Amendments to the ERC Rules Supplementing the Switching and Billing Process, and Adopting a Disconnection Policy for Contestable Customers

Section 1(a), Article II of Energy Regulatory Commission (“ERC”) Resolution No. 9, series of 2018 or the Supplemental Switching Rules prohibits a Contestable Customer from switching, or to be supplied by a new Retail Electricity Supplier (“RES”) or Supplier of Last Resort (“SOLR”) should it have an outstanding balance with its incumbent RES, or with its Network Service Provider in the case of an initial switch. Since May 2022, the ERC has received consumer complaints in connection with the rate adjustments being implemented by some RES in their respective billings which are allegedly not specified under their respective Retail Supply Contracts (“RSC”), including threats of disconnection of electricity against contestable customers who have not paid their billings in full.

In response thereto, on 17 January 2023, the ERC issued Resolution No. 01, Series of 2023, amending Section 1, Article II of the Supplemental Switching Rules, and providing updated rules for the switching and billing process, as well as the disconnection policy for contestable customers.  

Under the new resolution, the switching of an End-User to a RES of its choice shall take effect subject to the conditions and procedures provided below:

1. No Eligible End-User shall be allowed to switch to a RES, should it have an outstanding balance with its Network Service Provider, in case of an initial switch. Whether under dispute or not, the Eligible End-User shall be required to settle its outstanding balance prior to such initial switching. Eligible End-User refers to an end-user that has met the contestability threshold, and who has a choice to switch from the Captive Market to the Competitive Retail Electricity Market (“CREM”).
   
2. A Contestable Customer already being serviced by a RES shall be allowed to switch or to be supplied by a new RES or SOLR, notwithstanding the existence of an outstanding balance. Outstanding balance shall refer to the amount due under previous unpaid bills including the amount indicated in its current bill.
   
   The Contestable Customer shall be responsible for ensuring that it has fully complied with its other lawful obligations with its incumbent RES. A Contestable Customer shall refer to an Eligible End-User that has entered into an RSC with a supplier of its choice.
   
3. An Eligible End-User which is about to migrate to the CREM, shall be entitled to the refund of the security or bill deposit from its Distribution Unit in accordance with Section 3.4.2, Article III of the Distribution Services and Open Access Rules.

Please note that the resolution shall have retroactive application following its publication in a newspaper of general circulation or in the Official Gazette.