New ERC Rules on Bill Deposits and Service Applications for Residential Electricity Consumers

The Energy Regulatory Commission (ERC) issued Resolution No. 3, Series of 2026 on January 29, 2026, which amends the Magna Carta for Residential Electricity Consumers to provide relief to residential electricity users and streamline service application procedures.

The amendments grant Distribution Utilities (DUs) the discretion to waive bill deposits or accept alternative payment guarantees. For new connections, bill deposits are capped at the estimated one-month billing based on the applicant’s load schedule and may be paid in three equal monthly installments. Consumers receiving a 100% lifeline discount under Republic Act No. 11552 are now exempt from bill deposit requirements.

Moreover, the resolution also strengthens deposit transparency and adjustment rules, requiring DUs to notify consumers before increasing deposits and automatically crediting any excess deposits to monthly bills. Additionally, DUs must disclose the total deposit held and accrued interest in billing statements.To improve electricity service access, the ERC now allows applicants without formal property titles to apply for service using a  barangay clearance or certification, subject to certain conditions. The rules  shortened the refund period for good payors, allowing automatic bill deposit refunds after two years of consecutive on-time payments, including accrued interest.