ERC solicits comment on draft rules for bill deposits

ELECTRICITY consumers who have questions on the draft rules governing bill deposits can still file their comments to the Energy Regulatory Commission (ERC), the agency said on Tuesday.

The proposed regulation aims to provide transparency on the amount collected by distribution utilities from electricity users. It also sets the process to guide consumers on how they can get their deposits back.

A distribution utility’s collected deposit can represent a significant amount, especially for dominant companies whose franchise area covers millions of customers. Once implemented, a provision of the new rules requires disclosure of the principal amount collected since Energy Regulatory Board Resolution No. 95-21 took effect in 1995 up to the present.

“The call for public comment related with the ERC’s rulemaking authority, particularly with these Rules on Bill Deposits, is a vital part of the regulatory process and serves as means to protect the interest of the public,” the ERC said in a statement, quoting Alfredo J. Non, the agency’s off icer-in-charge.

Bill deposits collected from residential and non-residential consumers are intended to guarantee the payment of electricity bills for new — including additional — service. They are also collected from consumers who were previously not subject to a bill deposit.

The bill deposit is equivalent to the estimated billing for one month based on the load schedule submitted by the consumer to guarantee the payment of bills.

After a year and every year thereafter, when the actual average monthly bills are more or less than 10% of the initial deposit, a corresponding increase or decrease is to be imposed to approximate the billing.

Distribution utilities are to pay interest on cash bill deposits equivalent to the peso savings account interest rate of the Land Bank of the Philippines or other state banks as approved by the ERC.

The bill deposit is to be refunded to consumers within a month after the termination of services if all their bills have been paid. Customers who have paid their bills on or before the due date for three straight years may demand full refund of the deposit.

“Among the salient features of the proposed rules include the obligation of the distribution utilities to comply with the reportorial requirements for the submission of a periodic report containing, among others, the total amount of the bill deposits collected or refunded to consumers,” the ERC said.

Under the draft rules, a distribution utility is required to provide a summary to the interest earned on bill deposits as well as the refunded interest. It is required to submit a periodic report, under oath, on or before Dec. 31 of each year, the details of the total amount of bill deposit collected including interest earned and the amount credited or refunded to consumers.

“The Commission seeks to promote prudent, efficient management and proper utilization of bill deposits. Thus, all bill deposits collected from consumers should be deposited in a government or commercial bank under a single savings account and in the name of distribution utility,” says Section 6 of the draft rules.

Mr. Non, one of four ERC commissioners, has been designated ERC officerin-charge after Jose Vicente B. Salazar, the chairman, was placed on preventive suspension by the Office of the President on May 2, 2017.—