Coverage and defined consumer terms
- This Magna Carta applies only to residential consumers.
- A consumer or customer or end-user is any person who is the registered customer of the electric utility supplied with electricity by the concerned distribution utility, or any person authorized by the registered customer to occupy the premises and enjoy electric service.
- A registered customer is the customer with a valid service contract with the electric distribution utility.
- A residential consumer is a customer classified as such in the distribution utility’s rate schedule approved by the ERC.
- A distribution utility includes any electric cooperative, private corporation, government-owned utility, or existing local government unit which has an exclusive franchise or is authorized by law to distribute electricity to end-users.
- Bill deposit means the deposit required from customers by distribution utilities of new and/or additional service equivalent to the estimated billing for one month to guarantee payment of bills.
- Billing adjustment is the amount charged for unbilled electricity consumed due to a stoppage or defect (conspicuous or otherwise) in the meter, provided there is no evidence of tampering.
- Differential billing is the amount charged for unbilled electricity illegally consumed as determined through methodologies prescribed by law, computed by multiplying unbilled consumption in kWh, the period covered, and the current rate of electricity at the time of apprehension.
- Month means the elapsed time between two succeeding meter readings, at least twenty-eight (28) days apart but not to exceed thirty-one (31) days.
Core basic rights and obligations
All consumers are entitled to a quality, reliable, affordable, safe, and regular supply of electric power.
All consumers are entitled to courteous, prompt, and non-discriminatory service by the electric service provider.
All consumers are entitled to a transparent, non-discriminatory, and reasonable price of electricity consistent with Republic Act No. 9136.
All consumers are entitled to be informed and have adequate access to information affecting their electric service.
All consumers are entitled to prompt and speedy resolution of complaints by both the distribution utility and/or the ERC.
All consumers are entitled to know and choose the electric service retailer upon the implementation of Retail Competition.
Consumers are entitled to organize as a consumer organization in the franchise area where they belong and are served by the distribution utility, or as a network of organizations.
Every consumer must observe the terms of the contract, including paying monthly bills promptly and honestly.
Every consumer must allow faithful and accurate recording of consumption to be reflected in the appropriate device.
Every consumer must allow utility employees/representatives entry/access to premises for purposes provided under Article 29.
Every consumer must take proper care of metering or other equipment installed in premises.
Every consumer must inform the distribution utility and/or proper authorities of theft or pilferage, or damage caused by any person to the electric meter and related equipment.
Every consumer must cooperate with and support programs on the wise and efficient use of electricity.
Rights on service, metering, billing, and complaints
A consumer has the right to be connected to a distribution utility after full compliance with the distribution utility’s and the local government unit’s (LGU) requirements.
If the applicant is not the owner of the premises, the applicant must submit an undertaking from the owner that the owner is jointly and severally liable with the applicant for unpaid regular monthly bills incurred by the applicant after leaving the premises, in the absence of or insufficiency of the bill deposit.
A distribution utility that cannot service areas within its franchise territory may allow another distribution utility or a qualified third party (QTP) to provide electricity services in that area subject to ERC approval and pursuant to Rule 7 and Rule 14 of the EPIRA Implementing Rules and Regulations.
The labor cost for connecting the distribution utility’s service drop to the connection point is free of charge.
The connection point is designated upon agreement by the distribution utility and the consumer.
Consumers have the right to a refund of bill deposits within one month from termination of service, provided all bills are paid.
A customer who paid electric bills on or before the due date for three (3) consecutive years may demand full refund of the deposit even prior to termination of service, by filing an application with the distribution utility, which must refund within one month from receipt.
Consumers are exempt from payment of meter deposits because private distribution utilities incorporate the cost of watthour meters in their rate base.
Electric cooperatives procure watthour meters for consumers using their respective reinvestment funds.
If loss and/or damage to the electric meter is due to the fault of the customer, the customer bears the replacement cost of the meter.
No meter (including instrument transformers) may be installed or placed in service unless tested, certified, and sealed by the ERC.
All watthour meters must be adjusted to as close as possible to zero error before being placed in service.
The method for determining average error uses ERB Resolution No. 95-21, as amended (Standard Rules and Regulations Governing the Operation of Electric Power Services).
The ERC seal warrants that the meter is an acceptable or accepted type and that it operates within allowable tolerance limits.
A consumer may demand production of the meter test report containing findings of the authorized person who tested the meter.
Consumers have the right to a refund of overbillings arising from meter testing showing the meter was fast, with no evidence of tampering.
If a meter’s average error is more than tolerance of plus two percent (2%), the consumer is entitled to refund for a maximum period of six (6) months prior to discovery, applied to future billings.
Consumers have the right to a properly installed meter: in a clean place free of vibration, easily accessible and visible for reading/testing by both the utility and the consumer.
Meters must not be located behind doors or in places easily broken or jarred by moving furniture or equipment.
Meters must be located on the outside wall of the building or private pole, with mounting height not more than three (3) meters and not less than 1.52 meters from the surface on which one would stand to repair or inspect.
Meters may be located elsewhere only based on justifiable reasons.
A customer bears the cost of relocation if the customer requests relocation for reasons other than those under the first paragraph’s relocation conditions, or if installation fails to meet the initial placement conditions due to improvements on the customer’s premises.
All other relocations are borne by the electric utility.
Consumers may require the distribution utility to test, once every two (2) years, free of charge, using a meter standard duly tested and sealed by the ERC.
If testing is requested more than once every two years and the meter is within the tolerable limit under Article 9, the utility may assess a testing fee based on the testing fee charged by the ERC.
A written report showing the result of such test must be furnished to the customer.
Consumers may request ERC meter testing by paying the fee prescribed under the approved ERC Schedule of Fees and Charges.
If the meter is inaccurate, the consumer may demand replacement or ERC calibration to restore accuracy closest to zero (0) error.
Refund or billing adjustment due to inaccurate meters applies as appropriate.
Distribution utilities must record and promptly investigate all complaints concerning their services.
The utility must furnish a report of action taken within the period in its Compliance Plan under the Philippine Distribution Code; if no plan exists, the report must be provided within fifteen (15) days from receipt of the complaint.
If the customer disagrees with the distribution utility, the customer may file a complaint with the ERC under Article 27 of this Magna Carta.
Utility officers, employees, and agents must properly and conspicuously display identification cards when dealing with customers relative to electric power services.
A consumer within thirty (30) meters from existing secondary low voltage lines has the right to line extension or additional facilities (other than a service drop) at the utility’s expense, because the assets will form part of the rate base for private distribution utilities or be sourced from electric cooperatives’ reinvestment funds.
If beyond thirty (30) meters or demand load requires extension, the customer may initially fund the expenditures.
To recover the customer’s expenditures, the customer may demand issuance of notes payable or refund at the rate of twenty-five (25) percent of gross distribution revenue derived for the calendar year, or purchase of preferred shares if available.
Revenue derived from additional customers tapped directly to the poles and facilities so extended is included in determining revenues derived from the extension.
If a developer paid extension costs for electric service to a property and the registered customer later purchases and transfers the property into the customer’s name, the customer is entitled to refund of extension costs and the refund options under this article.
If extension costs were funded gratuitously by other persons for the benefit of the customer, refund under this article does not apply.
Utilities must furnish the Commission a semi-annual report naming customers who made cash advances, the amount, and the mode of refund.
Distribution utility offices must provide a Consumer Bulletin Board for posting major announcements/documents affecting consumers.
Distribution utilities must establish communication facilities, including a customer hotline and Short Messaging Service (SMS), catering exclusively to customers.
Major announcements/documents include rate schedules and changes, other service charges, terms and conditions of service, standard rules and regulations, general information on metering (including how meters are read and method used), and ERC decisions and orders.
If multiple authorized rate schedules apply, the utility must advise the customer in writing and apply the most beneficial rates.
At least two (2) days before a scheduled power interruption, the utility must announce through print or other mass or interactive media.
For remote areas without media access, the utility must post announcements of scheduled power interruptions on a bulletin board in a visible area, preferably along roadsides or in front of the City/Municipal Hall or Public Market.
Bills must conform to the format approved by the ERC.
Bills must be delivered monthly in accordance with the applicable rate schedule.
Bills must be payable to authorized collectors, collection offices, authorized agents/entities, or authorized banks.
Meter reading beyond the maximum allowable time is not a violation if caused by a fortuitous event and the meter is read immediately after the fortuitous event ceases.
If the bill period exceeds the days provided under this Magna Carta, the utility must provide the applicable subsidy as if the meter were read within the maximum allowable period.
Duplicate, electronic, or office stub of bills must be safely kept and must not be destroyed within five (5) years without Commission authority.
No consumer may be deprived of electric service without due process of law.
Disconnection is allowed only for: non-payment within the period in Article 32; illegal use under Republic Act No. 7832; lawful orders of government agencies and/or courts; when public safety so requires; request of registered customers based on justifiable reasons; or when other end-users/persons are connected to the consumer’s installation.
For disconnections due to non-payment, a written notice must be served at least forty-eight (48) hours before disconnection.
The utility may discontinue service notwithstanding existence of a bill deposit, and the deposit serves as guarantee for payment of future bills after reconnection.
For illegal use acts under Section 6 of RA 7832 witnessed in flagrante delicto, the utility may disconnect immediately after serving written notice/warning identifying the consumer/account number, date of apprehension, findings of fact, energy pilfered in kilowatt-hour, the differential billing amount, and the method of computation.
Disconnections are not made on any week day beyond three o’clock (3:00 P.M.), or on Saturdays, Sundays, or official holidays, and are also prohibited under these circumstances subject to RA 7832: dependence of a permanent occupant on a life support system upon medical certificate; during funeral wake of a deceased permanent resident based on a certified true copy of the death certificate; when the customer indubitably proves non-receipt of statement of account and/or disconnection notice; when billed in a single statement for several months due to failure to issue timely monthly billing; or when the customer or representative is not around, except for disconnections due to non-payment.
The life-support exception suspends disconnection only during dependency, not exceeding two months.
The wake exception suspends disconnection only during the wake period, not exceeding one month or until interment, whichever occurs earlier.
Non-receipt must not be caused by refusal to accept the bill/notice.
For the single-statement billing situation, the customer must pay current billing on its due date.
For staggered payment due to non-timely billing, the utility must enter an agreement with a staggered payment scheme within a period equivalent to the number of months covering unpaid billings.
At the point of disconnection, if the customer tenders payment of unpaid bills to the agent/employee effecting disconnection, the agent/employee must desist and allow payment within twenty-four (24) hours, but the provision may be invoked only once for the same unpaid bill.
The utility must not immediately disconnect or must immediately restore service upon deposit of the differential billing amount with the utility or the competent court, as applicable.
If an applicant/customer is not in arrears to the distribution utility, the utility must not refuse or discontinue service due to unpaid bills or charges from a prior tenant’s unpaid bill, unless evidence shows conspiracy to defraud the distribution utility.
When service is disconnected due to non-payment, the utility must immediately reconnect within the period in its Compliance Plan approved under the Philippine Distribution Code, but in no case beyond twenty-four (24) hours from payment of arrearages.
The 24-hour reconnection period may be extended only for justifiable reasons.
Illegal use of electricity apprehensions must be personally witnessed by the customer or occupant or a suitable-age and discretion resident acting for the owner/occupant, and by an officer of the law or an ERC representative.
If apprehension is witnessed by an officer of the law but not by an ERC authorized representative, the apprehended meter must be placed in a suitable container, properly identified and sealed.
The apprehended meter is opened only for testing by the ERC’s duly authorized representative.
The meter must be immediately replaced by an accurate watthour meter upon removal.
No disconnection may be effected until the ERC issues a meter test report showing the meter was indeed tampered.
Consumers have the right to pay under protest to maintain continuous supply in cases of regular electric bills, billing adjustments due to meter stoppage/failure to register full and correct consumption, or differential billing due to alleged illegal use.
Payment under protest does not constitute admission of the utility’s allegations or claims or any violation.
Consumers may continue to file complaints regarding the imposed bill, adjustment, or differential billing.
Consumers may file complaints before the ERC for violations of ERC laws, rules, regulations, guidelines, and policies, including RA 9136, its Implementing Rules and Regulations, RA 7832, its Implementing Rules and Regulations, and ERB Resolution No. 95-21, as amended.
Before filing, the complainant must previously discuss/consult the issue with the Consumer Welfare Desk (CWD) Officer or representative of the concerned distribution utility, and no settlement must be reached.
Consumer obligations: deposit, access, billing, payment
Residential customers must post a bill deposit to guarantee payment of bills for new and/or additional service.
The bill deposit equals the estimated billing for one month.
After one (1) year, and every year thereafter, the deposit must be correspondingly increased/decreased to approximate actual average monthly bills.
Distribution utilities must pay interest on bill deposits equivalent to the interest incorporated in the calculation of their Weighted Average Cost of Capital (WACC), or otherwise interest per annum for savings deposits in accordance with the prevailing interest rate for savings deposits as approved by the Bangko Sentral ng Pilipinas (BSP).
Interests on bill deposits must be credited yearly to the bills of the registered customer.
If a customer previously received refund of the bill deposit under Article 7 and later defaults in paying monthly bills, the customer must post another bill deposit and loses the right to future refunds until termination of service.
Failure to pay the required bill deposit is a ground for disconnection of electric service.
Customers must allow utility employees/representatives to enter premises to inspect, install, read, test, repair, maintain, remove, replace, or otherwise dispose of the distribution utility’s apparatus and property.
Customers must allow removal of the distribution utility’s entire property upon termination of the electricity service contract, and for disconnection for non-payment or violation of contract (VOC).
Only properly identified authorized employees/representatives may make external adjustments of any meter or internal or external adjustments of other apparatus owned by the distribution utility.
Consumers must allow the distribution utility to construct poles, lines, and circuits and to place transformers and apparatus on consumer property or within buildings at points convenient for the utility.
Consumers must allow installation of necessary metering equipment in suitable space protected from elements and from negligence or deliberate acts of persons.
Consumers must accept their electric bills, without prejudice to paying under protest under Article 26 to contest the same.
Consumers must pay monthly electric bills not later than nine (9) days after receipt of the monthly bill.
Consumers may be compelled to pay billing adjustments where meter stoppage/failure causes unregistered full consumption, without fault by the customer.
If a meter’s average error is more than tolerance of minus two percent (2%) without evidence of tampering, the utility may require payment of unregistered consumption.
If the meter is merely defective and did not completely stop, and the defect could not be easily detected by the customer, the recovery period for unregistered consumption is limited to six (6) months prior to discovery.
If there is actual stoppage or conspicuous defect, recovery is limited to three (3) months prior to discovery.
If the utility complied with the two-year meter testing requirement under the Implementing Rules and Regulations of RA 7832, the utility may recover the full unregistered consumption, but recovery must start from the last testing of the meter prior to discovery and may not exceed two (2) years.
The utility must enter into an agreement for a staggered payment scheme with the customer within a period equivalent to the number of months covering the billing adjustment.
Billing adjustment amounts must be based on the rate prevailing during the period sought to be recovered, and estimated consumption must use the ERC test results on the affected meter at discovery, or the customer’s average use for the immediately preceding six-month period of like use, or the lowest monthly consumption within three (3) months after discovery.
If there is disagreement on a bill, the Commission resolves it.
Prohibition on illegal use and effects on billing
No consumer may perform acts constituting illegal use of electricity.
The presence of a bored hole on the glass cover of the electric meter, or at the back or any part of the meter, is prima facie evidence of illegal use.
The presence inside the electric meter of salt, sugar, and other elements that could cause inaccurate registration to prevent accurate recording is prima facie evidence.
The existence of wiring connection affecting normal operation/registration of the electric meter is prima facie evidence.
A tampered, broken, or fake seal on the meter, or mutilated/altered/tampered meter recording chart/graph or computerized chart/graph/log is prima facie evidence.
The presence, in any part of the building or premises under the consumer’s control, or on the electric meter, of a current reversing transformer, jumper, shorting and/or shunting wire, loop connection, or similar device is prima facie evidence.
Mutilation, alteration, reconnection, disconnection, bypassing, or tampering of instruments, transformers, and accessories is prima facie evidence.
Destruction of, or attempt to destroy, any integral accessory of the metering device box encasing the electric meter, or its metering accessories, is prima facie evidence.
Acceptance of money or other valuable consideration by a utility officer/employee for not reporting the circumstances is prima facie evidence, as is offering such consideration.
Discovery of any prima facie illegal use circumstances must be personally witnessed and attested to by an officer of the law or a duly authorized ERC representative.
A consumer discovered to have committed illegal use must pay differential billing to the distribution utility computed in accordance with existing laws, rules, and regulations, in addition to appropriate penal sanctions.
The recoverable period for differential billing is based on these rules:
- If prior to discovery there was change of meter, change of seal, reconnection, replacement of parts, or an abrupt or abnormal drop in consumption can be determined, the differential billing period is reckoned from the time the change/inspection/reconnection occurred.
- If the consumer presents indubitable and adequate proof the illegal use occurred for less than a year, the differential billing period is from occurrence of illegal use up to apprehension.
- In other cases, recovery may be allowed up to a maximum of sixty (60) billing months up to the time of discovery.
Implementation, violations, separability, repeal, effectivity
- Implementation of Articles 7, 8, and 28 is subject to guidelines promulgated and approved by the Commission.
- Any violation of any provision of this Magna Carta is subject to penalty that the Commission may impose after giving the electric utility or the consumer the opportunity to be heard, in accordance with law.
- If any provision is declared unconstitutional or invalid, the remaining provisions remain in force and effect.
- Provisions of ERB Resolution No. 95-21 as amended, and rules, regulations, guidelines, and other issuances not expressly revised by this Magna Carta remain in force and effect.