ERC Starts Electric Meter Deposit Refund Process
The
Energy Regulatory Commission (ERC) approved on June 4, 2008 the Rules to Govern
the Refund of Meter Deposits to Residential and Non-Residential Customers. This
was announced by ERC Chairman Rodolfo B. Albano, Jr. after noting the completion
of the public consultation and Commission deliberation on the draft Rules. The
Magna Carta for Residential Electricity Consumers and the Distribution Services
(Magna Carta) and Distribution System Open Access Rules (DSOAR) promulgated
by the Commission on 17 June 2004 and 18 January 2006, respectively, provided
the basis in exempting electricity consumers from paying meter deposits. The
Rules aim to provide distribution utilities (DUs) with parameters for the refund
of meter deposits and interests thereon.
The Rules require the refund of meter deposits to commence not later than six
(6) months from its effectivity in the case of private DUs (including MERALCO)
customers and within twenty-four (24) months in the case of non-stock and non-profit
electric cooperatives (ECs).
Private DU customers are entitled to interest income on their meter deposits
in accordance with the rates stipulated in the Rules. Residential Customers
as well as Non-Residential Customers who paid their meter deposits prior to
the effectivity of ERB Resolution 95-21 (Standard Rules Governing Electrical
Power Services promulgated on September 22, 1995) will be entitled to six percent
(6%) per annum interest. Meter deposits that were paid from the effectivity
of Res. No. 95-21 until the day prior to the effectivity of the Magna Carta
(for residential customers) or DSOAR (for non-residential customers) will earn
an interest of ten percent (10%) per annum. Meter deposits paid from the effectivity
of the Magna Carta or DSOAR until the day prior the start of the refund will
be entitled to an interest of six percent (6%) per annum. Thus, the payment
of 6% or 10% interest will depend on when the meter deposit was paid. At the
option of the customers, the mode of refund of the deposit and interest shall
either be in cash, check, and credit to the customer’s future monthly
billings or as an offset to other due and demandable claims against the customer.
Customers
of ECs shall get their deposits back but without any interest since these ECs
do not earn any profits. The modes of their refunds are almost similar to those
of private DUs except that EC customers have the option to convert these deposits
as contributions (equity) which must be recorded in the financial books of the
EC.
Customers applying for refunds are required to present valid proofs of identification
and registration (like bills) as such.
The Rules will be posted on the ERC website, submitted to the University of the Philippines Law Center Office of the National Administrative Registrar (UPLC-ONAR) and published in a newspaper of general circulation. The Rules would be effective fifteen (15) days after the newspaper publication.
“The
ERC urges the cooperation of both the DUs and the electricity consumers to facilitate
the orderly and prompt implementation of the meter deposit refund as soon as
the said set of Rules becomes effective. Trust that the ERC will persistently
find ways to promote the welfare of electricity consumers”, Chairman Albano
said.
June 10, 2008