ERC Resolution No. 03, Series of 2026 – Amendments to Magna Carta on Bill Deposits and Consumer Rights
ERC adopted amendments to the Magna Carta for Residential Electricity Consumers, revising bill deposit requirements, refund procedures, and documentary requirements for new connections to enhance consumer protection and streamline utility processes.
2/6/20263 min read
SUMMARY
WHAT IT IS
A resolution adopting amendments to the Magna Carta for Residential Electricity Consumers, updating consumer rights, obligations, and procedures for bill deposits and refunds.
Electricity consumers
Distribution Utilities (DUs)
WHO IS AFFECTED
KEY DEADLINES
Amendments take effect 15 days after publication in a newspaper of general circulation or the Official Gazette.
Not specified in the document: specific compliance or transition deadlines.
TAKEAWAY
Residential consumers should review new requirements for service applications and bill deposit policies.
DUs must update procedures and billing systems to comply with new refund, deposit, and documentation rules.
KEY POINTS
Scope: Applies to all residential electricity consumers served by Distribution Utilities (DUs), including those in mass housing and condominium projects.
Requirements for new electric service: Applicants must submit a completed application form, government-issued ID, Certificate of Final Electrical Inspection (CFEI) or equivalent, proof of ownership or right to use premises (or barangay clearance and supporting affidavits if unavailable), and a list of loads; applicants must have no unpaid bills with the DU.
Bill deposit threshold: DUs may require a bill deposit not exceeding the applicant’s estimated one-month billing based on the submitted load schedule.
Bill deposit payment: May be paid in full or in three equal monthly installments starting with the first bill.
Lifeline Program exemption: Applicants eligible for a 100% lifeline discount under RA 11552 are exempt from bill deposit; existing customers who later qualify for the discount are entitled to an automatic refund of their bill deposit.
Bill deposit adjustment: Annually, if actual average monthly bills deviate by more than 10% from the deposit, the amount may be adjusted; increases require prior notice, decreases are automatically credited to the customer’s bill.
Bill deposit refund: Upon termination of service, bill deposits (plus accrued interest) are applied to outstanding bills, with any balance refunded within one month of submission of complete documentary requirements; customers with two years of timely payments qualify for automatic refund credited to monthly bills.
Interest on bill deposits: DUs must pay interest at the Land Bank of the Philippines’ peso savings account rate, credited annually to the customer’s bill.
Compliance obligations: DUs must reflect bill deposit and interest amounts in customer bills and may waive or offer alternatives to cash bill deposits.
Non-payment of required or adjusted bill deposit is grounds for disconnection.
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ERC Resolution No. 03, Series of 2026
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Tags: Bill Deposit Rules, Refund Process, Lifeline Exemption, Residential Consumers, Distribution Utilities, Application Requirements