ERC simplifies power connections, orders automatic bill deposit refunds

The Energy Regulatory Commission has approved sweeping amendments to the Magna Carta for Residential Electricity Consumers, introducing reforms designed to make it easier for households to secure power connections and to ensure faster, more transparent refunds of bill deposits.

The Commission said the changes strengthen consumers’ fundamental right to electric service while promoting flexibility, transparency, and consumer-friendly practices in the collection and refund of bill deposits.

The amendments were adopted pursuant to the ERC’s mandate under the Electric Power Industry Reform Act of 2001 after extensive public consultations with consumer groups, distribution utilities, electric cooperatives, industry associations, and other energy sector stakeholders.

Despite approving the revisions, the ERC said it will continue reviewing additional measures to further enhance rules governing bill deposits and consumer protection.

One of the key reforms simplifies the requirements for new residential electricity service applications by limiting documentation to essential items only.

Under the amended rules, applicants need to submit a duly completed application form, a valid government-issued ID, a Certificate of Final Electrical Inspection or its equivalent, proof of ownership or the right to use or possess the premises—or, if unavailable, a barangay certification subject to specific conditions—and a list of electrical loads.

The ERC said the streamlined requirements are intended to reduce delays, eliminate unnecessary obstacles, and promote faster and more inclusive access to electricity.

The reform is expected to particularly benefit households in mass housing developments and condominium projects, where complex documentation requirements have historically slowed the processing of new connections.

The amendments also strengthen consumers’ right to refunds by institutionalizing automatic bill deposit refund mechanisms.

Residential consumers who qualify for a one hundred percent (100%) discount under the ERC-administered Lifeline Program will automatically receive a refund of their bill deposits.

These refunds will be credited by distribution utilities to consumers’ subsequent monthly electricity bills without requiring a separate application until the full amount is refunded.

In addition, residential consumers who have consistently paid their electricity bills on or before the due date for two consecutive years will automatically qualify for a refund of their bill deposits, inclusive of accrued interest.

Under the amended rules, distribution utilities are required to automatically apply the refunds to consumers’ monthly bills, eliminating the need for customers to file refund requests and ensuring proactive implementation.

As an added consumer protection measure, the ERC introduced greater flexibility in paying bill deposits for new residential electricity connections.

Applicants may now opt to pay the required bill deposit either in full or in three equal monthly installments, starting with their first electricity bill.

The Commission also authorized distribution utilities to waive bill deposits or offer suitable alternatives, giving utilities discretion to adopt consumer-friendly practices while maintaining safeguards to ensure bill payment.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said the amendments reflect a stronger consumer-oriented approach to power sector regulation.

“These specific amendments facilitate easier access to electric services, reward timely payment behavior, and ensure that consumer bill deposit refunds are processed both automatically and transparently,” Juan said.

He added: “Pagpapakita ng consumer-centric na pilosopiya sa paghubog ng mga regulasyon para sa industriya ng kuryente itong ginawang pag-amyenda ng Komisyon sa Magna Carta ng mga karapatan ng ating mga konsyumers. Hindi ito ang huli, bagkus ay panimula pa lamang.”

The ERC said the reforms address two long-standing consumer concerns: the difficulty of securing new electricity connections and the financial burden associated with bill deposits.

By reducing documentary requirements and automating refunds, the Commission aims to remove unnecessary barriers while reinforcing accountability among distribution utilities.

The amendments are also expected to encourage good payment behavior by rewarding consumers who consistently pay their bills on time.

The ERC said distribution utilities will be required to fully comply with the revised rules once they take effect.

The amendments will take effect 15 days after publication in a newspaper of general circulation or in the Official Gazette.

The Commission said it will continue monitoring implementation to ensure that the reforms deliver tangible benefits to residential electricity consumers nationwide.