QuestionsQuestions (ERC)
A bill deposit is the deposit required for new and/or additional service equivalent to the estimated billing for one month to guarantee payment. Eligible recipients are registered customers, their heirs, successors-in-interest, or duly authorized representatives.
The customer must have paid on or before the due date for three (3) consecutive years, and may then demand a full refund even prior to termination of service.
After termination of service (subject to conditions), the bill deposit must be refunded within one month if all bills have been paid. For applications filed for early refund (3 consecutive years on-time payment), the utility must refund within one month from receipt of the application.
The Guidelines state that outstanding obligations related to one or more accounts do not affect entitlement to refund in other accounts; each account is separate for refund purposes.
Any payment after the due date during the pendency of the application constitutes an automatic denial of the refund application.
The legal heirs receive the amount of the refund in proportion to their respective shares to the deceased’s estate unless a waiver has been executed in favor of one (1) heir. All legal heirs must sign the application unless there is a waiver.
They must show proof (e.g., a Deed of Sale or other documents) that they acquired all rights and obligations over the property, including the bill deposit.
The representative must submit an application signed by them, include a Special Power of Attorney from the registered customer authorizing receipt of the refund, and provide proof of on-time payment for three (3) consecutive years (as required by the Guidelines).
Yes. All consumers are exempt from meter deposits because private distribution utilities incorporate meter costs in the rate base, and electric cooperatives procure meters using reinvestment funds. However, if damage/loss is due to the customer’s fault, the customer bears replacement cost.
Yes. Existing residential consumers may opt to avail of the refund; otherwise, the deposits continue to earn interest.
The refund includes principal and interests accruing thereto. For private utilities, the applicable interest rate depends on the relevant WACC or BSP savings rate provisions as provided in the Guidelines (e.g., 6% or 10% depending on applicable references). For electric cooperatives, the refund is without interest.
The Guidelines provide phases based on the utility’s year of operation (e.g., Phase 1: 1st–10th year registered: Jan 1–Jun 30, 2006; Phase 2: 11th–20th year: Jul 1–Dec 31, 2006, etc.). After two (2) years from each phase period, unclaimed deposits are deposited in escrow, including principal and any interest.
Customers must claim within ten (10) years from the deposit in escrow. After lapse of ten (10) years from escrow deposit date per phase, the State through the Office of the Solicitor General initiates escheat proceedings after due notice and hearing.
A consumer within thirty (30) meters from the utility’s existing secondary low voltage lines has the right to extension of lines or installation of additional facilities at the utility’s expense. A “service drop” is excluded.
The private distribution utility bears the cost regardless of distance, because the assets will eventually form part of the rate base. The cost-sharing rule based on the customer’s initial funding applies only when the cost was not included in CAPEX.
The customer may demand issuance of notes payable from the utility, or demand refund at the rate of twenty-five (25%) percent of the gross distribution revenue derived for the calendar year, or, if available, purchase of preferred shares.
The bill deposit is equivalent to the estimated billing for one month for new and/or additional service. After one (1) year and every year thereafter, when actual average monthly bills are more or less than the initial deposit, the deposit is correspondingly increased or decreased to approximate said billing.
He must post another bill deposit due to the default and loses his right to avail of future refunds of the bill deposit, except upon termination of electric service.