Magna Carta for Residential Electricity Consumers

Atty. Maria Corazon C. GinesConsumer 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 Electricity Consumers

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