The Philippine Supreme Court has affirmed the Energy Regulatory Commission's (ERC) power to require bill deposits from electricity consumers. The court dismissed a petition challenging the ERC's authority, stating that it falls within its rate-setting powers to ensure the financial stability of power distributors. The bill deposit policy, introduced in 2004, requires residential consumers to pay an amount equivalent to one month's estimated billing as a guarantee against unpaid bills.
MANILA, Philippines — The Supreme Court affirmed the authority of the Energy Regulatory Commission to mandate bill deposits from electricity consumers, recognizing it as a legitimate exercise of the ERC's rate-setting powers to ensure the financial stability of power distributors.In a ruling penned by Senior Associate Justice Marvic M.V.F. Leonen, the high court en banc dismissed a petition filed by Neri J.
To implement this policy, the ERC issued operational guidelines for the collection and refund of bill deposits. In 2018, the ERC initiated public consultations on draft rules aimed at monitoring and reporting bill deposit transactions.The petitioners, however, argued in 2019 that the ERC lacked sufficient regulations governing the bill deposit requirement.
ENERGY REGULATION SUPREME COURT ERC BILL DEPOSITS CONSUMER PROTECTION
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