A Primer
on
Prepaid
Retail
Electricity
Service
(PRES)
Pacific Center Building, San Miguel Avenue, Ortigas Center, Pasig City
Mailing Address: P.O. Box 181, Greenhills, Metro Manila
Fax Nos. 631-58-71, 631-58-79, 631-5818
Tel. 631-5816 PABX (632) 914-5000 loc. 114
Website: http://www.erc.gov.ph
WHAT IS PREPAID RETAIL
ELECTRIC SERVICE (PRES)?
T
he 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, Distribution Utilities (DUs) can now
apply with the ERC to offer
PRES as an alternative electric 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 using 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 capabilities 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 customer should be warned three (3) days before
his/her remaining credit is exhausted, which is
based on the customer’s average monthly consumption, 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 frequently travel and leave their residences
and offices for a time.
 Budget-conscious residential consumers
can now control their electricity consumption better.
 Consumers may opt to buy electric energy 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.