The Energy Regulatory Commission (ERC) has clarified its stance on disputed electricity bills, stating that there is no blanket "pay-first" policy requiring consumers to settle bills before their complaints are resolved.
The ERC said that disputes are handled on a case-by-case basis under the Magna Carta for Residential Electricity Consumers (MCREC), which establishes a differentiated, consumer-protective framework that shields consumers from arbitrary disconnection while complaints are being resolved.
The regulatory commission explained that filing a complaint before the ERC automatically suspends any disconnection of electric service without requiring the consumer to pay the disputed amount first.
For accounts with unusually high electricity bills, the consumer is only required to pay the equivalent of their average monthly bill as the distribution utility reviews the case.
The ERC emphasized that payment under protest is a legal mechanism that allows a consumer to maintain electric service while explicitly preserving their right to contest the bill.
The commission noted that such payments are treated as provisional, subject to final resolution of the dispute, and do not constitute an admission of liability or bar the consumer from seeking a refund or other appropriate remedy.
The clarification comes amid calls from lawmakers to investigate the ERC's consumer protection policies, particularly with regard to unusually high electricity bills.
A senator has pushed to investigate the effectiveness of household protection against erroneous electricity billings under the Electric Power Industry Reform Act, and the MCREC, citing concerns that the current policies may leave consumers vulnerable to arbitrary disconnection.
Legislators have also called on the ERC to implement power rate hikes in staggered increases, citing concerns about the impact on households with distressed consumers.
The ERC has urged lawmakers to examine the complete factual and legal record before drawing conclusions based on a misquoted or out-of-context statement.
