Magna Carta For Residential Electricity PDF

Magna Carta for
Residential
Electricity
Consumer
PRESENTATION OUTLINE
Overview of the Electric Power Industry
Mandate of ERC
Magna Carta for Residential Electricity

Consumer
Rights
Obligations
Consumer Complaints
OVERVIEW OF THE ELECTRIC POWER

INDUSTRY
Before the reforms

INDUSTRY
Before the reforms
NATIONAL POWER CORPORATION
POWER
PLANTS
& IPPs
OTHER IPPs
TRANSMISSION
SYSTEMS
OPERATIONS
DISTRIBUTION
18 PRIVATE
UTILITIES
2 LOCAL
GOVERNMENT
UNITS
120 ELECTRIC
COOPERATIVES
END
USERS
END
USERS
4

INDUSTRY
After the reforms
GENERATION
TRANSMISSION DISTRIBUTION
POWER
PLANTS
& IPPs
NATIONAL
TRANSMISSION
CORPORATION
TRANSMISSION
OTHER IPPs
END
USERS
DISTRIBUTION
SUPPLY
MARKET
OPERATOR
SYSTEMS
OPERATIONS
OTHER IPPs
SUPPLY
18 PRIVATE
UTILITIES
2 LOCAL
GOVERNMENT
UNITS
120 ELECTRIC
COOPERATIVES
END
USERS

INDUSTRY
Performance
Based
Regulation
Benchmarking
Competition at
the wholesale
& retail level
MANDATE OF ERC
Section 41 of. R.A. No. 9136 otherwise known as
the Electric Power Industry Reform Act provides
that:
Promotion of Consumer Interests. The ERC
shall handle consumer complaints and ensure the
adequate promotion of consumer interests.
OBJECTIVES OF EPIRA
To ensure transparent and reasonable prices of
electricity in a regime of free and fair
competition and full public accountability to
achieve greater operational and economic
efficiency and enhance the competitiveness of
Philippine products in the global market;
To protect the public interest as it is affected by
the rates and services of electric utilities and
other providers of electric power
8
MAGNA CARTA FOR RESIDENTIAL

ELECTRICITY CONSUMER
Applicability / Coverage
Rights of Residential Electricity
Consumer
Obligations of Residential Electricity
Consumer

Consumer
Consumer
10
Article 3 This Magna Carta shall only apply to
residential consumers
Article 2 (k) - Residential Consumer shall mean a
customer classified as such in the distribution
utilitys rate schedule as approved by the ERC.
11

Consumer
Consumer
12
RIGHTS OF RESIDENTIAL ELECTRICTY

CONSUMER
The rights enshrined in the Magna Carta may be
categorized into two types:
Basic Rights
Specific Rights:
Right to Refund of Bill Deposit and Overbillings
Right in Relation to Watthour Meter
Right in Relation to Disconnection
Right to Extension of Lines and Facilities
13
Basic Rights
(1)
Right to Electric Service
(2)
Right to Information
(3)
Right to Transparent Billing
(4)
Right to a Monthly Electricity Bill
(5)
Right to Prompt Investigation of Complaints
(6)
Right to File Complaints before the ERC

14
Basic Rights
(1)
Consumers have the right to have a quality, reliable,

affordable, safe and regular supply of electricity (Article 4a,
Magna Carta).
A consumer has the right to be connected to a distribution
utility for electric power service after full compliance with
the requirements set forth by existing laws, rules and
regulations (Article 6, Magna Carta).
15
Basic Rights
(1)
General Requirements:
a. Written Application
b. Valid Identification
c. Barangay Clearance
d. List of Loads
16
Basic Rights
(1)
Specific Requirements:
If Applicant is
Additional Specific Requirment
The owner of the property
Proof of Ownership
The successor of the owner
Proof of Succession of Property
Authorized Representative of Owners Notarized Authorization

A Tenant / Lessee
Contract of Lease or any notarized authorization from the

owner showing right to occupy
Undertaking from the Owner of the property
An Informal Settler in a Government

Owned Property
Proof of Right to occupy the premises from the concerned

Government Unit or Agency
17
Basic Rights
(1)
Required undertaking from the owner in case applicant is a

tenant
If the applicant is a tenant of the premises sought to be energized,
he must submit an undertaking executed by the owner of the
premises stating that, once the applicant leaves the premises, the
owner shall be jointly and severally liable for any unpaid regular
monthly bills incurred by the applicant, but not to exceed two (2)
months, after applying the bill deposit. The unpaid regular
monthly bills must include the current bill (Article 6, par. 3,
Magna Carta).
18
Basic Rights
(1)
Required undertaking from the owner in case applicant is

a tenant
The liability provided in the undertaking shall extend to
similar obligations of another person/tenant allowed by the
owner to occupy the premises without the knowledge of the
DU. The undertaking under Paragraph 4 shall likewise state
this obligation. The new person/tenant will be required to
pay all electric bills incurred during his period of stay in the
premises.
19
Basic Rights
(1) Right
to Electric Service
Exception to the Required undertaking from the owner in case

applicant is a tenant
The requirement of an undertaking shall not apply to an
applicant who is a buyer of a mass-housing unit, which is
sought to be energized but remains to be owned by the masshousing developer; although the said unit is the subject of a
contract to sell between the applicant-buyer and the developer.
However, the applicant must show proof that the subject housing
unit is still part of the inventory of the said developer, and he/she
is still currently paying the amortizations necessary to gain full
ownership over the housing unit/premises (Article 6, par. 4, Magna
Carta).
20
Basic Rights
(2) Right to Information
distribution utilities must provide a Consumer Bulletin Board where

majors announcements/documents issued affecting consumers will be
posted.
before a scheduled power interruption, a distribution utility must

announce the same to its customers through print, or other mass or
interactive media (Article 15)
21
Basic Rights
(3) Right to Transparent Billing
Bills to service customers shall conform with the format as

approved by the ERC. The current formats approved by the
Commission are shown in Annexes A and B of this Magna
Carta (Article 16).
22
1. Account Name and Billing

Address
2. Customer Service Lines
3. Branch/Collecting Office
4. Your Service Information
5. Your Billing Information
6. Summary of Your Charges
7. Announcements
8. Your Consumption History
9. Bill Stub
23
10. Bill Stub

11. The Details of Your Charges
12. a. and b. Additional Information
13. Contact Information
14. Payment Tips and Instructions
24
Basic Rights
(4) Right to Monthly Electric Bill
Bills shall be delivered monthly to the customer by the distribution

utility in accordance with the applicable rate schedule (Article 17, par.
[1]).
Month shall mean the elapsed time between 2 succeeding meter

readings, at least 28 days apart but not to exceed 31 days (Article 2 [h]).
no violation of the provisions of this Magna Carta is committed by the

distribution utility in reading its customers meters beyond the
maximum allowable time provided for in Article 2(h), Provided that
such inability to read on time was due to a fortuitous event and, that the
meter reading is done immediately after the said fortuitous event ceases
to exist (Article 17, par [2]).
25
Basic Rights
(5) Right to Prompt Investigation of Complaints
Distribution utilities shall record and promptly investigate all complaints

referred to them concerning their services.
The distribution utility must furnish the complainant a report of the

action/s taken thereon within the period stated in the distribution utilitys
Compliance Plan. In the absence of such plan, the report must be made
within fifteen (15) days from the receipt of the complaint.
In case of disagreement between the distribution utility and the customer,

the latter may file a complaint with the ERC in accordance with Article 27
of this Magna Carta.
In dealing with their customers relative to electric power services, all

officers, employees and agents of distribution utilities must properly and
conspicuously display their identification cards at all times (Article 13).
26
Basic Rights
(6) Right to File Complaints
Every consumer has the right to file a complaint before the

ERC for violation of ERC laws, rules, regulations, guidelines
and policies, including but not limited to RA 9136 and its
Implementing Rules and Regulations, RA 7832 and its
Implementing Rules and Regulations and Distribution Service
and Open Access Rules (DSOAR), as amended;
Condition Precedent before Filing:

Provided, That the complainant has previously
discussed/consulted the issue with the Consumer Welfare
Desk (CWD) Officer or Representative of the concerned
distribution utility and no settlement has been reached
(Article 27).
27
Right to Refund Bill Deposit and

Overbillings
(1)
Refund of Bill Deposit
(2)
Refund of Overbillings
28
Obligation to Pay Bill Deposit

What is a bill deposit?
A bill deposit from all residential consumers to
guarantee payment of bills may be required of new
and/or additional service by the concerned DU
(Article 28).
Amount of bill deposit required
The amount of the bill deposit shall be equivalent to
the estimated billing for one month based on the load
schedule submitted by the consumer (Article 28).
29

Types of Bill Deposit
Initial Bill Deposit upon application of new
and/or additional electric service
Adjusted Bill Deposit - After one year or every
year thereafter whenever the actual average
monthly bills are more or less than ten (10%)
percent of the initial bill deposit, such deposit
shall be correspondingly increased/decreased to
approximate said billing.
30

Types of Bill Deposit
Bill Deposit for old customers who where disconnected - When
the electric service of a consumer is disconnected and no bill
deposit was ever posted for such service account, the consumer
may be required, in addition to the payment of the unpaid bills,
to post the appropriate bill deposit with the concerned DU,
before any reconnection of electric service can be effected.
Re-imposed Bill Deposit where the customer has previously
received the refund of his bill deposit pursuant to Article 7, and
later defaults in the payment of his monthly bills, the customer
shall be required to post another bill deposit with the
distribution utility and lose his right to avail of the right to
refund his bill deposit in the future until termination of service
(Article 28).
31
Right to Refund of Bill Deposit and

Overbillings
(1)Refund
of Bill Deposit
When can bill deposit be refunded?

within one (1) month from the termination of
service provided all bills have been paid.
A customer who has paid his electric bills on or
before its due date for three (3) consecutive years
may, however, demand for the full refund of the
deposit even prior to the termination of his service.
An application for this purpose shall be filed with
the concerned distribution utility which must
refund the deposit within one (1) month from
receipt of such application (Article 7).
32

Overbillings
(1) Refund
of Bill Deposit
Right to interest
Distribution utilities shall pay interest on cash bill

deposits equivalent to the peso savings account
interest rate of the Land Bank of the Philippines
on the first working day of the year, or other
government banks subject to the approval of the
ERC. The interests shall be credited yearly to the
bills of the registered customer (Article 28).
33

Overbillings
(2) Refund of Overbillings
The customer has the right to a refund in cases of
overbilling by the distribution utility arising from a meter
testing showing that the said meter was fast without any
evidence of tampering.
Refund Scheme in case of Meter Error
In the event that a meter in service is found to have an
average error of more than the tolerance of plus two (2)
percent, the customer is entitled to a refund, for a maximum
period of six (6) months prior to the date of discovery, to be
applied to the customers future billings (Article 10).
34

Overbillings
(2) Refund of Overbillings
Refund Scheme in case of other billing errors
In cases of other billing errors where there are
overpayments, refunds shall be computed back to the
date the error or omission commenced. The consumer
must be informed in writing that, if he/she disagrees
with the amount of the refund, the said consumer can
contest the refund before the ERC. (Article 10)
35
Rights in Relation to Watthour Meter

(1)
Exemption From Payment of Meter Deposit
(2)
Right to an Accurate Electric Watthour Meter;

Determination of an Average Error
(3)
Right to a Properly Installed Meter
(4)
Right to a Meter Testing by an Electric Utility

and/or the ERC
36

(1) Exemption from Payment of Meter Deposit
All consumers shall be exempt from payment of meter
deposits since private distribution utilities have incorporated
the cost of these electric watthour meters in their rate base.
Electric cooperatives shall use their respective Reinvestment
Funds to procure electric watthour meters for their consumers.
In cases of loss and/or damage to the electric meter due to the
fault of the customer, he shall bear the replacement cost of the
meter (Article 8).
37

(2) Right to Accurate Meter
No meter, including instrument transformers, shall
be installed or placed in service unless it has been
tested, certified and sealed by the ERC. All watt-hour
meters regardless of make and type before being
placed in service must be adjusted to as close as
possible to the condition zero error.
The distribution utility must install a meter of the
proper type and classification compatible with the
electrical system/network in use in the premises of
the consumer (Article 9).
38

(2) Right Accurate Meter
Presumption of Accuracy of Meter
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. The
entire bill must be paid within the prescribed period/s.
unless otherwise provided for in the Magna Carta.
The ERC Seal is a warranty that: (1) the meter is accurate;
and, (2) that it operates within the allowable limits of
tolerance (Article 9).
39

(3) Right to Properly Installed Meter
The customer has the right to a meter installed in a
clean place free of vibration and where it will be
easily accessible and visible for reading and testing
by both the distribution utility and the consumer.
Under no condition should meters be located where
they can be easily broken or jarred by moving
furniture or equipment.
40

General Rule: Meters shall be located on the outside
wall of the building or private pole and shall not be
more than three (3) meters nor less than 1.52 meters
mounting height from the surface on which one
would stand to repair or inspect the meter.
Exception: Meters may be located in other areas
based on justifiable reasons.
Elevated
Meter Clustering
41

42

Clustering of meters may be allowed
under any of the following circumstances:
1. Upon the request of a consumer;
2. When there is no right of way; or,
3. In areas with high incidence of
electricity pilferages.
4. Meters may likewise be clustered or
relocated in elevated metering centers
upon the request of the concerned
Government Agency (GA) or Local
43
Government Unit (LGU). (Article 11)

Who shall bear the cost of relocation / clustering of meters?
General Rule: The distribution utility shall bear the cost of the wire
extending from the meter to the actual premises of the consumer.
Exception: A customer shall bear the cost of relocation of his electric
watthour meter under the following circumstances:
The customer requests for the relocation of his electric watthour
meter; or,
2. The meter installation fails to meet the conditions under the first
paragraph resulting from improvements done on the consumers
premises thereby necessitating such relocation. The distribution
utility (DU) must inform the consumer in writing of the latters
non-compliance with the proper meter installation conditions 44
(Article 11).
1.

(4) Right to Meter Testing
A consumer has the right to require the distribution
utility to test, once every two (2) years, free of charge, the
accuracy of the meter installed in his/her premises
making use of a meter standard duly tested and sealed by
the ERC, unless the meter has been the subject of testing
in accordance with the Rules and Procedures for the test
and maintenance of electric meters by distribution
utilities.
In case the meter is found to be inaccurate, the customer
may demand the replacement of the said meter or have
the ERC calibrate the said meter to restore its accuracy
closest to the condition of zero (0) error (Article 12).
45

(4) Right to Meter Testing
Consumer may be liable for testing fee in the
following instances:
If the customer requests for meter testing more than once
every two (2) years and the meter being tested is found to
be within the tolerable limit as provided for in Article 9
hereof, the utility may assess the customer a testing fee
based on the testing fee charged by ERC.
The customer may also request the ERC to conduct a
meter test, subject to the payment of a fee prescribed
under the approved ERC Schedule of Fees and Charges.
46
Rights in Relation to Disconnection

(1)
(2)
(3)
(4)
(5)
(6)
(7)
Right to Due Process

Right to Suspension of Disconnection
Right to Tender Payment at the Point of
Disconnection
Right to Electric Service Despite Arrearages
Right to Reconnection of Electric Service
Right to Witness Apprehension
Right to Payment Under Protest
47
Grounds for Disconnection

1.
Non-payment of monthly electric bills within the period

of time provided in Article 32 of this Magna Carta;
2.
Illegal use of electricity under Republic Act No. 7832 ,

otherwise known as the Anti-Electricity Pilferage Law;
3.
Upon lawful orders of government agencies and/or the

courts;
4.
When the public safety so requires;
5.
Request of the registered customers based on justifiable

reasons;
6.
Allowing other end-users or persons to be connected to

his electrical installation, whether for profit or not;
48
Grounds for Disconnection

7.
Refusal, without any justifiable reason, of the

consumer to allow DU representatives entry into
the premises to relocate the electric meter.
Disconnection may be effected after the lapse of a
forty-eight (48)-hour notice issued by the DU to that
effect;
8.
Failure to adhere to the payment scheme for the

recovery by the DU of the cost of relocation of
meter/s. Disconnection may be effected after the
lapse of a thirty (30)-day notice issued by the DU to
that effect; and,
9.
Failure to pay the required bill deposits, reimposed, adjusted or otherwise (Article 19).
49

(1) Right to due process 48 hour notice
If by the end of the
9th day and no
payment was made,
DU must serve a
written notice of
disconnection to the
consumer
Date of Receipt of Billing
disconnection
June 1,
2013
9 DAYS
Consumer must pay monthly
electric bill within 9 days from
receipt of the bill (Article 32)
June 10,
June 12,
2013
2013
2 DAYS / 48 Hours
50

(1) Right to due process 48 hour notice
Bill deposit will not automatically be applied to
unpaid monthly bills to stop disconnection
The distribution utility may discontinue the service
notwithstanding the existence of the customers bill
deposit with the distribution utility which will serve
as guarantee for the payment of future bill(s) after
service is reconnected (Article 19).
51

(1) Right to due process
Notice required in case of disconnection due to
alleged violation of RA 7832
The Customer or actual user is given one business
day immediately after the receipt of the demand
letter to settle the differential billing (Sec. 8, Rule IV,
RA 7832 IRR, as amended by ERC Res. No. 06-2011).
52

prima facie evidence of illegal use of electricity
1.
The presence of a bored hole on the glass cover of the electric

meter, or at the back or any other part of said meter;
2.
The presence inside the electric meter of salt, sugar and other
elements that could result in the inaccurate registration of the
meter's internal parts to prevent its accurate registration of
consumption of electricity;
3.
The existence of any wiring connection which affects the

normal operation or registration of the electric meter;
4.
The presence of a tampered, broken, or fake seal on the meter,

or mutilated, altered or tampered meter recording chart or
graph, or computerized chart, graph, or log;
53

prima facie evidence of illegal use of electricity
5.
The presence in any part of the building or its premises

which is subject to the control of the consumer or on the
electric meter, of a current reversing transformer, jumper,
shorting and/or shunting wire, and/or loop connection or
any other similar device;
6.
The mutilation, alteration, reconnection, disconnection,

bypassing or tampering of instruments, transformers, and
accessories;
7.
The destruction of, or attempt to destroy, any integral

accessory of the metering device box which encases an
54
electric meter, or its metering accessories; (Sec. 4, RA 7832)

(2) Right to suspension of disconnection
No disconnection of service shall be made:
1. on any week day beyond three o clock (3:00 P.M.)
in the afternoon to eight o clock (8:00 A.M.) the
following day, Saturdays and Sundays and official
holidays;
2.
One of the permanent occupants is sick and

dependent on a life support system requiring
electricity; Provided, That the customer can present a
medical certificate;
the
suspension of the disconnection shall only be made during

the dependency of the patient on the life support system
55
which shall not exceed two (2) months from such suspension.

No disconnections of service shall be made:
3. During the funeral wake of a deceased
permanent resident of the premises; Provided,
That the consumer can present a certified true
copy of the death certificate of the deceased;
suspension
of the disconnection shall only be made

during the period of the wake which shall not
exceed one (1) month from the suspension or until
the interment, whichever comes earlier
56

4. Customer proves he did not receive a Statement of
Account and/or Disconnection Notice;
non-receipt
should not be caused by the refusal of the

customer to accept such electric bill or notice
5.
Customer is being billed in a single statement for

consumption covering several months due to the failure
of the utility to issue a timely monthly billing statement
to the consumer;
customer
must pay the current billing on its due date. The

DU, however, must enter into an agreement with the customer
for a staggered payment scheme within a period equivalent to
the number of months covering the unpaid billings
57

6. Filing of a complaint with ERC for cases involving
differential billings, billing adjustments arising from
defective or stop meters or other billing errors, and
estimated consumptions until the complaints final
resolution;
With
respect to Item (e), the suspension of disconnection shall

take effect upon receipt of the DU of the Order from the ERC,
until its final resolution. The suspension of disconnection shall
only apply to non-payments of the billings in question. The
consumer shall, however, continue to pay his/her regular
monthly bills, and non-payment thereof may be a ground for
disconnection of electric service pursuant to Article 18,
Paragraph (A) hereof.
58

Power to grant provisional remedy
Section 8 of Executive Order No. 172 which explicitly
vested on the ERB, as an incident of its principal function,
the authority to grant provisional relief.
The aforequoted provision is still applicable to the ERC
as it succeeded the ERB, by virtue of Section 80 of the
EPIRA. A writ of preliminary injunction is one such
provisional relief which a party in a case before the ERC
may move for. (BF Homes, et. al. v. MERALCO, G.R. No. 171624,
December 6, 2010)
59

Power to issue order of reconnection
In the case of MERALCO v. ERB and Ti, MERALCO asserts that it is not
within the ERBs power to grant a provisional relief. Hence, its argument
that the ERB gravely abused its discretion when it ordered MERALCO to
immediately reconnect Tis electric service
The Supreme Court held that Section 8 of E.O. No. 172 which explicitly
vests on the ERB, as an incident to its principal functions, the authority to
grant provisional relief
ERB is endowed with the authority to hear and adjudicate complaints for
reconnection of electric service and to grant provisional or ancillary relief
during the pendency of the main action. At bottom then, the ERB did no
more than to exercise its legal mandate when it ordered petitioner
MERALCO to immediately restore the electric service at respondent Tis
business establishment pending hearing of the main case. The Court finds
the ERBs provisional action to be both factually and legally justified.
60
Hence, the imputation of grave. (MERALCO v. ERB & Ti, G.R. No. 145399, March 17,
2006)

7. Filing of a complaint with ERC for high billing upon
posting of a bond equivalent to the complainants
average 12-month consumption prior to the billing in
question.
61

(3) Right to Tender Payment at the Point of
Disconnection
If at the time the disconnection is to be made, the customer
tenders payment of the unpaid bill to the agent or employee
of the distribution utility who is to effect the disconnection,
the said agent, or employee of the distribution utility shall
desist from disconnecting the service to allow the customer
to pay his bills within twenty-four (24) hours; Provided
however, That the customer can only invoke this provision
once for the same unpaid bill
62

(4) Right to electric service despite arrearage
a distribution utility shall not refuse or discontinue service
to an applicant or customer, even though there are unpaid
bills or charges due from a prior tenant unless there is
evidence of conspiracy to defraud the distribution utility.
Conspiracy shall not be presumed but must be supported
by substantial evidence on the part of the DU (Article 22)
63

(5) Right to Reconnection of Electric Service
Right to reconnection when consumer was disconnected due to
arrearage
utility must immediately reconnect the electric service within twentyfour (24) hours from payment of the said arrearages of the customer
Right to reconnection when DU defies a stay order of disconnection

issued by the ERC pursuant to a complaint filed by the Consumer
Whenever a DU disconnects the consumers electric service due to nonpayment of billings which is the subject matter of a complaint pending
with the ERC and a stay of disconnection, relative to such unpaid
billing, has been issued in favor of the complainant
the DU shall immediately reconnect the same within the
64
aforementioned time period (Article 23)

(6) Right to Witness Apprehension
Subject to the provisions of RA 7832, all apprehensions for
illegal use of electricity must be personally witnessed by the
customer or occupant or someone of suitable age and
discretion residing therein and acting in behalf of the owner
or occupant of the premises, and by an officer of the law or
by an ERC representative (Article 24).
**This provision is a reproduction of Rule III, Section 1 of
the IRR of RA 7832. the said IRR provision was declared to
be invalid in the case of MERALCO v. Sps. Chua and
Pacqueo
65

Consumer not the proper witness to inspection
We hold the view, however, that the inclusion of the phrase by
the consumer concerned in the IRR is invalid because it is in
excess of what the law being implemented provides. As RA 7832
stands, only the presence of an authorized government agent,
either an officer of the law or an authorized representative of the
ERB, during the MERALCO inspection would allow any of the
circumstances enumerated in Section 4 of RA 7832 to be
considered prima facie evidence of illegal use of electricity by the
benefited party. The law does not include the consumer or the
consumers representative in this enumeration (MERALCO v. Sps
Chua and Pacqueo, G.R. NO. 160422, July 5, 2010).
66

To constitute prima facie evidence, the discovery of the
illegal use must be "personally witnessed and attested to by
an officer of the law or a duly authorized representative of
the Energy Regulatory Board (ERB).
The presence of government agents who may authorize
immediate disconnections go into the essence of due
process. Indeed, we cannot allow respondent to act virtually
as prosecutor and judge in imposing the penalty of
disconnection due to alleged meter tampering (Spouses
Quisumbing v. MERALCO, G.R. No. 142943, April 3, 2002).
67

The law states that, in order to constitute prima facie evidence of
electric pilferage, the discovery thereof must be personally witnessed
and attested to by at least a police officer or a representative of the ERB.
It is intriguing to note, however, that the inspection was conducted in
Calumpit, Bulacan whereas PO2 Chavez is a police officer assigned in
Caloocan City. PO2 Chavez likewise failed to present a written order
from [the] Caloocan Police Station that allowed/sent him to escort
MERALCO inspectors in Calumpit, Bulacan. Moreover, PO2 Chavez
likewise admitted that the inspection team did not coordinate with the
Calumpit Police Station for assistance in the conduct of said inspection.
This fact alone makes us wary of imputing any legitimacy or regularity
in the conduct of operation by the MERALCO inspection team.
We are inclined to lend credence to the testimony of plaintiff-appellant
that there was no policeman in uniform during the inspection
68
(MERALCO v. Vda. De Santiago, G.R. No. 170482, September 4, 2009).

(7) Right to Payment under Protest
the consumer shall have the right to pay under protest for purposes of
continuous supply of electricity by the utility without prejudice to a
complaint to be filed by such customer against the imposition of the bill
or billing adjustment or differential billing, under the following
circumstances:
1.
2.
3.
In cases of regular electric bills or billing adjustments due to the

stoppage; or
failure of the meter to register the full and correct amount of energy
consumed;
or for differential billing due to alleged illegal use of electricity,
Such payment shall not be construed as an admission by the consumer

of the allegations or claims of the distribution utility or of any violation69
of law or of the contract with the distribution utility (Article 26).
Right to Extension of Lines and

Facilities
Consumer is within 30 meters from DUs Secondary Low voltage
Lines
A consumer located within thirty (30) meters from the distribution
utilities existing secondary low voltage lines, has the right to an
extension of lines or installation of additional facilities, other than a
service drop, at the expense of the utility inasmuch as said assets
will eventually form part of the rate base of the private distribution
utilities, or will be sourced from the reinvestment funds of the
electric cooperatives.
Consumer beyond the 30 meters
However, if a prospective customer is beyond the said distance, or
his demand load requires that the utility extend lines and facilities,
the customer may initially fund the necessary expenditures.
70

Facilities
71

Facilities
Consumer is within 30 meters from DUs Secondary Low voltage
Lines
A consumer located within thirty (30) meters from the distribution
utilities existing secondary low voltage lines, has the right to an
extension of lines or installation of additional facilities, other than a
service drop, at the expense of the utility inasmuch as said assets
will eventually form part of the rate base of the private distribution
utilities, or will be sourced from the reinvestment funds of the
electric cooperatives.
Consumer beyond the 30 meters
However, if a prospective customer is beyond the said distance, or
his demand load requires that the utility extend lines and facilities,
the customer may initially fund the necessary expenditures.
72

Consumer
Consumer
73
OBLIGATIONS OF RESIDENTIAL
ELECTRICTY CONSUMER
Obligation to pay bill deposit
Obligation to Allow Inspection, Installation and Removal of
Electricity Apparatus
Obligation to Allow the Construction of Poles, Lines and
Circuits
Obligation to Receive Monthly Bills

Obligation to Pay Monthly Electric Bills
Obligation to Pay Billing Adjustments and Undercharges
Obligation not to Commit Illegal Use of Electricity
Obligation to Pay Differential Billing
74
ELECTRICTY CONSUMER
Obligation to Allow Inspection, Installation and
Removal of Electricity Apparatus
Customers shall allow the employees and/or representatives
of the distribution utility to enter their premises for the
purpose of inspecting, installing, reading, testing, repairing,
maintaining, removing, replacing or otherwise disposing of
its apparatus and property, and/or removing the
distribution utilitys entire property in the event of the
termination of the electricity service contract; and for
disconnection of service for non-payment of bills or
violation of contract (Article 29)
75
ELECTRICTY CONSUMER
Obligation to Allow the Construction of Poles,
Lines and Circuits
Consumers shall allow the distribution utility, if necessary,
to construct its poles, lines and circuits and to place its
transformers, apparatus on their property or within the
buildings of the consumer, at a point or points convenient
for such purpose.(Article 30)
76
ELECTRICTY CONSUMER
Obligation to Receive Monthly Bills
Consumers must accept their electric bills, without
prejudice to the exercise of their right to pay under protest
pursuant to Article 26 of this Magna Carta in order to
contest the same (Article 31).
77
ELECTRICTY CONSUMER
Obligation to Pay Monthly Bills
High Billings
High billing occurs when the consumers one (1)-month

kilowatthour consumption exceeds one hundred
(100%) percent of his/her average 12-month
kilowatthour consumption prior to the contested bill.
Within sixty (60) days from payment thereof, the
consumer must lodge a formal protest with the DU,
accompanied by proof why he/she should not be liable
for the entire bill (Article 32)
78
ELECTRICTY CONSUMER
Procedure to contest high billing
1.
Consumers are allowed to contest all instances of high billing

even if the entire amount of the bill has already been paid.
2.
The DU shall, upon receipt of the complaint/protest, conduct

an investigation thereof. Investigations into high billing
complaints must be completed within thirty (30) days from
filing of the complaint or protest.
3.
After the inspection and investigation, the distribution utility

shall issue a written resolution of the complaint stating the
reasons therefore.
4.
The ERC will only entertain a complaint for high billing if it

is accompanied by a certification from the concerned DU or 79
any other proof that both parties have exhausted all avenues
to resolve the same but to no avail.
ELECTRICTY CONSUMER

Other Billing Errors
Where there is unexplained and sudden increase in

consumption resulting to high billing equivalent to at
least five hundred (500%) percent of the customers
previous average 12-month consumption, the DU shall
be entitled to collect from the customer the amount
equal to his average 12-month consumption prior to the
contested billing, plus half of the difference between
the bill in question and the said average 12-month
consumption (Article 32).
80
ELECTRICTY CONSUMER

e.g.
average consumption for 12 months = P 1,000.00
Contested bill = P 5,000.00
DU is entitled to collect the following:
1,000 + [(5,000 1,000)/2] = P 3,000.00
81
ELECTRICTY CONSUMER
if the customer is unable to justify his claim for high

billing within a three (3)-month period from the date of
the contested billing or the increase in consumption has
been sufficiently established by the DU within the same
period, or the customers subsequent consumption for
any month in the succeeding twelve (12) months
approximates the contested billing, the customer shall
be required to pay the entire amount of the contested
billing. The DU must, however, change the meter of the
concerned consumer immediately after the occurrence
of the contested billing (Article 32).
82
ELECTRICTY CONSUMER
Obligation to Pay Billing Adjustment
In the event that a meter in service is found to have an
average error of more than the tolerance of minus two
percent (2%) without any evidence of tampering by the
customer, the utility may ask for payment of a billing
adjustment from its customers of the unregistered
consumption
83
ELECTRICTY CONSUMER
Type of Meter Defect
DU may recover
electric meter was found to be defective

but has not completely stopped, and
such defect could not be easily detected
by the customer,
the DU may only be allowed to recover the

unregistered consumption for a maximum
period of six (6) months prior to the
discovery of the defect
there is actual stoppage, or any

conspicuous defect of the said meter,
the DU may only be allowed to recover the

unregistered consumption for a maximum
period of three (3) months prior to such
discovery of the stoppage (Article 33).
IF DU complies with the requirement

of meter testing once every 2 years
(Article 12)
recovery period should not go beyond the

period from the last testing of the meter
84
prior to the date of discovery, but which
period shall not exceed two (2) years
ELECTRICTY CONSUMER
In relation to Consumers right to meter testing under Article 12
Public Utilities has the imperative duty to make a reasonable and proper
inspection of its apparatus and equipment to ensure that they do not
malfunction, and the due diligence to discover and repair the defects therein.
Failure on its part to detect the extended unusual pattern in the recorded
electric consumption clearly demonstrates gross negligence on its part and
palpable violation of its duty "to make a reasonable and proper inspection of
its apparatus and equipment to ensure that they do not malfunction, and the
due diligence to discover and repair defects therein. Failure to perform such
duties constitutes negligence.
Indeed, it is highly inequitable if we are to allow a public utility company to

be continuously remiss in its duty and then later on charge the consumer
exorbitant amount for the alleged unbilled consumption or differential
billing when such a situation could have been easily averted (DLPC v.
85 Opea,
G.R. No. 129807, December 9, 2005).
ELECTRICTY CONSUMER
What is differential billing?
Differential Billing shall mean the amount charged to
the consumer for the unbilled electricity illegally
consumed as determined through the use of
methodologies prescribed by law. It is determined by
multiplying the unbilled consumption in kWh, the
period covered and the current rate of electricity at the
time of apprehension (Article 2)
86
ELECTRICTY CONSUMER
Methodologies for computing differential billing.
(a)
(b)
(c)
(d)
(e)
the highest recorded monthly consumption within the fiveyear billing period preceding the time of the discovery,
the estimated monthly consumption as per the report of load
inspection conducted during the time of discovery,
the higher consumption between the average consumptions
before or after the highest drastic drop in consumption
within the five-year billing period preceding the discovery,
the highest recorded monthly consumption within four (4)
months after the time of discovery, or
the result of the ERB test during the time of discovery (Sec. 6,
par. 2, RA 7832)
87
ELECTRICTY CONSUMER
A consumer who is discovered to have committed the
offense of illegal use of electricity shall, in addition to
the imposition of appropriate penal sanction, be
required to pay a differential billing to the electric
distribution utility to be computed in accordance with
the existing laws, rules and regulations.
88
ELECTRICTY CONSUMER
Reckoning date for purposes of computing differential billing?
Period Covered
If prior to the date of discovery, there was

change of meter
or it can be determined when an abrupt or
abnormal drop in consumption occurred
period to be recovered for purposes of the

differential billing should be reckoned from the
time when the said changes, inspection or
reconnection occurred, which may result in a
less than a year period of recovery
consumer presents indubitable and

adequate proof that the occurrence of the
illegal use of electricity is for a period
which could be less than a year
recoverable period shall start from the

occurrence of the illegal use up to the time of
apprehension
In the absence of the two aforementioned

circumstances,
DU may be allowed to recover the differential

89 (60) billing
billing up to a maximum of sixty
months up to the time of discovery
ELECTRICTY CONSUMER
To constitute prima facie evidence of illegal use of electricity, the
following requisites must concur:
Presence of the items enumerated in Sec. 4 or R.A. 7832;

Apprehension must be personally witnessed by the and attested to by
an officer of law or a duly authorized representative of ERC;
Requisites for Disconnection of Service

Customer must received a copy of the inspection report;
Written demand letter is served to the customer; and
Registered customer or actual user is given one (1) business day after
the receipt of the demand letter to settle the differential billing
(MERALCO v. Castillo, G.R. No. 182976, January 14, 2013)
90
ELECTRICTY CONSUMER
Proof of Meter Tampering
Tampering with the electric meter is committed by the consumer to
prevent the meter from registering the correct amount of electric
consumption, and results in a reduced monthly electric bill while
continuing to enjoy the same power supply.
When the meter is tampered with, the registered electric consumption is
reduced. Consequently, in case of the removal of the tampered meter and
the installation of a new one, the registered consumption necessarily
increases. However, in the instant case, after the replacement of the
"tampered" meter, respondent's consumption remained the same
(MERALCO v. Wilcon Builders, G.R. No. 171534, June 30, 2008).
91
Thank You
92

Magna Carta For Residential Electricity PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Magna Carta For Residential Electricity PDF

Uploaded by

Copyright:

Available Formats

Magna Carta for

Magna Carta for Residential Electricity

OVERVIEW OF THE ELECTRIC POWER

OVERVIEW OF THE ELECTRIC POWER

OVERVIEW OF THE ELECTRIC POWER

OVERVIEW OF THE ELECTRIC POWER

MAGNA CARTA FOR RESIDENTIAL

MAGNA CARTA FOR RESIDENTIAL

MAGNA CARTA FOR RESIDENTIAL

RIGHTS OF RESIDENTIAL ELECTRICTY

Right to Electric Service

Right to Transparent Billing

Right to a Monthly Electricity Bill

Right to Prompt Investigation of Complaints

Right to File Complaints before the ERC

Right to Electric Service

Consumers have the right to have a quality, reliable,

Right to Electric Service

Right to Electric Service

Additional Specific Requirment

The owner of the property

The successor of the owner

Proof of Succession of Property

Authorized Representative of Owners Notarized Authorization

Contract of Lease or any notarized authorization from the

An Informal Settler in a Government

Proof of Right to occupy the premises from the concerned

Right to Electric Service

Required undertaking from the owner in case applicant is a

Right to Electric Service

Required undertaking from the owner in case applicant is

Exception to the Required undertaking from the owner in case

distribution utilities must provide a Consumer Bulletin Board where

before a scheduled power interruption, a distribution utility must

Bills to service customers shall conform with the format as

1. Account Name and Billing

10. Bill Stub

Bills shall be delivered monthly to the customer by the distribution

Month shall mean the elapsed time between 2 succeeding meter

no violation of the provisions of this Magna Carta is committed by the

Distribution utilities shall record and promptly investigate all complaints

The distribution utility must furnish the complainant a report of the

In case of disagreement between the distribution utility and the customer,

In dealing with their customers relative to electric power services, all

Every consumer has the right to file a complaint before the

Condition Precedent before Filing:

Right to Refund Bill Deposit and

Refund of Bill Deposit

Obligation to Pay Bill Deposit

Obligation to Pay Bill Deposit

Obligation to Pay Bill Deposit

Right to Refund of Bill Deposit and

When can bill deposit be refunded?

Right to Refund of Bill Deposit and

Distribution utilities shall pay interest on cash bill

Right to Refund of Bill Deposit and

Right to Refund of Bill Deposit and

Rights in Relation to Watthour Meter

Exemption From Payment of Meter Deposit

Right to an Accurate Electric Watthour Meter;

Right to a Properly Installed Meter

Right to a Meter Testing by an Electric Utility

Rights in Relation to Watthour Meter