Pacific Center Building, San Miguel Avenue, Ortigas Center, Pasig CityMailing Address: P.O. Box 181, Greenhills, Metro Manila

Fax Nos. 631-58-71, 631-58-79, 631-5818Tel. 631-5816 PABX (632) 914-5000 loc. 114

Website: http://www.erc.gov.ph

A Primer

on

Prepaid

Retail

Electricity

Service

(PRES)

WHAT IS PREPAID RETAIL ELECTRIC SERVICE (PRES)?

The PRES is an electric service using a prepaid metering system designed to allow a residential customer to purchase

credit and then use electricity until such time as the credit is exhausted.

With the ERC’s approval of the Rules for Prepaid Retail Electricity Service, Distribu-tion Utilities (DUs) can now apply with the ERC to offer PRES as an alternative elec-tric service to the traditional post-paid electric service.

Existing post paid consumers, if they so decide can apply for a PRES. A six-month trial period will be allowed to them to give them the opportunity to assess the impact of us-ing PRES. After the six-month trial period, the customer may enter into a prepaid contract with the DU with a retention period of twenty four months or revert to being post paid.

As required under the Rules, the prepaid electricity meter system must have the capabili-ties to: (a) load the purchased energy, (b) display real time information on how the load is being consumed and (c) give warning that the load is close to

zero thereby providing a sufficient buffer before electricity is completely disconnected. The cus-tomer should be warned three (3) days before his/her remaining credit is exhausted, which is based on the customer’s average monthly con-sumption, with a threshold of ten (10) kWh for every one hundred (100) kWh. The cost of the metering system is to be shouldered by the DU, thus, no meter deposit will be collected from the consumer. DUs are required to source prepaid meters that are certified and compliant to the standards of International Electromechanical Commission (IEC) or the American National Standards Institute (ANSI). Prepaid meters should be further subjected to ERC testing and certification.

DU Benefits

Reduction of system losses/pilferage Savings on service disconnection and

reconnection fees Elimination of meter readers Improved collection efficiency Better cash flow

Consumer Benefits

Favorable to those consumers who fre-quently travel and leave their residences and offices for a time.

Budget-conscious residential consumers can now control their electricity consump-tion better.

Consumers may opt to buy electric ener-gy credit in reasonably small increments

Other Benefits

Elimination of unpaid electricity bills left by errant tenants

Lessees need not apply for electricity connection

Promote demand side management

The prepaid retailing of electricity will help curb system losses which has been cited as a major cause for the high price of electricity in the country.