Objectives
- Provide residential customers with energy management choices.
- Establish technical standards and service rules for prepaid retail electric service (PRES).
- Enhance operational efficiency of Distribution Utilities (DUs).
- Promote demand-side management.
Scope
- Applies to Distribution Utilities offering prepaid services via prepaid metering systems as alternatives to postpaid service.
- Applies to residential customers availing of prepaid electric service.
Definitions
- Act refers to Republic Act No. 9136 or Electric Power Industry Reform Act of 2001.
- Distribution Utility includes electric cooperatives, private corporations, government utilities, or LGUs with distribution franchises.
- ERC is the independent quasi-judicial regulatory agency created under the Act.
- Prepaid Meter: capable of loading purchased energy, real-time consumption display, and warning when credit nears depletion.
- Prepaid Retail Electric Service (PRES) allows customers to purchase credit before consumption.
Application Requirements for DUs
- DUs must apply to ERC before offering PRES.
- Application must include legal info, technical specs, meter certifications, service terms, cost recovery methods, lifeline rates implementation, customer communication programs, and conversion procedures between prepaid and postpaid services.
Prepaid Meter and System Standards
- Meters must be certified by IEC or ANSI.
- Must display current balance, consumption data, date/time, and provide credit warnings.
- Disallows magnetic stripe card token systems.
Meter Accuracy and Certification
- Must have near zero error before deployment.
- Allowable meter error in service: ±0.5% average, with ±2% tolerance and maximum ±3% at test points.
- Subject to ERC testing; ERC seal denotes compliance and quality guarantee.
Installation and Cost
- Prepaid meters may be installed inside or outside residences.
- Customers must have access to credit monitoring devices.
- Customers shall not advance the cost nor pay deposits for prepaid meters.
Prepaid Transactions and Tariffs
- DUs must allow credit purchase in small increments.
- Rates applied are the effective postpaid rates unless ERC approves otherwise.
- Lifeline rates continue for qualifying customers within consumption caps.
Receipts and Customer Transactions
- DUs must provide printed or written receipts for each purchase including utility info, transaction details, and tariff charges.
Accessibility
- DUs must allow 24-hour access for credit purchase to ensure continuous service.
Record Keeping and Charge Summaries
- DUs must keep two years' records of prepaid credit purchases.
- Must provide summaries to customers within five business days upon request.
Refunds and Deposits Upon Conversion
- Postpaid deposits plus interest must be refunded upon customer’s switch to prepaid service net of obligations.
- Returning from prepaid to postpaid requires payment of a bill deposit equal to average monthly purchase of the past 6 months.
Customer Entry and Retention Policies
- Customers may opt for prepaid service voluntarily.
- Trial period of 6 months provided to assess the service.
- Post-trial, customers can commit to a 24-month prepaid contract or revert to postpaid.
- Customers under prepaid service for 24 months may revert to postpaid upon deposit payment.
- Customers unable to pay existing bills may apply for prepaid service under negotiated settlement.
- Customers found guilty of illegal electricity use may be required to use prepaid service.
- Reversions subject to DU approval.
Reporting Requirements
- DUs must submit monthly reports to ERC with sales volumes, revenues, lifeline customer data, and applied rates.
Miscellaneous Provisions
- Applications involving new rates must comply with regulatory filing requirements.
- DUs must provide visual or printed statements of monthly unbundled charges.
Penalties
- Violations of the rules can lead to fines and penalties as provided by ERC administrative sanction guidelines.
Exceptions and Separability
- ERC may grant exceptions in public interest if not contrary to law.
- Invalid provisions do not affect the remainder of the rules except if it undermines enforceability.
Repealing and Effectivity
- Existing inconsistent ERC rules are repealed or modified accordingly.
- These rules take effect 15 days after publication in a newspaper of general circulation.