ERC Resolution No. 25, Series of 2026 – Magna Carta for Electricity Consumers Adopted
ERC adopted the Magna Carta for Electricity Consumers, expanding and clarifying consumer rights and obligations—including bill deposit rules, billing transparency, and service protections—for all captive electricity users, thereby strengthening consumer safeguards and utility accountability across the sector.
8/26/20263 min read
SUMMARY
WHAT IT IS
This Resolution adopts the Magna Carta for Electricity Consumers, consolidating and updating the rights, obligations, and protections of all captive electricity consumers (residential and non-residential) served by distribution utilities (DUs), and establishes a framework for monitoring and reporting bill deposits.
All captive electricity consumers (residential and non-residential)
DUs (including electric cooperatives and private utilities)
Contestable Customers under RCOA
WHO IS AFFECTED
KEY DEADLINES
Effectivity: 15 days after publication in a newspaper of general circulation or the Official Gazette.
DUs must submit initial bill deposit reports within 90 days from effectivity; annual periodic reports due by June 30 each year.
TAKEAWAY
DUs must review and update compliance systems for bill deposits, reporting, and consumer information.
Consumers should be aware of their expanded rights and obligations, especially regarding bill deposits, refunds, and complaint processes.
KEY POINTS
Scope: Applies to all captive electricity consumers (residential and non-residential) served by Distribution Utilities (DUs), and suppletorily to contestable customers under RCOA where not inconsistent with other rules.
Covered Entities: All DUs (including Microgrid System Providers) and all electricity consumers (residential and non-residential); certain provisions also apply to contestable customers.
Bill Deposit Requirements: DUs may require a bill deposit not exceeding one month’s estimated billing; exemption applies to new applicants eligible for a 100% lifeline discount; bill deposit may be paid in full or in three equal monthly installments.
Bill Deposit Adjustments: Annual review and adjustment of bill deposit if actual average monthly bills deviate by more than 10%; excess deposit is credited to bills, and increases require prior notice.
Refunds: Bill deposits and accrued interest must be refunded within one month from submission of complete documentary requirements upon termination of service; automatic refund for customers with two years of prompt payment or those qualifying for 100% lifeline discount.
Interest on Deposits: DUs must credit interest on bill deposits at the Land Bank of the Philippines peso savings account rate, credited annually.
Reporting and Monitoring: DUs must submit under oath, within 90 days from effectivity, detailed reports on bill deposits and interest for the past five years, and annually by June 30 for the preceding year.
Compliance Obligations: DUs must maintain detailed accounting of bill deposits, post annual updates online, and ensure transparency in customer bills regarding deposits and interest.
Disconnection Grounds: Non-payment of required, reimposed, or adjusted bill deposit is a ground for disconnection; DUs must provide clear notice and follow due process.
Penalties: Violations by DUs or consumers are subject to fines, penalties, and other administrative sanctions as per ERC rules and relevant laws.
Information Dissemination: DUs are required to publish clear information on bill deposit rules, consumer rights, and obligations via official communication channels, including online platforms.
DOWNLOAD FILE COPY
ERC Resolution No. 25, Series of 2026
Detailed policy analysis
Operational and compliance implications
Stakeholder impact assessment
Risk flags and ambiguities
Suggested next actions
PREMIUM REGULATORY ANALYSIS
Get access to:
Tags: Consumer Rights, Bill Deposits, Distribution Utilities, Transparent Billing, Refunds, Compliance Reporting