The Energy Department is pushing for a uniform electricity bill format, with all the charges itemized or unbundled, to promote greater transparency and empower consumers.
The department released a draft circular adopting the framework for a uniform monthly electricity bill format.
“The DoE takes cognizance of the need to empower electricity end-users with greater understanding and transparency on the charges in its monthly electricity bill by unbundling the electricity charge components including those components that are not part of the unbundled rates but was collected from the consumers for security and reliability of services,” the circular said.
Under the circular, the electricity bill should reflect all corresponding charges collected by the distribution utilities from all electricity end-users, including but not limited to generation, transmission, distribution, supply and metering charges, bill and meter deposits, including interest and any other charges that the Energy Regulatory Commission may approve.
It said the electricity bill should be prepared in a simple and easy-to-understand format. It said that subject to ERC regulation, all distribution utilities should use a uniform bill format prescribed by the ERC.
“Except for competitive services components such as generation and supply, no charges shall be reflected in the bill and collected from the electricity end-users without the approval of the ERC,” the circular stated.
Section 25 of the Electric Power Industry Reform Act requires that every distribution utility identify and segregate in its bills to end-users the components of the retail rate.
The implementing rules and regulations of the Epira law also called for the unbundling of the power industry’s business activities and rates to include generation, transmission, distribution and supply, and unbundling of business activities between regulated and non-regulated activities, including the removal of cross-subsidies, subject to review and approval by the ERC.
The circular, once approved, will apply to all distribution utilities including privately-owned utilities; electric cooperatives; local government-owned utilities; entities authorized to operate within economic zones; and other entities authorized by law to distribute electricity to end-users.
“Upon the effectivity of this circular, all electricity end-user bills issued by distribution utilities shall reflect unbundled costs of providing each service or product,” the Energy Department said.
The bill should contain the generation charge, transmission charge, system loss, distribution charge, supply charge, metering charge, other charges, subsidies or discounts, senior citizen discount, , government taxes, local taxes, universal charge, missionary electrification charge, environmental charge, stranded debts and contract costs of National Power Corp., feed-In-tariff allowance, other charges, among others.
The bill should also contain the bill deposit including interest and the meter deposit including interest, billing summary, among others, according to the circular.
