SEN. Erwin Tulfo on Sunday called on power firms to explain confusing electricity bill deposits that let consumers pay in installments, after complaints that the additional charges nearly doubled some households’ bills.
Tulfo, chairman of the Senate Committee on Energy, said consumers were caught off guard by the sudden increases, and warned that unexpected charges could cripple family budgets.
“It is clear from the reactions of our fellow Filipinos that they were blindsided by this increase. Paying electricity bills is a constant part of the monthly budget, so when these shocks happen, they cripple Filipino families,” he said in a statement.
Such complaints followed the reimposition of bill deposits in October, when some Meralco customers reported thousands of pesos in additional charges under the “other charges” section of their bills. Meralco said about 20,000 of its more than eight million customers were affected by the reimposition.
Subsequently, Meralco deferred deposit collection until 2027, saying amounts already paid in October would be credited to customers’ November bills. The company also said it was coordinating with the Energy Regulatory Commission (ERC) on installment payment options.
A bill deposit is a security payment to protect utilities against unpaid electricity bills.
Under the Magna Carta for Residential Electricity Consumers, the deposit is generally equivalent to one month’s estimated electricity bill and may be adjusted based on a customer’s average monthly consumption.
The rules allow utilities to collect or reimpose deposits under certain circumstances, including when a customer defaults on payments after a previous refund. The deposit is separate from charges for electricity actually consumed and earns interest under ERC rules.
Although Meralco postponed imposition of bill deposits, Tulfo said consumers still question how the charges were computed and reflected in their bills.
“Most of the complaints raised with us are that the ‘other charges’ are higher than the consumption charges, yet consumers do not understand what these other charges consist of,” he said.
The ERC issued an advisory on Oct. 23, which covers the reimposition of bill deposits, requires utilities to explain the charges to consumers, and provides an installment payment option. Under the rules, deposits may be paid for in three equal monthly installments.
Tulfo said power companies must explain the additional charges so consumers can understand what they are paying for and prepare their household budgets accordingly.
He also urged distribution utilities to consider the financial pressures households could face amid forecasts of a strong El Niño, which could worsen conditions for families as they cope with potentially higher electricity expenses.
“With the uncertainty brought by the super El Niño, especially when it comes to the budgets of Filipino families, please be considerate and avoid imposing these additional payments,” he said.
Tulfo also backed ERC-issued rules on bill deposits, urging power firms to exercise social responsibility and provide consumers with more flexible payment arrangements.
“Apart from ensuring transparency, uphold your corporate social responsibility and allow consumers to pay in tranches,” he said.
The ERC has directed power distribution utilities to give consumers the option of paying bill deposits in three equal monthly installments.
It has also introduced broader reforms to bill deposit rules, including installment options for new residential connections and automatic refunds for qualified consumers who consistently pay their bills on time.
Under its amended rules, residential customers who settle their bills on or before the due date for two consecutive years qualify for an automatic refund of their deposit, including accrued interest. CATHERINE VALENTE
