Senator Win Gatchalian is taking a stand against unnecessary financial burden on power consumers by filing a bill that seeks to abolish the collection of bill deposits by distribution utilities (DUs) and electric cooperatives (ECs).

Senate Bill 1470, or the Anti-Bill Deposit Act, also mandates the immediate refund of existing bill deposits and accrued interest. A bill deposit is a security deposit required from customers to guarantee payment of future electricity bills. “Sa ganitong paraan, masisiguro nating pantay-pantay at abot-kaya ang access ng lahat sa kuryente, nang hindi na kailangang magbayad ng deposito,” Gatchalian said.

The proposed measure also mandates the Energy Regulatory Commission (ERC) to conduct an independent audit of all bill-deposit accounts and to prescribe non-deposit-based credit-risk alternatives, such as prepaid or pay-as-go metering systems, installment or staggered payment arrangements, and voluntary credit insurance or guarantee schemes.

Under the proposed measure, DUs and ECs should refund all existing bill deposits, together with accrued interest up to the date of the actual release. Refunds shall be released in cash, check, or electronic transfer, unless consumers choose to apply them to future bills.