MAGNA CARTA - Metering.com B. … · · 2018-03-14MAGNA CARTA for Residential Electricity...

MAGNA CARTA for Residential Electricity Consumers

Metering, Billing & CRM/CIS AsiaPacific 2005 Conference & Exhibition Shanghai International Convention Center January 12, 2005

Presented by:

RUTH B. DAVID Sr. AVP & Head, Customer Service Office Manila Electric Company (MERALCO) PHILIPPINES

The Philippine Experience

OUTLINE OUTLINE

A. COMPANY BACKGROUND A. COMPANY BACKGROUND B. ELECTRIC POWER INDUSTRY REFORM ACT OF 2001 B. ELECTRIC POWER INDUSTRY REFORM ACT OF 2001 (EPIRA) (EPIRA)

C. MAGNA CARTA for RESIDENTIAL CUSTOMERS C. MAGNA CARTA for RESIDENTIAL CUSTOMERS • • Scope / Chronology of Events Scope / Chronology of Events • • 4 Parts 4 Parts • • Summary of Provisions Summary of Provisions

D. MERALCO D. MERALCO’ ’S RESPONSE S RESPONSE E. CONCLUSION E. CONCLUSION

COMPANY BACKGROUND COMPANY BACKGROUND

FRANCHISE FRANCHISE AREA AREA

• Area Coverage: 9,337 sq km (3% of total land of the Phil)

• covers 23 cities and 88 municipalities w/c includes MetroManila, the entire provinces of Bulacan, Rizal & Cavite; parts of the provinces of Laguna, Quezon & Batangas and 17 barangays in Pampanga

• franchise area accounts for 50% of the country’s GDP

• Electrification level of 97%

Centralized Call Center

10 Distribution Centers 30 Branch Offices 23 Extension Ofices 3 Sales Offices 500 3rd Party Collecting Agents

SERVICE SERVICE POINTS POINTS

MERALCO MERALCO

Networks Networks Supply Supply Shared Shared

MERALCO MERALCO ORGANIZATION ORGANIZATION

CUSTOMER SALES CUSTOMER SALES PROFILE PROFILE

CUSTOMER CLASS

NUMBER OF CUSTOMERS

% of Total

ELECTRIC SALES (Million KWh)

% of Total

Residential 3,683,206 90.9% 8,527.3 35.8% Commercial 353,348 8.7% 8,375.8 35.1% Industrial 11,125 0.3% 6,790.5 28.5% Flat Streetlights 4,204 0.1% 140.7 0.6%

TOTAL 4,051,883 100% 23,834.3 100%

As of Dec 2003 Active participation of MERALCO in developing the MAGNA CARTA for Residential Consumers initiated by ERC as mandated by EPIRA

ELECTRIC POWER INDUSTRY ELECTRIC POWER INDUSTRY REFORM ACT of 2001 REFORM ACT of 2001

(EPIRA) (EPIRA)

EPIRA EPIRA

n n The The Electric Power Industry Reform Act of 2001 Electric Power Industry Reform Act of 2001, , otherwise known as the EPIRA was signed into law June otherwise known as the EPIRA was signed into law June 8,2001, published 3 days after at leading Philippine dailies and 8,2001, published 3 days after at leading Philippine dailies and took effect June, 26 took effect June, 26, , 2001 2001

n n The EPIRA provides the following: The EPIRA provides the following:

• • framework for restructuring framework for restructuring of the industry, including of the industry, including privatization of NPC assets privatization of NPC assets

• • transition transition of the desired of the desired competitive structure competitive structure, and , and

• • definition of responsibilities definition of responsibilities of various government agencies of various government agencies and private entities and private entities

n n Section 41 Section 41 of the EPIRA mandates ERC to of the EPIRA mandates ERC to promote promote consumer interests consumer interests which serves as which serves as basis basis for the for the promulgation o the promulgation o the MAGNA CARTA MAGNA CARTA

MAGNA CARTA for MAGNA CARTA for Residential Electricity Consumers Residential Electricity Consumers

RATIONALE RATIONALE

n n The Magna The Magna Carta Carta’ ’s s primary intent primary intent is to ensure the continuous is to ensure the continuous supply and convenience of customers provided they meet their supply and convenience of customers provided they meet their obligations to the Distribution Utility (DU) obligations to the Distribution Utility (DU)

SCOPE SCOPE

n n It provides an It provides an easy reference on the rights & obligations easy reference on the rights & obligations of residential electricity consumers of residential electricity consumers

n n It applies to It applies to residential residential electricity consumers electricity consumers only only

CHRONOLOGY OF EVENTS CHRONOLOGY OF EVENTS

n n Dec. 2003 Dec. 2003 1st Draft 1st Draft “ “Electricity Consumers Electricity Consumers’ ’ Code of Rights & Obligations Code of Rights & Obligations” ”

n n Feb. 3, 2004 Feb. 3, 2004 First Public Consultation First Public Consultation

n n Mar 18 Mar 18 Special Session Special Session with Consumer groups with Consumer groups

n n Mar 31 Mar 31 Apr 16 Apr 16 Roadshow Roadshow on the Magna on the Magna Carta Carta in key Philippine cities in key Philippine cities

n n Apr 23 Apr 23 Special Session Special Session with with DU DU’ ’s s

n n Apr 27 Apr 27 2nd Public Consultation 2nd Public Consultation

n n May 31 May 31 Final Public Consultation Final Public Consultation

n n June 9 June 9 Final Deliberation Final Deliberation in the Commission in the Commission

n n June 17 June 17 Magna Magna Carta Carta signed by the Commission signed by the Commission

n n July 4 July 4 Magna Magna Carta Carta published published in leading newspapers in leading newspapers

n n July 19 July 19 Magna Magna Carta Carta took effect took effect


PARTS OF THE MAGNA CARTA PARTS OF THE MAGNA CARTA

GENERAL PROVISIONS (Articles 15)

CONSUMER RIGHTS

(Articles 627)

CONSUMER OBLIGATIONS (Articles 2835)

FINAL PROVISIONS (Articles 3640)

PROVISIONS PROVISIONS CHAPTER I

GENERAL PROVISIONS GENERAL PROVISIONS Article 1: Title

Article 2: Definitions

Article 3: Applicability

Article 4: Basic Rights

Article 5: Basic Obligations

BASIC RIGHTS Consumers has the right to: •quality, reliable, affordable, safe, and regular supply of electricity

•courteous, prompt and non discriminatory service

•transparent, nondiscriminatory and reasonable price

•adequate access to information

•prompt and speedy resolution of complaints

•know and choose the electric service retailer; and

•organize themselves as a consumer organizations

•BASIC OBLIGATIONS observe the terms of contract

allow the faithful and accurate recording of consumption

allow entry/access to premises

take proper care of metering/ equipment installed

inform the distribution utility and/or proper authorities pilferage or any damage.

cooperate with and support programs on wise use of electricity



CONSUMER RIGHTS

(Articles 627)




PROVISIONS PROVISIONS

CHAPTER II

CONSUMER RIGHTS CONSUMER RIGHTS Article 6: Electric Service

Article 7: Refund of Bill Deposits

Article 8: Exemption from Meter Deposit Payment

Article 9: Accurate Watthour Meter: Determination of Ave Error

Article 10: Refund of Overbillings

Article 11: Properly Intalled Meter

Article 12: Meter Testing by DU/ERC

Article 14: Extension of Lines & Facilities

Article 13: Prompt Investigation of Complaints

Article 18: Due Process Prior to Disconnection

Article 19: Notification Prior to Disconnection

Article 20: Suspension of Disconnection

Article 21: Tender of Payment at Point of Disconnection

Article 15: Interruption Info

Article 16: Transparent Billing

Article 17: Monthly Electric Bill

Article 22: Electric Service Despite Arrearages of Previous Tenant

Article 23: Reconnection of Electric Service

Article 24: Witness Apprehension

Article 25: ERC Testing of Apprehended Meter

Article 26: Payment Under Protest

Article 27: File Complaints before ERC



CONSUMER RIGHTS

(Articles 627)





CHAPTER III

CONSUMER OBLIGATIONS CONSUMER OBLIGATIONS Article 28: Pay Bill Deposit Article 29: Allow Inspection, Instal

lation and Removal of Electricity Apparatus

Article 30: Allow Contruction of Poles, Lines & Circuits

Article 31: Receive Monthly Bills

Article 33: Pay Billing Adj Article 34: Not to Commit

Illegal Use of Electricity

Article 35: Pay Differential Billing

Article 32: Pay Monthly Bills



CONSUMER RIGHTS

(Articles 627)





CHAPTER IV

FINAL PROVISIONS FINAL PROVISIONS Article 36: Implementation

Article 37: Violation

Article 38: Separability Clause

Article 39: Repealing Clause

Article 40: Effectivity

Implementation of Articles on Implementation of Articles on Refund Refund of Bill Deposits, Meter Deposit of Bill Deposits, Meter Deposit Payment Exemptions & Payment of Payment Exemptions & Payment of Bill Deposit Bill Deposit already published Nov 11 already published Nov 11 and now form part of the Code. and now form part of the Code.

Earlier provisions, rules, regulations, Earlier provisions, rules, regulations, guidelines & other guidelines & other issuances issuances not not expressly revised by this Magna expressly revised by this Magna Carta Carta shall remain in force & effect shall remain in force & effect

This Code shall This Code shall take effect take effect 15 days 15 days after its publication after its publication in a newspaper in a newspaper of general circulation in the country of general circulation in the country



CONSUMER RIGHTS

(Articles 627)





SUMMARY OF PROVISIONS SUMMARY OF PROVISIONS (Process View)

Providing Electric Service

Metering

Billing and Payment

Disconnection & Reconnection

Customer Complaints Handling

Apprehension of Illegal Services

Providing Electric Service Providing Electric Service

Article 6 Right to Electric Service

Article 14 Right to Extension of Lines & Facilities

Article 30 Obligation to Allow Construction of Poles, Lines & Circuits

Article 8 Exemption from Payment of Meter Deposits

Article 28 Obligation to Pay Bill Deposit

Article 7 Right to A Refund of Bill Deposit

Article 22 Right to Electric Service Despite Arrearages of Previous Tenant









•Right of consumer to be connected to the DU •Qualified 3rd party (QTP) may be allowed to service customers if incumbent DU cannot do so • labor cost for connecting the the service drop is free of charge.

•Consumers located 30 m w/in DU secondary lines has the right to extension or installation of facilities at DU’s expense •Otherwise, consumer may initially fund the expendi res thru notes payable from the DU or purchase of preferred shares









All consumers exempt from meter deposit payment since DU’s have incorporated them in their rate base

Cooperatives to use Reinvestment Funds to procure electric meters for consumers

Bill Deposit required for new and/or additional service applied by residential customers

Amount initially equivalent to estimated one month bill but this shall be adjusted based on the average monthly bills for 1 year

Failure to pay the required bill deposit shall be ground for disconnection of service

Bill Deposit shall be refunded w/in 1 month from termination of services provided all bills are paid

Customers who paid bills on time for 3 consecutive years shall be entitled to refund of bill deposit one month after they apply for this purpose.









Back to Provisions

Metering Metering

Article 9 Right to an Accurate Watthour Meter; Determination of Average Error

Article 11 Right to ProperlyInstalled Meter

Article 12 Right to a Meter Testing by Electric Utility and/or ERC

All installed meter must be tested & certified by ERC and must be adjusted to zero error as much as possible before installation.

Consumer has a right to demand meter test report

Back to Provisions

Back to Provisions

Billing and Payment Billing and Payment

Article 16 Right to A Transparent Billing

Article 17 Right to a Monthly Electric Bill

Article 31 Obligation to Receive Monthly Bills

Article 32 Obligation to Pay Monthly Electric Bills

Article 26 Right to Payment Under Protest

Article 10 Right to A Refund of Overbilling

Article 33 Obligation to Pay Billing Adjustments

Customer has the right to refund overbilling arising from meter test showing fast registration without evidence of tampering

If the average error is more than the tolerance limit of +2%, customer is entitled to a refund for a maximum of 6 months prior to date of discovery to be applied to future billings.

Customer has obligation to pay billing adjustments due to stoppage or failure of the meter to register full amount of energy consumed.

If meter error is found to exceed tolerance limit w/o tampering and the meter found to be defective, DU allowed to recover up to 6 months. If there is stoppage, DU to recover up to 3 months.

If DU complying with 2year meter testing reqt, the recovery period shall extend up to 2 years.

Disconnection & Reconnection Disconnection & Reconnection

Article 18 Right to Due Process Prior to Disconnection of Electric Service

Article 19 Right to a Notice Prior to Disconnection

Article 20 Right to Suspension of Disconnection

Article 21 Right to Tender of Payment at Point of Disconnection

Article 23 Right to Reconnection of Service

Back to Provisions

Customer Complaints & Handling Customer Complaints & Handling

Article 13 Right to Prompt Investigation of Complaints

Article 15 Right to Information/Scheduled Power Interruption

Article 27 Right to File Complaints Before ERC

Back to Provisions

Apprehension of Illegal Services Apprehension of Illegal Services

Article 29 Obligation to Allow Inspection, Installation & Removal of Electricity Apparatus

Article 34 Obligation not to Commit Illegal Use of Electricity

Article 24 Right to Witness Apprehension

Article 25 Right to ERC Testing of Apprehended Meter

Article 21 Right to Tender of Payment at Point of Disconnection; Deposit Representing Differential Billing

Article 35 Obligation to Pay Differential Billing

Back to Provisions

MERALCO MERALCO ’ ’ s s RESPONSE RESPONSE to the to the

MAGNA CARTA MAGNA CARTA

A Welcome Development A Welcome Development

The Magna Carta documents not only the rights of the consumers but also their obligations to the DU

The Magna Carta clarifies the rules of the DU on one hand and the expectations of its customers, on the other hand.

Creation of Teams Creation of Teams

Magna Carta Teams were created by the Company to study several implementation concerns regarding specific articles in the Magna Carta. The teams created are as follows:

Meter Reading & Billing Team

Meter Team

Service Irregularity

Team

Payments Team

Contracts Team

Branches Team

Regulatory Team

Info Campaign Team

Data Monitor Team

Immediate Actions Taken: Immediate Actions Taken:

Immediate stoppage to the collection of meter deposit

Putting up of a Consumer Bulletin Board in all Branch Offices

Revision in the period covered by a Billing Adjustment

Revision in the handling of Service Irregularity

Review of the Terms and Conditions to include undertaking by the owner as part of the requirements for service application

CONCLUSION CONCLUSION

Conclusion Conclusion

Magna Carta is a welcome development in the electric distribution industry

•It clarifies the rights and obligations of the residential electiricty consumers

•Makes it easier for DU’s to implement policies and requirements

•It protects the rights of the consumers from possible abuse by the DU’s.

•It formally documents the rules, most of w/c being implemented even before.


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