MAGNA CARTAfor Residential Electricity Consumers

November 2005

www.meralco.com.ph

under the

Prepared by Customer Process Management, Utility Economics,Marketing and Corporate Communication

For more information

ERC Consumer Affairstel.nos. 687-5544 • 636-3318 • 687-5557

Meralco Call Centertel.no. 16211

A Primer on

Customer Service Processes

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What happens if a customer commits an illegal useof electricity?

A consumer who is discovered to have committed the offense

of illegal use of electricity will, in addition to the imposition of

appropriate penal sanction, be required to pay a differential billing

to the electric utility, to be computed in accordance with existing

laws, rules and regulations.-Chapter III, Article 35.

What is differential billing?It refers to the amount charged to the consumer for the unbilled

electricity illegally consumed as determined by methods prescribed

by law.

It is determined by multiplying the unbilled consumption in kWh,

the period covered and the current rate or price of electricity at the

time of discovery of the illegal use. The utility is allowed to recover

the differential billing up to a maximum of sixty (60) billing months.

-Chapter III, Article 35.

You may contact ourCall Center hotline at 16211

or any Meralco branch for any concernon the Magna Carta.

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I. Introduction

II. Application for ServiceA. Contract of Service

B. After Sales Service

III. Billing

IV. Payments

V. Service Irregularity

TABLE OF CONTENTS

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When one of the permanent occupants of the premises is sick

and dependent on a life-support system requiring electricity,

disconnection may be suspended for a maximum of two (2) months.

You should present a medical certificate certifying that the

termination of the electric service would be dangerous to the health

of the person.

Disconnection can also be suspended for no more than thirty

(30) days during a funeral wake of a deceased permanent resident

of the premises. -Chapter II, Article 20

How soon will my service be reconnected after payingmy bill?

If your service was disconnected due to non-payment of electric

bills, your service must be reconnected within twenty-four (24) hours

after you have paid any arrears and the applicable reconnection

fee. -Chapter II, Article 23

V. ILLEGAL USE OF ELECTRICITY

What constitutes an illegal use of electricity?Any form of theft or tampering of the electric meter and/or

metering facilities is considered illegal. The following instances are

illegal uses of electricity:

l Any form of tampering or damage to the electric meter,

the meter seal, the metering device box and other metering

facility;

l The deliberate placing of foreign objects that could result

in the meter’s inaccuracy; and

l The use of wiring connection or any other electrical device

which may affect the normal operation or registration of the

electric meter.-Chapter III, Article 342

A primer on theMAGNA CARTA FOR RESIDENTIAL

ELECTRICITY CONSUMERS

The Magna Carta for Residential ElectricityConsumers (to be referred to as “Magna Carta”or “the Code”) is a compilation of rights andobligations of residential customers. It is aneasy reference for consumers that summarizesexisting laws and rules and regulations of theEnergy Regulatory Commission (ERC), thequasi-judicial body that regulates the electricindustry.

Who are covered by this new Code?The Code in its present form, is applicable only to

residential electricity customers. All 139 distribution utilities

nationwide, including Meralco, have to follow its provisions.

When did the Code take effect?The Code took effect on July 19, 2004, while the

guidelines to implement were released in November 26, 2004.

What does the Code cover?The Code covers customer service processes.

Is this a new set of rules?Some provisions are new but most of its other provisions were

I. INTRODUCTION

Note: These are payment partners as of November 2005. For an updated list, visit our website at www.meralco.com.ph or call our Call Center hotline 16211 or any Meralco branch.

What is a good payer and is there any incentive forbeing a good payer?

A good payer pays his bills on or before the due date. As a

good payer, you will not receive a disconnection notice, you will not

get disconnected and you will acquire a good credit standing.

If you become a good payer for three (3) consecutive years,

you can demand for the full refund of your bill deposit even before

your service contract is terminated. One way to ensure that you

can establish a good credit rating is to avail of the automatic debit

arrangement (ADA) or auto-charge payment options.-Chapter,Article 7

What happens if I don’t pay my bills on time?If your bill is unpaid after the due date, you will receive a

disconnection notice forty-eight (48) hours before the disconnection.

To avoid disconnection, settle the account at the nearest branch

office within the period specified on the notice. Always bring the

current bill when paying.

The electric utility is not allowed to disconnect your electric

service on any weekday after three o’ clock (3:00 p.m.) in the

afternoon, Saturdays, Sundays and official holidays.-Chapter II,Article 19 & 20

Under what special circumstances can mydisconnection be suspended?

For residential customers, Magna Carta specifies special

circumstances to suspend disconnection of your service.10 3

taken from existing laws and regulatory orders of ERC.

What are the highlights of the customers’ rights underthe new Code?

Within the first year of implementation (2004 to 2005), existing

and new customers will begin to enjoy these rights under the new

Code:

l Applicants for service will now be exempted from paying

meter deposit. Existing customers who paid a meter

deposit before the Code took effect will be refunded

the amount based on the schedule prescribed by ERC.

l Customers may receive a refund of the bill deposit

after maintaining a consistent and consecutive 3-year

good payment record starting November 2004.

l Interest on deposits will be credited yearly to the bills

of the registered customer.

l The billing period is now defined as time in between

two (2) meter readings. This time or billing cycle is at

least 28 days and not exceeding 31 days.

l Customers have a right to one (1) free meter test once

every two years.

What are the highlights of the customers’ obligationsunder the new Code?

The Code also balances the interest of the utility company by

defining the customers’ obligation:

l Bill deposits must be updated annually to approximate

current electricity consumption.

l Customers must pay their bills before due date to avoid

inconvenience of disconnection.

l Illegal use of electricity will be subject to penal sanction

and payment of differential billing

branches, extension offices, payment offices or through any of our

accredited collection partners.

Non-OTC: You can also pay through automatic debit

arrangement (ADA), credit cards, Automated Teller Machines (ATM),

phone banking, Short Messaging Service (SMS) and internet of

accredited banks and institutions.

Where else can I pay other than at Meralco Offices?For over-the-counter (OTC) payments, Meralco has partnered

with Bayad Center and ten (10) commercial banks: Equitable PCI,

Banco de Oro, Union Bank, Chinabank, BPI, RCBC, Planters Bank,

East West Bank, Equitable Savings, and Robinson’s Savings.

Payment through the internet can be made at BPI, Equitable

PCI, UCPB, PNB, and selected Bancnet-member banks.

Phonebanking payments can be made through BPI, Equitable PCI,

HSBC, UCPB and PNB. ATM payments can be made through BPI,

UCPB, Union Bank, PNB and selected Bancnet-member banks.

For customers who want convenience and guaranteed-no-

disconnection hassles, automatic debit arrangement (ADA) and

automatic charging through credit cards are recommended.

Meralco’s accredited ADA partners include Union Bank, BPI, Allied

Bank, Banco de Oro, Equitable PCI, UCPB and Standard Chartered.

Among our credit card partners are Citibank, AIG, Standard

Chartered, Equitable Card Network, Diner’s Club and Security Bank

Mastercard.

SMS payments can now be made through Globe’s G-Cash.

Home Mastercard, a new co-branded card, with Banco de Oro

is also available for payments through credit card.94

In summary, the Code was created to ensure the continuous

supply of electricity and the convenience it brings customers

provided that they meet their obligations with the distribution utility

serving them.

II. SERVICE APPLICATION

What are the deposits that have to be paid?Under the Code, you will pay a bill deposit which is equivalent

to an estimated month’s bill if you are applying for a new or an

additional service to guarantee monthly bill payment. -Chapter I,Article 2

What else do I have to pay when applying for electricservice?

Aside from the required bill deposit, if electric facilities have to

be extended, you may have to initially fund through cash advance

the necessary expenditures to extend distribution facilities. The

branch office personnel will inform you of the procedures for the

cash advance, if needed,in your application. -Chapter II, Article 14Chapter III, Article 28.

Where should the meter be installed?You have the right to a meter installed in a place that is clean,

free of vibration and easily accessible and visible for reading and

testing by both you and the distribution utility representatives. Meters

should not be located behind doors or where they can be easily

damaged.- Chapter II, Article 11

In what cases do I have to relocate my meter?For your benefit and to ensure accuracy of meter reading, you

may request the branch to relocate your meter in cases such as

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the following:

1) The meter is not accessible for reading or testing.; and

2) Improvements or renovations to the residence will make

the meter inaccessible

What will happen to the meter deposit I paid beforethe Code took effect?

You will be refunded for the meter deposit you paid and the

interests it earned as long as your account is in good standing (no

unpaid bills) following the schedule set by ERC.

A. CONTRACT OF SERVICE

Who is a registered customer?It is the customer who has a valid service contract with the

electric utility, specifically the signatory of the valid service contract

with Meralco.-Chapter I, Article 2

If I am a tenant, can I be the registered customer?Yes, provided that a signed and notarized undertaking between

you, the tenant, and the owner of the premises is submitted to the

Meralco branch office. -Chapter II, Article 6

What is an undertaking?It is a legal document that binds the owner of the premises

jointly and severally liable with the tenant/registered customer for

any unpaid bills incurred by the latter after leaving the premises, in

the absence of or insufficiency of the bill deposit.-Chapter II, Article 6

B. AFTER SALES SERVICES

When can I request for the refund of my bill deposit?The bill deposit will be refunded within one (1) month from the

How will I be billed if my meter is found defective?If your meter is found to be defective, the electric utility is allowed

to recover the full amount of the unregistered consumption provided

it has complied with the two-year meter testing requirement.

However, the recovery period should not go beyond the period

from the last testing of the meter and should not exceed two (2)

years.

In cases where there is actual meter stoppage or any conspicuos

meter defect, the utility is allowed to recover unregistered

consumption for a maximum of three (3) months prior to discovery

of the stoppage. When the meter has not stopped but has defects

which are not easily detected, the maximum recovery period is six

(6) months prior to discovery of the defect.

Computation of the adjustment resulting from a defective meter

will be based on the applicable rate during the affected period. -

Chapter III, Article 33

Should I allow your personnel to enter my premises?Yes, the electric utility’s employees should be allowed to enter

your premises to install, read, test, inspect, maintain or replace your

electric meter. These employees are authorized by the utility as

shown in their identification cards.-Chapter III, Article 29

IV. PAYMENTS

When should I pay my bill?You have nine (9) days to pay your electric bill after receipt.-

Chapter III, Article 32

How can I pay my Meralco bill?Over-the-counter (OTC): You can pay your bill at Meralco

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termination of service, provided all the bills have been paid.

Starting November 2004, all existing active and new services

are entitled to a full refund of the bill deposit even before the electric

service is terminated. Should you accumulate thirty six (36)

consecutive months or three (3) consecutive years of good payment

record (i.e., you paid your bills on or before due date) and you have

no service violations, you can file an application for bill deposit refund

at a Meralco branch office. You will be refunded within one (1) month

after Meralco receives your application. - Chapter II, Article 7

What if I was already refunded my bill deposit but Ilater defaulted in paying my succeeding monthlybills?

You will be required to post another bill deposit which you can

only refund upon termination of electric service -Chapter III, Article 28

How many times can I request for a meter test?You are entitled to one (1) free meter test once every two years.

Upon request, the distribution utility will test the accuracy of the

meter installed in your premises using a meter standard duly tested

and sealed by the ERC.

If you request for meter testing more than once every two years

and your meter is tested okay, you will pay a testing fee as prescribed

by the ERC. - Chapter II, Article 12

Who will shoulder the replacement cost if the meteris stolen or broken?

If you damage or lose the electric meter, you will pay the

replacement cost of the meter. - Chapter II, Article 87

III. BILLING

When do I get my electric bill?Your electric bill covering a period of 28 to 31 days will be

delivered every month to your billing address.-Chapter II, Article17; Chapter I, Article 2 (h)

What happens if the period covered in my electricbill exceeds 31 days?

If the period covered in your electric bill exceeds 31 days, you

are still entitled to the subsidy corresponding to your consumption

level . -Chapter II, Article 17

What is my right as a consumer when filing acomplaint?

You are entitled to prompt and speedy resolution of complaints.

Furthermore, you should receive feedback on the action/s taken

on your complaint within fifteen (15) days after receiving the

complaint.-Chapter II, Article 13

In case of billing complaints, do I have to pay the billin question?

You have the right to pay the bill under protest. Such payment

will not be taken as an indication that you agree with the accuracy

of the bill.-Chapter II, Article 26

What do I do if I think that my electric bills iserroneous?

You can file a complaint at the Meralco Call Center at 16211 orat the nearest branch office. Your complaint will be recorded andacted on immediately.

If your electric bill is confirmed to be erroneous, you will receivea corrected bill.-Chapter II, Article 13