III. Market Participants Obligations

c. Distribution Utilities (DUs)

1. Obligation to provide non-discriminatory access to its regulated services

A DU shall provide non-discriminatory access to its distribution system to all users. It shall not give preferential treatment to any of its end-users, whether belonging to the captive or contestable market, in relation to the distribution of electricity, connection to its facilities, maintenance, operation & installation of meters, and all other regulated services.

A DU shall operate and maintain the distribution system (the wires and poles, etc.) in their respective franchise areas. A DU is responsible for managing the quality of electricity supply, power outages, meter repair and maintenance, and other matters related to its facilities and services.

A DU has an obligation to connect end-users to its distribution system, provided the end-user applying for connection has satisfied all requirements of the DU.

2. Obligation to ensure operational separation between a DU’s regulated and non-regulated business segments, in accordance with the Business Separation Guidelines, As Amended.


A DU that also engages in competitive retail supply for the contestable market (Local RES) shall ensure operational, financial and accounting separation of its competitive/non-regulated business from its regulated business segments. Operational separation is required to promote a level playing field and to ensure that there is no cross subsidy between the DU’s regulated and non-regulated businesses.

3. Obligation to ensure separation of accounts among the DU’s regulated business segments, as well as among its non-regulated activities, in accordance with the Business Separation Guidelines, As Amended.

A DU shall have separate books of account among its regulated business segments, e.g. accounts for Distribution Wheeling Service shall be separate from that of Connection Service.

If a DU will establish a non-regulated business segment and plans to provide services as Local RES and Wholesale Aggregator, the two business activities shall have separate books of account.

4. Obligation to ensure DU’s non-preferential treatment to its Local RES and/or Affiliate RES

A DU that provides certain services to its Local RES or Affiliate RES shall ensure that same services are available to other competitive RES at non-discriminatory terms and conditions.

5. Obligation to provide SOLR service in the early stages of retail competition

A DU shall serve as SOLR to Contestable customers in case of a Last Resort Supply Event. Obligations of a SOLR is provided by Article V of the Rules for the Supplier of Last Resort.

6. Obligation to fulfill the corresponding responsibilities as prescribed in the Code of Conduct and RES Licensing Guidelines, if DU will operate as a RES or Local RES

Article II of the Code of Conduct for Competitive Retail Market Participants, and Article VII of the Guidelines for the Issuance of Licenses to RES outline the specific obligations and responsibilities of a RES or Local RES.

7. Obligation to set-up and operate the business-to-business (B2B) interface system approved by ERC

A DU, whether as a distributor or a Local RES, shall set-up and operate a B2B interface system to ensure efficient customer switching and information transfer among competitive retail market players.

8. Obligation to comply with the regular reporting requirements prescribed in the Code of Conduct, Rules for the SOLR and Guidelines for the Licensing of RES

Article IV of the Code of Conduct for Competitive Retail Market Participants, Article X of the Rules for SOLR, and Article VI of the Guidelines for the Licensing of RES prescribe the regular reporting requirement to be submitted by the DU to ERC.

9. Obligation to abide by the provisions of the Competition Rules, prohibiting, among others, misuse of market power

10. Obligation to know and understand, among others, all ERC rules governing retail competition and open access