Title
ERC Rules on Switching, Billing, and Disconnection
Law
No. 09, S. 2018
Decision Date
Apr 26, 2018
The Energy Regulatory Commission (ERC) adopts new rules to streamline the switching and billing processes for contestable electricity customers, ensuring efficient information exchange and clear disconnection policies among retail market participants.
A

Scope of Application

  • Applies to the Contestable Market.
  • Applies to Retail Electricity Suppliers (RES), Distribution Utilities (DUs), Suppliers of Last Resort (SOLRs).
  • Includes the Central Registration Body (CRB) and other relevant industry participants.

Key Definitions

  • Act: Republic Act No. 9136 (Electric Power Industry Reform Act of 2001).
  • Contestable Customer: Qualified electricity end-users eligible to choose their electricity supplier.
  • Distribution Utility (DU): Entities with exclusive franchise to operate distribution systems.
  • Retail Electricity Supplier (RES): Authorized entities to sell or broker electricity to contestable customers.
  • Switching: Commercial transfer of Contestable Customer from one supplier to another.
  • Single Billing vs. Dual/Multiple Billing: Options for how customers receive electricity bills.
  • Central Registration Body (CRB): Independent entity managing customer switching and data exchange.

Switching Process

  • Switching to a new RES requires no outstanding balance with current supplier or DU.
  • Security deposits may be required and must be settled upon switching.
  • Refunds of security/bill deposits are mandated upon migration.
  • DU is the default meter service provider until competitive metering services are established.

Metering Services

  • DU handles metering procurement, installation, maintenance, and data dissemination.
  • NGCP is the default meter provider for directly connected contestable customers.

Billing and Payments

  • Contestable Customers may choose Single or Dual/Multiple Billing schemes, maintainable for at least one year.
  • No charges for changing billing methods.
  • Bills must contain clear customer service info, ERC Consumer Affairs contact, and detailed usage and charges.
  • Single Billing consolidates all charges into one bill from RES, including wheeling charges.
  • RES acts as collecting agent for wheeling charges and must remit payments timely.
  • Late payment charges are allowed under specified conditions.
  • Dual/Multiple Billing requires separate bills from Network Service Providers, RES, and WESM (if applicable).

Disconnection and Reconnection

  • Disconnection deferred if outstanding balances are paid before scheduled disconnection or upon recall of disconnection notice.
  • Disconnected customers remain liable for outstanding obligations.
  • Reconnection must occur within 24 hours upon notice of reconnection and payment.
  • Reconnection fees apply.
  • Disconnection and reconnection procedures comply with existing DOE and ERC issuances.

Prohibited Acts

  • RES prohibited from anti-competitive agreements and fixed quantity or take-or-pay provisions.
  • No cancellation or termination charges after six months from contract start.
  • Network Service Providers must not delay submission of metering data.
  • Distribution Utilities must not prevent Contestable Customer's choice of RES.
  • RES must not keep original Certificate of Contestability.
  • Any changes in load shedding protocols due to migration to contestable market are prohibited.
  • Violations considered anti-competitive and subject to fines and penalties.

Dispute Resolution

  • Contingency procedures for B2B System or CRSS downtime.
  • Data discrepancies temporarily resolved using Network Service Provider data.
  • All disputes related to switching resolved by ERC dispute resolution process.
  • Transaction timeframes stipulated for receiving requests and notices.

Reportorial Requirements

  • CRB submits quarterly reports of contestable customers.
  • DUs and NGCP submit monthly data on large electricity users.
  • RES submit quarterly reports on contestable customers and sales.
  • ERC maintains confidentiality of sensitive information.

Sanctions

  • ERC empowered to impose fines and penalties for violations according to administrative guidelines under RA 9136.

Rule Amendments

  • ERC to amend rules as necessary following public consultations.
  • Inconsistent previous rules modified accordingly.

Separability Clause

  • Declared unconstitutional provisions shall not invalidate remaining provisions.

Effectivity

  • Rules take effect fifteen days after publication in a newspaper of general circulation or the Official Gazette.

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