Scope of Application
- Governs refund of meter deposits for all distribution utilities (DUs).
Definitions
- Act/R.A. No. 9136: Electric Power Industry Reform Act of 2001.
- Consumer/Customer/End-User: Registered DU customer who paid meter deposit, including heirs or authorized representatives.
- DSOAR: Distribution Services and Open Access Rules effective February 2, 2006.
- Distribution Utility (DU): Electric cooperatives, private or government utilities, LGUs with franchise.
- Electric Cooperative (EC): Cooperative organized under relevant laws.
- ERC: Energy Regulatory Commission.
- Magna Carta: Magna Carta for Residential Electricity Consumers adopted June 9, 2004.
- Meter Deposit: Deposit made to secure return of DU's metering facilities.
- Privately Owned Distribution Utility (PU): Private DU with exclusive franchise.
Refund of Meter Deposits for Electric Cooperatives
- Refund to start no later than 24 months from rules' effectivity.
- Mode of refund: Credit to future bills or offset of dues.
- Monthly billing credits must be separately shown.
- Refund amount is principal only, no interest.
- Monthly refund formula: MR = MD / T where MR=monthly refund, MD=meter deposit, T=months to refund.
Refund of Meter Deposits for Privately Owned Distribution Utilities
- Refund and interest to start within 6 months from rules' effectivity.
- Refund mode options: cash, check, credit to bills, or offset claims.
- Cash/check refunds paid in single payment.
- Monthly billing refund must be shown separately.
- Refund amount includes principal plus accrued interest.
- Formula for total refund: TR = MD + MDAI (Meter Deposit + accrued interest).
- Periodic refund formula accounts for interest rate and number of payments.
- Accrued interest varies by customer type and payment time.
- Separate interest rates apply for periods before and after resolutions and guidelines.
Refund Period and Notifications
- Refund must be completed within 66 months from effectivity.
- Phased refund implementation allowed if completion deadline met.
- DUs must publish refund notice at least one month prior in local newspaper.
- Consumers must be informed by any appropriate means.
- Local government offices must be furnished with notice for posting.
Partial Refunds and Adjustments
- Under/over refund computed as difference between total refund and amount already refunded.
- Under refund must be paid according to customer's mode preference.
- Over refund is debited to customer's account after ERC notice.
Requirements for Refund Applicants
- Residential customers must submit valid ID and proof of succession/authorization if not registered customer.
- Non-residential customers must submit documents reasonably required by DU.
Duties of Distribution Utilities
- Establish refund mechanics ensuring timely and proper refund payment.
- Notify ERC within one month after refund implementation with proof of publication.
- Maintain audit documents.
- Submit notarized member-consumer consent if meter deposit converted to contribution.
Audit and Monitoring
- Refund process subject to ERC audit or authorized entity.
Exceptions to Refund
- DU may offset cost against refund if meter was replaced due to customer-caused damage, with proper notice or acknowledgment.
- Normal wear and tear damage not grounds to offset refund.
Unclaimed Meter Deposits
- Deposited in escrow after refund period.
- State notified via Office of the Solicitor General (OSG).
- Unclaimed deposits may escheat to State after 10 years and court proceedings.
Fines and Penalties
- Violations subject to administrative sanctions per ERC guidelines and Section 46 of the Act.
Final Provisions
- ERC may grant exceptions in public interest and not contrary to law.
- Invalidity of any part does not affect the rest unless whole rules unenforceable.
- Inconsistent prior rules repealed or modified.
- Rules take effect 15 days after publication in a newspaper of general circulation.