MAGNA CARTA

• MAGNA CARTA FOR RESIDENTIAL ELECTRICITY CONSUMERS
• Pursuant to the provisions of Section 41 of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act, the Energy Regulatory Commission hereby promulgates the Magna Carta for Residential Electricity Consumers as adopted in a Resolution by the Commission on June 9, 2004.
• Bill Deposit


  Deposit required from customers by distribution utilities of new and/or additional service equivalent to the estimated billing for one month to guarantee payment of bills
• Billing Adjustment


  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
• Connection Point


  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)
• Consumer or Customer or End-user


  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
• Distribution Utility


  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
• Differential Billing


  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
• Energy Regulatory Commission or Commission or ERC


  The independent regulatory agency created under Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA)
• Month


  The elapsed time between two succeeding meter readings, at least twenty-eight (28) days apart but not to exceed thirty one (31) days
• Officer of the Law


  Any person who, by direct provision of 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
• Registered Customer


  The customer who has a valid service contract with the electric distribution utility
• Residential consumer


  A customer classified as such in the distribution utility's rate schedule as approved by the ERC
• This Magna Carta shall only apply to residential consumers.
• Basic Rights of Consumers

  • To have quality, reliable, affordable, safe, and regular supply of electric power
  • To be accorded courteous, prompt and non-discriminatory service by the electric service provider
  • To be given a transparent, non-discriminatory and reasonable price of electricity consistent with the provisions of RA 9136
  • To be an informed electric consumer and given adequate access to information on matters affecting the electric service of the consumer concerned
  • To be accorded prompt and speedy resolution of complaints by both the distribution utility and/or the ERC
  • To know and choose the electric service retailer upon the implementation of Retail Competition
  • 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
• Basic Obligations of Consumers

  • To observe the terms of his contract including, among other things, paying monthly electricity bills promptly and honestly
  • To allow the faithful and accurate recording of consumption to be reflected in the appropriate device
  • To allow the utility's employees/representatives entry/access to his premises for the purposes provided for in Article 29 hereof
  • To take proper care of metering or other equipment that the electric utility has installed in his premises
  • 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
  • To cooperate with and support programs on the wise and efficient use of electricity
• Right to Electric Service


  A consumer has the right to be connected to a distribution utility for electric power service after the consumer's full compliance with the distribution utility's and local government unit's (LGU) requirements
• Right to a Refund of Bill Deposits


  The bill deposit shall be refunded within one 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 demand for the full refund of the deposit even prior to the termination of his service.
• Exemption from Payment of Meter Deposits

  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.
• Right to an Accurate Electric Watthour Meter


  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.
• 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.
• 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.
• Right to a Meter Testing by Electric Utility and/or ERC


  A customer 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 premises making use of a meter standard duly tested and sealed by the ERC.
• Right to a Prompt Investigation of Complaints; Customer Dealings


  Distribution utilities shall record and promptly investigate all complaints referred to them concerning their services. 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.
• 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.
• Right to Information; Scheduled Power Interruptions


  All offices of distribution utilities shall post in conspicuous places the schedule of power interruptions, the reasons therefor, and the estimated restoration time.
• Revenues


  Derived from the extension of facilities
• Extension of lines to provide electric service


  1. Developer initially paid the cost

  2. Property purchased and transferred in the name of the registered customer

  3. Registered customer entitled to refund of the cost of the extension of lines

  4. Refund options 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 customer, this provision shall not apply
• Utilities furnish the Commission a semi-annual report


  1. Names of customers who made cash advances

  2. Amount of the cash advance

  3. Mode of refund
• Consumer Bulletin Board


  Where major announcements/documents issued affecting consumers will be posted
• Communications facilities


  Including but not limited to a customer hotline and Short Messaging Service (SMS), to cater exclusively to their customers
• Major announcements/documents


  • 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
• When there are two 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
• Scheduled power interruption


  1. At least two (2) days before, distribution utility must announce the same to its customers through print, or other mass or interactive media

  2. 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
• Bills to service customers


  Shall conform with the format as approved by the ERC
• Delivery of monthly electricity bills

  1. Bills shall be delivered monthly to the customer by the distribution utility in accordance with the applicable rate schedule

  2. Bills shall be payable to authorized collectors, the collection office, authorized agents/entities or at its authorized banks
• 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, if such inability to read on time was due to a fortuitous event and 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