Exchange Rate Rules for Tax Conversion

Legal basis and regulatory framework

The Rules are promulgated pursuant to Article 11 of the Magna Carta for Residential Electricity Consumers, which recognizes that meters may be located in other areas based on justifiable reasons.
The Rules are also promulgated pursuant to Article 2.11.1 of the Distribution Services and Open Access Rules (DSOAR).
The Rules require that meter installation and relocation by Distribution Utilities conform with Republic Act No. 9136 (Electric Power Industry Reform Act of 2001).
The Rules require compliance with ERC rules, regulations, and technical standards, including the Philippine Electrical Code and applicable ERC-issued standards.
The Rules tie metering disputes involving EMC services to the ERC Rules of Practice and Procedure.

Purpose and governing objectives

The objective of the Rules is to provide guidance to Distribution Utilities (DUs) for the installation and relocation of meters to Elevated Metering Centers (EMCs) or other elevated service.
The Rules aim to ensure the highest level of compliance with safety standards.
The Rules aim to provide adequate protection of consumer interests.
The Rules aim to reduce system losses through proper elevated metering installation and operation.

Definitions and key terms

Act means Republic Act No. 9136.
Billing Month means the elapsed time between two (2) succeeding meter readings, at least twenty eight (28) days apart but not to exceed thirty one (31) days.
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 in accordance with its franchise and the Act.
DSOAR means the Distribution Services and Open Access Rules promulgated under Resolution No. 01, Series of 2006, as may be amended.
Elevated Metering Center (EMC) means the structure attached to DU poles or other structures on which a cluster of meters is installed beyond the mounting height per Magna Carta and DSOAR provisions.
EMC Service Drop includes the wires between the EMC installation and the customer’s old metering point or the point where the metering location would have been placed had the customer not been in an EMC area.
Energy Regulatory Commission (ERC) means the independent and quasi-judicial regulatory agency created under Section 38 of the Act.
Line Loss includes both load and non-load losses inherent in electrical equipment, devices, and conductors used for physical delivery of electric energy.
Magna Carta means the Magna Carta for Residential Electricity Consumers, including the Guidelines to Implement the Magna Carta issued by the ERC and any amendments thereto.
Other Elevated Service means the structure other than the EMC attached to DU poles or other structures on which a meter or cluster of meters is installed beyond the mounting height per Magna Carta and DSOAR provisions.
Service Drop means the overhead service conductors from the last pole or other aerial support, including splices (if any), connecting to the service entrance conductors at the building or other structure (Philippine Electrical Code).

Coverage, eligibility, and authorization limits

The Rules apply to all DUs whose metering installations are over and above the height prescribed in the Magna Carta and the DSOAR.
The Rules cover the installation and relocation of residential electric meters to EMCs or individual residential electric meter to other elevated service.
Billing disputes resulting from meter installation or relocation to EMC services are governed by the ERC Rules of Practice and Procedure.
The Magna Carta general rule requires meters to be located in clean places free from vibration, easily accessible and visible for reading and testing by both the DU and the consumer.
The Magna Carta general placement requires meters to be located on the outside wall of the building or private pole, with mounting height not more than three (3) meters nor less than 1.52 meters, measured from the surface on which one would stand to repair or inspect the meter.
Elevated installation is allowed only under the circumstances expressly enumerated by the Rules.

When elevated meters may be installed

No meter shall be installed or relocated to EMCs or other elevated service except under the following circumstances.
A DU may elevate meters when there is Non-availability of right-of-way, where the DU must exert utmost effort in acquiring the right-of-way, and the DU must write an explanation to the affected consumer prior to elevation.
A DU may elevate meters in areas with informal settlers without title or rights over their occupied lands, where illegal service connections, meter vandalism, and meter tampering are resulting or prevalent.
A DU may elevate meters in areas with high incidence of illegal service connections, meter vandalism, and meter tampering.
A DU may elevate meters for a Habitual pilferer, defined as a consumer twice found by the ERC or any other competent court, upon proof presented by the DU, to have illegally consumed electricity.
A DU may elevate meters on Consumer requests, where written requests from legitimate DU consumers or new electric service applicants are for elevation due to frequent pilferage-related power interruptions, and where the requesting consumers represent at least fifty (50) percent or at least thirty (30) consumers, whichever is higher, of registered households in the area, duly certified by the Barangay Chairman or the Office of the City/Municipal Mayor concerned.
A DU must prove before the ERC that an area has high incidence of illegal service connections, meter vandalism, and meter tampering, or rampant electricity theft, by submitting a system loss report prior to relocation or installation.
The ERC must act on the DU’s application within fifteen (15) days from receipt of the system loss report.
The application is deemed approved if the ERC fails to act after the 15-day period.
An area is considered a pilferage-prone area if the difference between the average 3-month kilowatthour registration in a check meter or other load monitoring device and the average 3-month total registered kilowatthour consumptions of consumers in the area exceeds the DU’s allowable system loss cap.

Cost sharing for relocation and connections

For existing consumers whose meters are relocated to EMC installations, the DU shoulders the cost of relocation.
For existing individual consumers whose meters are relocated to other elevated service, the DU shoulders the cost of relocation.
For existing relocations shouldered by the DU, the covered costs include service drop wires and all necessary protective accessories from the EMC frames down to the old metering point or the metering location point that would have applied absent EMC placement.
For relocation under the Consumer requests circumstance, the DU and the consumer equitably bear the costs based on market value at the time of purchase of the service drop wires and all necessary protective accessories.
Under Consumer requests, the DU may opt to bear all the costs.
Consumers have the right to select their material and accessory vendor, provided the materials and accessories adhere to applicable minimum technical standards.
A consumer must present a procurement invoice to the DU indicating the amount for the service drop wires and protective accessories to commence procurement.
A consumer may advance costs, subject to immediate refund by the DU of the consumer’s equitable share upon presentation of proof of purchase.
For new consumers applying for service connections in areas served through EMCs, the DU shoulders the cost of the service drop wires from the EMC down to the point where the metering location would have been placed absent EMC placement.
For new consumers, the DU’s entitlement to install under EMC or elevated service applies only after new electric service connection requirements are met.
For a new consumer whose meter is to be installed in elevated service, the DU shoulders the cost of the service drop wires and all necessary protective accessories from the meter down to the point where the metering location would have been placed absent any acceptable circumstances enumerated under the elevated-meter authorization rules.
No other charges are required by the DU for new consumers applying for EMC service connections or for a new consumer whose meter is installed to elevated service, other than those approved by the ERC.

DU operating duties and consumer witnessing

The length of service drop wires must not exceed one hundred thirty (130) meters from the EMC or other elevated service to the metering location point that would have applied absent EMC placement.
The DU must maintain the usefulness of the service drop wires, including replacement from the EMC or other elevated service down to the metering location point that would have applied absent EMC placement.
The DU must conduct regular inspection of service drop wires in all EMC and other-elevated-service areas.
The DU must immediately remove any wiring connection found tapped on the service drop wire without the consumer’s consent.
If unauthorized connection causes a drastic increase in a consumer’s kilowatthour consumption, the DU bears the difference based on the average kilowatthour consumption of such consumer for the past six (6) months prior to discovery.
The DU must not install more than thirty (30) electric meters per EMC frame.
The DU must not install more than ten (10) service drop wires per bundle (if any).
The DU must always allow the consumer or an authorized representative to witness meter reading and testing, and must make metering information available to the consumer.
Before clustering or actual elevation of meter/s, the DU must conduct an information campaign/forum in the affected area or present proof for an individual consumer on why clustering/elevation is needed and what procedures will be adopted.
The DU must conduct meter readings once every billing month.
Within two (2) days from each meter reading, the DU must report to the consumer and investigate any abrupt change in kilowatthour consumption.
An abrupt change in kilowatthour consumption means an increase by one hundred percent (100%) or a decrease by fifty percent (50%) based on the average 12-month consumption immediately preceding the billing month in question.
Consumers in other elevated service must witness meter readings; if absent, their appointed representatives serve as default witnesses.
Consumers in EMC areas must designate representative/s, with at least two (2) common representatives per EMC frame, to witness meter readings.
If EMC-area representatives are absent, the Barangay Chairman or the Chairman’s appointed constituent serves as default witness.
The DU must inform the consumer or designated representatives of the meter-reading date and time period at least two (2) days prior to the scheduled reading.
The DU may proceed with meter readings on the scheduled date and time if the consumer, designated representatives, the Barangay Chairman, or appointed constituent fails to appear without justifiable reason.
The DU must use either basket trucks to hoist meter readers and consumers’ representatives, or use high-resolution digital still or video cameras with zoom-in capabilities to capture images showing meter registration distinctly.
If high-resolution cameras are used, the DU must keep pictures showing meter registration for at least three (3) months after the reading date.
If a consumer questions the correctness of the readings, the DU must allow access to the concerned consumer to the relevant meter-reading picture.
The DU must issue meter reading cards filled monthly by meter readers showing previous and present readings for each meter in affected EMC and other elevated service areas.
The DU must furnish the Barangay Chairman with pictures showing meter registration taken during EMC-area readings within two (2) days from the reading date, unless the consumer expressly waives.
The DU must process requests involving relocation or new connection to EMC service in a timely manner and must not prefer or discriminate based on distance between the EMC service and premises.

Technical compliance requirements

DUs must comply with applicable minimum technical standards under laws, rules, regulations, including the Philippine Electrical Code.
The DU must ensure the consumer’s utilization voltage is within the variations under Chapter 3.2.3.2 and Chapter 3.2.3.3 of the Philippine Distribution Code.
The DU must ensure service drop wires have adequate capacity for the consumer’s contracted load pursuant to the minimum standard under Article 2.30.2.3(b) of the Philippine Electrical Code and are well insulated for wear and tear endurance.
Sagging of service drop wires must not exceed the limits allowed by the DSOAR, and clearance requirements under the Philippine Electrical Code must not be violated.
If the DU connects service drop wires from the EMC meter to the premises of another consumer (not the registered consumer), the DU must bear the cost of correcting the error.
Upon correction of an erroneous connection, the DU must immediately correct the affected consumer’s billing statement and reflect the correction in the next immediate billing statement.
The DU must ensure that the technical capability of the EMC supporting structure follows good engineering design according to acceptable standards.

Violations and penalties

Any violation of a provision of these Rules subjects the DU to penalty.
The ERC imposes penalties after giving the DU the opportunity to be heard, in accordance with law.

Refund for prior EMC relocation costs

Existing consumers whose meters were already relocated to EMC installations and who bore expenses for acquiring service drop wires and necessary protective accessories must file a refund application.
Refund applications must be filed not later than three (3) months from the effectivity of these Rules.
The refund application must be supported by valid proof of purchase.
The refund amount must be based on the actual amount reflected in the Official Receipt.

Separability and repealing provisions

If any provision of the Rules is declared unconstitutional or contrary to law, the other provisions not affected remain in full force and effect.
Provisions of the Magna Carta, rules, regulations, guidelines, and other issuances not expressly revised by these Rules remain in force and effect.

Effectivity and prospective application

The Rules apply prospectively.
The Rules take effect on the fifteenth (15th) day following publication in a newspaper of general circulation in the country.