The Energy Regulatory Commission (ERC) approved a resolution that adopts significant amendments to the Magna Carta for Residential Electricity Consumers.
These changes aim to enhance consumers’ fundamental right to electric service and introduce more flexible, transparent, and consumer-friendly rules regarding bill deposits and refunds.
The amendments were adopted in accordance with the Commission’s mandate under the Electric Power Industry Reform Act of 2001 (EPIRA) and after extensive public consultations with consumer groups, distribution utilities (DUs), electric cooperatives, industry associations, and other stakeholders in the energy sector.
Despite issuing these amendments, the Commission pledged to continue exploring ways to further enhance the rules regarding bill deposits.
“These specific amendments facilitate easier access to electric services, reward timely payment behavior, and ensure that consumer bill deposit refunds are processed both automatically and transparently.”
ERC Chairperson and CEO Atty. Francis Saturnino Juan highlighted that “these specific amendments facilitate easier access to electric services, reward timely payment behavior, and ensure that consumer bill deposit refunds are processed both automatically and transparently.”
One of the key amendments is a provision that strengthens the right to electric service by simplifying the requirements for new residential electricity service applications to only the essential documents: a duly completed application form, a valid government-issued ID, a Certificate of Final Electrical Inspection or its equivalent, proof of ownership or the right to use or possess the premises—or, if unavailable, a barangay certification, subject to certain conditions, and a list of electrical loads.
This reform aims to reduce delays, eliminate unnecessary obstacles, and promote faster and more inclusive access to electricity, especially for households in mass housing developments and condominium projects.
The amendments also enhance consumers’ right to a refund of bill deposits by institutionalizing automatic refund mechanisms. Existing residential consumers who qualify for a one hundred percent (100%) discount under the ERC-administered Lifeline Program shall automatically receive a refund of their bill deposits.
These refunds shall be credited by DUs to the consumers’ subsequent monthly bills, without the need for the consumers to file a separate application, until the full amount is refunded.
In addition, residential consumers who have consistently paid their electricity bills on or before the due date for two (2) consecutive years shall automatically qualify for a refund of their bill deposits, inclusive of accrued interest. Under the amended rules, DUs are required to automatically apply the refunds to the consumers’ monthly bills, eliminating the need for consumers to apply for refunds and ensuring timely and proactive implementation.
As an added consumer protection measure, the amendments introduce greater flexibility in the payment of bill deposits for new residential connections. Applicants for electric service are given the option to pay the required bill deposit either in full or in three (3) equal monthly installments starting with their first electricity bill. Moreover, DUs are expressly allowed to waive the requirement for bill deposits or offer suitable alternatives, providing DUs with flexibility to adopt consumer-friendly practices while maintaining safeguards for bill payment.
“Pagpapakita ng consumer-centric na pilosopiya sa paghubog ng mga regulasyon para sa industriya ng kuryente itong ginawang pag-amyenda ng Komisyon sa Magna Carta ng mga karapatan ng ating mga konsyumers.”
“Pagpapakita ng consumer-centric na pilosopiya sa paghubog ng mga regulasyon para sa industriya ng kuryente itong ginawang pag-amyenda ng Komisyon sa Magna Carta ng mga karapatan ng ating mga konsyumers. Hindi ito ang huli, bagkus ay panimula pa lamang,” Juan stressed.
The Amendments to the Magna Carta for Residential Electricity Consumers shall take effect fifteen (15) days after publication in a newspaper of general circulation or in the Official Gazette.
