Magna Carta for Residential Electricity Consumer (Philippines)

Magna Carta for Residential Electricity Consumer

1

Overview of the Electric Power Industry

Mandate of ERC

Magna Carta for Residential Electricity Consumer

Rights

Obligations

Consumer Complaints

PRESENTATION OUTLINE

2

OVERVIEW OF THE ELECTRIC POWER INDUSTRY

Before the reforms…

3


DISTRIBUTION TRANSMISSION POWER

PLANTS

& IPPs

END

USERS

END

USERS

SYSTEMS

OPERATIONS

NATIONAL POWER CORPORATION

• 18 PRIVATE

UTILITIES

• 2 LOCAL

GOVERNMENT

UNITS

• 120 ELECTRIC

COOPERATIVES

OTHER IPPs

Before the reforms…

4

OVERVIEW OF THE ELECTRIC POWER INDUSTRY After the reforms…

DISTRIBUTION TRANSMISSION

POWER

PLANTS

& IPPs

END

USERS

END

USERS

SYSTEMS

OPERATIONS

NATIONAL

TRANSMISSION

CORPORATION

• 18 PRIVATE

UTILITIES

• 2 LOCAL

GOVERNMENT

UNITS

• 120 ELECTRIC

COOPERATIVES

OTHER IPPs

OTHER IPPs

MARKET

OPERATOR

SUPPLY

GENERATION SUPPLY DISTRIBUTION TRANSMISSION

5


Performance

Based

Regulation

Benchmarking

Competition at

the wholesale

& retail level 6

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.

MANDATE OF ERC

7

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

OBJECTIVES OF EPIRA

8

Applicability / Coverage

Rights of Residential Electricity Consumer

Obligations of Residential Electricity Consumer

MAGNA CARTA FOR RESIDENTIAL ELECTRICITY CONSUMER

9





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 utility’s rate schedule as approved by the ERC.


11





12

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

RIGHTS OF RESIDENTIAL ELECTRICTY CONSUMER

13

(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

Basic Rights

14

(1) Right to Electric Service 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).

Basic Rights

15

(1) Right to Electric Service General Requirements: a. Written Application b. Valid Identification c. Barangay Clearance d. List of Loads

Basic Rights

16

(1) Right to Electric Service Specific Requirements:

Basic Rights

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

(1) Right to Electric Service 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).

Basic Rights

18

(1) Right to Electric Service 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.

Basic Rights

19

(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 mass-housing 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).

Basic Rights

20

(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)

Basic Rights

21

(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).

Basic Rights

22

23

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

24

10. Bill Stub 11. The Details of Your Charges 12. a. and b. Additional Information 13. Contact Information 14. Payment Tips and Instructions

(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]).

Basic Rights

25

(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 utility’s 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).

Basic Rights

26

CONSUMER COMPLAINT PROCEDURE.pdf

(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).

Basic Rights

27

(1) Refund of Bill Deposit

(2) Refund of Overbillings

Right to Refund Bill Deposit and Overbillings

28

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).

Obligation to Pay Bill Deposit

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

(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).

Right to Refund of Bill Deposit and Overbillings

32

(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

(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 customer’s future billings (Article 10).


34

(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

(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

Rights in Relation to Watthour Meter

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

Meter Calibration and Accreditation Process.pdf

(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

(3) Right to Properly Installed Meter 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

(3) Right to Properly Installed Meter


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 Government Unit (LGU). (Article 11)

43


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: 1. 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 consumer’s premises thereby necessitating such relocation. The distribution utility (DU) must inform the consumer in writing of the latter’s non-compliance with the proper meter installation conditions (Article 11).


44

(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

(1) Right to Due Process

(2) Right to Suspension of Disconnection

(3) Right to Tender Payment at the Point of Disconnection

(4) Right to Electric Service Despite Arrearages

(5) Right to Reconnection of Electric Service

(6) Right to Witness Apprehension

(7) Right to Payment Under Protest

Rights in Relation to Disconnection

47

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;

Grounds for Disconnection

48

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, re-imposed, adjusted or otherwise (Article 19).

Grounds for Disconnection

49

(1) Right to due process – 48 hour notice


Consumer must pay monthly electric bill within 9 days from receipt of the bill (Article 32)

9 DAYS 2 DAYS / 48 Hours

Date of Receipt of Billing

If by the end of the 9th day and no payment was made, DU must serve a written notice of disconnection to the consumer

disconnection

50

June 1, 2013

June 10, 2013

June 12, 2013

(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 customer’s 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

(1) Right to due process 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

(1) Right to due process 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 electric meter, or its metering accessories; (Sec. 4, RA 7832)


54

(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 which shall not exceed two (2) months from such suspension.


55

(2) Right to suspension of disconnection 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

(2) Right to suspension of disconnection No disconnections of service shall be made: 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

(2) Right to suspension of disconnection No disconnections of service shall be made: 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 complaint’s 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

(2) Right to suspension of disconnection 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

(2) Right to suspension of disconnection Power to issue order of reconnection In the case of MERALCO v. ERB and Ti, MERALCO asserts that it is not within the ERB’s power to grant a provisional relief. Hence, its argument that the ERB gravely abused its discretion when it ordered MERALCO to immediately reconnect Ti’s 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 Ti’s business establishment pending hearing of the main case. The Court finds the ERB’s provisional action to be both factually and legally justified. Hence, the imputation of grave. (MERALCO v. ERB & Ti, G.R. No. 145399, March 17, 2006)


60

(2) Right to suspension of disconnection No disconnections of service shall be made:

7. Filing of a complaint with ERC for high billing upon posting of a bond equivalent to the complainant’s 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 twenty-four (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 consumer’s electric service due to non-payment 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 aforementioned time period (Article 23)


64

(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

(6) Right to Witness Apprehension 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 consumer’s representative in this enumeration (MERALCO v. Sps Chua and Pacqueo, G.R. NO. 160422, July 5, 2010).

.


66

(6) Right to Witness Apprehension 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

(6) Right to Witness Apprehension 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 (MERALCO v. Vda. De Santiago, G.R. No. 170482, September 4, 2009).


68

(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. In cases of regular electric bills or billing adjustments due to the

stoppage; or 2. failure of the meter to register the full and correct amount of energy

consumed; 3. 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 violation of law or of the contract with the distribution utility (Article 26).


69

Consumer is within 30 meters from DU’s 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


71

Consumer is within 30 meters from DU’s 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





73

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

OBLIGATIONS OF RESIDENTIAL ELECTRICTY CONSUMER

74

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 utility’s 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

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

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

Obligation to Pay Monthly Bills

High Billings

High billing occurs when the consumer’s 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

Obligation to Pay Monthly Bills 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 any other proof that both parties have exhausted all avenues to resolve the same but to no avail.


79


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 customer’s 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



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



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 customer’s 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

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

Obligation to Pay Billing Adjustment


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 prior to the date of discovery, but which period shall not exceed two (2) years

84

Obligation to Pay Billing Adjustment In relation to Consumer’s 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. Opeña, G.R. No. 129807, December 9, 2005).


85

Obligation to Pay Differential Billing 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

Obligation to Pay Differential Billing Methodologies for computing differential billing. (a) the highest recorded monthly consumption within the five-

year billing period preceding the time of the discovery, (b) the estimated monthly consumption as per the report of load

inspection conducted during the time of discovery, (c) 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,

(d) the highest recorded monthly consumption within four (4) months after the time of discovery, or

(e) the result of the ERB test during the time of discovery (Sec. 6, par. 2, RA 7832)


87

Obligation to Pay Differential Billing 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

Obligation to Pay Differential Billing 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 billing up to a maximum of sixty (60) billing months up to the time of discovery

89

Obligation not to Commit Illegal Use of Electricity 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

Obligation not to Commit Illegal Use of Electricity 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 Consumer (Philippines)

Documents

Transcript of Magna Carta for Residential Electricity Consumer (Philippines)