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MAGNA CARTA FOR RESIDENTiAl ELECTRICITY CONSUMERS ""*'~!::::.:..

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Pursuant to the provtslone of Section 41 of Republic Act No. 9136, otherwise known as the Erectric Power Industry Refonn Act, the Energy Regutatory Commission hereby promulgates the Magna Carta for Residential Electricity Consumers as adopted in a Resolution by the Commission on June 9,2004.

CHAPTER I. GENERAL PROVISIONS

Article 1. Title - This ResoluUon shall be known as the Magna Carta for Residential Electricity Consumers.

ArtJc1a 2. DeflniUon of Terms. -

(a) Bill Deposit shall mean the deposit required from customers by d i strib ution utilities of new and/or ad d itiona I service eq u iva lent to the esUmated bimng for one month to guarantee payment of bins.

(b) BIlling Adjustment shall mean the amount charged to the consumer for the unbi!led electricity consumed resulting from a stoppage or defect, conspicuous or otherwise, in the meter, provided that there is no evidence of tampering thereon;

(c) Connect/on 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);

(d) Consumer or Customer or End-user shall mean any person who is the registered customer of the electric uUlity being supplied with electricity by th e conca mad distri bution uti! ity or a ny person authorized by the registered customer to occupy the premises and enjoy el ect ric se rvice:

(e) DIstributIon Utility shall mean any electric cooperanve, private corporation. govemment-owned utility or existing local govemment unft which has an exclusive franchise or is authorized by law to d lstri bute e lectri cfty to end-u se rs;

(f)

Differential Billing shall mean the amount charged to the consumer for the unbilred erectricity Illegally consumed as d eterm i n ed th ro ugh the use of methodolog ie 5 p rescd bed by raw. It is determined by multiplying the unbilled consumption in kWh, the period covered and the cu rrent rate of electricity at th e ti me ot apprehension;

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(g) Energy Regulatory Commission or Commission or ERe shall mean the independent regulatory agency created under Republic Act No. 91361 otherwise known as the Electric Power lndustry Reform Act of 2001 (EPIRA):

(h) Month shaU mean the eJapsed time between two succsedlnq meter readings, at least twenty-eight (28) days apart but not to exceed thsr1y on e (31) days.

(i) An OffIcer of the Law shall refer to any person who, by direct provision of law or by erection or by appointment by competent authority, is cha rged with the rna intena n ce of pu bl ic order a nd the protection and security of tife and pmperty, 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 provincia I fiscal.

0) A Registered Customer shall mean the customer who has a val id se rvice co ntract with th e electric d istributio n utiJity.

{k} Residential consumer shall mean a customer classffied as such in th e d istri bution uti I ity > s rate sched ule a s approved by the ERe.

Article 3. Applicability. - This Magna Carta shalf only apply to residential consumers.

Artiers 4. Basic Rights. ~ AU consumers shari be entitled to the foUowing basic rights:

(a) To have qua I ity, rei i able, afford a ble, safe, and regu lar su pply of electric power;

(b) To be accorded courteous. prompt and non-discriminatory

service by the el ectric sa rvice provider:

(c) To be given a transparent, non-discriminatory and reasonable price of el ectricity conslste nt with the p revisions of RA 9136:

(d) To be an informed electric consumer and given adequate access to information 0 n matters affecting the er actri c servl ce of the consumer concerned;

(e) To be accorded prompt and speedy resolution of complaints by both the d istri bution util ity a nd/o r the E RC;

(f)

To know and choose the electric service retailer upon the imprementation of RetaU Competition: and

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(g) To organrze themselves as a consumer organization in the franchise area where they belong and where they are served by the d istri buUon uti! ity 0 r as a network of orga n izabon s.

Article 5. Basic Obligations. - Every consumer must comply with the following obligations and responsibilities:

(a) To observe the terms of his contract 'ncluding, among other things, paying month Iy electricity bitls prom ptly and honestl y;

(b) To a lIow the faithfu I and a ccu rate record ing of cons u mption to be reflected rn th e appropriate device:

(c) To allow the utility's employees/representatives entry/access to his premises for the purposes provided for in Article 29 hereof;

(d) To take pmper care of metering or other equipment that the el ectri c uti I ity he sin stalled in his pre m iS9S ~

(e) To inform the d istrib ution utility and/or proper autho ritia s of any theft or pilferage of electricity or any da mage ca used by any person to the electric meter and equipment appurtenant thereto; and

(f) To cooperate with and support programs on the wise and efficient use of electric ity.

CHAPTER II. CONSUMER RIGHTS

Article 6. Right to Electric Servlce~ - A consumer has the right to be con nected to a d istribu tion u til ity fo r electric power service after the cons u me r' s fu II comp nance with the d istributio n uti Itty' san d tocal gove m ment unit's (LGU) 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 p rem ises that the sa id owner sha II be jo intly a nd seve rail y Ii a ble with the a ppl lea nt fa r any unpaid regu la r mo nthl y biUs in cu rred by the a ppllca nt after I eavi ng the pre rn ises, in the abs ence of or insufficiency of th e bill deposit.

Subject to the approval of ERe, a djstribution utility which cannot se rvice a reas wit h i n its fra n ch ise territo ry may a !fow another d istributio n uti! ity or a qualified third party (alP) to provide electricity services in said area pursuant to Rure 7 and Rule 14 of the Implementing Rules and Regurations of the EPrRA.

The labor cost for connecting the distribution utifity's service drop to tie)

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connection point shalf be free of charge. The connection point shall be des ig natad u po n agreement by th e distribu lion utility and th e consu me r.

Article 7. Right to a Refund of Bill Deposits. - The bill deposit provided for under Article 28 hereof shalt be refunded within one month from the tennination of service provided all bills have been paid.

A customer who has paid his electric bills on or before its due date for th rae (3) consecutive yea rs may, however t dema nd for the fu II refu nd of the deposit even prior to th e te rmi nation of his service. An a pp lication fo r this pu rpose shall be filed with the concerned d istri butio n util ity which must refu n d the deposit within one month from receipt of such application.

ArtJcra 8. ExemptJon from Payment of Meter Deposits. - An consumers shari be exempt from payment of meter deposits since private d i strib ution uti I ities have incorporated the cost of these electric wattho u r meters in thei r rate base. E lectn c coops ratives sha II u sa thai r respective Reinvestment Funds to procure electric watthour meters for their consumers.

Inca sas of loss a nd/or da mage to th e el ectric mete r due to th e fa u It of th e cu stome r, he sha II be ar the repla ce ment cost of th e meter.

Article 9. Right to an Accurate Electric Walthour Meter; DetermlnatJon of Average Error. - No meter, includfng instrument tra nsforrners, sha II be in staJI ed 0 r placed in service unless it ha s been tested t certffied and sealed by the ERe. 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 Goveming the Operation of Electric Power Services (ER8 Resolution 95-21? as ame nd ad) shall be used in the d ete rmi nation of ave rage error.

The ERG seal is a warranty that (1) the meter is an acceptable or ecce pted type and (2) that it operates with i n th e atlowa bl eli m its of tolerance.

The consumer has a right to demand the production of the meter test re port conta i ni ng th e find i n 9S of the authorized pe rson who tested th e sa id meter.

Article 10. Right to s Refund of Overbilllngs. - The customer has the rig ht to a refu nd incases of ove rbill ing by the d istri butio n util ity a ri stng from a mete r te sting showing th at the sa id mete r wa s fa st witho ut any evidence of tampering.

I n the event th at a meter in se rvice is fou nd to have a n average error of more than the tolerance of ptus two 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 customer's future billings. ()

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Article 11. Right to a Properly Installed Meter. - The customer has the rig ht to a meter installed ina clea n ptace free of vib ration and wh e re it wfll be easily aecas si bl e and vls ible for read i ng a nd testing by both the distri bution utility and th e co n 5U mer. Under no cond itio n shou Id mete rs be located be hind doors or where they can be easily broken or jarred by moving furnitures or eq u i pment. M stars s hall be located on the outsid e wa II of the build i n 9 0 r private pole and shan not be mom 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 custome r sh all baa r the cost of relocatio n of his etectric watthou r meter under the followi ng circu msta n ces:

1. The cu storn er requests for the retocation of h is electric w atthou r mete r, for rea son s other tha n those provid ed for in th e fi rst paraqraph; or

2. The meter in sta II ation fa iI s to meet the cond ition sun der the fi rst paragraph resulting from improvements done on the customer's premises. thereby necessrtating such relocation.

An oth er re locations of th e mete r sha II be bo me by th e electric util ity, Article 12. Right fo II Meter Testing by Electric Utility and/or ERe. - A cu stomer ha s the right to req u i re the d istribulion u tinty to test. 0 n 00 eve ry 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 ERe.

If the customer requests for meter testing more than once every two years and the meter being tested is found to be within the tolerable Umlt as provided for in Article 9 hereof, th e util ity may asses s the cu stomer a test 'ng fee based on the testing fee charged by ERG. A wrttten report showing the res u It of such test sha II be fu m is h ed the cu stomer.

The customer may also request the ERe to conduct 8 meter test. subject to the payment of a fee prescribed under the approved ERG Schedule of Fees and Charges.

In case the meter is found to be Inaccurate, the customer may demand the replacement of the said meter or have the ERC cafibrate the said meter to restore its accuracy closest to the condition of zero (0) ermr. The provision on refund or bining adjustment due to inaccurate meters shall apply as appropriate.

Article 13. Right to a Prompt Investigation of Complaints; Customer Dealings. - Distribution utilities shan record and promptly investigate all complaints referred to them concerning their services.

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The d istri buUon utility mu st fu rn i sh the comp la i nant a report of the a ction/s ta ken thereon withjn the pe nod stated in the dsstri bution util ity' 5 CompUance Plan as provided for in the Ph;Uppine Distribution Code. In the a bsence of su ch pl an, th e report mu 5t be made within fifteen (15) days from receipt of the camp la int.

I n case of disagreement between the distribution utility and the customer, the latter may file a complaint with the ERG in accordance with Article 27 of this Magna Carta.

In d ea I ing with thei r custom e rs relative to electric powe r se rvices, all officers, employees and agents of distribution utilities must properly and cons picuou sty d is play the ir identification ca rd s at all tl m es.

Article 14. Right to extension of Lines and Facilities. - A consumer located within th irty (30) mete rs from the distribution util ities' existing secondary low vortage lines, has the right to an extension of lines or installation of addiUonal facilities, other than a service drop, at the expense of the utility inasmuch as sald assets will eventually form part of the rate base of the private d j strihution utiUties, or win be sou reed from the reinvestment fu nds of the electric cooperatives. However, if a prospective customer is beyond the sa id distance, or h is demand load requ i res that the utirity extend lines and faciliUes. the customer may initially fund the necessary expenditures.

To recover his aforementioned expenditures, the customer may either demand 1he issuance of a notes payable from the distribution utility or refund at th e rate of twenty-five (25) percent of the gross d istri bution revenue derived for the calendar year, or, if available, the purchase of preferred shares.

Revenue derived from additional customers tapped directly to the poles and faciUties so extended shall be consWered in determining the revenues derived from the extension of fa cfliti as.

When a developer initially paid the cost of the extension of lines to provide el ectric service to a specific property a nd incorpo rated these expe n se sin the cost th ereof, a nd that property was pu rch a sed and tra n sfe rred in the n arne of the reg iste red custome r, the latta r shall be entitled to the refund of the cost of the extension of lines! and exercise the options for refu nd p rovid ed tn thi 5 article.

If the cost of th e extens io n of lines 0 r i nsta II atio n of add ltion al fa cHiti es wa s fu nd ed 9 ratu itously by other perso n s for the benefit of th e cu s tomer, th is provi sio n shall not ap ply.

In this connection, all concerned utilities shall furnish the Commission a semi-annual report of the names of customers who made the aforementioned cash advances, the amount of the cash advance and the mode of refund.

Article 15. Right to InformatIon; Scheduled Power Interruptions. - In ord er to increase cons ume r awa reness, all offices of dtstribu tion util lties

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must provide a Consumer Bulletin Board where major 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 (5MS), to cater exclusively to their customers.

Major announcements/documents shall indude, but not be limited to, rate schedules and any changes thereon: other service charges; tenns and conditions of service; standard rules and regulations goveming the operation of d i stributlo n u tilttie s: general informatio n on meteri n g, i nclud i n9 but not Umited to the manner in whtch meters are read and description of method used in reading; decisions and orders of the ERe.

When there are two or more authorized schedules of rates appncable 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 tea st two (2) days before a sebec u led powe r inte rru ption. a distrib u tion uti! ity must an nou nee the sa me to its cu sto mers th rough p ri n t, or other mass or interactive media. In remote areas where such media are inaccessJble, the distribution utiUty must sat up a Bulletin Board where announcements of scheduled power interruptions will be posted in an area that could easiJy be seen by its customers, preferably along roadsides or in front of the entrance to the C ity/M u n ici par H an or Pu bl ic Market.

Article 16. Right to a Transpar&nt Billing. - Bins to service customers shan conform with the format as approved by the ERe. The current formats approved by the Commission are shown in Annexes A and B of this Magna Carta.

Article 17. RJght to a Monthly Electricity Bill. - Bills shall be del ivered monthly to the custom e r by the distribution utility in aeco rda nee with the applicable rate schedule. Said bills shall be payable to authorized collectors, the collection office, authorized agents/entities or at its authorized banks.

Notwithstanding the provisions of the foregoing paragraph, no violation of the provi stan s of th is Mag n a Ca rta is comm itted by the d istributio n u tiUty 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 fortu ltous evenf ceases to exist.

Should the period cove red in the electric bill exceed the number of days provided for in this Magna Carta, the distribution utility shaU neverthe1ess provide th e appl lea bl e su bsldy for that consum ption f eveJ due to the cu stomer as if the meter had been read within the maximum allowabte period.

The distribution utility shall safeJy keep the dupUcatef electronic or otherwise, or office stu b of th e b ills used and shall not be destroyed within five

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(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 pa ragra ph. d iscon nection of el ectric se rvice shall onty be mad e u nd e r the followi ng circu rnstances:

(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 govemment agencies and/or the courts: (d) When th e pu bl ic safety so re quires:

(e) Req u e st of the registe red cu sto mers based on ju stifia bl e rea son s: or

(f) Allowing other end-users or persons to be connected to his etectn CB I i nsta lIation. wheth e r for profit or not

Article 19. Right to a Notice Prior to Disconnection. - For disconnections due to non-payment of electric bins, a written notice must have been served to the customer forty eight (48}-hours before such disconnection. The d istri button uti I ity ma y discontinue the se rv ice notwlthsta nd j ng the existe n ce of the custom er' s bill deposit with the d istri bution uti lity wh ich wiU se rve as gua ra ntee for the payment of tutu re bill (s) afte r servi ce is reconnected .

When the owner/occupant of the house or establishment concerned or someone acting in his behalf shan 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 el ectric service after servi n 9 th e written notice or warn in9 to th e effect. Th e written notice or warning being referred to herein shall be served prior to such dlsconnection and shall indicate the name and address of the consumer, consumer account number, date of apprehension. findings of fact, amount of energy pilfered· in kilowatt-hour, the amount representing the differential billing and the method used in computing the differential billing.

Article 20. Right to SuspensIon of Disconnection. -Notwithstandinq the service of notice but subject to the provisions of RA 7832, disconnections of service shall not be made on any week day beyond three o'clock (3:00 P. M.) in the aftemoon, Saturdays, Sundays and official holidays, and under

the following or any other similar circumstances: I'

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(8) One of the permanent occupants is sick and dependent on a life sup port system requ iri ng electricity; Provided, That the cu stomer ca n present a mad ical certificate i 59 U ad by a duly licensed ph ys icia n or pu b lie hea lth official certifying th at the tenn i nation of the el ectric service wo u Id be especially da ngerous to the h ea Ith of the sa id pe rson:

(b) During the funeral wake of a deceased pennanent resident of the premises; Provtded, That the consumer can present a duly certified true copy of the death certfficate of the decea sed i ssu ed by the Local Civil Registry of the city or municipality concerned;

(c) Cu storne r in d u bits bty proves he did not receive a Stateme nt of Account andfor Disconnection Notice;

(d) Customer is being billed in a sing1e statement for consumption covering several months due to the fanure of the utility to issue a timely monthly billing. statement to the consumer;

(e) Customer or his representative ts not around; Provided however, that this shall not be applicable to disconnections due to nonpa yme n t of el ectric bills.

F or Item (a), the suspen sion of th e disco n n ectio n shall 0 n Iy be mad e d u ri ng the dependency of the patle nt on th e I ife suppa rt system which sha II not exceed two months from such suspension.

F or Item (b). the sus pen sion of th e disco n n ection sha II on Iy be mad e during the period of the wake which shall not exceed one month from the suspen s io n or until the inte rme nt, wh ich ever come s aa r1 ler.

F or I tern (c), th e non-rece ipt shou Id not be ca u sed by the refusal of the customer to accept such electric bill or notice.

With res pact to Item (d), the custome r must pay the cu rre nt b illi ng on its due date. The d istri bu tion uti! ity, however, must enter into an ag reeme nt with the customer for a staggered payment scheme within a period equivalent to the number of months covering the un pak! b ilUng s.

ArtIcle 21. Right to Tender Payment at the Point of Disconnection; Deposit Representing the Differential BJiling. - If at the time the diseon n ectio n is to be made t th e custom er tend e rs pa ymen t of th e un pa [d bill to the agent or employee of the distri bu tion uti I Jty wh 0 is to effect the discon necnon, the said age nt, or employee of th e distri bution uti! ity sha II 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 i nvo ke th i s provls io n once for the sa m e un pakl bill.

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th e cu stom er with th e u tiUly or with the com pete nt court, as the ca se rna y be 1 of the amou n t repre santing the differentia I bming.

ArtIcle 22. Right to Electric ServIce Desp;te Arrearagas of Previous Tenant. - Without prejudice to enforcing the pmvisions of the second paragraph of Article 6 hereof, a distnbution utility shall not refuse or discontinue service to an appJicant or customer, who is not in arrears to the distribution utility, even though there are unpaid bnls or charges due from the premises occupied by the applicant, or customer. on account of an unpaid but of a prior tena nt, un less there is evidence of conspiracy to defraud the d istri bution uUI ity .

Article 23. Right to Reconnectlon of Electric Setvlce. - Whenever the el ectric se rv ice is discon nected due to non-payment of etectric b i~1 S, ttl e utility must immediateiy reconnect the same within the period provided in the utility's Compliance Pian as approved by the Commission in accordance with the PhflipptnB Distribution Code, but in no case shal~ exceed twenty-four (24) hours from payment of the said arrearages by the customer. The 24-hour period may be extended only for justifiable reasons.

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 re sid j ng t h erei nand acti ng in beha If of the own e r 0 r occu pa nt of the premises, and by an officer of the law or by an ERC representative.

Article 25. Right to ERe Testing of Apprehended Meter. - In case the apprehension is witnessed by an officer of the taw and not by an ERe a uthorized rep resentanve, th e electric mete r subject of the offen se must be placed in a suitable container, properly identified and sealed, and shall be open ed onl y for testing by th e E RC IS duly authorized re presentative.

Upon removal, the apprehended meter shall be imme<Uately replaced by the d i strlbutlo n u tnity with an accu rate electric watth 0 u r meter. However. no disconnection of electric service shall be effected until the ERG issues a. meter test report showing that the meter was indeed tampered.

Artlcie 26. Right to Payment Under Protest. - In cases of regular electric bills 0 r bini ng adjustments due to the stoppage or fa iI u re of the meter to reg ister the fu II a nd correct a mou nt of energy consumed, 0 r for d iffe rentia I billing due to ilneged mega} use of electricity. the consumer shall have the rig ht to pa y u nd er protest for pu rposes of continuou s su pply of e~ectri city by the utifity without prejudice to a complaint to be filed by such customer against the imposition of the bill or biUing adjustment or differenUal bilJing. Such payment shall not be construed as an admission by the consumer of the altegations or claims of the distribution utmty or of any violation of law or of the contract with the d istributio n uti! ity.

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Article 27. Right to File Complaints before ERe .- EV~ consumer

has the right to fire a complaint before the ERe for violation (.~c laws,

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rules, reg u I ation s, gu id el i n as a nd pol icies, in cI ud i n 9 but not limited to RA 9136 and its lmplernentlng Rules and Regulations, RA 7832 and its Implementing Rules and Regulations and ERB Resolution No. 95-21, as amended; Provkled, That the complainant has previously discussed/consulted the issue with the Consumer Welfare Desk (CWO) Officer or representative of the concemed distnbution utility and no settlement has been reached.

CHAPTER 111. CONSUMER OBLIGATIONS

Article 28. Obligation to Pay Bill DeposJt. - A biU deposit from all residential customers to guarantee payment of bills shall be required of new and/or add ltlon al se rv Ice.

The amou nt of th e bfU deposit sha 11 be eq uiva lent to the esti mated billing for one mon th. P rovid ad that after (1) year a nd every yea r thereafter 1 when the actual average monthly bills are more or tess than the iniUal bill deposit, such deposit shall be correspondingly increased/decreased to approxi m ate sa id bill i ng.

Dlatribu tion utirities shan pay interest 0 n bin depoeus equ ivai e nt to the interest incorporated in the calculation of their Weighted Average Cost of Capital (W ACe). otherwise the hiil deposit shall earn an interest per annum in accordance with the prevailing interest rate fo r savi n 9s d epos it as approved by the Bangko Sentral n9 Pilipinas (SSP). The interests shan be credited yeany to the b ills of the reg lstered cu storne r.

In cases where the customer has previousfy 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 bin deposit with the distribution util ity and lose his right to ava iI of th e right to refu nd his bill deposit in the future until termination of service.

F ai lu re to pa y the requ ired bill d epos it sh all be a 9 rou nd fa r disconnection of electric service.

Article 29. Obligation to Allow 'nspect/on~ Installation & Removal of Electricity Apparatus - Customers shall allow the employees andfor re prese ntalive s of th e distribution utUity to enter thei r p rem ises to r the purpose of inspecting,. lnsta Ili ng, read j ng, te sting I re pairing, rna i nt3intng, removi ng, replacing, or otherwise dlsposlnq of its apparatus and property. and/or removing the distribution utility's entire property in the event of the termination of the electricity service contract; and for disconnection of service for nonpayment of bills or violation of contract (VOG).

Provided I however, that only authorized emPIOae and/or re prese ntatlves of th e d istri buuon u tUity with proper identificati s shall be allowed to make any external adjustments of any meter or 1?l~ntemal or external adjustments of any other pieces of apparatus o\.~ by the

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d istri bution utn ity.

Article 30. Obligation to Allow the Construction of Poles, Lines & Circuits. - Consumers shan a"ow the distribution utility, if necessary, to construct Its poles. lines and circu its a nd to pi ace as tra n sfo rmers, a ppa ratu s on their property or within the buildings of the consumer, at a point or points convenient for such purpose.

The cu stomer sh all allow th e d istri bution util ity to use a su itab Ie space for th e install ation of necessa ry meteri ng equ ipment ln order that su ch equipment will be protected from damage by the elements, or through the negligence or deliberate acts of any person or persons.

Articre 31. ObllgatJon to Receive Monthly Bills. - Consumers must acee pt th ei r el ectric bill s, without prej u d ice to th e exe rei se of th eir rig h t to pay under protest pursu ant to Articl e 26 of th is Mag na Carta in ord e r to co ntest th e same.

Article 32. Obligation to Pay Monthly Electric Bills. - Consumers must pay their bills not later than nine (9) days after receipt of the monthly bill.

Article 33. Obligation to Pay BIlling Adjustments. - A consumer may be compel1ed to pay a billing adjustment in case there is a stoppage or failure by the customer's meter to register the full amount Of energy consumed witho ut any fau It on the pa rt of the customer.

In th e event th at a mete r in service is tou nd to ha ve an ave rag e error of more than the tolerance of minus two percent (2%) without any evidence of tampering by the customer, the uWity 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 cu stamer, the d istri butlo n uti I ity ma y ont y be a lIowed to recover th e 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 su ch d i scove ry of th e stoppage.

Notwithsta nd i n 9 the p raced ing paragra ph s, the d istri but io n util ity may recover the fuJI amount of the unregistered consumption if it has been comp~ying with the two-year meter testing requirement under the Implementing Rules and Regufations of RA 7832, otherwise known as the Anti- Electricity Pilferage Act; Provided however, that the recovery period should not 9 a beyond the period from the last testing of th e mete r prior to th e date of discovery, but which period shall not exceed two (2) years. The distribution utilityt however, must enter 'nto an agreement with the customer for a staggered payment scheme within a period equivalent to the number of months covering the bi IIi ng ad j u stme nt.

Mag na Ca rta for Residential Electricity Consumers

Page 13 of 15

The refund or bi~ling adjustment should be based on the rate prevailing during the period sought to be recovered, and the estimated consumption shalt be based upon the result of the ERe test on the affected meter during the time of discovery, or his average use of energy for the immedtately preceding six-month period of like use, or the lowest monthly consumption within three (3) months after the Ume of discovery.

In case of disagreement on such bm, the Commission shaU resolve the

same.

Article 34. Obligation not to Commit Illegal Use of Electricity. - No consumer is allowed to perform acts constituting iUegal use of electricity. The fo lIowi ng c ircu mstances constitute prima facie evid e n ce of megal use of electricity:

(a) The presence of a bored hole on the gtass cover of the electric mete r, or at the back or any pa rt of sa id meter;

(b) The presence ins ide th e electric meter of sarff sugar and oth e r elements that could result in the inaccurate registration of the mete r' s inte rna I pa rts to prevent its accu rate reg istration of cons u mption of el ectricity;

(c) The existence of any wiring connection which affects the normal operation or reg istration of the electric meter;

(d) The presence of a tampered, broken, or fake seat on the meter, or mutilated, a Ite red or tampered mete r reco rd ing cha rt 0 r grap h or co m pute nzed cha rtf graph or log;

(e) The presence in any part of a building or its premess 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 devtce:

(f) The mutilation, alteration, reconnection, disconnection, bypassing or tam peri n9 of in stru m ants, tra n 910 rme rs and acce ssories;

(g) The d estru ctio n of, or atte m pt to destroy, any i ntegrar acce ssory of the metering device box which encases an electric meter, or its me~ering accessories.

(h) The acceptance of money and/or other valuable consideration by a ny officer or employee of the electric utifity conce mad 0 r the making of such an offer to any such officer or employee for not reporting the presence oJ any of the circumstances enumerated in subparagraphs (a), (b). (c), (d), (e), (f). or (g) hereof.

The discovery of any of the foregoing circumstances must be personaUY", witn essed a nd attested to by an officer of th e law 0 r a du Iy authorized (

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9

Magna Carta for Res ldenna I Electricity Consume rs

Page 14 of 15

-------~--~~----------~~-.~~~~----~---------~-----------~-~~.----------------------------~~------------

representative of the Energy Regulatory Cornmlssion.

Article 35. Obligation to Pay Differential Billing. - A consumer who is discovered to have committed the offense of ilfegal use of electricity shaH, In addition to th e rmposrtio n of ap propriate pe nal sa nctian, be req u i red to pa y a differentia I bmi ng to th e electric distribution util ity to be computed in accordance with existing laws, rules and regulations.

The pe nod to be recovered for the purpose of co m puUng the d fffe re ntia I bi mng 8 h all be su bject to the fa n oWIng rul es:

1. If prio r to th e date of discovery. there was a change of mete r, 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 biUing should be reckoned from the time when the said chanqes, inspection or reconnection occurred, which may resutt in a tess th an a yea r period of recovery.

2. Furthermore. if the concerned consumer presents indubitable and adequate proof that the occurrence of the illegal use of eJectri city ls for a period whjch cou Id be less tha n a yea r, the n for pu rposes of cal cu lating the differentia I bi lUng, the recovera ble pe nod sha II start from the occu rren ce of the it! egal use up to the time of ap prehe n skin.

3. In the absence of the two aforementioned circumstances, the d istri bution uttl ity may be allowed to recove r the d ITfe re ntia I hirling up to a maximum of sixty (60) biUing months up to the time of discovery.

CHAPTER IV. FINAL PROVISIONS

Article 36. ImplementaUon. - Implementation of Articles 7, 8 and 28 shall be subject to Guidelines to be promulgated and approved by the Commission.

Artlcra 37. Violstjon. - A violation of any provision of this Magna Carta shaU be subject to pena~ty which the Commission, after giving the el ectric utility or consu m er the opportun ity to be heard, rna y impose in accordance with law.

Article 38. SeparabllJty Clauss. - If any provision of this Code is d ecla red un constitu tion af or i nvarid, the other provls ions not affected thereby shan remain in force and effect.

Article 39. Repealing Clause. - Pmvisions of ERB Res. No. 95-21 as amended, rules, regulaUons, guidelines and other issuances not expre Y, revised by thls Mag n a Ca rta shall rama in J n force a nd effect.

~.,

Magna Carta for Residential Electridty Consu mars

Page 15 of 15

Article 40~ Effectivity. - This Code shall take effect frfteen (15) days after its pubUcation in a newspaper of genera' circul aUo n in the cou ntry.

Pasig City.

June 11, 2004

RODOLFO B. ALBANO, JR.

Chairman

fiC~tL ~ L

LETICIA v. I~_~ i

Commissioner

Commissioner

".

ANNUA

SAMPLE BLLINO fORMAT

(Fer E~ CooperalNeSl
AmolJllt Due
1- G6l8tationCh.lrgflI
G!n8ratkln Syaletn CheI'\JIiI
XXI( kWh C PhP xxxlkWh PhP I00I:.:0;
FrancI1lM & 8enetlla to Host Communities Charge
)001: kWh @ PhP ~Wh XICC-lOC
FORE)( Ad;justrrulIlt O1li1rge
XXII: kWh @ JltIP xw;d!Wh XXlLO
n- Tr.nt:mltllion Clwrg,.·
Demand Chlifg6
~ kW ft PhP 'f;)f)I,/k.W JOIX.XlC
Transmission System Ct\arge
»3: ~W1'I C P'tIP :w;:oo1IWh 1tIOII.~
111- System Loss C~rga
XXI( kWh C PhP ~Wh ~):);
IV, Dhltrlbuth:m CIliIIlIn2
DemilOd Chargoe (For ru5tomeB oMlJ'i demand melets)
lODC kW C PhP uxJkW
Dfsl1lbutioO S~m ChaJOl!l
XXII kWh C PhP ~h XXIUDI:
V, SupPy C"'ll1a
XXII: kWh @ PhP )(J(X/I(Wh 0( PhP lQO(/QJsl.cmerlmo. JOD:..O
VI, Melllring Chtlrga
l)C( kWh G PhP ICOO1I;Wh Of PhP xvJQJSlOmerfmc_ iIt'IOC.)O(
VI!. U ...... al Chll'~
NPC Sln;mded Debts
XXII kWh @ PtlP ~W., xxx.u
NPC stranded Conll"llld Costs
:00: kWh G PhP XJCX.I1IWh )'..'10;.:0:
DU, SIand8d Cootract CoIlS
XlOC kWh @ PhP IroII1IWI"I XXJUD:
t,Ou,jooary EIectrtlk:aHon
XXII kWh 0 PhP:.clOII1<Wh ~.~
EQUI!IlIzatioo or Tax8iI aod RoyeUies
XXI( kWll @ F'tlP x;:c;xIkWIl xxx.:o:
EnWorvnanlal CharV!'
:ux kWh @I PhP )()OfJ1(Wh ~xx
CroU--Subaidy RI!II'T"IIM!!II
)D(X kWh 0 Pt'lP JOOGIt<Wh )OC(.)Cl
VHI Intw-C .... CfOU Sunldy C~
xxx kWh 9 PhP ~WI'I xxx.ID:
IX, 04her C lw~alAdlJu"""nb:
Power Ad RaI8 RedJctioo (Fer Re~denl1al CUSlomerlS Only)
xxx kWh @ PhP ~Wh (:QCX.JO:)
Uf8iIne Rate (Disccunt)lSubsidy
:ox kWilli C PhP XlQdkWh j)co:x J()l) ~
CURRENT AMOUNT DUE PhP :o;x.xx
ADDITIONAl.. INFORMAnON
Quntion.II on your bill?
PIN" oonhlcl !.Ie anytime,
Dial telephcf1e numbers:
SEE: BACK FO~ OTHER IMPORTANT INFORMA nON I

• Charge! for SlJb.b'ar.smluloo facilities acqulted by DlslrtIution UHliIy IItIIiA form part of the Di$IrftIutico Charge,

2 P\nUant 1cJ s.cuon 60 or RA 9136, ......-.g, I'QIWId by 1IIBdrk: cooperaliYee (ECe) due to f\e f8fnCWaI of the ~ p8)Olet'Ila of !heir loans wIdl NEA shall bIJ passed 00 10 ... ru8IrlmeB;

::-~-::=1be ~~-::77comttpCnd1ngtolhetportlo!'lotthe

~ Diacount Of o..ge

.,

ANNEX "S"

-I

SAMPlE BILL FORMAT

{For Private uti~lies)
Piopoted Amount Due
J. Dlstrlbutkm Charge 11
Demand @ PhplkW PhP.'alUOI
Energy @PhplkWh xn:_xx
II. Suppl~ Ctw"ge
Energy @PhpnlWh XXX,)(X
@ PI"P per cus1.omBrlmonth )(XX.XX
111. Mtbrinu C~rw-
Energy @PhplkWh xxx.;o:
@ PhP per cl.lllklmerlmOf'lth :Q:X_XX
IV. 00Jer ChIll'gHlAdl ... bn..tts
ICERA,%lI xxx_xx
Pcwef faclof disoJuntlsurcha~. @ PhPIkWIl lQI'JI;.)Ci(
Power Act- Red'n, OPl"F1kWl1 .cue-IQ(
Subsidy on Lifeline Charge, @PhPlkWh )00(,)01
Lifeline Subsidy Discount @ PhplllWh (xxx.xx)
Inter Class Croolil SUb8k:l)' Charge
@PhPIkWh ~
SUB-TOTJ..L ~n:
V. Add;
Fnnchls .. Tax
National (2 % of d5lributiOn dlarges) lOOI.)O[
l.QQII (% d dItrbJIIon ~~ XXX,1eX )OO<JO(
En«gy Tu IBaIas PamIansII Big, 3i;l; RGS 0I:IfIIUI'I1ng abao;e 1350 klNt'l1 IOOC)()(
VI. s.nentIon Chllrv-
Energy @Ptp'kWh lClO:-lQI:
Vii. Transmlulon Ch.-g. l'
Demand @ PhpIkW )OO(.)()(
Enstgy e PhplkWh XlOC.XX
Ylli. 8yat.m Lou Ch.rge
E'*'tIY Q PhplkWh ltIUI;, )0(
IX.. UnI'Hf'HII Ch.-ge;
NPC SIrand8d Debts
@PhPlkWh )()(x.xx
NPC Slranded Contract QJslS
GI PhPJkWh XlOC..lO(
DOs $lrandad Contract costs
@PhPJkWh )oo(.lO<
Missionary Eleclriflcatm .
OPhPIkWh XlOUDI
Equalization 01 Taxes and RoyaHies
(fj PhPlkWh xxx.D
Erwlronmeotal Charge
GPhPJkWh )Q'J(.:O:
Income Tax Refynd f.w..!5.1l ~
ToTAl. AMOUNT DUE . PhPKIIIIIII
ADDmONAL tNFORMAT1ON:
QuutIotls on your bHl?
Please contact us anytime.
Dial telephone numbers:

IH:I: DAU( I"VIOI VTr.IOI. ......,,_ 1 _", 1& .... = "0IAI'gI!I fOI' ~bdl .... ~un:t by ~ UMty...".. fonn piIId:or ... 0istdbuII0n C~. ao AQI;JIed ~ ~ ~ QOII1PJOCIInI.