ERC Rules on Switching, Billing, and Disconnection

Legal Basis, Policy, and Coverage

The Supplemental Switching Rules are adopted pursuant to Sections 29, 31, 43, and 45 of Republic Act No. 9136.
The Supplemental Switching Rules operate to provide supplementary procedures that ensure an efficient switching process and address issues arising from switching and billing.
Section 1 (Objectives) requires procedures for switching implementation, efficient and timely information exchange among competitive retail market participants, and applicable billing and disconnection processes for contestable customers.
Section 2 (Scope) makes the Rules applicable to the Contestable Market, Retail Electricity Suppliers (RES), Distribution Utilities (DUs), Suppliers of Last Resort (SOLRs), the Central Registration Body (CRB), and all other relevant industry participants.

Key Definitions and Terms

“Contestable Customer” means an electricity end-user that meets eligibility requirements for contestability and the ERC threshold level to qualify in the Contestable Market.
“Contestable Market” means electricity end-users who have a choice of a supplier of electricity, as determined by the ERC in accordance with Republic Act No. 9136.
“Central Registration Body (CRB)” means an independent entity assigned to undertake required processes, information technology, and other systems for customer switching and information exchange among retail market participants.
“Distribution Utility (DU)” means any electric cooperative, private corporation, government-owned utility, or existing local government unit with an exclusive franchise to operate a distribution system under its franchise and Republic Act No. 9136, including DUs operating in the Economic Zones.
“Network Service Provider” means an entity that engages in owning, controlling, or operating a transmission or distribution system.
“Retail Electricity Supplier (RES)” means any person or entity authorized by the ERC to sell, broker, market, or aggregate electricity to end-users in the Contestable Market; references include Local RES, defined as a competitive retail supply business segment of a DU.
“Single Billing” means a billing system where the contestable customer receives only one consolidated bill issued by a RES containing network service provider wheeling charges described in Section 4.2, Article III.
“Dual/Multiple Billing” means a billing system where the contestable customer receives separate bills from its RES, WESM (if applicable), and the Network Service Provider.
“Switching” means the commercial transfer of a contestable customer from the network service provider to a RES or SOLR and/or from one supplier to another, taking effect on the regular meter reading date or on a special meter reading date following a Last Resort Supply Event.
“Business Day” means any day other than a Saturday, Sunday, or an official or declared Philippine national or local public holiday.

Switching Conditions and Metering Responsibilities

Switching of a contestable customer to a chosen RES takes effect subject to the Rules’ conditions and procedures.
A contestable customer may not switch to, or be supplied by, a new RES or SOLR if it has an outstanding balance with its network service provider (for an initial switch) or with its incumbent RES; settlement is required whether under dispute or not, and “outstanding balance” means the amount due under previous unpaid bills including the amount in the current bill.
Where the retail supply contract requires a security deposit, a contestable customer must pay the corresponding deposit to the new RES upon receipt of a Switch approval from the new RES.
If an incumbent RES required a cash security deposit and the customer is about to switch, the contestable customer is entitled to a refund consisting of the deposit plus applicable interest earned (interest earnings net of tax of the amount in escrow) less the outstanding balance, and the concerned RES must refund within thirty (30) days from effective Switch.
If migrating to the CREM, the contestable customer is entitled to refund of the security or bill deposit from its DU in accordance with Section 3.4.2, Article III of the DSOAR.
The DU is the default meter service provider for the retail market until the ERC determines metering services at the retail level to be competitive; meter service includes procurement of meter, installation, maintenance, repair, calibration with ERC supervision, meter reading, and data dissemination to the CRB.
The NGCP is the default meter service provider for directly-connected contestable customers and, as owner of revenue meters, is responsible for data dissemination and metering services.
Existing agreements regarding meter data provision between the DU and NGCP for directly-connected contestable customers are honored, provided subtransmission asset sale has been consummated pursuant to Resolution No. 15, Series of 2011.

Billing Schemes, Content, and Payment Rules

A contestable customer may choose Single Billing or Dual/Multiple Billing, and must maintain the chosen billing option for at least one (1) year, with the choice stipulated in its Retail Supply Contract (RSC).
Neither network service providers nor RES must impose any charges on a contestable customer for changing its billing method.
RES bills must be in clear and simple language and must include: the RES customer service address, email, and telephone number; the ERC Consumer Affairs Service address, telephone number, and email addresses; and the network service provider’s customer service and emergency telephone numbers.
RES bills must include sufficient information for the contestable customer to calculate charges, including at least the kWh usage for the indicated billing period, the billing date (due date), remaining balance, and payments applied.
Optional (added-value) services must have charges itemized separately on the contestable customer’s bill.
If the contestable customer changes billing scheme, it must send the request to its incumbent RES at least thirty (30) days prior to the start of the intended billing period.
Upon receipt of the contestable customer’s request, the RES must send the request to the network service provider within twenty four (24) hours, but the request must have been received by the network service provider at least thirty (30) days prior to the scheduled meter reading date.
The network service provider must respond to the RES within forty eight (48) hours indicating acceptance and the effective date of the billing option.
The RES must notify the contestable customer within twenty four (24) hours from receipt of the network service provider’s response.
Under Single Billing, the contestable customer receives one consolidated bill from the RES reflecting all charges, including approved wheeling charges in Section 4.2, Article III.
The RES consolidated bill must include, among others: RES Charges (including Generation Charge, Supplier’s Charge, Government Taxes, and WESM Net Settlement Surplus (NSS) Allocation, if applicable), Total RES Charges, Distribution Wheeling Service (DWS) Charges (including Transmission Charge, Distribution Charge, Standard Connection Charge, Supply Charge, Metering Charge, System Loss Charge, Local Franchise Tax, Senior Citizen Discount, Lifeline Rate, Subsidy Value-Added Tax (VAT), Universal Charge, FIT-ALL Charge, Arrears, if any, and Other Charges and Adjustments approved by the ERC), and Total DWS Charges plus TOTAL ELECTRICITY BILL.
RES acts as a collecting agent for DWS charges on behalf of the network service provider and must settle DWS charges for the latter; DWS charges are pass-through charges based on rates previously approved by the ERC.
Under Single Billing, RES (or multiple RES; or the Primary RES for multiple RES arrangements) must supply requirements subject to RSC pricing methodology and must pay amounts due to network service providers within the timeframe in its DWSA to avoid disconnection.
A RES may impose late payment charges if the RSC states them and they are previously disclosed; however, returned checks allow the RES or SOLR to charge a return fee plus a reasonable administrative fee, in addition to late payment charges.
If RES fails to pay DWS charges within the timeframe in its billing agreement, RES must pay interest on the unpaid amount; the network service provider calculates late payment charges under Section 4.8.3, Article IV of the DSOAR or based on the approved ERC surcharge, from the date the payment was due to be received by the network service provider.
Under Dual/Multiple Billing, network service provider, RES, and/or WESM (if applicable) must render separate bills directly to the contestable customer, and the contestable customer must pay each entity separately within the timeframes in their respective RSCs, wheeling agreement, and applicable rules.
Under Dual/Multiple Billing, the contestable customer must (1) contract with RES/multiple RES and/or procure from WESM; (2) contract directly with network service providers for the wheeling agreement; and (3) submit switching requirements to the CRB.
For Dual/Multiple Billing, the RES bill to the contestable customer must include at least RES Charges and the listed items: Generation Charge, Supplier’s Charge, Government Taxes, WESM Net Settlement Surplus (NSS) Allocation (if applicable), and Total RES Charges.
Under Dual/Multiple Billing payment processing, the contestable customer must send wheeling payments directly to the network service provider and electricity payments directly to the RES within the timeframes in their billing agreements; failure to pay network service providers makes the contestable customer liable for applicable surcharge calculated based on ERC-approved late payment surcharge or Section 4.8.3, Article IV of the DSOAR, from the date due.

Disconnection and Reconnection Process

Disconnection may be deferred if the outstanding amount demanded is settled prior to the scheduled disconnection date, provided the requesting party who filed for disconnection immediately informs the network service provider of settlement.
If, at the time disconnection is to be made, the RES or contestable customer tenders full payment of the outstanding balance, the network service provider must desist from disconnecting the service, but the provision can be invoked only once for the same unpaid bill.
Disconnection may be deferred if the disconnection notice is recalled due to a special payment agreement or restructuring agreement entered into before the scheduled disconnection date, with immediate notice to the RES so the network service provider defers execution.
Disconnection may be deferred if the disconnection notice is recalled for any valid reason not covered above, with immediate action communicated to the RES.
Disconnected contestable customers and/or RES remain liable for outstanding obligations and liabilities under the DSOAR, OATS Rules, WESM Rules, and all existing contracts.
A contestable customer must be reconnected upon: the RES or Primary RES submitting notice of reconnection to the network service provider; and if the contestable customer defaulted on payment obligations to the network service provider or WESM, the network service provider or WESM must initiate reconnection once the default is remedied.
The network service provider must execute reconnection within twenty four (24) hours from receipt of the notice of reconnection from the RES.
If disconnection was requested by multiple suppliers, reconnection occurs only when the Primary RES issues notice of reconnection to the network service provider.
If disconnection occurred due to non-payment of bills or security deposit, reconnection must be restored within twenty four (24) hours from receipt of payment from the contestable customer.
Before reconnection, a reconnection fee must be paid by the disconnected contestable customer to either the RES or the network service provider.
Disconnection, deferment, and reconnection procedures are also governed by the network service providers’ existing rules and relevant DOE and ERC issuances.

Anti-Competitive and Prohibited Acts

No RES may engage in any anti-competitive agreement that prevents or reduces competition in the retail market.
No RES may enter into a retail supply contract that refers to supply of fixed quantities or take or pay provisions.
No RES may apply cancellation or termination charges if the contestable customer terminates its retail supply contract beyond six-month period prior to its expiry.
No network service provider may delay submission of metering-related requirements to the CRB.
No DU may engage in any act that prevents a contestable customer from entering into a retail supply contract with a RES.
No RES may keep or be custodian of the original copy of the Certificate of Contestability; the RES must surrender the certificate to the contestable customer upon verification of contestability.
No changes in load shedding/dropping protocol may be made due to migration by captive customers to the CREM; doing so constitutes discrimination for which the DU is liable.
Prohibited acts constitute anti-competitive behavior subject to appropriate fines and penalties.

Disputes and Transaction Timeframes

During emergencies affecting B2B System or CRSS operations, the CRB must inform the ERC, NGCP, MSP, affected DUs, and RES by email and/or through publication on its website within one (1) hour from occurrence.
During the emergency situation, transactions must be done through electronic mail or other technology, while B2B System or CRSS transaction timeframes must still be complied with.
For data discrepancies (including meter reading, billing errors, and customer information), data from the network service provider/MSP must be used temporarily while the ERC investigates the discrepancy.
Disputes on data discrepancy must be resolved through the ERC dispute resolution process.
Any dispute or complaint arising from the switching processes in these Rules, and other procedures necessary to facilitate switching, must be resolved through the ERC dispute resolution process.
For B2B System or CRSS transaction timeframes: requests, notices, responses, and data sent or received before 3:00 P.M. on a Business Day must be received on that Business Day; otherwise, they are deemed received on the first working hour on the next Business Day.

Reporting and Administrative Sanctions

The CRB must submit a quarterly report to the ERC every 15th day of the subsequent month after the quarter, listing: contestable customers’ name, meter number, monthly registered demand (in kW), and monthly metered quantity (in kWh).
All DUs (including NGCP) must submit a monthly report to the ERC every 15th day following the month subject matter, identifying end-users with average monthly peak demand of at least 1MW, those with 750kW to 999kW, and those with 500kW to 749kW, including customer name, billing and service addresses, account number, meter number, the most recent twelve (12) months of historical usage (monthly registered peak demand in kW and monthly total registered energy consumption in kWh), and customer information (telephone numbers and email addresses) subject to agreement on confidentiality.
Each RES must submit a quarterly report to the ERC every 15th day of the subsequent month after the quarter, listing contestable customers, total kWh sales to contestable customers, total revenues from kWh sales to contestable customers, and the contract period for each contestable customer.
The ERC may require other information it deems necessary or useful in carrying out its duties and obligations.
The ERC must accord a level of strict confidentiality to certain information disclosed and identified by the respective entities through appropriate protective measures, if applicable.
The ERC must impose appropriate fines and penalties for violations or non-compliance pursuant to Guidelines to Govern the Imposition of Administrative Sanctions in the Form of Fines and Penalties Pursuant to Section 46 of RA 9136.

Amendments, Separability, and Effectivity

The ERC may amend and expand the Rules when necessary. Before significant revisions, the ERC must undertake public consultation as appropriate.
Any other prior ERC rule inconsistent with the Rules is modified accordingly.
If any provision is declared unconstitutional or invalid by final judgment of a competent court, the remaining provisions continue in full force and effect.
The Supplemental Switching Rules take effect on the fifteenth (15th) day following publication in a newspaper of general circulation in the country or in the Official Gazette.