Learn more about your Bill Deposit
The Bill Deposit is an amount required from all customers of all distribution utilities as a guarantee for payment of electric bills, similar to a security deposit for a home. It is equivalent to the estimated electricity consumption or load schedule provided upon your application for electric service with us. The bill deposit earns interests, in accordance with the existing rules of the ERC.
Annual Update of Bill Deposit
Through our Annual Update of Bill Deposit (AUBD) program, we determine if the bill deposit is enough to cover your average monthly bills, making adjustments if necessary. Also, we credit the accrued interest of your deposit to your bills. You will be informed of any changes made via letter or through your electric bill.
The program is implemented in two ways:
- Through refunds if any amount goes in excess of the required deposit
- Through the collection of an additional amount in case of an insufficient deposit
The AUBD takes place during the customer contract anniversary month.
Installment Payment Scheme
Should there be an additional bill deposit required from you, this will be payable in installments over a period of twelve (12) months.
The applicable rules governing bill deposits can be found in the Magna Carta for Residential Electricity Consumers and Distribution Services and Open Access Rules (DSOAR). Below are some download links for your reference:
- Magna Carta for Residential Electricity Consumers
- Guidelines to Implement Articles 7, 8, 14 and 28 of The Magna Carta for Residential Electricity Consumers
- Amended Magna Carta for Residential Electricity Consumers
- Distribution Services and Open Access Rules
Who will be required to pay a bill deposit?
A bill deposit will be required from the following:
- New customers applying for electric service;
- Existing customers applying for transfer of service;
- Existing customers applying for an increase in load/ capacity;
- Existing customers with disconnected services applying for a reconnection, and who were previously not subjected to bill deposit;
- Existing customers whose actual average monthly consumption for the past twelve (12) months increased by more than 10% of the initial or existing bill deposit;
- Existing customers who have previously availed of the early refund of bill deposit due to good credit rating and who later default in payment of their monthly bill/s.
How do you determine if a bill deposit is sufficient?
Sufficiency of the bill deposit is determined by comparing a customer's existing bill deposit, including accumulated interest, with the average monthly bills for the past twelve (12) months.
- If the bill deposit is greater than the average bill by more than 10%, the excess bill deposit will be refunded to the customer through his bill/s
- If the bill deposit is less than the average bill by more than 10%, additional bill deposit equivalent to the insufficient amount will be collected from the customer in twelve (12) monthly installments;
If the difference falls within 10%, there will be no refund to nor collection of bill deposit from the customer. We will inform the customer about the refund or collection through a notification letter or the Applied Credits/Other Charges portion on page 2 of the electric bill.
REFUND (Bill deposit + Interest is greater than Ave. Monthly Bill by more than %10)
Bill Deposit and Interest P 1,500.00 Less: Average Monthly Bill (SEP 2019 - AUG 2020) P 1,000.00 Difference P 500.00 (33.3%) Refund P 500.00
COLLECTION (Bill deposit + Interest is less than Ave. Monthly Bill by more than %10)
Total Bill Deposit and Interest P 800.00 Less: Average Monthly Bill (SEP 2019 - AUG 2020) P 1,000.00 Difference P 200.00 (.25.0%) Collection P 200.00
* P 39.58 - monthly installment payment for twelve (12) months
EXEMPTED FROM AUBD (Difference of Bill deposit + Interest and Ave. Monthly bill for past 12 months is within 10%)
Total Bill Deposit and Interest P 1,050.00 Average Monthly Bill (SEP 2019 - AUG 2020) P 1,000.00 Difference P 50.00 (-4.8%) No Refund / Collection