Energy Regulatory Commission

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Regulation on Power Factor Penalties & Incentives

Requested from ERC by Nemesio Villanueva at 01:21 PM on May 07, 2019.
Purpose: For case study
Date of Coverage: 05/07/2019 - 05/07/2019
Tracking no: #ERC-048782357968

Nemesio 01:21 PM, May 07, 2019

May i request for the a document re Regulation on Power Factor Penalties & Incentives

FOI Receiving 03:14 PM, May 07, 2019

May 7, 2019

Dear Nemesio,

Thank you for your request dated May 07, 2019 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, for Regulation on Power Factor Penalties & Incentives.

We received your request on May 07, 2019 and will respond on or before May 28, 2019 01:21:17 PM, in accordance with the Executive Order's implementing rules and regulations.

Should you have any questions regarding your request, kindly contact me using the reply function on the eFOI portal at, for request with ticket number #ERC-048782357968.

Thank you.


FOI Receiving Officer
FOI Officer

FOI Decision 09:52 AM, May 28, 2019

Dear Mr. Villanueva:

As to available document re regulation for power factor, please be informed this can be seen in the Philippine Distribution Code 2017 Edition, where there is a provision in Chapter 3, Section 3.4 System Efficiency Standards for Distribution Utilities, in item 3.4.4  Power Factor at the Connection Point, which states that:

“ All Users of the Distribution System shall maintain a Power Factor of not less than 85% lagging at the Connection Point. The Distribution Utility may establish penalties for User Power Factors that are less than a specified target level, and incentives for User Power Factors that are greater than the target level. the Distribution Utility  shall correct feeder and substation feeder bus Reactive Power Demand to a level, which will economically reduce feeder loss.”

I hope this suffices your research needs.

Thank you.

FOI Receiving Officer

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