0 Comments
Table of Contents
Manila Electric Co. (Meralco) has postponed until next year the collection of updated electricity bill deposits from affected customers, as the Energy Regulatory Commission (ERC) ordered distribution utilities nationwide to explain the charges and allow consumers to pay them in three monthly installments.
The moves follow complaints from electricity consumers who reported sharp increases in their October 2026 bills after Meralco included updated bill deposits under the “other charges” section of their statements, with some saying the additional amounts nearly doubled their bills.
Meralco said around 20,000 of its more than eight million customers were required to update their deposits because they had failed to pay their electricity bills on time.
Following the backlash, the utility decided to defer collection until next year. Customers who have already paid the updated deposits will receive credits on their next bills, while Meralco has begun contacting those who have yet to settle the charges.
The controversy has prompted calls for clearer billing disclosures and more flexible payment arrangements, with the ERC and lawmakers stressing the need to ease the financial burden on households.
ERC Sets Payment Rules
In an advisory issued on Oct. 23, the ERC directed all power distribution utilities to explain the basis for reevaluating and reinstating bill deposits, including providing customers with detailed breakdowns of how the amounts were calculated.
The commission also ordered utilities to let consumers settle the required deposits in three equal monthly installments, unless customers opt to pay in full or their utility grants a longer payment period.
The installment period will begin only after consumers officially receive written notice from their electricity provider, the ERC said.
The commission said distribution utilities retain the authority to issue disconnection notices and disconnect service if customers fail to pay the required deposits within the prescribed period.
The directive also provides exemptions for households covered by the no-disconnection policy, specifically those consuming 200 kilowatt-hours (kWh) or less per month. These consumers will not be subject to bill deposit reimpositions for the specified billing cycles covering May to July 2026, August to October 2026, and November to December 2026.
The ERC said the rules aim to standardize transparency requirements across distribution utilities and prevent similar billing confusion nationwide.
Meralco, meanwhile, said it would ask the regulator to allow affected customers six months to pay their updated deposits, extending the payment period beyond the three installments specified in the ERC advisory.
Tulfo Calls For Transparency
Sen. Erwin Tulfo, chairman of the Senate Committee on Energy, also urged distribution utilities to explain bill deposit adjustments clearly and allow consumers to pay in installments.
While acknowledging that the collection of deposits is permitted under existing regulations, Tulfo said customers should understand the charges reflected in their electricity 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,” Tulfo said in a press release.
He also urged utilities to consider the financial pressures facing households amid concerns over a possible super El Niño, which could affect family budgets.
“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 added.
Tulfo welcomed Meralco’s decision to defer collection but said clearer disclosures remained necessary. He also backed the ERC’s installment-payment rules.
“Apart from ensuring transparency, uphold your corporate social responsibility and allow consumers to pay in tranches,” he said.
How Bill Deposits Work
Under the Magna Carta for Residential Electricity Consumers, issued by the ERC pursuant to Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, residential customers applying for new or additional electricity service must pay a deposit equivalent to one month’s estimated bill.
The deposit serves as a financial guarantee against unpaid electricity consumption. The ERC’s advisory also addresses the re-evaluation and reinstatement of deposits for existing customers.
Under the Magna Carta, a consumer’s deposit is refundable once the customer has paid electricity bills on or before their due dates for two consecutive years without a lapse, according to the supplied information.
ERC Chairman Nino Juan said the commission would establish rules allowing staggered payments to ease the impact on consumers.
Source:
Source: