Amendments to the Magna Carta for Residential Electricity Consumers Atty. Maria Corazon C. Gines 17 February 2011

Definition of Terms Retirement of electric service shall mean the removal of all facilities necessary for the provision of electric service, such as, but not limited to service drop wire, meter base, Watt-meter and other accessories of the service entrance and metering facilities. Termination of electric service contract shall mean the cancellation, for reasons enumerated in Article 37, of the electric service contract whereby the distribution utility and the registered consumer are released from their respective obligations in the contract, without prejudice to the performance of existing obligations prior   to termination.

Classes of and Requirements for Applicants COMMON REQUIREMENTS: Valid ID Barangay Clearance List of Loads Classes and Additional Requirement/s: Owners Successors – Proof of Succession Authorized Representatives – Notarized Authorization

Classes of and Requirements for Applicants Tenants of Privately-owned Premises Lease contract or any notarized authorization showing right to occupy Undertaking by the Owner Informal Settlers of Government-owned Properties Proof of right to occupy DU may waive any requirement

Undertaking of the Owner Joint and solidary liability to pay unpaid regular monthly bills , but not to exceed 2 months after applying the bill deposit Does not apply to a mass-housing developer Applies to obligations of person/s authorized by the owner to occupy the premises without the knowledge of the DU

DU Options when Tenant Leaves Terminate, after due notice Change, after due notice, the registered customer with the owner or any person designated by the owner to be the new registered customer following a 30-day notice

Accurate Meter DU must install a meter of the proper type and classification compatible with the electrical system/network in use in the premises of the consumer For errors arising therefrom, the liability of the consumer shall be limited An accurate electric meter, located in an area allowed under existing ERC rules, regulations, policies and guidelines, is presumed to register the correct consumption of the registered consumer or user

Properly-Installed Meter Clustering of meters is now allowed for the following: Upon request of the customer No right of way Areas with high incidence of electricity pilferages Meters may be located in EMCs or clustered upon the request of the concerned government agency or LGU

Relocation of Meters Failure to meet the conditions for proper location of meters is due to the fault of the customer DU to inform customer of non-compliance Customer to coordinate with DU for proper relocation within 30 days from notice Customer bears the costs of relocation

Relocation of Meters After the lapse, DU can relocate without further notice Refusal to allow entry to relocate the meter is a ground for disconnection

Extension of Lines and Facilities Customer or developer advances the cost of lines and facilities Customer or developer may demand the issuance of financial instruments mutually acceptable to the parties Refund at the rate of 75% of GDR to consumers connected to the lines and facilities, until fully refunded Parties may agree to accelerate the refund of the cash advance provided there is no cross-subsidy

Extension of Lines and Facilities Only refunded amount shall form part of the DU’s regulatory asset base Dedicated transformers, including their maintenance, repair or replacement, for the sole and exclusive use of the consumer, shall be at the expense of the said consumer Maintenance of the lines and facilities shall be at the expense of the DU

Grounds for Disconnection Refusal, without any justifiable reason, of the consumer to allow DU representatives’ entry into the premises to relocate the electric meter 48-hour notice required Failure to adhere to the payment scheme for the recovery by the DU of the cost of relocation of meter/s 30-day notice required Failure to pay the required bill deposits, reimposed, adjusted or otherwise

Retirement of Facilities Allow immediate retirement of facilities Retirement of facilities is mandatory if the electric service remains disconnected for 30 days Retirement is not tantamount to termination of electric service contract

Protests All protests must be in writing File within 15 days from payment of the protested amount For high billing complaints, file within 60 days from payment

Bill Deposits – applicable to all customer classes Applicants for new and additional service shall be required to pay bill deposits Equivalent to the estimated monthly billing of the applicant Adjusted yearly when the increase/decrease in the actual average monthly bill is more than 10% Cash bill deposits shall earn interest equivalent to peso savings deposit interest rate of the LBP on the first working day of the year, or that of other government banks subject to ERC approval Interest to be credited yearly

Bill Deposits DUs are allowed to provide options other than cash deposits as a guarantee of customer’s payment Customer has not previously posted a bill deposit and his electric service is disconnected Post bill deposit and pay the outstanding bills

Bill Deposits Refunded one month from termination of electric service if all bills were paid Refund prior to termination – customer pays his monthly bills on or before their due date for 3 consecutive years After refund, customer defaults – bill deposit is reimposed No more refund of bill deposit until termination of electric service Non-payment of reimposed bill deposit – ground for disconnection

Bill Deposits – applicable to all customer classes applicants with established credit relocate their electric service no bill deposits applicants lose credit when they default in paying their bills additional account - separate deposit

Meter Deposits – Applicable to all customers All customers are exempt from payment of meter deposits Customer shall shoulder cost of meter replacement if he caused the loss or damage of the meter Meter deposits of existing customers are to be refunded

High Billings Protests must be filed within 60 days from payment High Billing – more than 100% increase in kilowatthour consumption from the customer’s previous average 12-month consumption Customer may pay the average 12-month consumption while the protest is pending with the DU

High Billings DUs to complete investigation, at the cost of the customer, within 30 days, from filing of the complaint Inspections of the premises, including electrical meter and wirings, shall be done in the presence of the customer

Abnormally High Billings Customer to pay 12-month average consumption plus ½ of the difference between the contested amount and the 12-month average consumption provided the following conditions are met: Unexplained consumption Meter is accurate No tapping of load-side wire No billing errors

Abnormally High Billings DU must replace a meter that registered an abnormally high consumption Customer to pay in full in any of the ff: Customer is unable to justify his claim within a 3-month period from the date of the contested billing Increase in consumption has been sufficiently established by the DU Customer’s subsequent consumption for any month in the following 12 months approximates the contested bill

Transfer of Electric Service New tenant from the old tenant when the latter has left the premises New owner from the old owner, in case of sale of the premises DU has discovered that the tenant-registered customer has left the premises

Termination of Electric Service Request by the registered consumer Death of the registered consumer The electric service of the registered consumer has been disconnected due to unpaid bills and the said service is not reconnected by the distribution utility within a period of three   months from such disconnection

Termination of Electric Service Permanent departure or abandonment by the registered consumer of the subject premises Public safety Orders of competent courts or other government agencies