ERC issues Code of Conduct for competitive retail market participants

The Energy Regulatory Commission (ERC) issued Resolution No. 31, series of 2006 during its regular meeting on June 7, 2006. The resolution adopts the Code of Conduct for the Competitive Retail Market Participant.

The Competitive Retail Market Participants include the retail electricity suppliers (RES), the local RES, the distribution utilities (DUs), entities duly authorized to operate in the economic zones, and the Contestable
Market.

“The ERC adopted the Code of Conduct to gain the confidence of electricity consumers in the retail electricity market and to ensure non-discriminatory access to regulated electricity services,” ERC Chairman Rodolfo B. Albano, Jr. said.

The Code sets the standards of behavior in marketing electricity service at the retail level. It also details the marketing responsibilities and contractual obligations of the participants, as well as the complaint handling procedures for customers.

The participants and their representatives are enjoined by the Code to observe confidential handling of information provided by the customer in connection with his application for electricity service.

Further, the Code requires the issuance of a disclosure statement to the customer to ensure honesty, fairness and transparency by the competitive retail market participants in dealing with the customer.

In marketing its services, the RES, among others, must: 1) observe truthful advertising; 2) avoid misleading the customers; 3) provide the contact information of the ERC in marketing collaterals and advertisements to allow a customer to make clarifications on the information contained therein; and 4) have marketing representatives with proper identification, full product knowledge and who are well-informed on the Code and factual in his sales presentation.

“The ERC hopes that the electricity providers participating in the competitive retail electricity market will faithfully comply with the Code to gain the trust and confidence of the end-consumers,” Chairman Albano said.

July 11, 2006

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