MAGNA CARTA FOR RESIDENTIAL ELECTRICITY

CONSUMERS

Pursuant to the provisions of Sec. 41 of RA 9136 (EPIRA) the ERC promulgated

this magna carta as adopted in a Resolution on June 9, 2004.

CHAPTER 1General Provisions

(salient provisions only)

Article 4. Basic Rights.a) To have quality, reliable, affordable, safe, and

regular supply of electric power.b) To be accorded courteous, prompt, and non-

discriminatory service by the electric service provider;

c) To be given a transparent, non-discriminatory and reasonable price of electricity consistent with the provisions of RA 9136;

Chapter 1 (salient provisions only)

d) To be an informed electric consumer and given adequate access to information on matters, affecting the electric service of the consumer concerned;

e) To be accorded prompt and speedy resolution of complaints by both the distribution utility and/or the ERC;

f) To know and choose the electric service retailer upon the implementation of Retail Competition; and

Chapter 1 (salient provisions only)

g) To organize themselves as a consumer organization in the franchise area where they belong and where they are served by the distribution utility or as a network of organizations.

CHAPTER IIConsumer Rights

Art. 6. Right to Electric Service- after compliance of the DU and LGU

requirements.- consumer not owner: submit an

undertaking that they are jointly and severally liable for any unpaid bills of applicant after leaving, in the absence of or insufficiency of the bill deposit.

Chapter II, Art. 6

• In areas where the DU can’t provide electricity, a QTP (qualified third party) can be allowed to provide electric service.

• Labor cost in service dropping is free.

Article 7. Right to a Refund of Bill Deposits

- bill deposit shall be refunded within 1 month from termination of service provided all bills have been paid.

- Prompt payors for 3 consecutive years may demand for full refund even prior to the termination of his service.

Article 8. Exemption from Payment of Meter Deposits

• due to the incorporation of the cost of the electric watthour meters in their rate base. Reinvestment funds shall be used to procure kwh meters for the consumers.

• for loss or damage of the kwh meter, the consumer shall bear the replacement cost of the meter.

Article 9. Right to an Accurate Electric Watthour Meter; Determination of

Average Error

• Meters, instrument transformers shall be tested, certified and sealed by the ERC.

• ERC seal is a warranty that (1) the meter is an acceptable or accepted type, and (2) that it operates within the allowable limits of tolerance.

Article 10. Right to a Refund of Overbillings

• Arising from a meter testing showing that the said meter was fast without any evidence of tampering.

• If found to have an average error of more than the tolerance of plus two percent, the customer is entitled to a refund for a maximum period of 6 months prior to the date of discovery, to be applied in the customer’s future billings.

Article 11. Right to a Properly Installed Meter

• clean place, free of vibration, accessible and visible for reading and testing by the DU and the consumer; not behind doors but outside the wall of the building or private pole; not more than 3 meters nor less than 1.52 meters mounting height from the surface on which one would stand to repair or inspect the meter.

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

• once every 2 years free of charge, duly tested and sealed by the ERC.

• if by request of the consumer testing is done more than once in 2 years, and the meter is within tolerable limit, the DU may charge a testing fee based on the testing fee charged by the ERC, done with a written report.

Article 13. Right to a Prompt Investigation of Complaints; Customer Dealings

• The DU must furnish the complainant a report on action taken based on the Compliance Plan, if none report must be made 15 days upon receipt of the complain.

• In case of disagreement, customer may file with ERC.

• Use of ID at all times in dealing with consumers.

Article 14. Right to Extension of Lines and Facilities

• right of a customer within 30 meters from the DU’s existing secondary low voltage lines, free of charge, other than the sdw. But if beyond said distance, customer may initially fund the necessary expenditures.

• To recover, the customer may demand notes from the DU for refund at a rate of 25% of the gross dx revenue for the cy.

Article 15. Right to Information; Scheduled Power Interruptions

• Provide Customer Bulletin Board (front of the entrance of the city/mun. hall or public market) for posting of announcements/documents affecting consumers. Establish communication facilities and SMS exclusive to customers.

• At least 2 days before a scheduled PI, announcement should be done in print or media

Article 16. Right to a Transparent Billing

• The unbundled rates.

Article 17. Right to a Monthly Electricity Bill

• Bills delivered monthly and payable to collectors, collection office, authorized agents, banks.

• Duplicate of bills shall not be destroyed within 5 years without authority from the ERC.

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

Disconnection shall only be made for:• non-payment of bills within the period of time

provided in Art. 32 of this MC;• illegal use of electricity under RA 7832;• upon lawful orders of govt. agencies/courts• when public safety requires;• requests, for justifiable reasons;• Allowing others to connect to his installation.

Article 19. Right to a Notice Prior to Disconnection

• service of notice is 48 hrs before discon. notwithstanding existence of the customer’s bill deposit which will serve as guarantee for payment of his future bills after reconnection.

• Immediate disconnection after serving written notice or warning to the effect, for pilferers caught in flagrante delicto.

Article 20. Right to Suspension of Disconnection

• Notwithstanding the service of notice but subject to the provisions of RA 7832, disconnections of service shall not be made on any week day beyond 3:00 PM, Saturdays, Sundays and official holidays, and under the following or any other similar circumstances:

Article 20 (cont’d)

a) One of the permanent occupants is sick and dependent on a life support system requiring electricity; = medical certificate issued by a duly licensed physician/pho… (not over 2 months)

b) During the funeral wake of a deceased permanent resident of the premises = death certificate by the LCR (not over 1 month or until interment, whichever comes first)

Article 20 (cont’d)

c) Customer indubitably proves he did not receive a SoA and/or Discon. Notice; (not caused by refusal)

d) Customer is billed in a single statement for consumption covering several months due to failure to issue monthly SoA to the customer;(agreement to stagger payments)

e) Customer or rep. is not around but not applicable to discons due to non-payment of electric bills.

Art. 21. Right to Tender Payment at the Point of Disconnection; Deposit Representing the Differential Billing

• If payment is tendered during disconnection the DU shall desist from disconnecting and allow the customer to pay within 24 hours; but the customer can only invoke once for the same unpaid bill.

• No discon, or immediate restoration upon the deposit by the customer with the DU or competent court, his differential billing.

Article 22. Right to Electric Service Despite Arrearages of Previous Tenant

• The DU shall not refuse or discontinue service to an applicant who is not in arrears to the DU, even though there are unpaid bills due from the previous occupant, unless there is evidence of conspiracy to defraud the DU.

Article 23. Right to Reconnection of Electric Service

• From payment of arrearages, reconnection shall immediately for a period provided in the Compliance Plan approved by the ERC in accordance with the PDC, not exceeding 24 hours from payment. The 24-hr period may be extended only for justifiable reasons.

Article 24. Right to Witness Apprehension

• In violation of RA 7832, apprehensions must be personally witnessed by the customer or someone of suitable age and discretion residing therein and acting in behalf of the owner and by an officer of the law or by an ERC representative.

Article 25. Right to ERC Testing of Apprehended Meter

• In case no ERC representative is present during the apprehension, the meter must be placed in a suitable container, properly identified and sealed, and shall be opened only for testing by the ERC’s duly authorized representative.

• Upon removal, the DU shall immediately replace the meter until the ERC confirms the tampering.

Article 26. Right to Payment Under Protest

• For billing adjustments due to stopped meters, or for differential billing due to allege pilferage, the consumer shall have the right to pay under protest for purposes of continuous supply of electricity. Such payment shall not be construed as an admission of any violation of law or of the contract with the DU.

Article 27. Right to File Complaints before ERC

• On the consumer – for violation of ERC laws, rules, regulations, guidelines and policies, including but not limited to RA 9136 and its IRR, RA 7832 and its IRR and ERB Resolution 95-21, as amended. Provided, that the complainant has previously discussed/consulted with the CWD Officer or representative of the DU and no settlement was reached.

CHAPTER IIIConsumer Obligations

Article 28. Obligation to Pay Bill Deposit

• A bill deposit from all residential customers to guarantee payment of bills shall be required of new and/or additional service.

• = equivalent to the estimated billing for 1 month. Provided that after 1 yr and every year thereafter, when the actual ave. is more or less the initial deposit, corresponding increase or decrease shall be made on such deposit. (Failure to pay bill deposit is a ground for disconnection.)

OTHER OBLIGATIONS

Art. 29. Obligation to Allow Inspection, Installation and Removal of Electricity Apparatus

Art. 30. Obligation to Allow the Construction of Poles, Lines and Circuits

Art. 31. Obligation to Receive Monthly Bills

Article 33. Obligation to Pay Billing Adjustments

• If the meter was merely found to be defective and has not completely stopped, the DU may only be allowed to recover the unregistered consumption for a maximum of 6 months prior to the discovery of the defect. If there is actual stoppage or any conspicuous defect, a maximum of 3 months prior to the discovery of the stoppage. On pilferage, recovery should not go beyond the period from the last testing of the meter prior to the date of discovery, but not to exceed 2 years.

Chapter III (cont’d)

Art. 34. Obligation not to Commit Illegal Use of Electricity

Art. 35. Obligation to Pay Differential Billing (RA 7832)

Chapter IVFINAL PROVISIONS

Art. 36. Implementation- Art. 7, 8 and 28 are subject to ERC guidelines.

Art. 37. Violation- subject to ERC penalty after hearing

Art. 38. Separability ClauseArt. 39. Repealing ClauseArt. 40 – Effectivity

- 15 days after publication (July 5, 2004)

THANK YOU !

The Magna Carta for Residential Consumers may in some way curtail some rights of the EC but not the end-users.

This is how the ERC looks at the electric industry scenario. And since they are our regulators, we cannot do otherwise but comply. “Dura Lex Sed Lex” – the law may be harsh, but it is the law.