Senator Sherwin Gatchalian has filed a measure seeking to abolish the collection of bill deposits by distribution utilities (DUs) and electric cooperatives (ECs), while mandating the refund of existing deposits with accrued interest.
Under Senate Bill No. 1470 or the Anti-Bill Deposit Act, Gatchalian said the current practice, authorized under the Magna Carta for Residential Electricity Consumers, “has long imposed an unnecessary financial burden on consumers.”
The bill also directs the Energy Regulatory Commission (ERC) to conduct an independent audit of all bill-deposit accounts and to introduce alternative credit-risk mechanisms such as prepaid or installment-based payment systems to ensure accountability without requiring upfront costs.
“Sa ganitong paraan, masisiguro nating pantay-pantay at abot-kaya ang access ng lahat sa kuryente, nang hindi na kailangang magbayad ng deposito,” Gatchalian said.
He added that the proposed measure aligns with the Electric Power Industry Reform Act of 2001 and the amended Public Service Act, aiming to strengthen consumer protection, promote equitable access to electricity, and ensure regulatory practices uphold the government’s goal of providing reliable and affordable power service for all.
