ERC approves Implementing Guidelines of Magna Carta
The Energy Regulatory Commission (ERC) approved in its regular meeting on October 6, 2004, the Guidelines to Implement Articles 7, 8, 14 and 28 of the Magna Carta for Residential Electricity Consumers. This paves the way for the effectivity of the remaining Articles of the said Magna Carta fifteen (15) days from its publication in a newspaper of general circulation.
Article 7 pertains to the right of residential electricity consumers to refund bill deposits that is required under Article 28. The bill deposit is required for new and additional installations and will be refunded to a customer who promptly settles his electricity bills on or before their due date for a continuous period of three (3) years. As a general rule, it is only refunded to customers one (1) month after termination of service and upon full settlement of obligations with the distribution utility (DU).
Article 8 exempts residential customers from paying a meter deposit in as much as the cost of electric meters is already incorporated in the calculation of the rate base for private distribution utilities. Article 14, on the other hand, gives consumers located within thirty (30) meters from the DU’s existing secondary low voltage lines, the right to extension of lines and facilities other than a service drop, at the expense of the DU. Otherwise the customer will initially fund the extension of lines or additional facilities if the prospective customer is beyond the said distance or his demand load requires. The customer may however, demand the recovery of the expenditures either through the issuances of notes payable from the DU or refund at the rate of twenty-five percent (25%) of the gross distribution revenue or the purchase of preferred shares, if available.
The Commission is currently mulling the idea of turning over to the national treasury deposits that remain unclaimed after a reasonable time has elapsed as defined by law and after due process has been observed.
“ERC swiftly acted on the Guidelines to give relief to electricity consumers at a time when the country is facing a financial difficulty. The Commission assures that the Magna Carta is fair to both the distribution utility and the residential electricity consumers. “ ERC Chairman Rodolfo B. Albano, Jr. said.
October 11, 2004
*The copy of the Implementing Guidelines of Magna Carta for Residential Electricity Consumers will be published as soon as the Commission signs the same.