ERC seeks public’s inputs on the proposed Amendments to the Rules on Prepaid Retail Electric Service

The Energy Regulatory Commission (ERC) on 29 December 2011 posted at its website (www.erc.gov.ph) the proposed Amendments to the Rules on Prepaid Retail Electric Service (PRES) prior to the Public Consultation slated on 13 January 2012. The proposed amendments on the Rules on PRES were initiated by Xen Energy Systems, Inc. (XESI) by way of a petition for rule-making filed before the ERC (docketed as ERC Case No. 2010-010 RM). Electricity consumers and all other interested parties are encouraged to submit their comments and/or inputs on 16 January 2012 before the ERC decides on the proposed Amendments to the PRES on 30 January 2012. The ERC had received on 15 December 2011 several comments and issues from the distribution utilities (DUs) pertinent to the said Rules on PRES, more particularly on the following concerns, among others: (1) the determination of the applicable rate to be charged to consumers; (2) the use of short messaging system (SMS) and the internet; (3) no disconnection between 9 PM to 8 AM for prepaid electricity consumers; and (4) charging of transaction fees by retailers of prepaid cards.

Pasig City, December 22, 2011.

As specified in the Rules on PRES, the rates to be applied in any prepaid transaction should be based on the effective postpaid retail rate current at the time of purchase (Sec. 2.6).  The DUs, however, propose that the actual cost of electricity service at the time of electricity consumption be applied to prepaid transactions.  Also, the Rules stated that the prepaid meters should be provided with a mechanism or device for monitoring and managing the rate at which energy is being consumed and in receiving warning when credit drops to the agreed threshold (Sec. 2.4).  The DUs, on the other hand, propose the use of SMS and the internet to alert the customer needing reload to his prepaid electricity.  Further, the Rules specified that the DU should allow reasonable means by which the residential customer shall have easy access to the purchase of electric energy credit for twenty four (24) hours to ensure continuous service (Sec. 2.8).  The DUs propose a certain time period within which to disconnect the electric service, i.e., between 9 PM to 8 AM.  Furthermore, the Rules on PRES are silent on the charging of transaction fees by retailers of prepaid cards which purports that the same is unwarranted in the same manner that the customers should not be made to advance the cost of nor to purchase the prepaid meter (Sec. 2.5).  The DUs, however, propose the imposition of transaction fees by retailers of prepaid cards.  The existing Rules on PRES apply only to Residential customers.  MERALCO, in particular, suggests that the PRES be offered likewise to Non-Residential customers.

 "The ERC is inviting comments and inputs on the proposed amendments to the Rules on Prepaid Retail Electric Service (PRES) from all interested parties to ensure the smooth implementation of the said Rules and the envisioned success of prepaid retail electric service similar to such being experienced by the telephone companies in the country,” ERC Chairperson Zenaida G. Cruz-Ducut stated. - https://www.affordablecebu.com/