Rules Governing the Accreditation of Satellite Laboratories of Meter Shops

June 20, 2017

ERC RESOLUTION NO. 15-17

RULES GOVERNING THE ACCREDITATION OF SATELLITE LABORATORIES OF METER SHOPS

WHEREAS, Section 16 (f) of the Commonwealth Act No. 146 (C.A. 146), as amended, mandates the Energy Regulatory Commission (ERC) to establish reasonable rules, regulations, instructions, specifications and standards to secure the accuracy of all meters;

WHEREAS, Section 2 of Commonwealth Act No. 349 (C.A. 349) authorizes the ERC to inspect, examine and approve periodically all meters used by all public services to ensure their accuracy;

WHEREAS, Section 43 (t) of Republic Act No. 9136 (R.A. 9136) empower the ERC to perform such other regulatory functions as are appropriate and necessary in order to ensure the successful restructuring and modernization of the electric power industry;

WHEREAS, the ERC promulgated the proposed "Rules Governing the Accreditation of Satellite Laboratories of Third-Party Meter Shops," docketed as ERC Case No. 2016-010 RM;

WHEREAS, the said Rules aim to protect the public interest by ensuring that watt-hour meter products installed by the distribution utilities conform to the standards and requirements adopted by the ERC in order to guarantee the proper functioning of said meters under normal working conditions;

WHEREAS, the said proposed Rules were posted on the ERC website on December 19, 2016 and March 17, 2017 to solicit comments from interested stakeholders;

WHEREAS, the public consultations on the proposed Rules were held on February 16, 23 and 24, 2017 in ERC's offices in Pasig, Cebu City and Davao City, respectively;

NOW THEREFORE, after thorough and due deliberation, the Commission RESOLVES, as it is hereby RESOLVED, to APPROVE and ADOPT the "Rules Governing the Accreditation of Satellite Laboratories of Third-Party Meter Shops," hereto attached as Annex "A" and made an integral part of this Resolution.

All Rules and Guidelines, or portion thereof, issued by the ERC, which are inconsistent with these Rules are hereby repealed or modified accordingly.

These Rules shall take effect fifteen (15) days after its publication in a newspaper of generation circulation in the country.

Let copies of these Rules be furnished the University of the Philippines Law Center-Office of the National Administrative Register (UPLC-ONAR), Philippine Electric Power Operators Association, Inc. (PEPOA), the Philippine Rural Electric Cooperatives Association, Inc. n (PHILRECA) and all distribution utilities (DUs).

Pasig City, June 20, 2017.

JOSE VICENTE B. SALAZAR *Chairman and CEO

(SGD.) GLORIA VICTORIA C. YAP-TARUCCommissioner

(SGD.) ALFREDO J. NONCommissioner

(SGD.) JOSEFINA PATRICIA A. MAGPALE-ASIRITCommissioner

(SGD.) GERONIMO D. STA. ANACommissioner

ANNEX A

Rules Governing the Accreditation of Satellite Laboratories of Meter Shops

Pursuant to the provisions of Section 16 (d) (e) (f) and (g) of Commonwealth Act No. 146 (CA 146) or the "Public Service Act," and Section 17 (d) of the Commonwealth Act No. 349 (CA 349), the Commission promulgated Resolution No. 12, Series of 2009 or "The Resolution Adopting the Rules and Procedures for the Test and Maintenance of Electric Meters of Distribution Utilities."

ARTICLE I

General Provisions

SECTION 1.1. Objectives. — These Rules are intended to establish the procedures of application and to standardize the required conditions for the operation and maintenance of satellite laboratories of Meter Shops.

SECTION 1.2. Applicability. — These Rules shall apply to ERC-authorized Category-A Meter Shops intending to maintain and operate a satellite laboratory.

SECTION 1.3. Definition of Terms. —

Certificate of Authority (CA) — The authority granted by the ERC to a person or entity to undertake testing, repair and calibration of electric meters and other auxiliary devices and equipment essential to the metering of electric power and energy.

Certificate of Accreditation as a Satellite Laboratory — The authority granted by the ERC to a Category-A meter shop to use a meter laboratory other than its main laboratory.

Energy Regulatory Commission — The independent and quasi-judicial regulatory agency created under Section 38 of RA 9136, otherwise known as the "Electric Power Industry Reform Act of 2001."

Satellite Laboratory — A facility accredited by the ERC and maintained by a meter shop which has the same conditions with that of the main laboratory of a meter shop. It should be located in premises separate from the main laboratory of a meter shop.

Meter Shop — A facility owned by a person or an entity which has the required equipment that will qualify it as a meter shop and has the qualified personnel capable of testing and calibrating electric meters.

ARTICLE II

Satellite Laboratory

SECTION 2.1. Responsibility of the Meter Shop. —

It shall be the responsibility of the Meter Shop to maintain the required conditions of its Satellite Laboratory including the testing equipment therein.

ARTICLE III

Accreditation Requirements and Procedures

SECTION 3.1. Certificate of Accreditation as Satellite Laboratory. —

A Category-A Meter Shop with a valid Certificate of Authority shall apply for ERC accreditation of its satellite laboratory separate from its main laboratory. Upon full compliance with all of the requirements set forth herein, a Certificate of Accreditation as Satellite Laboratory (CASL) shall be issued by ERC valid until the expiration of Certificate of Authority duly issued to the Meter Shop. The satellite laboratory accreditation application should be included in the application for renewal of Certificate of Authority of the Meter Shop.

SECTION 3.2. Requirements for the Application of Satellite Laboratory. —

A Category-A Meter Shop applying for accreditation of satellite laboratory shall submit the following documents:

3.2.1 A letter to the ERC applying for accreditation of a satellite laboratory;

3.2.2 Authorization letter or other documents issued by the property owner authorizing the Meter Shop to establish a satellite laboratory in the former's property;

3.2.3 A sworn statement executed by the owner/s of the Category-A Meter Shop stating that they shall be responsible in maintaining the satellite laboratory;

3.2.4 A copy of the Business Permit issued by the city or municipality where the Satellite Laboratory is located, if the Main Meter Shop is situated in a different city or municipality from that of the Satellite Laboratory;

3.2.5 Undertaking executed by the owner/s of the Main Meter Shop and the Satellite Laboratory that it has fully complied with all the permits and licenses to operate a meter shop.

3.2.6 Proof of payment of application fee;

3.2.7 Latest original or photocopy of the Certificate of Calibration of the watt-hour meter standard/s that will be used in the satellite laboratory; and

3.2.8 Photocopy of the Category-A Meter Shop's Certificate of Authority.

SECTION 3.3. Pre-Assessment. —

The ERC shall conduct an on-site inspection to assess the facilities and equipment of the satellite laboratory. The following are the criteria in the assessment of the satellite laboratory:

3.3.1 The satellite laboratory should be located in an area free from sources of vibration, dust and dirt;

3.3.2 The satellite laboratory should be located in a room separate from other meter shop operations;

3.3.3 The satellite laboratory should have a room temperature controlled within 18ºC to 28ºC;

3.3.4 The satellite laboratory should have good, high intensity lightning, with minimum amount of glare;

3.3.5 A voltage regulator shall be provided in order to have a stable test source; and

3.3.6 The satellite laboratory must have at least one (1) working watt-hour meter standard which shall be compared with the meter shop's reference watt-hour meter standard of at least once every twelve (12) months for electronic watt-hour standard and at least once every six (6) months for induction type watt-hour standard.

SECTION 3.4. Payment of Fees. —

The Applicant with a valid Certificate of Accreditation shall pay the application fee of Three Thousand Pesos (PhP3,000.00) upon filing of its application for accreditation of its satellite laboratory. The accreditation of the said satellite laboratory shall be valid until the expiration of the Main Meter Shop's Certificate of Authority. The Meter Shop renewing its Certification of Authority shall pay the application fee amounting to Three Thousand Pesos (PhP3,000.00) for the main meter laboratory and an additional Three Thousand Pesos (PhP3,000.00) for each satellite laboratory. The Applicant shall likewise pay a license fee of Ten Thousand Pesos (PhP10,000.00) upon the issuance of the Certificate of Accreditation.

SECTION 3.5. Surveillance Assessment. —

The ERC shall conduct, at least once a year, an on-site inspection or surveillance assessment on all authorized Satellite Laboratories to verify and validate their continued compliance with these Rules.

SECTION 3.6. Display of Valid Certificates. —

The original or photocopy of the valid Certificate of Accreditation for Satellite Laboratory, a photocopy of the Main Meter Shop's Certificate of Authority, and a photocopy of the latest Certificate of Calibration of the working watt-hour meter standard/s to be used, all of which were issued by the ERC, shall be posted in a conspicuous place inside the Satellite Laboratory.

ARTICLE IV

Final Provisions

SECTION 4.1. Imposition of Fines and Penalties. —

Violation of any of these Rules shall be subject to the imposition of fines and penalties in accordance to the "Rules to Govern the Imposition of Administrative Sanctions in the Form of Fines and Penalties Pursuant to Section 46 of Republic Act No. 9136, As Amended."

SECTION 4.2. Exception Clause. —

Where good reason appears, the ERC may allow an exception from any provision of these Rules, if such exception is found to be in the public interest and is not contrary to law or any other pertinent rules and regulations.

SECTION 4.3. Separability Clause. —

If any of the foregoing amendments is declared unconstitutional or invalid, the other provisions which are not affected thereby shall remain in force and effect, unless such declaration would render the whole rules unenforceable or non-implementable.

SECTION 4.4. Repealing Clause. —

All Rules and Guidelines, or portion thereof, issued by the ERC, which are inconsistent with these Rules are hereby repealed or modified accordingly.

SECTION 4.5. Effectivity. —

These Rules shall take effect fifteen (15) days after its publication in a newspaper of general circulation in the country.

Let copies of these Rules be furnished the University of the Philippines Law Center-Office of the National Administrative Register (UPLC-ONAR), Philippine Electric Power Operators Association, Inc. (PEPOA), the Philippine Rural Electric Cooperative Association, Inc. n (PHILRECA), all distribution utilities and concerned agencies.

Pasig City, June 20, 2017.

JOSE VICENTE B. SALAZAR *Chairman and CEO

(SGD.) ALFREDO J. NONCommissioner

(SGD.) GLORIA VICTORIA C. YAP-TARUCCommissioner

(SGD.) JOSEFINA PATRICIA A. MAGPALE-ASIRITCommissioner

(SGD.) GERONIMO D. STA. ANACommissioner

Footnotes

* On preventive suspension as per Order of the Office of the President (OP-DC Case No. 17-D-094) dated May 2, 2017.

ANNEX A

* On preventive suspension as per Order of the Office of the President (OP-DC Case No. 17-D-094) dated May 2, 2017.

n Note from the Publisher: Written as "Philippine Electric Cooperatives Association, Inc." in the original document.

n Note from the Publisher: Written as "Philippine Electric Cooperatives Association, Inc." in the original document.