QuestionsQuestions (ERC Resolution NO. 15, S. 2009)
The Rules aim to (1) provide residential customers a choice for energy management strategies; (2) establish technical standards for PRES using prepaid metering; (3) establish additional rules for PRES alongside existing customer protection rules; (4) enhance DU operational efficiency; and (5) promote demand side management.
It applies to (1) any Distribution Utility (DU) that offers prepaid service to its residential customers using a prepaid metering system as an alternative to its postpaid service; and (2) residential customers availing of prepaid electric service.
PRES is an electric service using a prepaid metering system where customers purchase credit and consume electricity until the credit is exhausted. A prepaid meter is an electric meter capable of loading purchased energy, displaying real-time consumption information, and warning the customer when credit is close to zero with a buffer before automatic disconnection.
It cites Section 43(h) of R.A. 9136 (ERC authority to review/approve changes on terms and conditions) and Section 4(o), Rule 3 of the IRR of R.A. 9136 (ERC power to issue other rules essential to discharge its functions).
The DU must file an application with the ERC for approval prior to offering the service, including required details such as technical specs, number of years of summarized billing record capability, type of prepaid meter with certification, purchasing/crediting method, customer terms, cost recovery for meters, lifeline implementation, sample receipt format, transaction locations/manner, conversion procedure (postpaid to prepaid and vice versa) including refund/payment of deposits, target implementation date, and a customer information program.
The prepaid meter should be certified by IEC or ANSI standards; should communicate current balance, time/date; should display prior 30-day consumption and days into the current 30-day period with kWh; and should warn the residential customer when remaining credit is below a threshold agreed by the customer and the DU.
A prepaid metering system that transfers token data using a disposable magnetic stripe card is not allowed.
Meters should be as close as possible to zero error before service; the tolerance limit is ±0.5% for acceptable variation. For meters in service, allowable tolerance is ±2% average error, and at any test load points (light and full load), error must not exceed ±3%.
The ERC seal serves as a warranty that the prepaid meter is an acceptable/accepted type and operates within allowable tolerance limits.
Yes. It may be installed inside or outside the residential customer’s house, provided that the customer is provided with a mechanism/device for monitoring and managing consumption rate and for receiving warnings when credit drops below the agreed threshold.
No. Customers shall not be made to advance the cost or purchase the prepaid meter, and prepaid meter deposits shall not be collected by DUs from customers.
Unless ERC approves a different tariff for prepaid meters (including possible discounts), the rates applied in prepaid transactions should be based on the effective postpaid retail rate at the time of purchase. The DU must continue to charge the lifeline rate to residential customers whose consumption during the month does not exceed the approved lifeline cap.
It must include: DU name; receipt number; date and time of purchase; meter identification and service/customer identifiers; the amount of credit (kWh and pesos); tariff charge; and the number of purchase transactions made in the same month.
The DU must allow reasonable means for customers to purchase credit for 24 hours to ensure continuous service.
The DU must keep records for each prepaid customer sufficient to produce a summary of purchases for at least the preceding 2 years. Upon request, it must issue a summary and corresponding charges within 5 business days, including dates and amounts of payments made during the covered period.
For entry into PRES: the DU must refund the required bill deposit for postpaid service, including interest based on the ERC-approved interest rate, net of outstanding obligations. For reversion to postpaid: a PRES customer must pay a bill deposit equivalent to the average monthly purchase for the past 6 months prior to reconnection to postpaid service.
Customers may apply voluntarily; they should be allowed a trial basis for 6 months. After the trial, the customer may (1) enter a prepaid service contract with a 24-month retention period or (2) revert to postpaid. Customers already connected for at least 24 months may revert after paying the bill deposit requirement. Customers reverting after the 6-month trial may still avail of prepaid service subject to at least a 24-month retention period. Customers unable to pay existing bills may apply through a scheme agreed with the DU.
Customers found guilty of illegal use of electricity by final judgment by regular courts or administrative agencies may be required to use PRES. Customers required under the unpaid-bills scheme (Section 3.5) or illegal-use finding (Section 3.6) may revert to traditional postpaid service subject to the DU’s approval.
Each DU offering PRES must file a monthly report to the ERC containing: (1) total kWh sales and revenues from PRES; (2) number of customers who availed lifeline rate and total sales revenue derived from them; and (3) the effective rate applied and corresponding unbundled charges.
The Rules take effect 15 days after publication in a newspaper of general circulation. The ERC may allow exceptions for good reason if the exception is in the public interest and not contrary to law or pertinent rules. Separability applies if any part is declared unconstitutional/invalid; unaffected parts continue unless the whole becomes non-implementable.