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Magna Carta For Residential Electric Consumers (As Amended)
Magna Carta For Residential Electric Consumers (As Amended)
AS AMENDED1
Article 1. Title This Resolution shall be known as the Magna Carta for
Residential Electricity Consumers.
(a) Bill Deposit shall mean the deposit required from consumers by
distribution utilities of new and/or additional service and from
disconnected consumers who were previously not subject to bill
deposit. The deposit shall be equivalent to the estimated billing for
one month to guarantee payment of bills (amended by Section 1 of
ERC Resolution No. 28-2010)2;
(b) Billing Adjustment shall mean the amount charged to the consumer
for the unbilled electricity consumed resulting from a stoppage or
defect, conspicuous or otherwise, in the meter, provided that there is
no evidence of tampering thereon;
(c) Connection Point shall mean, for the purposes of the Magna Carta,
the point of connection of the user system or equipment to the
1
Amendments to the Magna Carta for Residential Electricity Consumers dated November 15, 2010 and
Amendments to the Distribution Services and Open Access Rules dated February 28, 2010 and February 13, 2012.
2
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers
Old Text as per Magna Carta for Residential Electricity Consumers - effective as of July 17, 2004 (MCREC-
7.17.2004): Bill Deposit shall mean the deposit required from customers by distribution utilities of new and/or
additional service equivalent to the estimated billing for the month to guarantee payment of bills.
Magna Carta For Residential Electricity Consumers
(d) Consumer or Customer or End-User shall mean any person who is the
registered customer of the electric utility being supplied with
electricity by the concerned distribution utility or any person
authorized by the registered customer to occupy the premises and
enjoy electric service;
(f) Differential Billing shall mean the amount charged to the consumer
for the unbilled electricity illegally consumed as determined through
the use of methodologies prescribed by law. It is determined by
multiplying the unbilled consumption in kWh, the period covered and
the current rate of electricity at the time of apprehension;
(h) Month shall mean the elapsed time between two (2) succeeding
meter readings, at least twenty-eight (28) days apart but not to
exceed thirty-one (31) days;
(i) An Officer of the Law shall refer to any person who, by direct
provision of the law or by election or by appointment by competent
authority, is charged with the maintenance of public order and the
protection and security of life and property, such as barangay
captain/chairman, barangay councilman, barangay leader, officer or
member of Barangay Community Brigades, barangay policeman, PNP
policeman, municipal councilor, municipal mayor and provincial fiscal;
(j) A Registered Customer shall mean the customer who has a valid
service contract with the electric distribution utility;
3
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers
Old Text as per MCREC-7.17.2004: Connection Point shall mean the point of connection of the user system or
equipment to the distribution system (for users of the distribution system) or to the grid (for users of the grid).
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Magna Carta For Residential Electricity Consumers
(l) Retirement of Electric Service shall mean the removal of all facilities
necessary for the provision of electric service, such as, but not limited
to service drop wire, meter base, wattmeter and other accessories of
the service entrance and metering facilities; and, (n)4
Article 4. Basic Right All consumers shall be entitled to the following basic
right:
(a) To have quality, reliable, affordable, safe and regular supply of electric
power;
(f) To know and choose the electric service retailer upon the
implementation of Retail Competition; and,
4
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers
5
id
Page 3 of 28
Magna Carta For Residential Electricity Consumers
(a) To observe the terms of his contract including, among other things,
paying monthly electricity bills promptly and honestly;
(d) To take proper care of metering or other equipment that the electric
utility has installed in his premises;
(f) To cooperate with the support programs on the wise and efficient use
of electricity.
All applicants for electric service must submit a written application with the
following supporting documents:
6
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers
If the said consumer is not the owner of the premises sought to be energized, he shall be required to submit an
undertaking from the owner of the premises that the said owner shall be jointly and severally liable with the
applicant for any unpaid regular monthly bills incurred by the applicant after leaving the premises, in the absence
of or insufficiency of the bill deposit.
Subject to the approval of ERC, a distribution utility cannot service areas within its franchise territory may allow
another distribution utility or a qualified third party (QTP) to provide electricity services in said area pursuant to
Rule 7 and Rule 14 of the Implementing Rules and Regulations of the EPIRA.
The labor cost for connecting the distribution utilitys service drop to the connection point shall be free of charge.
The connection point shall be designated upon agreement by the distribution utility and the consumer.
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Magna Carta For Residential Electricity Consumers
A. For Owners:
Valid Identification
Proof of Ownership
Barangay Clearance or Certification showing proof
of Residency in the Barangay
List of Loads
B. For Successors:
Valid Identification
Proof of Succession of Property
Barangay Clearance or Certification showing proof
of Residency in the Barangay
List of Loads
Valid Identification
Notarized Authorization from the Owner of the
Property
Barangay Clearance or Certification showing proof
of Residency in the Barangay
List of Loads
Valid Identification
Proof of Right to Occupy the Premises sought to be
Energized from the concerned Local Government
Unit or Government Agency
Barangay Clearance or Certification showing proof of
Residency in the Barangay
List of Loads (n)
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Magna Carta For Residential Electricity Consumers
(a) Terminate, after due notice, the contract of electric service; or,
(b) Change, after due notice, the registered consumer, from the tenant
who was the registered customer to the owner of the property, unless
said owner submits, within thirty (30) days from receipt of such
notice, the name of another person/tenant who will become the new
registered consumer instead of the owner of the property. (n)
The labor cost for connecting the distribution utilitys service drop to the
connection point shall be free of charge. The connection point shall be designated
upon agreement by the distribution utility and the consumer.
The applicant or the owner of the property must not also have any
outstanding obligations including surcharges whenever applicable, with the
concerned DU. (n)7
7
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers
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Magna Carta For Residential Electricity Consumers
Article 7. Right to a Refund of Bill Deposits The bill deposit provided for
under Article 28 hereof shall be refunded within one (1) month from the termination
of service provided all bills have been paid.
A customer who has paid his electric bills on or before its due date for three
(3) consecutive years may, however, demand for the full refund of the deposit even
prior to the termination of his service. An application for this purpose shall be filed
with the concerned distribution utility which must refund the deposit within one (1)
month from receipt of such application.
In cases of loss and/or damage to the electric meter due to the fault of the
customer, he shall bear the replacement cost of the meter.
The distribution utility must install a meter of the proper type and
classification compatible with the electrical system/network in use in the premises of
the consumer. For errors arising therefrom, the liability of the consumer shall be
limited in accordance with the provisions hereof. (n)
The method provided in the Standard Rules and Regulations Governing the
Operation of Electric Power Services (ERB Resolution 95-21, as amended) shall be
used in the determination of average error.
The ERC Seal is a warranty that: (1) the meter is accurate; and, (2) that it
operates within the allowable limits of tolerance.
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Magna Carta For Residential Electricity Consumers
The consumer has a right to demand the production of the meter test report
containing the findings of the authorized person who tested the said meter. 8
Article 10. Right to a Refund of Overbillings The customer has the right to a
refund in cases of overbilling by the distribution utility arising from a meter testing
showing that the said meter was fast without any evidence of tampering.
In the event that a meter in service is found to have an average error of more
than the tolerance of plus two (2) percent, the customer is entitled to a refund, for a
maximum period of six (6) months prior to the date of discovery, to be applied to the
customers future billings.
In cases of other billing errors where there are overpayments, refunds shall
be computed back to the date the error or omission commenced. The consumer
must be informed in writing that, if he/she disagrees with the amount of the refund,
the said consumer can contest the refund before the ERC. (n)
Article 11. Right to a Properly Installed Meter The customer has the right
to a meter installed in a clean place free of vibration and where it will be easily
accessible and visible for reading and testing by both the distribution utility and the
consumer. Under no condition should meters be located behind doors or where they
can be easily broken or jarred by moving furniture or equipment. Meters shall be
located on the outside wall of the building or private pole and shall not be more than
8
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers
No meter, including instrument transformers, shall be installed or placed in service unless it has been tested,
certified and sealed by the ERC. All watt-hour meters regardless of make and type before being placed in service
must be adjusted to as close as possible to the condition of zero error.
The method provided in the Standard Rules and Regulations governing the Operation of Electric Power Services
(ERB Resolution 95-21, as amended) shall be used in the determination of average error.
The ERC seal is a warranty that (2) the meter is an acceptable or accepted type and (2) that it operates within the
allowable limits of tolerance.
The consumer has a right to demand the production of the meter test report containing the findings of the
authorized person who tested the said meter
NB: ERB Resolution 95-21 was expressly repealed by ERC Resolution no. 1-2006, Distribution Service and Open
Access Rules, adopted last January 18, 2006
9
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers
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Magna Carta For Residential Electricity Consumers
three (3) meters nor less than 1.52 meters mounting height from the surface on
which one would stand to repair or inspect the meter.
The distribution utility shall bear the cost of the wire extending from the
meter to the actual premises of the consumer. Except when the consumer requests
for the clustering, and in such case, the said consumer shall bear the aforementioned
costs. (n)
A customer shall bear the cost of relocation of his electric watthour meter
under the following circumstances:
(1) The customer requests for the relocation of his electric watthour
meter, for reasons other than those provided for in the first
paragraph; or,
(2) The meter installation fails to meet the conditions under the first
paragraph resulting from improvements done on the consumers
premises thereby necessitating such relocation. The distribution utility
(DU) must inform the consumer in writing of the latters non-
compliance with the proper meter installation conditions.
If the consumer fails, within thirty (30) days from receipt of the notice
of non-compliance, to coordinate with the DU regarding the
relocation of the meter/s, the DU shall have the right to relocate the
said meter/s without further notice. The consumer shall be
responsible for all costs and expenses incurred as a result of his/her
non-compliance. The parties may enter into an arrangement for the
payment of the aforementioned costs. In case the consumer refuses,
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Magna Carta For Residential Electricity Consumers
All other relocations of the meter shall be borne by the electric utility.
Article 12. Right to a Meter Testing by Electric Utility and/or the Energy
Regulatory Commission (ERC) A consumer has the right to require the distribution
utility to test, once every two (2) years, free of charge, the accuracy of the meter
installed in his/her premises making use of a meter standard duly tested and sealed
by the ERC, unless the meter has been the subject of testing in accordance with the
Rules and Procedures for the test and maintenance of electric meters by distribution
utilities.11
If the customer requests for meter testing more than once every two (2)
years and the meter being tested is found to be within the tolerable limit as provided
for in Article 9 hereof, the utility may assess the customer a testing fee based on the
testing fee charged by ERC. A written report showing the result test shall be
furnished the customer.
The customer may also request the ERC to conduct a meter test, subject to
the payment of a fee prescribed under the approved ERC Schedule of Fees and
Charges.
10
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers
The customer has the right to a meter installed in a clean place free of vibration and where it will be easily
accessible and visible for reading and testing by both the distribution utility and the consumer. Under no
condition should meters be located behind doors or where they can be easily broken or jarred by moving
furniture or equipment. Meters shall be located on the outside wall of the building or private pole and shall not
be more than three (3) meters nor less than 1.52 meters mounting height from the surface on which one would
stand to repair or inspect the meter.
A customer shall bear the cost of relocation of his electric watthour meter under the following circumstances:
(1) The customer requests for the relocation of his electric watthour meter, for reasons other than those
provided for in the first paragraph; or,
(2) The meter installation fails to meet the conditions under the first paragraph resulting from
improvements done on the consumers premises thereby necessitating such relocation.
All other relocations of the meter shall be borne by the electric utility.
11
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers
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Magna Carta For Residential Electricity Consumers
In case the meter is found to be inaccurate, the customer may demand the
replacement of the said meter or have the ERC calibrate the said meter to restore its
accuracy closest to the condition of zero (0) error. The Provision on refund or billing
adjustment due to inaccurate meters shall apply as appropriate.
The distribution utility must furnish the complainant a report of the action/s
taken thereon within the period stated in the distribution utilitys Compliance Plan as
provided for in the Philippine Distribution Code. In the absence of such plan, the
report must be made within fifteen (15) days from the receipt of the complaint.
In dealing with their customers relative to electric power services, all officers,
employees and agents of distribution utilities must properly and conspicuously
display their identification cards at all times.
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Magna Carta For Residential Electricity Consumers
The parties may agree to accelerate the refund of the cash advance under
mutually acceptable terms provided it will not result in any form of cross-subsidies.
Only the refunded amount shall form part of the DUs regulatory asset base or plant
in service. (n)
Maintenance of the lines and facilities shall be at the expense of the DU.
When a developer initially paid the cost of the extension of lines to provide
electric service to a specific property and incorporated these expenses in the cost
thereof, and that property was purchased and transferred in the name of the
registered consumer, the latter, though the developer13, shall be entitled to the
refund of the cost of the extension lines, and exercise the options for refund
provided in this article.
12
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
A consumer located within thirty (30) meters from the distribution utilities existing secondary low voltage lines,
has the right to an extension of lines or installation of additional facilities, other than a service drop, at the
expense of the utility inasmuch as said assets will eventually form part of the rate base of the private distribution
utilities, or will be sourced from the reinvestment funds of the electric cooperatives. However, if a prospective
customer is beyond the said distance, or his demand load requires that the utility extend lines and facilities, the
customer may initially fund the necessary expenditures.
To recover his aforementioned expenditures, the customer may either demand the issuance of a notes payable
from the distribution utility or refund at the rate of twenty-five (25) percent of the gross distribution revenue
derived for the calendar year, or , if available, the purchased of preferred shares.
Revenue derived from additional customers tapped directly to the poles and facilities so extended shall be
considered in determining the revenues derived from the extension of facilities. (this paragraph was removed
in the amended version Article 15 of ERC Resolution 28-2010)
When a developer initially paid the cost of the extension of lines to provide electric service to a specific property
and incorporated these expenses in the cost thereof, and that property was purchased and transferred in the
name of the registered consumer, the latter shall be entitled to the refund of the cost of the extension lines, and
exercise the options for refund provided in this article.
If the cost of the extension of lines or installation of additional facilities was funded gratuitously by other persons
for the benefit of the consumer, this provision shall not apply.
In this connection, all concerned utilities shall furnish the Commission a semi-annual report of the names of
customers who made the aforementioned cash advance, the amount of the cash advance and the mode of
refund.
13
id
Page 12 of 28
Magna Carta For Residential Electricity Consumers
In this connection, all concerned utilities shall furnish the Commission a semi-
annual report of the names of customers who made the aforementioned cash
advance, the amount of the cash advance and the mode of refund.
Where there are two (2) or more authorized schedules of rates applicable to
a customer, the distribution utility should accordingly advise said customer in writing
and apply the rates which are most beneficial to the customer.
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Magna Carta For Residential Electricity Consumers
Should the period covered in the electric bill exceed the number of days
provided for in this Magna Carta, the distribution utility shall nevertheless provide
the applicable subsidy for that consumption level due to the customer as if the
meter had been read within the maximum allowable period.
(b) Illegal use of electricity under Republic Act No. 783214, otherwise
known as the Anti-Electricity Pilferage Law;
(h) Failure to adhere to the payment scheme for the recovery by the DU
of the cost of relocation of meter/s. Disconnection may be effected
14
Anti-electricity and Electric Transmission Lines/Materials Pilferage Act of 1994
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Magna Carta For Residential Electricity Consumers
15
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
Subject to the foregoing paragraph, disconnection of electric service shall only be made under the following
circumstances:
(a) Non-payment of electric bills within the period of time provided in Article 32 of this Magna Carta;
(b) Illegal use of electricity under Republic Act No. 7832, otherwise known as the Anti-Electricity Pilferage Law;
(c) Upon lawful orders of government agencies and/or the courts;
(d) When the public safety so requires;
(e) Request of the registered customers based on justifiable reasons;
(f) Allowing other end-users or persons to be connected to his electrical installation, whether for profit or not;
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Magna Carta For Residential Electricity Consumers
(e) Filing of a complaint with ERC for cases involving differential billings,
billing adjustments arising from defective or stop meters or other
billing errors, and estimated consumptions until the complaints final
resolution;
(f) Filing of a complaint with ERC for high billing upon posting of a bond
equivalent to the complainants average 12-month consumption prior
to the billing in question. (n)
For Item (a), the suspension of the disconnection shall only be made during
the dependency of the patient on the life support system which shall not exceed two
(2) months from such suspension.
For Item (b), the suspension of the disconnection shall only be made during
the period of the wake which shall not exceed one (1) month from the suspension or
until the interment, whichever comes earlier.
For Item (c), the non-receipt should not be caused by the refusal of the
customer to accept such electric bill or notice.
Page 16 of 28
Magna Carta For Residential Electricity Consumers
With respect to Item (d), the customer must pay the current billing on its due
date. The distribution utility, however, must enter into an agreement with the
customer for a staggered payment scheme within a period equivalent to the number
of months covering the unpaid billings.
With respect to Item (e), the suspension of disconnection shall take effect
upon receipt of the DU of the Order from the ERC, until its final resolution. The
suspension of disconnection shall only apply to non-payments of the billings in
question. The consumer shall, however, continue to pay his/her regular monthly
bills, and non-payment thereof may be a ground for disconnection of electric service
pursuant to Article 18, Paragraph (A) hereof. (n)16
16
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
Notwithstanding the service of notice but subject to the provision of RA 7832, disconnections of service shall not
be made on any week day beyond three o clock (3:00 P.M.) in the afternoon, Saturdays and Sundays and official
holidays, and under the following or any other similar circumstances.
(a) One of the permanent occupants is sick and dependent on a life support system requiring electricity;
Provided, That the customer can present a medical certificate issued by a duly licensed physician or public
health official certifying that the termination of the electric service would be especially dangerous to the
health of the said person;
(b) During the funeral wake of a deceased permanent resident of the premises; Provided, That the consumer
can present a duly certified true copy of the death certificate of the deceased issued by the Local Civil
Registry of the city or municipality concerned;
(c) Customer indubitably proves he did not receive a Statement of Account and/or Disconnection Notice;
(d) Customer is being billed in a single statement for consumption covering several months due to the failure of
the utility to issue a timely monthly billing statement to the consumer;
(a) For Item (a), the suspension of the disconnection shall only be made during the dependency of the patient
on the life support system which shall not exceed two (2) months from such suspension.
For Item (b), the suspension of the disconnection shall only be made during the period of the wake which shall
not exceed one (1) month from the suspension or until the interment, whichever comes earlier.
For Item (c), the non-receipt should not be caused by the refusal of the customer to accept such electric bill or
notice.
With respect to Item (d), the customer must pay the current billing on its due date. The distribution utility,
however, must enter into an agreement with the customer for a staggered payment scheme within a period
equivalent to the number of months covering the unpaid billings.
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Magna Carta For Residential Electricity Consumers
17
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
18
id
Page 18 of 28
Magna Carta For Residential Electricity Consumers
Article 26. Right to Payment Under Protest In cases of regular electric bills
or billing adjustments due to the stoppage or failure of the meter to register the full
and correct amount of energy consumed, or for differential billing due to alleged
illegal use of electricity, the consumer shall have the right to pay under protest for
purposes of continuous supply of electricity by the utility without prejudice to a
complaint to be filed by such customer against the imposition of the bill or billing
adjustment or differential billing. Such payment shall not be construed as an
admission by the consumer of the allegations or claims of the distribution utility or of
any violation of law or of the contract with the distribution utility.
A protest, other than for high billing, shall be made in writing to the DU
within fifteen (15) days from payment of the protested amount. In case the
consumer disagrees with the resolution of the protest, he may file a complaint with
the ERC. (n)
Protests for high billings shall be governed by Article 32 of the Magna Carta.
19
(n)
Article 27. Right to File Complaints Before ERC Every consumer has the
right to file a complaint before the ERC for violation of ERC laws, rules, regulations,
guidelines and policies, including but not limited to RA 9136 and its Implementing
Rules and Regulations, RA 7832 and its Implementing Rules and Regulations and ERB
Resolution No. 95-21, as amended; Provided, That the complainant has previously
discussed/consulted the issue with the Consumer Welfare Desk (CWD) Officer or
Representative of the concerned distribution utility and no settlement has been
reached.
Article 28. Obligation to Pay Bill Deposit A bill deposit from all residential
consumers to guarantee payment of bills may be required of new and/or additional
service by the concerned DU.
The amount of the bill deposit shall be equivalent to the estimated billing for
one month based on the load schedule submitted by the consumer. After one year
19
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
Page 19 of 28
Magna Carta For Residential Electricity Consumers
or every year thereafter whenever the actual average monthly bills are more or less
than ten (10%) percent of the initial bill deposit, such deposit shall be
correspondingly increased/decreased to approximate said billing.
Distribution utilities shall pay interest on cash bill deposits equivalent to the
peso savings account interest rate of the Land Bank of the Philippines on the first
working day of the year, or other government banks subject to the approval of the
ERC. The interests shall be credited yearly to the bills of the registered customer.
In cases where the customer has previously received the refund of his bill
deposit pursuant to Article 7, and later defaults in the payment of his monthly bills,
the customer shall be required to post another bill deposit with the distribution
utility and lose his right to avail of the right to refund his bill deposit in the future
until termination of service.
20
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
A bill deposit from all residential customers to guarantee payment of bills shall be required of new and/or
additional service.
The amount of the bill deposit shall be equivalent to the estimated billing for one month. Provided that after (1)
year and every year thereafter, when actual average monthly bills are more or less than the initial bill deposit,
such deposit shall be correspondingly increased/decreased to approximate said billing.
Distribution utilities shall pay interest on bill deposits equivalent to the interest incorporated in the calculation of
their Weighted Average Cost of Capital (WACC), otherwise the bill deposit shall earn an interest per annum in
accordance with the prevailing interest rate for savings deposit as approved by the Bangko Sentral ng Pilipinas
(BSP). The interests shall be credited yearly to the bills of the registered customer.
In cases where the customer has previously received the refund of his bill deposit pursuant to Article 7, and later
defaults in the payment of his monthly bills, the customer shall be required to post another bill deposit with the
distribution utility and lose his right to avail of the right to refund his bill deposit in the future until termination of
service.
Failure to pay the required bill deposit shall be a ground for disconnection of electric service.
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Magna Carta For Residential Electricity Consumers
of the distribution utility to enter their premises for the purpose of inspecting,
installing, reading, testing, repairing, maintaining, removing, replacing or otherwise
disposing of its apparatus and property, and/or removing the distribution utilitys
entire property in the event of the termination of the electricity service contract; and
for disconnection of service for non-payment of bills or violation of contract (VOC).
Article 30. Obligation to Allow the Construction of Poles, Lines and Circuits
Consumers shall allow the distribution utility, if necessary, to construct its poles,
lines and circuits and to place its transformers, apparatus on their property or within
the buildings of the consumer, at a point or points convenient for such purpose.
The customer shall allow the distribution utility to use a suitable space for the
installation of necessary metering equipment in order that such equipment will be
protected from damage by the elements, and through the negligence or deliberate
acts of any person or persons.
Consumers must pay their bills not later than nine (9) days after receipt of
the monthly bill. The bills must be based on consumption registered by their
accurate electric meters. The said bills shall be conclusive between the parties,
without prejudice to the rights and obligations of either party under any of the
provisions of the Magna Carta. (n)
B. High Billings
Consumers are allowed to contest all instances of high billing even if the
entire amount of the bill has already been paid. High billing occurs when the
consumers one (1)-month kilowatthour consumption exceeds one hundred (100%)
percent of his/her average 12-month kilowatthour consumption prior to the
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Magna Carta For Residential Electricity Consumers
contested bill. Within sixty (60) days from payment thereof, the consumer must
lodge a formal protest with the DU, accompanied by proof why he/she should not be
liable for the entire bill. (n)
After the inspection and investigation, the distribution utility shall issue a
written resolution of the complaint stating the reasons therefore. (n)
The ERC will only entertain a complaint for high billing if it is accompanied by
a certification from the concerned DU or any other proof that both parties have
exhausted all avenues to resolve the same but to no avail. (n)
If the entire bill has been previously paid, the overpayment shall be credited
to future billings, otherwise, the consumer shall pay the remainder. (n)21
21
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
Page 22 of 28
Magna Carta For Residential Electricity Consumers
In the event that a meter in service is found to have an average error of more
than the tolerance of minus two percent (2%) without any evidence of tampering by
the customer, the utility may ask for payment of a billing adjustment from its
customers of the unregistered consumption. If the said electric meter was merely
found to be defective and has not completely stopped, and such defect could not be
easily detected by the concerned customer, the distribution utility may only be
allowed to recover the unregistered consumption for a maximum period of six (6)
months prior to the discovery of the defect. In cases where there is actual stoppage,
or any conspicuous defect of the said meter, the distribution utility may only be
allowed to recover the unregistered consumption for a maximum period of three (3)
months prior to such discovery of the stoppage.
In case of disagreement on such bill, the ERC shall resolve the same.
Consumers must pay their bills not later than nine (9) days after receipt of the monthly bill.
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Magna Carta For Residential Electricity Consumers
back to the date the error commenced. However, if the error or omission resulted
from conspicuous defects and/or other billing errors due to the fault of the DU, the
recoverable period shall not exceed three (3) months; thus, the DU will only be
allowed to collect undercharges incurred for the three (3)-month period immediately
preceding the date of discovery of such error or omission. This provision shall
likewise be applicable to errors arising under Article 9, Paragraph 2 of the Magna
Carta. (n)22
(a) The presence of a bored hole on the glass cover of the electric meter,
or at the back or any part of said meter;
(b) The presence inside the electric meter of salt, sugar and other
elements that could result in the inaccurate registration of the
meters internal parts to prevent its accurate registration of
consumption of electricity;
(c) The existence of any wiring connection which affects the normal
operation or registration of the electric meter;
22
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
A consumer may be compelled to pay a billing adjustment in case there is a stoppage or failure by the customers
meter to register the full amount of energy consumed without any fault on the part of the customer.
In the event that a meter in service is found to have an average error of more than the tolerance of minus two
percent (2%) without any evidence of tampering by the customer, the utility may ask for payment of a billing
adjustment from its customers of the unregistered consumption. If the said electric meter was merely found to
be defective and has not completely stopped, and such defect could not be easily detected by the concerned
customer, the distribution utility may only be allowed to recover the unregistered consumption for a maximum
period of six (6) months prior to the discovery of the defect. In cases where there is actual stoppage, or any
conspicuous defect of the said meter, the distribution utility may only be allowed to recover the unregistered
consumption for a maximum period of three (3) months prior to such discovery of the stoppage.
Notwithstanding the preceding paragraphs, the distribution utility may recover the full amount of the
unregistered consumption if it has been complying with the two-year meter testing requirement under the
Implementing Rules and Regulations of RA 7832, otherwise known as the Anti-Electricity Pilferage Act; Provided,
however, that the recovery period should not go beyond the period from the last testing of the meter prior to
the date of discovery, but which period shall not exceed two (2) years. The distribution utility, however, must
enter into an agreement with the customer for a staggered payment scheme within a period equivalent to the
number of months covering the billing adjustment.
The refund or billing adjustment should be based on the rate prevailing during the period sought to be
recovered, and the estimated consumption shall be based upon the result of the ERC test on the affected meter
during the time of discovery or his average use of energy for the immediately preceding six-month period of like
use, or the lowest monthly consumption within three (3) months after the time of discovery.
In case of disagreement on such bill, the ERC shall resolve the same.
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Magna Carta For Residential Electricity Consumers
(e) The presence in any part of the building or its premises which is
subject to the control of the consumer, or on the electric meter, of a
current reversing transformer, jumper, shorting and/or shunting wire,
and/or loop connection or any other similar device;
(1) If prior to the date of discovery, there was change of meter, change of
seal or reconnection, or replacement of parts, or it can be determined
when an abrupt or abnormal drop in consumption occurred, the
period to be recovered for purposes of the differential billing should
be reckoned from the time when the said changes, inspection or
reconnection occurred, which may result in a less than a year period
of recovery.
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Magna Carta For Residential Electricity Consumers
for a period which could be less than a year, then for purposes of
calculating the different billing, the recoverable period shall start from
the occurrence of the illegal use up to the time of apprehension.
(b) In case of sale of the premises, the new owner of the premises shall
be allowed to apply for substitution if the registered consumer was
the previous owner of the premises; or,
(c) If the distribution utility discovers and proves that the registered
consumer who is a tenant has permanently left the premises, the
owner of the said premises, upon due notice by the distribution
utility, shall be substituted as the new registered consumer, unless
the new occupant applies for transfer of electric service.
(c) The electric service of the registered consumer has been disconnected
due to unpaid bills and the said service is not reconnected by the
23
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
Page 26 of 28
Magna Carta For Residential Electricity Consumers
Article 39. Violation A violation of any provision of this Magna Carta shall
be subject to penalty which the Commission, after giving the electric utility or
consumer the opportunity to be heard, may impose in accordance with the law.
Article 42. Effectivity This Code shall take effect fifteen (15) days after
its publication in a newspaper of general circulation in the country.
SECTION 2. All other Articles of the Magna Carta for Residential Electricity
Consumers are hereby renumbered accordingly.
24
Amended by Section 1 of ERC Resolution No. 28-2010, Amendments to the Magna Carta for Residential
Electricity Consumers.
Page 27 of 28
Magna Carta For Residential Electricity Consumers
SECTION 4. All rules, regulations, guidelines and other issuances not expressly
revised herein shall remain in force and effect.
SECTION 5. These amendments shall take effect within fifteen (15) days
following its publication in a newspaper of general circulation.
Page 28 of 28