Magna Carta For Residential Electric Consumers (As Amended)

MAGNA CARTA FOR RESIDENTIAL ELECTRICITY CONSUMERS
AS AMENDED1
Pursuant to the Provisions of Section 41 of Republic Act No. 9136, otherwise

known as the Electric Power Industry Reform Act of 2001, the Energy Regulatory
Commission hereby promulgates the amendments to the Magna Carta for
Residential Electricity Consumers.
SECTION 1. The following provisions of the Magna Carta for Residential

Electricity Consumers are hereby amended to read, as follows:
MAGNA CARTA FOR RESIDENTIAL ELECTRICITY CONSUMERS
CHAPTER I GENERAL PROVISIONS
Article 1. Title This Resolution shall be known as the Magna Carta for
Residential Electricity Consumers.
Article 2. Definition of Terms
(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
distribution system (for users of the distribution system). For

purposes of this definition, user system or equipment does not
include the service entrance up to the meter (amended by Section 1
of ERC Resolution No. 28-2010)3;
(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;
(e) Distribution Utility shall mean any electric cooperative, private

corporation, government-owned utility or existing local government
unit which has an exclusive franchise or is authorized by law to
distribute electricity to end-users;
(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;
(g) Energy Regulatory Commission or Commission or ERC shall mean the

independent regulatory agency created under Republic Act. No. 9136,
otherwise known as the Electric Power Industry Reform Act of 2001
(EPIRA);
(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
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).
Page 2 of 28
(k) Residential Consumer shall mean a customer classified as such in the

distribution utilitys rate schedule as approved by the ERC;
(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
(m) Termination of Electric Service Contract shall mean the cancellation,

for reasons enumerated in Article 37, of the Electric Service Contract
(ESC) whereby the distribution utility and the registered consumer are
released from their respective obligations in the contract, without
prejudice to the performance of existing obligations prior to
termination. (n)5
Article 3. Applicability This Magna Carta shall only apply to residential

consumers.
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;
(b) To be accorded courteous, prompt and non-discriminatory service by

the electric service provider;
(c) To be given a transparent, non-discriminatory and reasonable price of

electricity consistent with the provisions of RA 9136;
(d) To be an informed electric consumer and given adequate access to

information on matters affecting the electric service of the consumer
concerned;
(e) To be accorded prompt and speedy resolution of complaints by both

the distribution utility and/or the ERC;
(f) To know and choose the electric service retailer upon the
implementation of Retail Competition; and,
(g) To organize themselves as a consumer organization in the franchise

area where they belong and where they are served by the distribution
utility or as a network of organizations.
4
5
id
Page 3 of 28
Article 5. Basic Obligations Every consumer must comply with the

following obligations and responsibilities:
(a) To observe the terms of his contract including, among other things,
paying monthly electricity bills promptly and honestly;
(b) To allow the faithful and accurate recording of consumption to be

reflected in the appropriate device;
(c) To allow the utilitys employees/representatives entry access to his

premises for the purposes provided for in Article 29 hereof;
(d) To take proper care of metering or other equipment that the electric
utility has installed in his premises;
(e) To inform the distribution utility and/or proper authorities of any

theft or pilferage of electricity or any damage caused by any person to
the electric meter and equipment appurtenant thereto; and,
(f) To cooperate with the support programs on the wise and efficient use
of electricity.
CHAPTER II CONSUMER RIGHTS
Article 6. Right to Electric Service A consumer has the right to be

connected to a distribution utility for electric power service after full compliance
with the requirements set forth herein and that of all existing laws, rules and
regulations6.
All applicants for electric service must submit a written application with the
following supporting documents:
6
Old Text of Article 6 as per MCREC-7.17.2004:

A Consumer has the right to be connected to a distribution utility for electric power service after the consumers
full compliance with the distribution utilitys and local government units (LGI) requirements.
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.
Page 4 of 28
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:
Proof of Succession of Property
List of Loads
C. For Authorized Representatives of Owners:
Notarized Authorization from the Owner of the
Property
List of Loads
D. For Tenants of Privately-Owned Premises:

Contract of Lease or any notarized authorization from
the owner showing the Right to Occupy the Premises sought
to be energized
Barangay Clearance or Certification showing proof of
Residency in the Barangay
Undertaking from the owner of the property
List of Loads
E. Informal Settlers of Government-Owned Properties:
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)
Page 5 of 28
If the applicant is not a tenant of the premises sought to be energized, he

must submit an undertaking executed by the owner of the premises stating that,
once the applicant leaves the premises, the owner shall be jointly and severally liable
for any unpaid regular monthly bills incurred by the applicant, but not to exceed two
(2) months, after applying the bill deposit. The unpaid regular monthly bills must
include the current bill. (n)
The requirement of an undertaking shall not apply to an applicant who is a

buyer of a mass-housing unit, which is sought to be energized but remains to be
owned by the mass-housing developer; although the said unit is the subject of a
contract to sell between the applicant-buyer and the developer. However, the
applicant must show proof that the subject housing unit is still part of the inventory
of the said developer, and he/she is still currently paying the amortizations necessary
to gain full ownership over the housing unit/premises. (n)
When the aforementioned registered customer leaves the premises, the

Distribution Utility (DU) is given the following options:
(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 liability provided in the undertaking shall extend to similar obligations of

another person/tenant allowed by the owner to occupy the premises without the
knowledge of the DU. The undertaking under Paragraph D shall likewise state this
obligation. The new person/tenant will be required to pay all electric bills incurred
during his period of stay in the premises. (n)
The DU may waive any or all of the foregoing requirements as it deems

proper. (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
Page 6 of 28
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.
Article 8. Exemption From Payment of Meter Deposit All consumers shall

be exempt from payment of meter deposits since private distribution utilities have
incorporated the cost of these electric watthour meters in their rate base. Electric
cooperatives shall use their respective Reinvestment Funds to procure electric
watthour meters for their consumers.
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.
Article 9. Right to an Accurate Electric Watthour Meter; Determination of

an Average Error 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 zero error.
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)
An accurate electric meter, located in an area allowed under existing ERC

Rules, Regulations, Policies and Guidelines, is presumed to register the correct
consumption of the registered consumer or user. The entire bill must be paid within
the prescribed period/s. unless otherwise provided for in the Magna Carta. (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.
Page 7 of 28
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)
This Provision shall likewise be applicable to errors arising under Article 9,

Paragraph 2 of the Magna Carta.9
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
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
Page 8 of 28
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.
Meters may be located in other areas based on justifiable reasons. Meters

located in elevated metering centers shall be governed by the Rules to govern the
installation and relocation of residential electric meters by distribution utilities to
elevated metering centers or individual residential electric meter to other elevated
service.
Clustering of meters may be allowed under any of the following

circumstances:
(1) Upon the request of a consumer;
(2) When there is no right of way; or,
(3) In areas with high incidence of electricity pilferages. (n)
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)
Meters may likewise be clustered or relocated in elevated metering centers

upon the request of the concerned Government Agency (GA) or Local Government
Unit (LGU). (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,
Page 9 of 28
without any justifiable reason, to allow DU representatives entry into

the premises to effect the relocation, the DU may disconnect the
electric service of the consumer after a forty-eight (48)-hour written
notice. (n) 10
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
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.
Meters may be located in other areas based on justifiable reasons.
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
Page 10 of 28
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.
Article 13. Right to a Prompt Investigation of Complaints; Customer

Dealings Distribution utilities shall record and promptly investigate all complaints
referred to them concerning their services.
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 case of disagreement between the distribution utility and the customer,

the latter may file a complaint with the ERC in accordance with Article 27 of this
Magna Carta.
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.
Article 14. Right to Extension of Lines and Facilities 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 the aforementioned expenditure (advanced payment), the

consumer or developer may either demand the issuance of any financial instruments
mutually acceptable to the parties or a refund at the rate of seventy-five percent
(75%) of the Gross distribution revenue derived from all consumers connected to the
line extension for the calendar year until such amounts are fully refunded, or if the
DU is a private corporation, the purchase of preferred shares, if available, subject to
the approval of Securities and Exchange Commission (SEC) on the issuance of such
shares or other financial instruments mutually acceptable to the parties. The
preferred shares shall be redeemable by the DU within a period of fifteen (15) years.
Revenues derived from additional consumers tapped directly to the poles and
facilities so extended shall be considered in determining the revenues derived from
the extension of facilities. (n)
Page 11 of 28
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)
Dedicated transformers, including their maintenance, repair or replacement,

for the sole and exclusive use of the consumer, shall be at the expense of the said
consumer. (n)
Maintenance of the lines and facilities shall be at the expense of the DU.
Refund of advances made by developers shall be governed by the provisions

of the Distribution Services and Open Access Rules (DSOAR), as amended. (n)12
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
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
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.
Article 15. Right to Information; Scheduled Power Interruptions in order

to increase consumer awareness, all offices of distribution utilities must provide a
Consumer Bulletin Board where majors announcements/documents issued affecting
consumers will be posted. Furthermore, they must establish communications
facilities, including but not limited to a customer hotline and Short Messaging
Service (SMS), to cater exclusively to their customers.
Major announcements/documents shall include, but not be limited to, rate

schedules and any changes thereon; other service charges; terms and conditions of
service; standard rules and regulations governing the operation of distribution
utilities; general information on metering, including but not limited to the manner in
which meters are read and description of method used in reading; decisions and
orders of the ERC.
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.
At least two (2) days before a scheduled power interruption, a distribution

utility must announce the same to its customers through print, or other mass or
interactive media. In remote areas where, such media are inaccessible, the
distribution utility must set up a Bulletin Board where announcements of scheduled
power interruptions will be posted in an area that could easily be seen by its
customers, preferably along roadsides or in front of the entrance to the
City/Municipal Hall or Public Market.
Article 16. Right to a Transparent Billing Bills to service customers shall

conform with the format as approved by the ERC. The current formats approved by
the Commission are shown in Annexes A and B of this Magna Carta.
Article 17. Right to a Monthly Electricity Bill Bills shall be delivered

monthly to the customer by the distribution utility in accordance with the applicable
rate schedule. Said bills shall be payable to authorized collectors, the collection
office, authorized agents/entities or at its authorized banks.
Page 13 of 28
Notwithstanding the provisions of the foregoing paragraph, no violation of

the provisions of this Magna Carta is committed by the distribution utility in reading
its customers meters beyond the maximum allowable time provided for in Article
2(h), Provided that such inability to read on time was due to a fortuitous event and,
that the meter reading is done immediately after the said fortuitous event ceases to
exist.
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.
The distribution utility shall safely keep the duplicate, electronic or

otherwise, or office stub of the bills used and shall not be destroyed within five (5)
years without authority from the Commission.
Article 18. Right to Due Process Prior to Disconnection of Electric Service

No consumer shall be deprived of electric service without due process of law.
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. 783214, 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;
(g) Refusal, without any justifiable reason, of the consumer to allow DU

representatives entry into the premises to relocate the electric
meter. Disconnection may be effected after the lapse of a forty-eight
(48)-hour notice issued by the DU to that effect; (n)
(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
Page 14 of 28
after the lapse of a thirty (30)-day notice issued by the DU to that

effect; and, (n)
(i) Failure to pay the required bill deposits, reimposed, adjusted or

otherwise. (n)
Whenever a distribution utility disconnects a consumers electric service, it

may opt to retire the electrical facilities immediately, provided, however, that if the
electrical service remains disconnected for a period of thirty (30) days, retirement of
facilities shall become mandatory, unless the electric service was disconnected at the
connection point. (n)
Retirement of said facilities is not tantamount to the termination of the

contract of electric service of the said consumer. (n)15
Article 19. Right to a Notice Prior to Disconnection For disconnections due

to non-payment of electric bills, a written notice must have been served to the
customer forty-eight (48)-hours before such disconnection. The distribution utility
may discontinue the service notwithstanding the existence of the customers bill
deposit with the distribution utility which will serve as guarantee for the payment of
future bill(s) after service is reconnected.
When the owner/occupant of the house or establishment concerned or

someone acting in his behalf shall have been caught in flagrante delicto doing any of
the acts enumerated in Section 6 of RA 7832, the distribution utility concerned shall
have the authority and right to disconnect immediately his electric service after
serving the written notice or warning to the effect. The written notice or warning
being referred to herein shall be served prior to such disconnection and shall
indicate the name and address of the consumer, consumer account number, date of
apprehension, findings of facts, amount of energy pilfered in kilowatt-hour, the
amount representing the differential billing and the method used in computing the
differential billing.
15
No consumer shall be deprived of electric service without due process of law.
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;
Page 15 of 28
Article 20. Right to Suspension of Disconnection 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 to eight o clock (8:00 A.M.) the following day, 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;
(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
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
Article 21. Right to Tender Payment at the Point of Disconnection; Deposit

Representing the Differential Billing If at the time the disconnection is to be made,
the customer tenders payment of the unpaid bill to the agent or employee of the
distribution utility who is to effect the disconnection, the said agent, or employee of
the distribution utility shall desist from disconnecting the service to allow the
customer to pay his bills within twenty-four (24) hours; Provided however, That the
customer can only invoke this provision once for the same unpaid bill.
16
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.
Page 17 of 28
The utility concerned shall not immediately disconnect or shall immediately

restore the electric service of the customer upon the deposit by the customer with
the utility or with the competent court, as the case may be, of the amount
representing the differential billing.
Article 22. Right to Electric Service Despite Arrearages Without prejudice

to enforcing the provisions of the second paragraph of Article 6 hereof, a distribution
utility shall not refuse or discontinue service to an applicant or customer, who is not
in arrears to the distribution utility, even though there are unpaid bills or charges
due from the premises occupied by the applicant, or customer, on account of an
unpaid bill of a prior tenant unless there is evidence of conspiracy to defraud the
distribution utility. Conspiracy shall not be presumed but must be supported by
substantial evidence on the part of the DU.17
Article 23. Right to Reconnection of Electric Service Whenever the electric

service is disconnected due to non-payment of electric bills, the utility must
immediately reconnect the same within the period provided in the utilitys
Compliance Plan as approved by the Commission in accordance with the Philippine
Distribution Code, but in no case shall exceed twenty-four (24) hours from payment
of the said arrearages of the customer. The 24-hour period may be extended only for
justifiable reasons.
Whenever a DU disconnects the consumers electric service due to non-

payment of billings which is the subject matter of a complaint pending with the ERC
and a stay of disconnection, relative to such unpaid billing, has been issued in favor
of the complainant under Article 20, Paragraph (E) hereof, the DU shall immediately
reconnect the same within the aforementioned time period. (n)18
Article 24. Right to Witness Apprehension Subject to the provisions of RA

7832, all apprehensions for illegal use of electricity must be personally witnessed by
the customer or occupant or someone of suitable age and discretion residing therein
and acting in behalf of the owner or occupant of the premises, and by an officer of
the law or by an ERC representative.
Article 25. Right to ERC Testing of Apprehended Meter In case the

apprehension is witnessed by an officer of the law and not by an ERC authorized
representative, the electric meter subject of the offense must be placed is a suitable
container, properly identified and sealed, and shall be opened only for testing by the
ERCs duly authorized representative.
17
18
id
Page 18 of 28
Upon removal, the apprehended meter shall be immediately replaced by the

distribution utility with an accurate electric watthour meter. However, no
disconnection of electric service shall be effected until the ERC issues a meter test
report showing that the meter was indeed tampered.
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.
CHAPTER III CONSUMER OBLIGATIONS
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
Page 19 of 28
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.
Distribution utilities are allowed to provide alternatives to cash deposits as a

guarantee of consumers payments. (n)
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.
Non-payment of the reimposed or adjusted bill deposit shall be a ground for

disconnection of electric service. (n)
When the electric service of a consumer is disconnected and no bill deposit

was ever posted for such service account, the consumer may be required, in addition
to the payment of the unpaid bills, to post the appropriate bill deposit with the
concerned DU, before any reconnection of electric service can be effected. (n)20
Article 29. Obligation to Allow Inspection, Installation and Removal of

Electricity Apparatus Customers shall allow the employees and/or representatives
20
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.
Page 20 of 28
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).
Provided, however, that only authorized employees and/or representatives

of the distribution utility with proper identification cards shall be allowed to make
any external adjustments of any meter or any internal or external adjustments of any
other pieces of the apparatus owned by the distribution utility.
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.
Article 31. Obligation to Receive Monthly Bills Consumers must accept

their electric bills, without prejudice to the exercise of their right to pay under
protest pursuant to Article 26 of this Magna Carta in order to contest the same.
Article 32. Obligation to Pay Monthly Electric Bills
A. Monthly Electric Bills
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)
Distribution utilities may offer other payment options to the consumers

under terms mutually acceptable to both parties. (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
Page 21 of 28
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)
To stay the disconnection of service, the consumer shall be allowed to pay an

amount equivalent to the said average 12-month consumption subject to
adjustment upon resolution of the complaint. (n)
The DU shall, upon receipt of the complaint/protest, conduct an investigation

thereof. Investigations into high billing complaints must be completed within thirty
(30) days from filing of the complaint or protest. (n)
The consumer must cooperate with the DU and its representatives

throughout the investigation process including the conduct of a thorough inspection
of his/her premises, the electric meter and electrical wirings. All costs relative to the
investigation and inspection shall be shouldered by the consumer. All inspections
shall be done in the presence of the consumer or his/her duly authorized
representatives. (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)
However, for cases other than inaccurate or tampered meter, tapping of

loadside wire, or stoppage or failure of meter to register the actual consumption of
the customer or other billing errors contemplated in Article 10 hereof, where there
is unexplained and sudden increase in consumption resulting to high billing
equivalent to at least five hundred (500%) percent of the customers previous
average 12-month consumption, the DU shall be entitled to collect from the
customer the amount equal to his average 12-month consumption prior to the
contested billing, plus half of the difference between the bill in question and the said
average 12-month consumption; Provided, That, if the customer is unable to justify
his claim for high billing within a three (3)-month period from the date of the
contested billing or the increase in consumption has been sufficiently established by
the DU within the same period, or the customers subsequent consumption for any
month in the succeeding twelve (12) months approximates the contested billing, the
customer shall be required to pay the entire amount of the contested billing. The DU
must, however, change the meter of the concerned consumer immediately after the
occurrence of the contested billing. (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
Page 22 of 28
Article 33. Obligation to Pay Billing Adjustments and Undercharges 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 must enter into an agreement with the
consumer for a staggered payment scheme within a period equivalent to at least the
number of months covering the billing adjustment, unless the consumer opts to
accelerate the payment period.
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. If there is no ERC test result, the estimated consumption shall be based on
the average use of energy for the immediately preceding six (6)-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.
Consumers shall pay undercharges to the distribution utility upon showing of

proof of the latters entitlement, the amount of the undercharge shall be computed
Consumers must pay their bills not later than nine (9) days after receipt of the monthly bill.
Page 23 of 28
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
Article 34. Obligation not to Commit Illegal Use of Electricity No consumer

is allowed to perform acts constituting illegal use of electricity. The following
circumstances constitute prima facie evidence of illegal use of electricity:
(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
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.
Page 24 of 28
(d) The presence of a tampered, broken, or fake seal on the meter, or

mutilated, altered or tampered meter recording chart or graph or
computerized chart, graph or log;
(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;
(f) The mutilation, alteration, reconnection, disconnection, bypassing or

tampering of instruments, transformers and accessories;
(g) The destruction of, or attempt to destroy, any integral accessory of

the meter device box which encases an electric meter, or its metering
accessories; and,
(h) The acceptance of money and/or other valuable consideration by any

officer or employee of the electric utility concerned or the making of
such an offer to any such officer or employee for not reporting the
presence of any of the circumstances enumerated vin subparagraphs
(a), (b), (c), (d), (e), (f) or (g) hereof.
The discovery of any of the foregoing circumstances must be personally

witnessed and attested to by an officer of the law or a duly authorized
representative of the Energy Regulatory Commission (ERC).
Article 35. Obligation to Pay Differential Billing A consumer who is

discovered to have committed the offense of illegal use of electricity shall, in
addition to the imposition of appropriate penal sanction, be required to pay a
differential billing to the electric distribution utility to be computed in accordance
with the existing laws, rules and regulations.
The period to be recovered for the purpose of computing the differential

billing shall be subject to the following rules:
(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.
(2) Furthermore, if the concerned consumer presents indubitable and

adequate proof that the occurrence of the illegal use of electricity is
Page 25 of 28
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.
(3) In the absence of the two aforementioned circumstances, the

distribution utility may be allowed to recover the differential billing up
to a maximum of sixty (60) billing months up to the time of discovery.
Article 36. Transfer of Electric Service Applications for transfer of electric

service of registered customer shall be allowed under the following circumstances:
(a) A tenant shall be allowed to substitute as the new registered

consumer when the original registered customer was a tenant who
has left the premises covered by the electric service contract;
(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.
In support thereof, the applicant shall submit all applicable requirements

provided for in Article 6 hereof to the distribution utility. Upon approval of the
transfer of electric service, the new registered consumer shall assume all rights and
obligations of the old registered consumer.
Arrearages by the previous registered consumer or occupant shall be dealt

with in accordance with Article 22 of the Magna Carta. (n)23
Article 37. Termination of Electric Service Termination of electric service

shall only be effected, after giving due notice to the other party, for any of the
following reasons:
(a) Request by the registered consumer;
(b) Death of a registered consumer;
(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
Page 26 of 28
distribution utility within a period of three (3) months from such

disconnection;
(d) Permanent departure or abandonment by the registered consumer of

the subject premises;
(e) Public safety; and,
(f) Orders of competent courts and other government agencies. (n)24
Article 38. Implementation Implementation of Articles 7, 8, and 28 shall

be subject to Guidelines to be promulgated and approved by the Commission.
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 40. Separability Clause If any provision of this Code is declared

unconstitutional or invalid, the other provisions not affected thereby shall remain in
force and effect.
Article 41. Repealing Clause Provisions of ERC Res. No. 95-21 as

amended, rules, regulations, guidelines and other issuances not expressly revised by
this Magna Carta shall remain in force and effect.
Article 42. Effectivity This Code shall take effect fifteen (15) days after
its publication in a newspaper of general circulation in the country.
ERC Resolution No. 28-2010
SECTION 2. All other Articles of the Magna Carta for Residential Electricity
Consumers are hereby renumbered accordingly.
SECTION 3. If any of the foregoing amendments is declared unconstitutional

or invalid, the other provisions not affected thereby shall remain in force and effect.
24
Page 27 of 28
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.
Pasig City, June 17, 2004.
Page 28 of 28

Magna Carta For Residential Electric Consumers (As Amended)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Magna Carta For Residential Electric Consumers (As Amended)

Uploaded by

Copyright:

Available Formats

MAGNA CARTA FOR RESIDENTIAL ELECTRICITY CONSUMERS

Pursuant to the Provisions of Section 41 of Republic Act No. 9136, otherwise

SECTION 1. The following provisions of the Magna Carta for Residential

MAGNA CARTA FOR RESIDENTIAL ELECTRICITY CONSUMERS

CHAPTER I GENERAL PROVISIONS

Article 2. Definition of Terms

distribution system (for users of the distribution system). For

(e) Distribution Utility shall mean any electric cooperative, private

(g) Energy Regulatory Commission or Commission or ERC shall mean the

(k) Residential Consumer shall mean a customer classified as such in the

(m) Termination of Electric Service Contract shall mean the cancellation,

Article 3. Applicability This Magna Carta shall only apply to residential

(b) To be accorded courteous, prompt and non-discriminatory service by

(c) To be given a transparent, non-discriminatory and reasonable price of

(d) To be an informed electric consumer and given adequate access to

(e) To be accorded prompt and speedy resolution of complaints by both

(g) To organize themselves as a consumer organization in the franchise

Article 5. Basic Obligations Every consumer must comply with the

(b) To allow the faithful and accurate recording of consumption to be

(c) To allow the utilitys employees/representatives entry access to his

(e) To inform the distribution utility and/or proper authorities of any

CHAPTER II CONSUMER RIGHTS

Article 6. Right to Electric Service A consumer has the right to be

Old Text of Article 6 as per MCREC-7.17.2004:

C. For Authorized Representatives of Owners:

D. For Tenants of Privately-Owned Premises:

E. Informal Settlers of Government-Owned Properties:

If the applicant is not a tenant of the premises sought to be energized, he

The requirement of an undertaking shall not apply to an applicant who is a

When the aforementioned registered customer leaves the premises, the

The liability provided in the undertaking shall extend to similar obligations of

The DU may waive any or all of the foregoing requirements as it deems

Article 8. Exemption From Payment of Meter Deposit All consumers shall

Article 9. Right to an Accurate Electric Watthour Meter; Determination of

An accurate electric meter, located in an area allowed under existing ERC

This Provision shall likewise be applicable to errors arising under Article 9,

Old Text of Article 9 as per MCREC-7.17.2004:

Meters may be located in other areas based on justifiable reasons. Meters

Clustering of meters may be allowed under any of the following

(1) Upon the request of a consumer;

(2) When there is no right of way; or,

(3) In areas with high incidence of electricity pilferages. (n)

Meters may likewise be clustered or relocated in elevated metering centers

without any justifiable reason, to allow DU representatives entry into

Old Text of Article 11 as per MCREC-7.17.2004:

Meters may be located in other areas based on justifiable reasons.

Article 13. Right to a Prompt Investigation of Complaints; Customer

In case of disagreement between the distribution utility and the customer,

Article 14. Right to Extension of Lines and Facilities A consumer located

To recover the aforementioned expenditure (advanced payment), the

Dedicated transformers, including their maintenance, repair or replacement,

Refund of advances made by developers shall be governed by the provisions

Old Text of Article 15 as per MCREC-7.17.2004:

If the cost of the extension of lines or installation of additional facilities was

Article 15. Right to Information; Scheduled Power Interruptions in order

Major announcements/documents shall include, but not be limited to, rate

At least two (2) days before a scheduled power interruption, a distribution

Article 16. Right to a Transparent Billing Bills to service customers shall

Article 17. Right to a Monthly Electricity Bill Bills shall be delivered

Notwithstanding the provisions of the foregoing paragraph, no violation of

The distribution utility shall safely keep the duplicate, electronic or

Article 18. Right to Due Process Prior to Disconnection of Electric Service