Title
Magna Carta for Residential Electricity Consumers
Law
Erc
Decision Date
Jun 24, 2004
The Energy Regulatory Commission establishes the Magna Carta for Residential Electricity Consumers, ensuring basic rights such as reliable service, transparent pricing, and prompt complaint resolution for residential electricity users while outlining their obligations and the responsibilities of distribution utilities.

Law Summary

Definition of Key Terms

  • Bill Deposit: A security deposit equivalent to one month’s estimated billing.
  • Billing Adjustment: Charges for unbilled electricity from meter stoppages or defects without tampering.
  • Connection Point: The point where user equipment connects to the distribution system.
  • Consumer/Customer/End-user: Registered customer or authorized occupant receiving electric service.
  • Distribution Utility: Electric cooperatives, private firms, government units authorized to distribute electricity.
  • Differential Billing: Charges for illegal consumption based on prescribed methodologies.
  • ERC: Energy Regulatory Commission overseeing electric power regulation.
  • Month: Time between two meter readings, between 28 and 31 days.
  • Officer of the Law: Authorized persons maintaining public order relevant to enforcement.
  • Registered Customer: Customer with a valid service contract.
  • Residential Consumer: Customer classified as residential in the utility’s rate schedule.

Basic Consumer Rights

  • Right to quality, reliable, affordable, safe, and regular electric power supply.
  • Right to courteous, prompt, non-discriminatory service.
  • Right to transparent, reasonable pricing consistent with law.
  • Right to be informed and have access to information affecting electric service.
  • Right to timely resolution of complaints by utilities and ERC.
  • Right to choose electric service retailer under retail competition.
  • Right to organize as consumer groups in their franchise area.

Basic Consumer Obligations

  • Comply with service contract terms, including prompt payment.
  • Allow accurate consumption recording.
  • Permit utility access for legitimate purposes.
  • Maintain and protect utility-installed metering equipment.
  • Report theft, pilferage, or damages to meters.
  • Support efficient and wise electricity use programs.

Right to Electric Service and Connection

  • Consumers have the right to connection upon fulfilling utility and LGU requirements.
  • Non-owner applicants must provide owner undertaking for payment liability.
  • Utilities may allow third parties to serve areas they cannot.
  • Labor cost for service drop connection is free.

Refund and Deposits

  • Bill deposits refunded within one month after service termination if bills paid.
  • Customers paying bills timely for three consecutive years may request early refund.
  • Meter deposits exempted; cooperatives use reinvestment funds for meters.
  • Customers responsible for replacing meters if damaged due to their fault.

Metering Rights and Accuracy

  • Meters must be tested, certified, and sealed by ERC before installation.
  • Meters must be accurate and within prescribed error margins.
  • Consumers can demand production of meter test reports.
  • Refunds for overbilling provided when meters found fast or inaccurate.
  • Meters must be properly installed in accessible and safe locations.
  • Consumer bears cost of meter relocation unless due to utility faults.
  • Customers can request meter tests every two years free or more frequently for a fee.

Complaint Handling and Service Extension

  • Utilities must promptly investigate complaints and report actions.
  • Employees must display identification when interacting with customers.
  • Consumers within 30 meters of existing lines entitled to free extension; others may initially fund extensions with right to refund.

Information and Billing

  • Utilities must provide consumer bulletin boards and communication hotlines.
  • Must announce scheduled power interruptions at least two days prior.
  • Bills must conform to ERC-approved formats.
  • Bills delivered monthly and payable at authorized points.

Disconnection and Due Process

  • No disconnection without due process and notice 48 hours prior for non-payment.
  • Immediate disconnection permitted in cases of illegal use upon proper notice.
  • Disconnections prohibited beyond 3 PM, weekends, and holidays or under certain health and death-related circumstances.
  • Customers can tender payment at point of disconnection once per unpaid bill.
  • Utilities must reconnect service within 24 hours after payment of arrears.

Rights Related to Illegal Connections and Meter Apprehension

  • Customers or representatives have right to witness apprehensions of illegal use.
  • Meters apprehended must be tested by ERC before disconnection.

Payment and Protest Rights

  • Customers may pay bills under protest to ensure continuous service while disputing charges.
  • Right to file complaints with ERC after discussing with utility representatives.

Customer Obligations

  • Must pay bill deposits, equivalent to one month’s billing, adjustable yearly.
  • Bill deposits earn interest credited annually.
  • Failure to pay deposits may lead to disconnection.
  • Must allow utility access for inspection, installation, and removal of equipment.
  • Must permit construction of poles, lines, and metering equipment on their property.
  • Must accept monthly bills and pay them within nine days.
  • Must pay billing adjustments for unregistered consumption within prescribed limits and payment schemes.
  • Prohibited from illegal use of electricity with specific acts constituting prima facie evidence listed.
  • Must pay differential billing for illegal consumption, with recovery periods defined.

Enforcement and Final Provisions

  • Implementation guidelines to be promulgated by the ERC.
  • Violations subject to penalties after due process.
  • Separability clause to maintain effects of valid provisions if any part invalidated.
  • Existing related regulations remain effective unless specifically repealed.
  • Code takes effect 15 days after publication in a newspaper of general circulation.

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