ERC to study impact of easing bill deposit rules

THE ENERGY Regulatory Commission (ERC) said it will assess the potential impact of no longer requiring distribution utilities (DUs) to collect bill deposits from consumers applying for new or additional electricity service.

At an open commission meeting on Thursday, ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said the agency will gather data after receiving comments from stakeholders on the proposal.

He noted that some stakeholders had urged the ERC to carefully review the plan to limit the collection of bill deposits.

The initiative forms part of a proposed resolution adopting the Magna Carta for Electricity Consumers, which covers DUs’ collection of bill deposits — an amount paid by customers to power distributors as a guarantee for the payment of electricity bills.

Under the draft, the ERC plans to amend the definition of a bill deposit so that it would “appear not to be a mandatory requirement anymore for connection for an application, for a new application,” Mr. Juan said.

“It is the DU’s prerogative. They may require (payment of bill deposit). Unlike in the previous provision that it would seem it is mandatory for DUs to collect these bill deposits,” he said.

The ERC is also proposing that consumers in good standing for two consecutive years may qualify for an automatic refund of their bill deposits.

Mr. Juan said the agency will collect data to determine whether easing the requirement for bill deposits would have any impact on electricity rates.

“This will help us determine what the proper decision should be once our data is complete, including whether there will be any rate impact,” he said. — Sheldeen Joy Talavera