Senator Win Gatchalian is championing consumer rights with the filing of Senate Bill 1470, also known as the Anti-Bill Deposit Act, which seeks to eliminate the collection of bill deposits by distribution utilities (DUs) and electric cooperatives (ECs) and mandates the refund of existing deposits with accrued interest.

A bill deposit is typically required from electricity consumers as a form of security to guarantee future bill payments. Gatchalian argues that this practice imposes an undue financial burden, especially on low-income households. “Sa ganitong paraan, masisiguro nating pantay-pantay at abot-kaya ang access ng lahat sa kuryente, nang hindi na kailangang magbayad ng deposito,” the senator stated.

The proposed legislation not only calls for the abolition of bill deposits but also directs the Energy Regulatory Commission (ERC) to conduct an independent audit of all bill-deposit accounts. It further instructs the ERC to develop alternative credit-risk mechanisms that do not rely on upfront deposits. These include prepaid or pay-as-you-go metering systems, staggered payment arrangements, and voluntary credit insurance schemes.

Under the bill, all existing bill deposits must be refunded to consumers, along with any interest accrued up to the date of release. Refunds may be issued via cash, check, or electronic transfer, unless the consumer opts to apply the amount to future electricity bills.

Gatchalian’s proposal underscores a broader push for equitable access to utilities and a more compassionate regulatory framework, aligning with ongoing efforts to modernize and humanize public service delivery in the energy sector.

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