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PHILIPPINE DISTRIBUTION CODE

(Page 44 – 46)

1. Under what chapter in Philippine Distribution Code determines the organizational and

managerial resource requirements?

a) Distribution and General Condition

b) Distribution Management

c) Performance Standard for Distribution and Supply

d) Financial Capability Standard for Distribution and Supply

Answer: d – page 39 & 46

2. As a requisite for providing retail electric service, a Supplier shall have the technical

resources to to Customers in its service

area and the organizational and managerial ability, in accordance with its Customer

contracts.

a) supply continuous electric service

b) supply continuous lip service

c) supply continuous private service

d) supply continuous mechanical service

Answer: a – page 46

3. As a requisite for providing retail electric service, a Supplier shall provide the following

information. Which one is false?


a) Capability to comply with all scheduling, operating, planning, reliability,

Customer registration and settlement policies, rules, guidelines, and procedures

established by the Grid Owner and System Operator.

b) A disclosure of whether the applicant (officer, director, or principal) has been

found liable for fraud, theft or larceny, deceit, or violations of any customer

protection or deceptive trade laws in any country.

c) The Supplier shall be evaluated annually to compare its actual performance with

the targets.

d) At least one officer or employee experienced in the retail electric industry, or a

related industry.

Answer: c – page 34 & 46

4. Capability to comply with coordination with control centers for scheduling

changes, reserve implementation, curtailment orders, interruption plan and

implementation, and telephone number, fax number, and address where its staff can be

directly reached at all times.

a) 1-second

b) 24-hour

c) 24-day

d) 1-minute

Answer: b – page 46

5. On what exact date of the current year should the applicant submit the requirement for

licensing and by the Supplier?


a) March 15

b) May 15

c) May 16

d) March 16

Answer: b – page 46

6. Within how many days of complying with the credit standards does the applicant (or

Supplier) shall file with the ERC a sworn affidavit that demonstrates compliance with

this requirement?

a) 1 month

b) 1 week

c) 60 days

d) 60 weeks

Answer: c – page 46

7. Prior to the grant of a license, the ERC may require that applicants, who do not plan to

collect funds or advanced deposits prior to providing services, to procure a bond or

in an amount sufficient to protect customers in the

event of default or non-performance by the applicant.

a) insurance coverage

b) interest cover

c) net profit margin

d) return on assets

Answer: a – page 44
8. The amount of the bond or insurance shall be based on the number of customers expected

to be served and the number of kilowatt-hours of electricity the applicant expects to

supply. Incentives (in terms of reduced deposit requirements) may be given to applicants

who have:

a) Investment grade credit rating by a reputable credit bureau

b) provide proof of its creditworthiness through the certification of companies

(including Distribution Utilities), which have imposed credit terms on the

applicant

c) provide a minimum security deposit in the form of either a cashier’s check or a

financial guarantee bond to be posted with the ERC to cover the applicant’s

minimum exposure

d) shown outstanding customer service performance and who have consistently and

accurately estimated expected sales

Answer: d – page 44

9. Which of the following are the certification standards needed for the applicant to meet?

a) Prior to the grant of a license, the ERC may require that applicants, who do not

plan to collect funds or advanced deposits prior to providing services, to procure a

bond or insurance coverage in an amount sufficient to protect customers in the

event of default or non-performance by the applicant.

b) The amount of the bond or insurance shall be based on the number of customers

expected to be served and the number of kilowatt-hours of electricity the applicant

expects to supply. Incentives (in terms of reduced deposit requirements) may be


given to applicants who have shown outstanding customer service performance,

and who have consistently and accurately estimated expected sales.

c) The applicant shall designate the geographic area (or customer class) it intends to

serve.

d) All of the above

Answer: d – page 44

10. Which of the following aren’t belong to the Financial Ratios that shall be used to assess

the capability of Suppliers to bill, collect from its customers, and earn a satisfactory rate

of return on its investment?

a) Leverage Ratio

b) Liquidity Ratio

c) Solidity Ratio

d) Efficiency Ratio

Answer: c – page 44

11. What ratio shall measure the degree of indebtedness or financial leverage of the

Suppliers?

a) Liquidity Ratio

b) Debt Ratio

c) Solidity Ratio

d) Efficiency Ratio

Answer: b – page 44

12. This measures the ability of the Supplier to service its debts.
a) Interest Cover

b) Debt Ratio

c) Debt-Equity Ratio

d) Financial Current Ratio

Answer: a – page 45

13. This measure the ability of the Supplier to satisfy its short-term obligations as they

become due.

a) Interest Cover

b) Debt Ratio

c) Quick Ratio

d) Sales-to-Assets Ratio

Answer: c – page 45

14. It is calculated through the ratio of Average Receivables to Daily Sales.

a) Quick Ratio

b) Sales-to-Assets Ratio

c) Net Profit Margin

d) Average Collection Period

Answer: d – page 45
15. What does EBIT – Tax refers to?

a) Efficiency By Interface Technology Tax

b) Efficiency By Interface Technology minus Tax

c) Earnings Before Interest and Taxes minus Tax

d) Earnings Before Interest and Taxi minus Tax

Answer: c – page 45
PHILIPPINE GRID CODE

(Page 46 – 49)

1. Which of the following does not belong to the purpose of Grid Connection

Requirements?

a) To specify the technical, design, and operational criteria at the User’s Connection

Point

b) To ensure that the basic rules for connection to the Grid or to a User System are

fair and non-discriminatory for all Users of the same category

c) To list and collate the data required by the Grid Owner from each category of

User and to list the data to be provided by the Grid Owner to each category of

User.

d) To facilitate the monitoring of compliance with the Grid Code at the operations

level

Answer: d – page 47

2. The Grid Owner and System Operator shall ensure that at any Connection Point in the

Grid, the Power Quality standards specified in are complied with.

a) Article 3.1

b) Article 3.2

c) Article 3.3

d) Article 3.4

Answer: b – page 47
3. Users seeking connection to the Grid or modification of an existing connection shall

ensure that their Equipment can operate within the limits

specified in Article 3.2 during normal conditions, and can withstand the limits specified

in this Article.

a) actively and ensure

b) quickly and precisely

c) reliably and safely

d) practically and technically

Answer: c – page 47

4. In what section does the Grid Frequency limits during normal operating condition

specified?

a) Section 3

b) Section 3.2

c) Section 3.2.2

d) Section 3.2.2.2

Answer: c – page 47

5. In case the System frequency momentarily rises to 62.4 Hz or falls to 57.6 Hz, all

Generating Units shall remain in synchronism with the Grid for at least how many

seconds in order to allow the System Operator to undertake measures to correct the

situation?

a) 5 milliseconds

b) 5 seconds
c) 5 minutes

d) 5 hours

Answer: b – page 47

6. During , the RMS values of the voltages

shall not result in an Undervoltage or Overvoltage at any Connection Point.

a) Single Outage Contingencies

b) Long Duration Voltage Variation

c) Voltage Swell

d) Double Outage Contingencies

Answer: a – page 48

7. The Total Harmonic Distortion of the voltage and the Total Demand Distortion of the

current, at any Connection Point, shall not exceed the limits prescribed in what section?

a) Section 3

b) Section 3.2

c) Section 3.2.4

d) Section 2.3.4

Answer: c – page 48

8. The Zero Sequence Unbalance Factor at any Connection Point in the Grid shall

not exceed the limits specified in Section 3.2.5during normal operating conditions.

a) provided

b) efficient

c) minimum
d) maximum

Answer: d – page 48

9. The Voltage Fluctuation at any Connection Point with a fluctuating Demand shall not

exceed the limits specified in Section 3.2.6.

a) True

b) False

c) I don’t know

d) All of the above

Answer: a – page 48

10. At what nominal voltages the Grid shall be effectively grounded with an Earth Fault

Factor of less than 1.4?

a) 115 V and above

b) 115 V and below

c) 115 kV and above

d) 115 kV and below

Answer: c – page 48

11. All Equipment at the Connection Point shall comply with the requirements of the

or their equivalent national standards.

a) ISO 9000 series

b) Grid Owner Standard


c) Philippine Grid Standard

d) IEC Standards

Answer: d – page 49

12. What maintenance standard shall All Equipment at the Connection Point be operated and

maintained in a manner that shall not pose a threat to the safety of any personnel or cause

damage to the Equipment of the Grid Owner or the User?

a) Philippine Grid Standard

b) Good Industry Practice

c) OSH Standard

d) IEC Standard

Answer: b – page 49

13. This includes the provisions for submission of information and reports, Safety Rules,

Test and Commissioning programs, Electrical Diagrams, statement of readiness to

connect, certificate of approval to connect, and other requirements prescribed by the

ERC.

a) Connection Agreement

b) Customer – Supplier Agreement

c) User’s Manual

d) Code of Hammurabi

Answer: a – page 49
14. Any User seeking a modification of an existing connection to the Grid shall secure the

required with the Grid Owner prior to the

actual modification of the existing connection to the Grid.

a) Connection Agreement

b) Customer – Supplier Agreement

c) Amended Connection Agreement

d) User’s Manual

Answer: c – page 49

15. This includes the provisions for the submission of additional information and reports

required by the Grid Owner and other requirements prescribed by the ERC.

a) Connection Agreement

b) Customer – Supplier Agreement

c) Amended Connection Agreement

d) User’s Manual

Answer: c – page 49

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