCC status of the End-user shall be continuously
recognized until the DU has connected the End-user to its distribution
system.

In case the DU fails to connect the End-user, the End-user may commence
its application for Direct Connection, together with the proof of the failure of
the DU to connect such End-user based on the written agreement of both
parties.

Section 13. Exemption. The DOE may consider an exemption to the required DU
Waiver of an application for Direct Connection of End-users categorized as
government entities operating hospitals, irrigation systems, mass transportation
systems, and water treatment facilities, and other Critical Infrastructures situated
within the DU’s franchise area. The exemption may also be considered for
concessionaires under contract with these government entities and operating similar
facilities. The application shall be filed under EVOSS and comply with the
requirements specified under Annex “A”.

The DOE may evaluate said application on the basis of the proof presented by the
End-user on the benefits of Direct Connection to its operations and its intended
beneficiaries or stakeholders.

Rule 4
Supervision and Regulation of DCCs

Section 14. Term of the DCC. The DCC status shall remain in force until such time
that:

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14.1. The DU determines that it is capable of serving the requirements of the DCC
and intends to revoke the Waiver.

The DU, at any time, may express its intention in writing to the DCC, copy
furnished the DOE. The intention to revoke must be made more than three
(3) months before the DCC applies for renewal. The letter shall provide,
among others, the DU’s assessment of the technical requirements and the
timeline for the connection of the DCC to the DU system, which shall not be
earlier than the end of the TSA but not later than six (6) months from its
expiration. Otherwise, the DCC shall continue to enjoy its privileges as such.

Subject to the DOE’s verification and assessment, the DU shall submit its
distribution impact study on the End-user load, work plan, and timetable to
provide the connection of the End-user. The DOE shall inform the DU in
writing of its assessment and recommendation on the DU's intent to connect
the DCC.

14.2. The DU acquired the Sub-transmission Assets to which the DCC is
connected.

Upon the DU’s acquisition from the TransCo of the concerned Sub-
Transmission Assets to which the DCC is connected, the DU shall assume
the responsibility to continuously serve the DCC and shall collect the
corresponding wheeling rates duly approved by the ERC.

Section 15. Request for Reconsideration. A party adversely affected by the decision
of the DOE may, within fifteen (15) calendar days from receipt of the copy thereof, file
a Request for Reconsideration. When no Request for Reconsideration is received
during such time, the decision shall become final and executory.

Should a party file for a Request for Reconsideration, the parties are given fifteen (15)
calendar days to submit all necessary documents to support their respective claims.
Beyond said period, the DOE shall no longer accommodate any additional submission.
The DOE shall resolve the Request within sixty (60) calendar days from the expiration
of the time to submit comments or additional submissions. The decision made by the
DOE on the request shall be deemed as final and executory, and no longer subject to
another reconsideration. Pending the DOE decision, the status quo shall be observed.

Section 16. Monitoring of the DCCs. For proper accounting of the DCCs, the TNP
shall, on a quarterly basis, submit to the DOE the list of all DCCs and other pertinent
information such as:

17.1. Name of the DCC;

17.2. Location of the DCC;

17.3. Forecasted Demand;

17.4. Connection Point;

17.5. Existing Substation Connection;
17.6. Effectivity Date of the TSA;
17.7. Expiration date of the TSA; and

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17.8. Other information as may be required by the DOE issued through an
advisory.

Should the TNP extend the TSA of the DCC, the same should be reported to the DOE.

Section 17. Transitory Provision. Nothing in these Rules shall affect the DCC status
of any End-user duly granted prior to its effectivity. However, the succeeding renewal
of such DCC status shall be governed by the provisions of these Rules.

All applications for Direct Connection pending upon the effectivity of these Rules shall
be governed by the rules and regulations applicable at the time of application, unless
the Applicant withdraws and files a new application.

Upon the effectivity of these Rules, all applications for Direct Connection shall
henceforth be submitted in the existing EVOSS process. The DOE Investment
Promotion Office shall ensure adjustments in the EVOSS system within six (6) months
from the effectivity of these Rules.

Section 18. Other DCCs Without Prior DOE Approval or a Previous NPC/PSALM
Customer. All existing DCCs which have not secured prior approval from the DOE,
ERC, or were previously a customer of NPC/PSALM, are hereby directed to seek the
DOE’s approval of their DCC status by filing an application in accordance with these
Rules within sixty (60) calendar days from the effectivity of this Circular. For this
purpose, the TNP is hereby directed to advise all concerned DCCs to submit their
respective applications.

In the event that a dispute on the reliability of services of the DU arises, the concerned
parties may file a petition to the ERC pursuant to the applicable Rules on Consumer
Complaints of the ERC, or any of its amendments or subsequent issuances relative
thereto. The result of the dispute resolution shall be used by the Applicant as a
supporting document on its Direct Connection application with the DOE.

Should the existing DCC fail to file said application within the prescribed period, the
TNP is hereby directed to suspend the provision of service to the DCC until it has
complied with these Rules.

Section 19. Regulatory Support. For the proper implementation of the policies set
herein, the ERC is hereby enjoined to render the necessary regulatory support to
ensure the impartial resolution of the disputes arising from the application of Direct
Connection.

Rule 5
Miscellaneous Provisions

Section 20. Separability. If for any reason, any section or provision of this Circular is
declared invalid or unconstitutional, the other provisions not affected thereby shall
remain valid and subsisting.

=== dc2025-04-0008-pages-13.ppm ===
DC on Promulgating the Revised Rules Governing the Processing and Evaluation of Direct Connection
Applications of Industrial, Commercial and Other Electricity End-users

Page 13 of 13

Section 21. Repealing. DC Nos. DC2020-01-0001 and DC2022-05-0014 are hereby
repealed.

All other previous issuances, rules, and regulations inconsistent with the provisions of
this Circular are likewise repealed or amended accordingly.

Section 22. Effectivity. This Circular shall take effect after fifteen (15) days upon its
publication in two (2) newspapers of general circulation. A copy of this Circular shall
be filed with the University of the Philippines Law Center-Office of National
Administrative Register (UPLC-ONAR).

Issued this APR { 6 2025 at the DOE, Energy Center,/Rizal Drive corner

34th Street, Bonifacio Global City, Taguig City.

=== dc2025-04-0008-pages-14.ppm ===
ANNEX A

CHECKLIST OF REQUIREMENTS

New
Application
Application | without

waiver

Renewal

Duly Notarized waiver or equivalent
document from the franchised DU stating
that the franchised DU waives the right to
provide electricity services to the End-

user i

*For End-users under PEZA, submit also
a confirmation letter from PEZA on the
intent to apply for Direct Connection
Notarized Attestation from the End-user
copy furnished and duly received by the
DU

Kk
Please refer to the sample format of the
attestation as attached in this Circular

*For End-users under PEZA, submit also a

confirmation letter from PEZA on the intent to
apply for Direct Connection

Copy of Previous Agreement or Approval

on Direct Connection from NPC, ERC, or

DOE

Corporate or business profile
Or proof of ongoing application for the 7
said permits

Secretary's Certificate designating the
authorized representative to transact with ae
the DOE

Brief description of the proposal Va

\

XIN

Legal documents:

a. SEC Registration

b. Proof of Ownership/Lease/any
other relevant document proving
the existence of the site/location of
the DCC facility

c. BIR Registration with Latest ITR

d. Business Permits

e. DTI Registration

\

SS

=== dc2025-04-0008-pages-15.ppm ===
New

Application
Application | without

waiver

Renewal

Location map of the facility for which
direct supply is sought, including the
nearest TNP or DU substation

Power demand, delivery voltage, timeline
for connection requirement, load
forecast, and other relevant technical
information

Certification from the TNP that the current
demand including the five (5) years
projected demand can be accommodated
by existing transmission facilities and the
same shall not adversely compromise the

operation of the Grid based on the grid
impact study. This shall include the
Technical Assessment as provided by the
TNP

Application Letter addressed to the DOE
Secretary

Attention:

Electric Power Industry Management
Bureau

Department of Energy

Energy Center, Rizal Drive

Bonifacio Global City, Taguig City, Metro
Manila

Note:

* Attestation that the DU did not respond to the waiver request after thirty (30)
calendar days upon receipt of such request, or the DU wasn't able to provide the
required services of the End-user within ninety (90) calendar days from the DU’s
certification of complete application for connection of the End-user or on a later
date as agreed by both parties.

** Attestation that the DU has not revoked nor modified the previously issued waiver

*** Documents such as but not limited to letters of communication, agreements,
chronology of events, and any other relevant documents supporting its claim

=== dc2025-04-0008-pages-16.ppm ===
ANNEX B

SAMPLE ATTESTATION

|, (NAME OF AFFIANT DULY APPROVED BY THE COMPANY) of legal age, Filipino,
single/married, with office address located at _(OFFICE ADDRESS OF AFFIANT) with position

@S _(AFFIANT’S COMPANY POSITION) Of (COMPANY NAME)__, a duly organized and
existing under Philippine laws, hereby, depose and say that:

(Refer to Annex A when listing issues encountered and action taken during the
application of Waiver)

1. COMPANY NAME APPLIED FOR A WAIVER AT DU ON XX JAN 20XX
DULY RECEIVED BY DU;

(AT LEAST 30 CALENDAR DAYS
PRIOR TO THE APPLICANT’S

FILING AT THE EVOSS)

ONOAARWN

A copy of this attestation was received by the (DISTRIBUTION UML! oy
at | (DU MAIN OFFICE)

IN WITNESS WHEREOF, | have hereunto affixed my signature thisxXx")_ day
of _ (MONTH YEAR) at __ (ADDRESS) .

JUAN A. DELA CRUZ
POSITION

SUBSCRIDED AND SWORN, to before me this (XX"day of __ (MONTH YEAR) at
(ADDRESS) . Affiant exhibited to me his/her (AFFIANT’s VALID ID)

issued at (VALID ID ISSUANCE LOCATION) _ and valid until (VALID ID EXPIRY DATE)

Doc. No. ;
Page No. :
Book No. :
Series of

=== dc2025-04-0008-pages-17.ppm ===
ANNEX C

CERTIFICATION OF NO OBJECTION TO THE APPLICATION FOR DIRECT
CONNECTION

(NAME OF DU AUTHORIZED REPRESENTATIVE) ;
, of legal age, having been

duly authorized by the Board of (NAME OF THE DU) (hereinafter

referred to as "the Distribution Utility") through the attached Board Resolution No.

dated , with office address at

DU OFFICE ADDRESS , after having been duly sworn in
accordance with law, hereby depose and state the following:

4. | am the duly authorized representative of , the concerned
Distribution Utility on Direct Connection Application of
(COMPANY NAME OF END-USER) ;

2. The Distribution Utility has no objection to the request of

(COMPANY NAME OF END-USER) (hereinafter

referred to as "the End-user") in relation to the End-user’s Direct
Connection Application to the Department of Energy (DOE) for its
Transmission Supply Agreement (TSA) with the National Grid
Corporation of the Philippines (NGCP).

3. | further state that (provide additional information as needed)

4.

Note that this certification is issued solely to facilitate the End-user's application for
direct connection with the NGCP. This certification shall remain valid until the
expiration of the End-user's Transmission Service Agreement (TSA).

In witness whereof, | have hereunto affixed my signature this day of
, at , Philippines

DU Representative Name
Representative Position

Subscribed and sworn to before me this day of
at , Philippines,
the above affiant exhibiting before me , Valid until

, as proof of his identity.

Doc No. :
Page No. ;
Book No. :
Series of