VECO says bill deposit is legal

CEBU, Philippines - Visayan Electric Company chief executive officer Sebastian Lacson has clarified that the collection of “bill deposits” from power consumers is “legal”.

“This (bill deposit) is important and very legal as part of the utility business. This has been a practice worldwide since it serves as our security measure,” Lacson said, following reports on heavy bill or security deposits.

The bill deposit is an amount required from all customers of all distribution utilities as a guarantee for payment of electric bills. It is similar to the advance deposit made by a tenant who rents an office or a residence.

The legality of bill deposit was also confirmed by Energy Regulatory Commission Consumers Affairs Service director Atty. Maria Corazon Gines in yesterday’s consumer consultative meeting.

The power bills of VECO’s consumers, in effect, is expected to balloon since the company has started updating the bill deposits based on the consumers’ electric consumption and power rate per kilo watt.

According to Lacson, the bill deposit serves as the safety net of all power generators.

“Dako ni nga risgo sa utility company kay ang consumers mo-kunsumo tapos di diay mobayad,” he added.

Lacson reiterated what ERC regional director Joel Bontuyan said during Wednesday’s public hearing that the deposits can be returned to the consumers after three years if they opt to stop availing VECO’s services or if they did not incur any unsettled balances.

Lacson said consumers would no longer pay for the Meter Deposit, the amount a customer pays to guarantee against loss or damage of the electrical meter installed at the customer’s service address. The Meter Deposit is equivalent to one-half of the cost of the electric meter or other equipment required for installation.

Moreover, Gines explained that there are factors affecting the consumption pattern such as load or appliances, length of usage, and number of persons, stressing that “the higher your consumption, the higher your distribution rate.” — (FREEMAN)