The Energy Regulatory Commission is set to issue an advisory directing power distributors and electric cooperatives to submit comprehensive data on electricity bill deposits to assess the potential impact on their operations.
The move is part of the agency’s public consultations on amendments to the Magna Carta for Residential Electricity Consumers, focusing specifically on the proposed removal of bill deposits required by utilities.
A bill deposit is required from new residential, commercial and industrial power users to guarantee payment. It is equivalent to a month’s estimated billing.
Energy Regulatory Commission chairperson Francis Saturnino Juan said the agency aims to study whether it is necessary to eliminate the deposits or simply limit how distribution utilities use those funds.
“This will help us see what the decision really should be, if our data is complete, including whether there are rate impacts that will occur if it is changed. “The current policy on bill deposit, if managed, does it have a rate impact on distribution utilities?” said Juan.
He assured the public that discussions on these deposits and other consumer rights will continue, noting that the additional data will highlight necessary improvements to the current system.
The review of the Magna Carta began in December to strengthen consumer protection and align policies with evolving industry practices.
Proposed reforms include reducing the early refund qualification period to two years from three years, enhancing refund transparency and refining compliance. Other proposals include limiting bill deposit collections to disconnected accounts and refunding all consumers within 1 year of the amendments taking effect.
The proposed amendments expand the original 40 articles to 50, introducing clearer rights for both consumers and utilities while modernizing service standards.
A central change is the expanded scope, which now explicitly includes all captive consumers, both residential and non-residential. It also establishes the Magna Carta as a secondary framework for contestable customers under Retail Competition and Open Access.
The commission also clarified core rights including data privacy, access to lifeline programs and participation in policy rulemaking. The draft introduces new rights such as access to smart metering and Advanced Metering Infrastructure services, the right to deposit disputed billings and improved consumption monitoring.
Article 6 was amended to streamline document requirements and clarify timelines for application processing to speed up electrification. The agency also introduced safeguards for disconnections, incorporating remote disconnection via AMI, extending notice periods for remote areas and allowing the suspension of disconnections during declared calamities.
Reconnection pathways were strengthened to allow for reconnection upon payment of at least 10 percent of a disputed bill.
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Juan assured the public that discussions on bill deposits and other rights under the Magna Carta will continue, adding that the extra data will highlight necessary improvements to the current system.
In December, the ERC announced a review of the Magna Carta to strengthen consumer protection and align policies with evolving industry practices.
Proposed reforms include reducing the early refund qualification period from three years to two, enhancing refund transparency, and refining compliance. Other proposals include limiting bill deposit collections to disconnected accounts and refunding all consumers within one year of the amendments taking effect.
The proposed amendments expand the original 40 articles to 50. They introduce clearer rights for both consumers and DUs, modernize service standards, and harmonize procedures with current laws.
A central change is the expanded scope, which now explicitly includes all captive consumers—both residential and non-residential. It also establishes the Magna Carta as a secondary framework for contestable customers under Retail Competition and Open Access (RCOA).
The ERC also clarified core rights, including data privacy, access to lifeline programs, and participation in policy rulemaking.
The draft introduces new rights, such as access to smart metering and Advanced Metering Infrastructure (AMI) services, the right to deposit disputed billings, and improved consumption monitoring.
Article 6 was also amended to streamline document requirements and clarify timelines for application processing to speed up electrification for households and businesses.
The ERC also introduced safeguards for disconnections.
The rules would incorporate remote disconnection via AMI, extend notice periods for remote areas, and allow the suspension of disconnections during declared calamities. Reconnection pathways were also strengthened, allowing for reconnection upon payment of at least 10 percent of a disputed bill.
