ERC reimposes bill deposit

Logo of the Energy Regulatory Commission (ERC) of the Philippines on a textured white background.

MANILA – Power consumers must first receive a notice from their distribution utilities (DUs) before the latter can collect bill deposits, the Energy Regulatory Commission (ERC) said Friday.

This comes after the regulator announced the reimposition of the bill deposit during the day, a move aimed at protecting consumers under Section 41 of Republic Act (RA) No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA).

A bill deposit is collected from consumers as a guarantee for any unpaid electricity consumed after the due date.

The ERC, in an advisory, said the notice sent to affected power consumers must explain the basis for the reimposition, the computation of the amount, and the consumers’ options to pay in three equal monthly installments.

“Unless the Consumer opts to pay it in full or the DU allows a longer period, the reimposed bill deposit shall be payable in three (3) equal monthly installments reckoned from the consumer’s receipt of the Notice,” it said.

The advisory said “a consumer’s failure to pay the reimposed bill deposit shall be a ground for disconnection, subject to a prior written notice by the DU.”

It added that for bills issued during the previous advisory periods –which covered May to July, August to October, and November to December– “no bill deposit shall be reimposed on consumers eligible for the No Disconnection Policy by reason of their non-payment of bills during those periods, consistent with the said Advisories.”

DU compliance

In a statement, Manila Electric Company (Meralco) vowed to heed the latest ERC bill deposit decision, but noted that the policy “applies only to customers who previously received refunds of their bill deposits after two (2) consecutive years of paying on or before the due date, but subsequently missed their bill payments.”

“To extend further relief to customers, Meralco has taken the initiative to defer the implementation until next year and provide affected customers with an automatic six-month installment arrangement, longer than the three months prescribed under the guidelines,” lawyer Jose Ronald Valles, Meralco Senior Vice President and head of Regulatory Management.

Valles, however, clarified that the DU “will continue the automatic refund for customers with good credit standing.”

He said the bill deposit will be reflected on consumers’ bills as a separate line item “to provide greater clarity.”

“Meralco remains committed to keeping customers informed. The company will proactively communicate relevant information to affected customers, issue advisories and reminders, and address their questions and concerns to help them better understand the policy and its implementation,” he added. (PNA)

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