Manila: Senator Sherwin Gatchalian has introduced a legislative measure aimed at abolishing the collection of bill deposits by distribution utilities and electric cooperatives, while also advocating for the refund of existing deposits with accrued interest.

According to Philippines News Agency, Gatchalian filed Senate Bill No. 1470, known as the Anti-Bill Deposit Act, which challenges the authorization under the Magna Carta for Residential Electricity Consumers allowing the collection of bill deposits. The senator argues that this practice imposes an unnecessary financial burden on consumers. The proposed legislation mandates the Energy Regulatory Commission to conduct an independent audit of all bill-deposit accounts and suggests non-deposit-based credit-risk alternatives, such as prepaid or installment-based arrangements, to maintain payment discipline without upfront costs.

Gatchalian emphasized the importance of ensuring equal and affordable access to electricity, stating that this bill seeks to eliminate the need for consumers to pay deposits. He highlighted that the measure aligns with the Electric Power Industry Reform Act of 2001 and the amended Public Service Act, reinforcing consumer protection and promoting equitable access to electricity. The proposal is part of a broader effort to ensure that regulatory practices support the government’s mandate to provide reliable and affordable power services.