ERC requires distributors’ report on bill deposits

MANILA, Philippines — The Energy Regulatory Commission (ERC) is requiring power distributors to submit reports detailing the amount of bill deposit collected from consumers as well as interests earned as it puts more teeth in the bill deposit rules.

The ERC revised the existing bill deposit rules and issued “Rules to Govern the Monitoring and Reporting Process of Bill Deposits.”

The draft rules include a provision on the preparation and submission of periodic report, under oath, on or before Dec. 31 of every year, regarding the details of the total amount of bill deposit collected including interest earned and the amount credited or refunded to its consumers.

Bill deposits collected from residential and non-residential consumers are intended to guarantee the payment of electricity bills for new and/or additional service and from disconnected consumers who were previously not subject to bill deposit.

The bill deposit shall be equivalent to the estimated billing for one month based on the load schedule of the consumer to guarantee payment of his bills.

“For purposes of transparency, the proposed rules shall enjoin distribution utilities to maintain and develop in their official websites, consumer information disclosing all important terms and conditions, systems and procedures on bill deposits in clear and comprehensible language for the consumers.” ERC chairperson and CEO Agnes Devanadera said.

The ERC issued notices for the conduct of focus group discussions (FGDs) on the draft rules, directing electric cooperatives (ECs) to submit their comments and/or inputs.

Last May, the Ombudsman ordered the three-month suspension of ERC commissioners Alfredo Non, Gloria Victoria Yap-Taruc, Josefina Patricia Asirit and Geronimo Sta. Ana for failing to act on the misuse of bill deposits by distribution utilities (DUs).

The Ombudsman said the four commissioners continuously refrain from strictly implementing rules defining the nature of bill deposits as “mere guarantee in payment of bills” which must be returned upon termination of the DUs’ service.

In an order signed by Executive Secretary Salvador Medialdea last week, Malacañang directed the ERC to implement the suspension of the ERC commissioners.