Ethics as an Electrical Engineer

A code of ethics often focuses on social issues. It may set out general principles about an
organization's beliefs on matters such as mission, quality, privacy or the environment. It may
delineate proper procedures to determine whether a violation of the code of ethics has
occurred and, if so, what remedies should be imposed. The effectiveness of such codes of ethics
depends on the extent to which management supports them with sanctions and rewards.
Violations of a private organization's code of ethics usually can subject the violator to the
organization's remedies (such as restraint of trade based on moral principles). The code of
ethics links to and gives rise to a code of conduct for employees.

IIEE CODE OF ETHICS Foreword The Engineer shall uphold and advance the integrity,
honour and dignity of the engineering profession by: I. Using his knowledge and skill for the
enhancement of human welfare; II. Being honest and impartial, and serving with fidelity the
public, his employers and his clients; and III. Striving to increase the competence and prestige of
the engineering profession. The Fundamental Canons We, therefore Members of the Institute
of Integrated Electrical Engineers of the Philippines, (IIEE), in recognition of the never-ending
involvement of our technology, in uplifting the quality of life, and in accepting a personal
obligation and dedication to our profession, its members and the communities we serve, do
hereby pledge and commit ourselves to the highest ethical and professional conduct and agree:

 To accept responsibility in making sound engineering decisions consistent with the

safety, health and welfare of the public, and to disclose promptly the factors that might
endanger the public or the environment;
 To avoid real or perceived conflicts of interest whenever possible, and to disclose them
to affected parties when they do exist;
 To be honest, objective, impartial and realistic in stating claims or estimates base on
available facts
 To prevent graft and corruption in all its forms
 To improve the understanding of technology and its advancement, its appropriate
application, and potential consequences;
 To maintain and improve our technical competence and to undertake technological
tasks for others only if qualified by education, training or experience, or after full
disclosure of pertinent limitations
 To seek, accept, and offer honest and constructive criticism of technical work; to
acknowledge and correct errors; and to credit properly their contributions;
 To treat fairly all persons regardless of race, gender, disability, age or national origin 9.
To avoid injury to other’s life property, reputation or livelihood by false or malicious
actions; and
 To assist colleagues and co-workers in their professional development and to support
them in following this Code of Ethics.
Article I PROFESSIONAL LIFE SECTION

Section 1
An Electrical Engineer should discharge his duties with absolute fidelity to his clients and
employers, and to act at all times, with fairness and impartiality to all, having due regard to
public interest and welfare.

Section 2
An Electrical Engineer should uphold the honour and dignity of his profession and,
therefore, should avoid association with any person or enterprises of known questionable
character.

Section 3
An Electrical Engineer should strive to upgrade his skill and knowledge in electrical
engineering in order to give the best possible service to the public which could be attained by
interchanging information and experiences with other engineers, and by unselfishly
contributing to the mission of engineering societies, institutes, schools and engineering and
scientific media, and other public institutions.

Section 4
An Electrical Engineer should only advertise his work or merit in a simple manner and
avoid any practice that will discredit or do injury to the dignity and honour of his profession.

Section 5
An Electrical Engineer should endeavour to extend public knowledge of engineering and
shall discourage spreading the untrue, unfair, and exaggerated statements regarding
engineering.

Section 6
An Electrical Engineer, should have due regard at all times for the safety of the life and
health of his employees, other workers, as well as of the general public and for the protection
of property that may be affected by the work this responsibility.

Section 7
An Electrical Engineer should express an opinion on engineering subject, whether
publicly or privately, only when such opinion is called for, his opinion must be founded on
adequate knowledge and information of the relevant issues and facts based upon his honest
convictions.

Section 8
An Electrical Engineer should not issue statements, criticisms, opinions, arguments or
other views on matters except where public interest is affected.
Article II RELATION WITH CLIENT AND EMPLOYER

Section 1. An Electrical Engineer should be fair, impartial and reasonable in rendering

professional service to his clients, employers and contractors regarding contracts or other
agreements.

Section 2. An Electrical Engineer should, before undertaking any engagement or entering

into any contracts which calls for his professional service that will require or need the use of
apparatus, other equipment or things in which he has financial interest, have such situation
clarified in the contract or agreement to avoid conflict of interests.

Section 3. An Electrical Engineer should be vigilant in guarding against conditions that may
be dangerous or threatening to life, health, or property on work for which he is responsible, or
otherwise bring such conditions to the attention of those responsible.

Section 4. An Electrical Engineer should present clearly the known possible consequences
or limitations of the work for which he will be responsible.

Section 5. An Electrical Engineer should honestly advise his clients or employer to engage
the services of other experts and specialists, and should cooperate with them in the interests of
his client or employer.

Section 6. An Electrical Engineer should not accept compensation from more than one
interested party for the same professional service pertaining to the same work, without the
consent of all affected parties.

Section 7. An Electrical Engineer should not divulge confidential matters or information

which has come to his knowledge concerning affairs of his client or employers, without their
consent.

Section 8. An Electrical Engineer should not be financially interested in the bids of a

contractor on competitive work for which he has been or expects to be employed as an
engineer, unless he has the consent of his client of employer.

Section 9. An Electrical Engineer should promptly disclose to his client or employer and
interest which he may have in a business that may conflict with or affect his decision regarding
engineering work for which he is employed or which he may be called upon to perform.
Article III RELATIONS WITH FELLOW ENGINEERS

Section 1.
An Electrical Engineer should endeavour at all times to protect the engineering
profession collectively and individually against misrepresentation, distortion, misunderstanding
or unfair criticism.

Section 2.
An Electrical Engineer should give credit for the engineering work to the person whom
the credit is legally due.

Section 3.
An Electrical Engineer should live up to the standards of professional practice for
electrical engineering.

Section 4.
An Electrical Engineer should not directly or indirectly injure the professional reputation,
prospects, or practice of his fellow engineers. Whenever he finds an Engineer violating the rules
of unethical or unprofessional practices, he should not hesitate to bring the matter to the
proper forum for disciplinary or for other appropriate action.

Section 5.
An Electrical Engineer should not compete with another Engineer on the basis of
compensation for particular work by means of underbidding, after the results of a public
bidding are announced.
CONTRACT

A contract is a legally-binding agreement which recognises and governs the rights and
duties of the parties to the agreement. A contract is legally enforceable because it meets the
requirements and approval of the law. An agreement typically involves the exchange of goods,
services, money, or promises of any of those.

TYPES OF CONTRACT
A valid contract is a legally-binding contract that is made in accordance with all legal
requirements. A voidable contract is an agreement that would be binding and enforceable
except the circumstances surrounding its execution, or the fact that one of the parties lacks
“capacity,” makes the contract voidable at the option of one of the parties. For example, a
person who has been forced to sign an agreement may avoid being bound by the agreement. A
void agreement is an agreement which is without legal effect. For example, an agreement
which deals with the performance of an illegal act is void.

An executed contract is a contract that has been completely performed. Nothing

remains to be done by either party. For example, if you go into a furniture store and agree with
the salesman to pay 400.00 for a chair and then pay the salesman cash and take delivery of the
furniture, the contract has been completely executed. In an executor contract, something
remains to be done by one or both of the parties. If a contract is executed between a seller and
a buyer regarding the purchase of land, and both parties agree that the sale will be
consummated after the buyer obtains his loan and the seller gives a certificate of title (showing
no defects), the contract is enforceable, but it is said to be executory.

An option contract is a contract that gives the right to one party to enter into a second
contract with the other party at a later date. One of the most common forms of option
contracts deals with the sale of real estate. In this type of contract, the prospective buyer will
be granted an option to purchase the property within a specified period of time. The
prospective buyer will pay the seller a sum of money since the seller is, in effect, taking the
property off the market during the option period. If the prospective buyer exercises his option
during that time, a second contract is entered into regarding the sale of the property. If the
option period expires, then neither party has any obligation to the other. The money paid to
the buyer for the option is retained by the buyer.
KEY ELEMENTS OF CONTRACT

 A legal purpose The offer and acceptance of a contract must be provided for under legal
conditions. The contract can not be valid if the conditions of the offer are outside the
law. For example, hiring a stolen cargo transportation is not legally accepted, which
renders the contract invalid and unenforceable.

 Mutual acceptance A contract must be accepted in full by both parties, which is known
as “meeting of minds”. The offer and acceptance must occur in accordance with the
conditions established by the parties, and fully accepted by everyone in the transaction.

 Consideration Each contracting party must accept that it has value, and that value has a
counterpart. The value of the contract is assumed by the contracting party that accepts
the proposal.

 Voluntary acceptance Each party to the contract must accept it freely. The offer needs
to be clear and all parties are aware of their obligations spontaneously.

 Competent parties The parties to a contract need to be able to hire. Restrictions such as
age, mental state, use of substances that can alter understanding make a contract
ineffective.

At first glance, you must be able to find these requirements when signing in paper or
electronically a legal document.
OBLIGATION
An obligation is a course of action that someone is required to take, whether legal or
moral. There are also obligations in other normative contexts, such as obligations of etiquette,
social obligations, religious and possibly in terms of politics, where obligations are requirements
which must be fulfilled. These are generally legal obligations, which can incur a penalty for non-
fulfilment, although certain people are obliged to carry out certain actions for other reasons as
well, whether as a tradition or for social reasons.

KINDS OF OBLIGATIONS

PURE Obligation
Not subject to any condition and no specific period mentioned for its fulfilment-
IMMEDIATELY DEMANDABLE

Conditional Obligation
Subject in one way or another to the fulfilment of a future or uncertain event, or a past
event unknown to parties

Suspensive (condition precedent or antecedent)

Fulfilment of the condition gives rise to the obligation

Suspensive
Demandable only upon the happening of the condition

FOUR ELEMENTS OF OBLIGATION

Every obligation has four essential requisites otherwise known as the elements of obligation.
They are:

the obligor: obligant duty-bound to fulfill the obligation; he who has a duty.

the obligee: obligant entitled to demand the fulfillment of the obligation; he who has a right.

the subject matter, the prestation: the performance to be tendered.

a legal bond, the vinculum juris: the cause that binds or connects the obligants to the
prestation.
LAW ON OBLIGATIONS AND CONTRACTS

the Law on Obligations and Contracts is defined as s a kind of positive law which deals
with the nature and sources of obligations as well as the rights and duties arising from
agreements in contracts. Before discussing the particular concepts on the Law on Obligations
and Contracts, it is important to know that in every obligation, one must always observe the
general principles on human relations, to wit:

―ART. 19 Every person must, in the exercise of his rights and in the performance of his duties,
act with justice, give everyone his due, and observe honesty and good faith. Failure to observe
the above principle makes a person civilly liable.

WHAT HAPPEN IF YOU SIGN A CONTRACT WITHOUT READING IT

Signing contract means establishing legal relationship. With a stroke of a pen, you've
made a promise and the law says you have to honour your promises! And if you don't, the law
punishes you. There are laws against unreasonable demands in contracts. But if you sign a
contract you are legally obliged to follow it, providing the terms are clear and realistic. Whether
you read it or not is irrelevant.

WHAT HAPPENS WHEN THERE IS A BREACH OF CONTRACT

When a party fails to live up to its obligations under the contract, he is said to have
breached the agreement or to be in breach of contract. The party harmed by this breach may
sue to recover damages. Courts generally refer to some basic principles in determining what
sort of damages a party may recover. First, courts prefer that damages be monetary rather than
to order specific performance, or force a party to go through with its contractual obligations.
Second, judicial relief is intended to compensate the promise, putting the party back in the
position he would have been if the breach had not occurred and the contract had been fulfilled.
In addition, contract law is primarily intended to provide relief to the party harmed by the
breach, not to punish the breaching party. Thus, punitive damages, or damages intended to
deter certain types of behaviour through additional monetary penalties, are not usually
recoverable in a contract dispute. Sometimes, a party can prove a breach of contract, but
cannot prove damages with any reasonable degree of certainty. In such cases, a court may
grant nominal damages, such as $1, in recognition of the harm caused by the breach.

The exact type of damages granted by a court depends on the situation. Contract damages
normally fall within three basic categories:

Expectation damages. A party can recover expectation damages if he is worse off by reason of
the breach than he would have been if the contract had been performed. Expectation damages
are designed to place the promise in the position he would have been in if the promise had
been performed. For example, Party A contracts to sell 100 pounds of coffee beans to Party B
for $200. Party B has a buyer who will pay him $300. Party A breaches. The measure of Party B’s
expectation damages is $100, or the $300 Party B would have received in sale minus the $200
he would have paid for the goods.

Reliance damages. A party may recover reliance damages if the breach of contract has left him
worse off than he would have been if the promise had never been made—for example, where a
party has relied on a promise and suffered reasonably foreseeable expenses as a result of the
promise. Reliance damages are generally limited to out-of-pocket expenses incurred, but
opportunity costs may also be recoverable. Suppose that in the example above, Party B had
informed Party A that he was building a storage unit for the coffee beans at a cost of $100. He
also passed up an opportunity to purchase similar goods at a slightly higher price. Party B may
be able to recover the cost of building the storage unit as reliance damages; furthermore, he
may be able to recover the opportunity cost of procuring similar goods from another source.

Restitution damages. Where a party has conferred a benefit on the breaching promisor, he
may recover the reasonable value of the benefit provided. Returning to our coffee merchants,
suppose that Party B paid Party A $100 up front. This advance payment would be recoverable
as restitution damages.

Specific performance. In certain limited cases, a court may order specific performance; that is,
the court may order the breaching party to carry out fully its contractual obligations. This type
of remedy is usually only available when the item involved is unique, such as real estate, or
where monetary damages would be impossible to determine.

HOW TO PROVE BREACH OF CONTRACT

For a business contract to be valid, four additional things will have to be proved:

Offer -- This can be an intention to enter a contract pertaining to both (or more) parties. Keep
in mind, however, that not all discussions involving future business deals will constitute as
offers.

Consideration -- This means that each party has agreed to give and receive something of value.
A unilateral promise is usually not considered an enforceable contract, and neither are deals
based on past services.

Acceptance -- This is when the parties involved have clearly agreed to all of the contract's
essential terms. It is often difficult to prove acceptance in oral contracts, which is why written
agreements are generally preferred.

Mutuality -- This means that all parties involved understood and agreed to the basic terms and
substance of the contract after an initial meeting or discussion.
WHAT IS POWER SUPPLY AGREEMENT.

A PSA is a bilateral agreement between a Generation Company (GenCo) and a

Distribution Utility (DU) for the purchase and supply of power.

EXAMPLE OF PSA

Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue,

Pasig City

IN THE MATTER OF THE APPLICATION FOR APPROVAL OF POWER SUPPLY AGREEMENT FOR
THE SUPPLY OF POWER TO ILIGAN LIGHT AND POWER, INC. (ILPI) WITH PRAYER FOR
PROVISIONAL AUTHORITY ILIGAN LIGHT AND POWER INC. (ILPI), APPLICANT x- - - - - - - - - - - - -
----------------/

ERC CASE NO. 2011-029 RC

JOINT MOTION TO RESCIND THE POWER SUPPLY AGREEMENT FOR THE SUPPLY OF POWER TO
ILIGAN LIGHT AND POWER, INC. (ILPI) BY THE MAPALAD ENERGY GENERATING
CORPORATION (MEGC)
The CITY OF ILIGAN, by counsel and LAPOCOF unto the Honorable Commission most
respectfully aver that: 1. On March 18, 2011, the ERC conducted Public Hearing in Iligan City
for the Power Supply Agreement (PSA) between ILPI and MEGC. 2. On May 9, 2011 = ERC
granted a Provisional Authority of the PSA of ILPI and MEGC, wherein it is stated that MEGC
will start operation within 5 months upon approval of the PSA. BASIS TO RESCIND THE
POWER SUPPLY AGREEMENT FOR THE SUPPLY OF POWER TO ILIGAN LIGHT AND POWER, INC.
(ILPI) BY THE MAPALAD ENERGY GENERATING CORPORATION (MEGC) FOR NON-FULFILLMENT
OF THE FOLLOWING CONDITIONS:

1. FAILURE OF MEGC TO SUPPLY ELECTRICITY UNTIL THE PRESENT. The main argument given
out by ILPI for entering into a Power Supply Agreement with the MEGC, which was being
planned to be constructed at the time of the application and is still unfinished up to the
present, was because of the expiration / reduction of NPC / PSALM ‘s Contract to Supply
Electric Energy (CSEE) to ILPI on August 25, 2011. That after the expiration of the above-
mentioned CSEE, in effect there would be marked deficiency of power that ILPI could
distribute to the people of Iligan after the expiration. That with the grant of the Provisional
Authority and the contract entered between ILPI and MEGC, there would be an augmentation
of power supply. MEGC projected their start of operation on September 2011. However, up to
the present, MEGC had not been operational and have not supplied the much needed power
supply.
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MEGC has not supplied the contracted power based on their projected start of operation
which was September 2011. Brownout during the 1st/2nd quarters of 2012 & 2013 were
suffered by Iligan residents plus business opportunity losses, business / school interruptions
among other negative effects. The following sections of the Application and the PSA showed
the following: A. In the Application: Section 2, “ILPI’s Contract for the Supply of Electric
Energy (CSEE) with NPC will expire on August 2011 Section 12. One of the salient features of
the PSA is, “Commercial Operation for September 2011”. Section 14. “One of the conditions
precedent to the effectivity of the agreement is the approval of the instant application.
Moreover, in order to allow MEGC to be able to deliver and ILPI to be able to receive power
from the power plant as soon as it is commissioned a PA needs to be granted for the PSA.
Sexction 16. “In view of the foregoing, the PSA between ILPI and MEGC will ensure that the
customers will have continuous and sufficient supply of power , especially considering the
worsening power supply situation in the Mindanao Grid. The basis of the application has not
been complied with. No additional power has been supplied from MEGC. B. The PSA between
ILPI and MEGC has the following sections: Section 3.2, “ Any provisional approval granted by
the ERC shall be as basis in determining the Effectivity Date of this Agreement”. Section 4.0,
on Effectivity. “This agreement shall take effect on the date of the signing of the agreement
subject to the approval by the ERC and the actual operation of MEGC not later than five (5)
months from date of ERC approval. Section 4.5, on Termination 4.5.1.1, “Termination by the
BUYER. Supplier is unreasonably delayed for more than three (3) months of its construction
schedule.” There is a clear delay of the MEGC for its power supply. It is now 2013, more than
two years of the grant of the PSA and almost two years from MEGC targeted operation. Such
reason alone would be the basis for the INVALIDATION of the PSA.

II.

ENOUGH SUPPLY OF ELECTRIC ENERGY FOR THE PEOPLE OF ILIGAN WITHOUT THE MEGC

The PSA between ILPI & MEGC has been overtaken by events. With the operation of the
Mapalad Power Corporation (MPC), formerly the Iligan Diesel Power Plants (IDPPs), and a
Provisional Authority of the PSA between ILPI and MPC granted by the ERC, there is enough
Power Supply for the City of Iligan which has not suffered anymore brownout.

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With the consummation of the sale of the IDPPs which is now the Mapalad Power
Corporation (MPC), one of the Terms of Reference that the Iligan LGU and MPC agreed upon
is that MPC will supply whatever is the need of the City of Iligan. The CSEE reduction of NPC /
PSALM from 37 to 38 MW to only 15.75 MW will result to a deficiency of 22 to 23 MW for the
City of Iligan. MPC has a capacity of 97 MW when in full operation. In other words we have
more than enough power. Supply from MEGC is not needed anymore. As per our paper
submitted to the ERC last March 21, 2011, our comment is that ILPI presented only one
scheme in seeking power supply contract from only one source which was then an entity that
has to be constructed yet. It did not consider other ways and means such as: The Iligan Diesel
Power Plants (IDPPs) which is owned by the City of Iligan. ILPI should have noted that one of
the terms of reference of the City of Iligan to whoever operates the IDPP is to give
preferential power supply to Iligan City to cover whatever shortfall there may be from the
grid.

PRAYER WHEREFORE, it is respectfully prayed of the Honorable Energy Regulatory

Commission that the POWER SUPPLY AGREEMENT FOR THE SUPPLY OF POWER TO ILIGAN
LIGHT AND POWER, INC. (ILPI) BY THE MAPALAD ENERGY GENERATING CORPORATION
(MEGC) BE RESCINDED. The PSA is prejudicial to the consumers right for a reliable supply of
Power. ILPI has reserved its capacity to contract power from other reliable sources for a plant
that has not delivered. Other relief just and equitable under the premises are also prayed for.
August 22, 2013, Iligan City [forPasig City], Philippines.

Melchora J. Ambalong , M.D. Chair Emerita, LAPOCOF Medical Centrum, Villaverde, Iligan City

Office of the City Legal Officer ATTY. EULALIO G. GAITE Asst. City Legal Officer, Iligan City PTR.
NO. 4779799 (01-02-13) IBP NO. 8731370 (2013) ROLL NO. 48610 (08-14-03) MCLE Comp. IV
No. 0000029 (Oct. 27, 2010) Tel. No. 09279356393

Copy Furnished:
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1. Quiason Makalintal Barot Torres Ibarra & Sison Counsel for ILPI and MEGC ADB Avenue,
Ortigas Center, Pasig City 2. Mr. Ralph B. Casino Iligan Light and Power, Inc. (ILPI) Bro.
Raymond Jeffrey Road, PaLa-o, Iligan City 3. Marcelino B. Agana Mapalad Energy Generating
Corporation (MEGC) Mapalad, Dalipuga, Iligan City 4. Hon. Vicente Belmonte Congressional
Representative Lone District of Iligan City

5. Hon. Celso Regencia City Mayor Iligan City

6. Emily Pascua Pres., Iligan Chamber of Commerce

7. Atty Leo Zaragosa Abalos Bldg, Iligan City

8. Mr. Uriel Borja Manggas del Carmen, Iligan City

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