Magna Carta for Residential

Electricity Consumers

Atty. Maria Corazon C. Gines

Consumer Affairs Service
Energy Regulatory Commission
Important Dates
• July 4, 2004 – publication of the Magna
Carta in the Philippine Star and Manila
Times
• July 19, 2004 – effectivity of the Magna
Carta
• November 11, 2004 – publication of the
Guidelines to Implement the Provisions of
Articles, 7, 8, 14 and 28 of the Magna Carta
for Residential Electricity Consumers
• November 26, 2004 – effectivity of the
Guidelines to Implement Articles 7, 8, 14
and 28 of the Magna Carta for Residential
 Basic Rights of the Consumers
• To have quality, reliable, affordable, safe, and
regular supply of electricity
• To be accorded courteous, prompt and non-
discriminatory service by the electric service
provider
• To be given a transparent, non-discriminatory and
reasonable price of electricity
• To be an informed customer and given adequate
access to information on matters affecting the
electric service of the consumer concerned.
• To be accorded prompt and speedy resolution of
complaints by both the DU and/or ERC
• To know and choose the electric service retailer
upon the implementation of Retail Competition
• To organize themselves into a consumer
organization
Basic Obligations
• To observe the terms of his contract including,
among others, paying monthly electric bills promptly
and honestly
• To allow the faithful and accurate recording of
consumption to be reflected in the appropriate
device
• To allow the DU/s employees/representatives
access to his premises for purposes allowed by the
Magna Carta
• To take proper care of metering or other equipment
that the utility installed in the customer/s premises
• To inform the DU and/or proper authorities of any
theft or pilferage of electricity
• To cooperate with and support programs on the
wise and efficient use of electricity.
Consumer Rights
 Right to Electric Service

• Compliance with the DU’s and LGU’s

requirements
• Undertaking by Owner to be solidarily
liable for unpaid regular electric bills
incurred by the applicant after leaving
the premises
Rights and Obligations
re: Bill Deposits
• Applicable to applicants for new
and/or additional service
• Equivalent to the estimated monthly
billing of the applicant
• Adjusted yearly
• Earn Interest equiv. to that
incorporated in the WACC, otherwise,
the prevailing interest rate for savings
deposit approved by the BSP
Rights and Obligations
re: Bill Deposits
• Refunded one month from termination of
electric service if all bills were paid
• Refund prior to termination – customer pays
his monthly bills on or before their due date
for 3 consecutive years
• After refund, customer defaults – bill
deposit is reimposed
• No more refund of bill deposit until
termination of electric service
• Non-payment of reimposed bill deposit –
ground for disconnection
Meter Deposits
• New customers are exempted from paying
meter deposits
• Cost of meters shall be sourced from:
– Rates – for private distribution utilities (Pus)
– Reinvesment Fund – for electric cooperatives
(ECs)
• Existing customers are entitled to refund
• Refund by PUs – starting January 2006
• Refund by ECs – approval of refund
scheme by the ERC
Refund of Meter Deposits by ECs

• Refund is last priority in the use of the

Reinvestment Fund
• No interest for meter deposit refund
• Meter deposit refund could be
offsetted with outstanding obligations
of the customer with the DU
Metering Provisions
• Electric meters including instrument
transformers – to be tested and
sealed by ERC prior to installation in
customers’ premises
• Calibrated to as close to zero error as
possible, and not merely within
tolerable limits
• DU to test meters once every 2 years,
free of charge
Meter Testing Results

• Meter has stopped without evidence of

tampering – DU can recover billing
adjustment equivalent to a maximum
period of 3 months
• Meter is defective without evidence of
tampering – DU can recover billing
adjustment equivalent to a maximum
period of 6 months
• Fast meter – Customer can demand
refund of overbilling equivalent to a
maximum of 6 months
Installation of Meters
• Meter to be installed in a clean place, free
of vibration and accessible for reading and
testing
• Meter can be relocated at the expense of
the DU except:
– Request of the customer for reasons other than
the foregoing
– Failure of the meter to meet the foregoing
conditions is due to improvements made by the
customer
Right to Prompt Investigation
of Complaints

• inform customer of action taken within

15 days from receipt of complaints
• IDs of DU representatives must be
properly and conspicuously displayed
Right to Extension of Lines and Additional
Facilities (amended by the DSOAR)

• Customer is within 30 meters from DU’s

existing secondary low voltage lines
• Customer is beyond 30 meters – required
to advance cost of extension of lines and
additional facilities
• Cash Advances to be Refunded, at the
option of the customer through:
– Issuance of notes payable
– Refund at the rate of 25% of gross distribution
revenue derived for the calendar year; or
– Purchase of preferred shares, if available
Right to Extension of Lines and Additional
Facilities (amended by the DSOAR)

• Cost is funded gratuitously – customer

not entitled to refund
• Developer initially pays cost of
extension and incorporates the same
in the cost of the property – customer
is entitled to exercise the options for
refund of cash advance
Right to Information
• DUs must have:
– Consumer Bulletin Board for posting major
announcements/documents
– Establish communications facilities, including but
not limited to customer hotline and SMS
• Scheduled power interruptions
– Announced through tri-media at least 2 days
prior to its occurrence
– In remote areas, schedule must be posted along
roadsides or infront of entrance to the
City/Municipal Hall or Public Market
• Right to Transparent Billing – format
prescribed by ERC

• Right to a Monthly Billing –

– Month should not be less than 28 days
but not to exceed 31 days
– Billing period exceeding 31 days allowed
only due to fortuitous event
– Reading must be done immediately after
the fortuitous event
Rules on Disconnection

• Notice prior to disconnection

• Grounds for Disconnection:
– Non-payment of electric bills
– Illegal use of electricity
– Public safety
– Upon lawful orders of government agencies and/or
courts
– Request of the registered customer based on
justifiable reasons
– Allowing other end-users to be connected to the
electric service, whether or not for profit
Rules on Disconnection
• Receipt of Notice of Disconnection
– 48 hours – non-payment of regular
monthly bills
– 24 hours – illegal use of electricity
• Required Witnesses During
Apprehension
– Customer or his authorized
representative
– ERC representative or Officer of the Law
Grounds for Suspension of Disconnection

• After 3pm on weekdays

• Saturdays, Sundays, Official Holidays
• Permanent resident is dependent on life support
system – maximum of 2 months
• Funeral Wake of permanent resident – maximum of
1 month or until interment whichever comes first
• Customer indubitably proves he did not receive a
Statement of Account or Notice of Disconnection
• Customer is billed in a single statement covering
several months due to the fault of the DU
• Customer or his representative is not around (can
only be invoked for disconnections due to illegal
use of electricity)
Right to Tender Payment

• Customer tenders payment at the

point of disconnection
• DU’s representative may accept
payment
• If DU’s representative refuses to
accept payment – customer is given
24 hours to pay
• Privilege can only be invoked once for
the same unpaid bill
Right to Electric Service Despite
Arrearages of Prior Tenant

• Arrears of prior tenant

• No collusion between the new and
former occupants/tenants
Right to Reconnection
• Customer’s service was previously
disconnected
• Customer has paid his obligations
• DU must reconnect electric service
within 24 hours
• 24 hours may be extended for
justifiable reasons
Testing of Tampered Meters
• Suspected tampered meter is placed in a
sealed container
• Suspected tampered meter is replace by an
accurate meter
• Sealed container is opened by ERC
representative
• ERC representative confirms tampering
• No disconnection of service until
confirmation of tampering by the ERC
• Right to Payment Under Protest
– To suspend disconnection
– Privilege to question validity and amount

• Right to File Complaints with ERC

– Prior consultation with CWD Officer
Consumer Obligations

• Obligation to allow inspection, installation &

removal of electricity apparatus
• Obligation to allow the construction of poles,
lines and circuits within the customer’s
property upon payment of just compensation
• Obligation to pay monthly bills – within 9
days from receipt thereof
• Obligation not to commit illegal use of
electricity
• Obligation to pay differential billing
ERC CONTACT DETAILS

• Main Office:
– Pacific Center Bldg., San Miguel Ave.
Pasig
– Customer Hotlines: 687-5544/77
– E-mail Address:
consumer@erc.gov.ph
– Text: ERC <space> message send to
2920