Demand-Side Management (DSM) Program


The responsibility of every utility to develop and implement DSM plans is provided for under Section 3 of the Framework for DSM in the Philippines issued by the Energy Regulatory Board (ERB). It is aimed at the electric utilities’ activities designed to encourage and influence their customers’ use of electricity in ways that will produce desired changes to both the timing and level of electricity demand or load shapes.

The Long–term Power Planning Study for the Philippines has designed practical and implementable DSM programs as follows:


  • High Efficiency Fluorescent Lamp Program (all sectors)

    Since fluorescent lamps are the primary lighting source in all sectors, lamp manufacturers are encouraged to switch from 40 and 20 watt lamps to 36 and 18 watt lamps, respectively. As in other countries, the program is attractive to manufacturers, since smaller and more efficient lamps use less material and cost less to manufacture than the traditional lamps.

  • Low-Loss Magnetic Ballast (all sectors)

    Magnetic ballast uses approximately one-fifth of all energy required for fluorescent lighting. The Department through its FATL shall test ballast performance and offer to manufacturers a voluntary labeling program such as wattage loss number printed on ballast. Standards will likewise be attached to discourage illegally manufactured ballast.

  • High Efficiency Window Air-conditioners (residential & commercial)

    The recommended program design builds on existing energy conservation efforts. The existing minimum efficiency standards and labeling programs shall be continued and extended to duty-free goods. Minimum EERs for the units shall be increased to continue the trend of market transformation and to bring the country’s standards in line with other countries.

  • Interruptible/Curtailable Agreement (industrial & commercial)

    The program calls for large customers to reduce load by turning on generators during peak-load hours or cutting their power requirements by shifting production schedules to non-peak periods.


The program for the industrial sector is designed to maximize the utilization of electricity through the adoption of high efficiency motor and variable speed drives motors. Since energy-efficient motors and variable speed drives hardly penetrate into the local market a duty import reduction (10 to 30%) shall be implemented as a form of incentive.


Building owners and designers are encouraged to construct buildings that exceed the standard code by offering incentives for better than 20% compliance. Eventual tightening of the building energy efficiency codes for large commercial buildings shall be enforced to achieve significant savings.


The following programs were identified for the promotion of the judicious utilization of energy in the residential sector:

  • High Efficiency Refrigerators

    Mandatory or voluntary labeling and certification of energy efficient units shall be implemented. All distribution utilities will jointly market efficient units to encourage manufacturers to produce efficient models.

  • High Efficiency Fans

    A labeling program and standards shall be developed to gauge the energy performance of the fans. This shall be done in collaboration with the manufacturers and other concerned government agencies.

  • Compact Fluorescent Lamps (CFL)

    Initially, the program will focus on the completion of the CFL reliability testing conducted by the Department in cooperation with lamp manufacturers. Incentives in the form of low-interest loan and/or other promotional methods will be carried-out by the utilities. To reduce the price of CFLs, import duty reduction for CFL components shall be implemented.

  • Incandescent Lamp Replacement with Fluorescent Lamps

    The program specifically addresses the needs of low-income customers by replacing incandescent lamps with 18-watt straight tube fluorescent lamp and low-loss ballast.


  • Installation of High Pressure Sodium Street lamps

    The Installation of high-pressure sodium street lamps was considered to replace the existing mercury vapor lamp as well as for other streets where it may have application (i.e. national roads, highways). Improved street lighting offers a range of societal benefits not easily incorporated into a standard cost-benefit analysis; lowered maintenance cost and higher lighting levels resulting to increase safety on the streets.

    In terms of peak demand savings, these DSM programs are expected to generate 0.21 MW in 2000 increasing to as high as 40.7 MW at the end of the planning period (2008).