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MAGNA CARTAfor Residential Electricity Consumers
November 2005
www.meralco.com.ph
under the
Prepared by Customer Process Management, Utility Economics,Marketing and Corporate Communication
For more information
ERC Consumer Affairstel.nos. 687-5544 • 636-3318 • 687-5557
Meralco Call Centertel.no. 16211
A Primer on
Customer Service Processes
12
What happens if a customer commits an illegal useof electricity?
A consumer who is discovered to have committed the offense
of illegal use of electricity will, in addition to the imposition of
appropriate penal sanction, be required to pay a differential billing
to the electric utility, to be computed in accordance with existing
laws, rules and regulations.-Chapter III, Article 35.
What is differential billing?It refers to the amount charged to the consumer for the unbilled
electricity illegally consumed as determined by methods prescribed
by law.
It is determined by multiplying the unbilled consumption in kWh,
the period covered and the current rate or price of electricity at the
time of discovery of the illegal use. The utility is allowed to recover
the differential billing up to a maximum of sixty (60) billing months.
-Chapter III, Article 35.
You may contact ourCall Center hotline at 16211
or any Meralco branch for any concernon the Magna Carta.
1
I. Introduction
II. Application for ServiceA. Contract of Service
B. After Sales Service
III. Billing
IV. Payments
V. Service Irregularity
TABLE OF CONTENTS
11
When one of the permanent occupants of the premises is sick
and dependent on a life-support system requiring electricity,
disconnection may be suspended for a maximum of two (2) months.
You should present a medical certificate certifying that the
termination of the electric service would be dangerous to the health
of the person.
Disconnection can also be suspended for no more than thirty
(30) days during a funeral wake of a deceased permanent resident
of the premises. -Chapter II, Article 20
How soon will my service be reconnected after payingmy bill?
If your service was disconnected due to non-payment of electric
bills, your service must be reconnected within twenty-four (24) hours
after you have paid any arrears and the applicable reconnection
fee. -Chapter II, Article 23
V. ILLEGAL USE OF ELECTRICITY
What constitutes an illegal use of electricity?Any form of theft or tampering of the electric meter and/or
metering facilities is considered illegal. The following instances are
illegal uses of electricity:
l Any form of tampering or damage to the electric meter,
the meter seal, the metering device box and other metering
facility;
l The deliberate placing of foreign objects that could result
in the meter’s inaccuracy; and
l The use of wiring connection or any other electrical device
which may affect the normal operation or registration of the
electric meter.-Chapter III, Article 342
A primer on theMAGNA CARTA FOR RESIDENTIAL
ELECTRICITY CONSUMERS
The Magna Carta for Residential ElectricityConsumers (to be referred to as “Magna Carta”or “the Code”) is a compilation of rights andobligations of residential customers. It is aneasy reference for consumers that summarizesexisting laws and rules and regulations of theEnergy Regulatory Commission (ERC), thequasi-judicial body that regulates the electricindustry.
Who are covered by this new Code?The Code in its present form, is applicable only to
residential electricity customers. All 139 distribution utilities
nationwide, including Meralco, have to follow its provisions.
When did the Code take effect?The Code took effect on July 19, 2004, while the
guidelines to implement were released in November 26, 2004.
What does the Code cover?The Code covers customer service processes.
Is this a new set of rules?Some provisions are new but most of its other provisions were
I. INTRODUCTION
Note: These are payment partners as of November 2005. For an updated list, visit our website at www.meralco.com.ph or call our Call Center hotline 16211 or any Meralco branch.
What is a good payer and is there any incentive forbeing a good payer?
A good payer pays his bills on or before the due date. As a
good payer, you will not receive a disconnection notice, you will not
get disconnected and you will acquire a good credit standing.
If you become a good payer for three (3) consecutive years,
you can demand for the full refund of your bill deposit even before
your service contract is terminated. One way to ensure that you
can establish a good credit rating is to avail of the automatic debit
arrangement (ADA) or auto-charge payment options.-Chapter,Article 7
What happens if I don’t pay my bills on time?If your bill is unpaid after the due date, you will receive a
disconnection notice forty-eight (48) hours before the disconnection.
To avoid disconnection, settle the account at the nearest branch
office within the period specified on the notice. Always bring the
current bill when paying.
The electric utility is not allowed to disconnect your electric
service on any weekday after three o’ clock (3:00 p.m.) in the
afternoon, Saturdays, Sundays and official holidays.-Chapter II,Article 19 & 20
Under what special circumstances can mydisconnection be suspended?
For residential customers, Magna Carta specifies special
circumstances to suspend disconnection of your service.10 3
taken from existing laws and regulatory orders of ERC.
What are the highlights of the customers’ rights underthe new Code?
Within the first year of implementation (2004 to 2005), existing
and new customers will begin to enjoy these rights under the new
Code:
l Applicants for service will now be exempted from paying
meter deposit. Existing customers who paid a meter
deposit before the Code took effect will be refunded
the amount based on the schedule prescribed by ERC.
l Customers may receive a refund of the bill deposit
after maintaining a consistent and consecutive 3-year
good payment record starting November 2004.
l Interest on deposits will be credited yearly to the bills
of the registered customer.
l The billing period is now defined as time in between
two (2) meter readings. This time or billing cycle is at
least 28 days and not exceeding 31 days.
l Customers have a right to one (1) free meter test once
every two years.
What are the highlights of the customers’ obligationsunder the new Code?
The Code also balances the interest of the utility company by
defining the customers’ obligation:
l Bill deposits must be updated annually to approximate
current electricity consumption.
l Customers must pay their bills before due date to avoid
inconvenience of disconnection.
l Illegal use of electricity will be subject to penal sanction
and payment of differential billing
branches, extension offices, payment offices or through any of our
accredited collection partners.
Non-OTC: You can also pay through automatic debit
arrangement (ADA), credit cards, Automated Teller Machines (ATM),
phone banking, Short Messaging Service (SMS) and internet of
accredited banks and institutions.
Where else can I pay other than at Meralco Offices?For over-the-counter (OTC) payments, Meralco has partnered
with Bayad Center and ten (10) commercial banks: Equitable PCI,
Banco de Oro, Union Bank, Chinabank, BPI, RCBC, Planters Bank,
East West Bank, Equitable Savings, and Robinson’s Savings.
Payment through the internet can be made at BPI, Equitable
PCI, UCPB, PNB, and selected Bancnet-member banks.
Phonebanking payments can be made through BPI, Equitable PCI,
HSBC, UCPB and PNB. ATM payments can be made through BPI,
UCPB, Union Bank, PNB and selected Bancnet-member banks.
For customers who want convenience and guaranteed-no-
disconnection hassles, automatic debit arrangement (ADA) and
automatic charging through credit cards are recommended.
Meralco’s accredited ADA partners include Union Bank, BPI, Allied
Bank, Banco de Oro, Equitable PCI, UCPB and Standard Chartered.
Among our credit card partners are Citibank, AIG, Standard
Chartered, Equitable Card Network, Diner’s Club and Security Bank
Mastercard.
SMS payments can now be made through Globe’s G-Cash.
Home Mastercard, a new co-branded card, with Banco de Oro
is also available for payments through credit card.94
In summary, the Code was created to ensure the continuous
supply of electricity and the convenience it brings customers
provided that they meet their obligations with the distribution utility
serving them.
II. SERVICE APPLICATION
What are the deposits that have to be paid?Under the Code, you will pay a bill deposit which is equivalent
to an estimated month’s bill if you are applying for a new or an
additional service to guarantee monthly bill payment. -Chapter I,Article 2
What else do I have to pay when applying for electricservice?
Aside from the required bill deposit, if electric facilities have to
be extended, you may have to initially fund through cash advance
the necessary expenditures to extend distribution facilities. The
branch office personnel will inform you of the procedures for the
cash advance, if needed,in your application. -Chapter II, Article 14Chapter III, Article 28.
Where should the meter be installed?You have the right to a meter installed in a place that is clean,
free of vibration and easily accessible and visible for reading and
testing by both you and the distribution utility representatives. Meters
should not be located behind doors or where they can be easily
damaged.- Chapter II, Article 11
In what cases do I have to relocate my meter?For your benefit and to ensure accuracy of meter reading, you
may request the branch to relocate your meter in cases such as
5
the following:
1) The meter is not accessible for reading or testing.; and
2) Improvements or renovations to the residence will make
the meter inaccessible
What will happen to the meter deposit I paid beforethe Code took effect?
You will be refunded for the meter deposit you paid and the
interests it earned as long as your account is in good standing (no
unpaid bills) following the schedule set by ERC.
A. CONTRACT OF SERVICE
Who is a registered customer?It is the customer who has a valid service contract with the
electric utility, specifically the signatory of the valid service contract
with Meralco.-Chapter I, Article 2
If I am a tenant, can I be the registered customer?Yes, provided that a signed and notarized undertaking between
you, the tenant, and the owner of the premises is submitted to the
Meralco branch office. -Chapter II, Article 6
What is an undertaking?It is a legal document that binds the owner of the premises
jointly and severally liable with the tenant/registered customer for
any unpaid bills incurred by the latter after leaving the premises, in
the absence of or insufficiency of the bill deposit.-Chapter II, Article 6
B. AFTER SALES SERVICES
When can I request for the refund of my bill deposit?The bill deposit will be refunded within one (1) month from the
How will I be billed if my meter is found defective?If your meter is found to be defective, the electric utility is allowed
to recover the full amount of the unregistered consumption provided
it has complied with the two-year meter testing requirement.
However, the recovery period should not go beyond the period
from the last testing of the meter and should not exceed two (2)
years.
In cases where there is actual meter stoppage or any conspicuos
meter defect, the utility is allowed to recover unregistered
consumption for a maximum of three (3) months prior to discovery
of the stoppage. When the meter has not stopped but has defects
which are not easily detected, the maximum recovery period is six
(6) months prior to discovery of the defect.
Computation of the adjustment resulting from a defective meter
will be based on the applicable rate during the affected period. -
Chapter III, Article 33
Should I allow your personnel to enter my premises?Yes, the electric utility’s employees should be allowed to enter
your premises to install, read, test, inspect, maintain or replace your
electric meter. These employees are authorized by the utility as
shown in their identification cards.-Chapter III, Article 29
IV. PAYMENTS
When should I pay my bill?You have nine (9) days to pay your electric bill after receipt.-
Chapter III, Article 32
How can I pay my Meralco bill?Over-the-counter (OTC): You can pay your bill at Meralco
8
6
termination of service, provided all the bills have been paid.
Starting November 2004, all existing active and new services
are entitled to a full refund of the bill deposit even before the electric
service is terminated. Should you accumulate thirty six (36)
consecutive months or three (3) consecutive years of good payment
record (i.e., you paid your bills on or before due date) and you have
no service violations, you can file an application for bill deposit refund
at a Meralco branch office. You will be refunded within one (1) month
after Meralco receives your application. - Chapter II, Article 7
What if I was already refunded my bill deposit but Ilater defaulted in paying my succeeding monthlybills?
You will be required to post another bill deposit which you can
only refund upon termination of electric service -Chapter III, Article 28
How many times can I request for a meter test?You are entitled to one (1) free meter test once every two years.
Upon request, the distribution utility will test the accuracy of the
meter installed in your premises using a meter standard duly tested
and sealed by the ERC.
If you request for meter testing more than once every two years
and your meter is tested okay, you will pay a testing fee as prescribed
by the ERC. - Chapter II, Article 12
Who will shoulder the replacement cost if the meteris stolen or broken?
If you damage or lose the electric meter, you will pay the
replacement cost of the meter. - Chapter II, Article 87
III. BILLING
When do I get my electric bill?Your electric bill covering a period of 28 to 31 days will be
delivered every month to your billing address.-Chapter II, Article17; Chapter I, Article 2 (h)
What happens if the period covered in my electricbill exceeds 31 days?
If the period covered in your electric bill exceeds 31 days, you
are still entitled to the subsidy corresponding to your consumption
level . -Chapter II, Article 17
What is my right as a consumer when filing acomplaint?
You are entitled to prompt and speedy resolution of complaints.
Furthermore, you should receive feedback on the action/s taken
on your complaint within fifteen (15) days after receiving the
complaint.-Chapter II, Article 13
In case of billing complaints, do I have to pay the billin question?
You have the right to pay the bill under protest. Such payment
will not be taken as an indication that you agree with the accuracy
of the bill.-Chapter II, Article 26
What do I do if I think that my electric bills iserroneous?
You can file a complaint at the Meralco Call Center at 16211 orat the nearest branch office. Your complaint will be recorded andacted on immediately.
If your electric bill is confirmed to be erroneous, you will receivea corrected bill.-Chapter II, Article 13