Rules for Prepaid Retail Electricity Service Using Prepaid Metering SystemERC paves way for prepaid retail electricity service
The Energy Regulatory Commission (ERC) approved on 13 July 2009 the Rules for Prepaid Retail Electricity Service (PRES) Using a Prepaid Metering System. With the issuance of these Rules, distribution utilities (DUs) may now file their applications with the ERC to offer PRES to their residential customers using a prepaid metering system.
As required under the Rules, the prepaid electricity meter system must have the capabilities to: (a) load the purchased energy, (b) display real time information on how the load is being consumed and (c) give warning that the load is close to zero thereby providing a sufficient buffer before electricity is completely disconnected. The DUs should provide reasonable means from which the residential electricity consumers will have easy access to the purchase of the electric energy credit for twenty four (24) hours daily to ensure continuous electricity service. The cost of the metering system is to be shouldered by the DU, thus, no meter deposit will be collected from the consumer. DUs are required to source prepaid meters that are certified and compliant to the standards of International Electromechanical Commission (IEC) or the American National Standards Institute (ANSI). Prepaid meters should be further subjected to ERC testing and certification.
Existing post paid consumers will have the option to apply for a PRES on a voluntary basis. A six-month trial period will be available to interested customers to give them the opportunity to assess the impact of using PRES. Thereafter, a consumer who opts to permanently move to PRES, under a minimum retention period of 24 months, will be entitled to the refund of his/her bill deposit including the interest earned, net of outstanding obligations with the DU. Those who decide to revert to post paid service, however, will be made to pay a bill deposit equivalent to the average monthly purchase for past six (6) months.
“Budget-conscious residential consumers can now control their electricity consumption better. A consumer may opt to buy electric energy “credit” in reasonable small increments and then use electricity until the said “credit” is exhausted. This is similar to the “load” purchased by cell phone users.” ERC Chairperson Zenaida G. Cruz-Ducut explained. “The electricity rates will be the same as those charged under the existing post paid scheme, unless the DU applies for and the ERC approves a different tariff for prepaid meters. Residential customers whose consumptions during a particular month do not exceed the approved lifeline cap will continue to enjoy the life line rate,” ERC Chairperson Ducut added. “Electricity consumers are ERC’s prime concern. To further protect the consumers, a DU shall keep a record for each prepaid customer necessary to produce a summary of purchases of electric energy credits for at least the preceding two (2) years. The summary report should be provided by the DU within five (5) days from the receipt of the customer’s request,” Chairperson Ducut concluded. The Rules shall take effect fifteen (15) days after publication in a newspaper of general circulation.
Rules for Prepaid Retail Electricity Service Using Prepaid Metering System
July 30, 2009