The Supreme Court’s recent decision upholding the validity of bill deposits for electricity consumers marks a pivotal moment in safeguarding customer interests, the Energy Regulatory Commission (ERC) said. The ruling confirms the ERC may compel consumers to pay a deposit as a security for their electric bills—an essential step in ensuring the financial stability of distribution utilities (DUs) like Manila Electric Co. (Meralco) while protecting consumers’ rights.
ERC chairman Monalisa Dimalanta expressed gratitude for the Court’s affirmation of the Commission’s authority, saying the ruling clears the path for the ERC to introduce additional safeguards on the collection of bill deposits. “This ruling enables us to revisit and refine our policies, focusing on consumer protection while maintaining the financial health of our utilities,” Dimalanta explained.
The decision, handed down last Monday, comes after a petition was filed by consumer advocate Neri Colmenares challenging the ERC’s authority to require the payment. The SC ruled that the collection of bill deposits is a valid exercise of the ERC’s regulatory power, established under the 2004 Magna Carta for Residential Electric Consumers.
The bill deposit, which is equivalent to a month’s estimated electric usage, may be refunded after three years, provided the consumer has paid their bills on time and has no history of disconnection. In addition, the deposit earns interest at the rate set by the Landbank of the Philippines, credited annually to the consumer’s account.
For consumers, the deposit serves as a temporary safeguard, while the recent ruling will lead to further measures that aim to balance the financial viability of power distributors and the protection of consumers’ hard-earned money.
