Senator Win Gatchalian on Wednesday filed a measure aimed at easing the financial burden of electricity consumers by eliminating the collection of bill deposits from power users and mandating the refund of existing deposits with interest.

Under Senate Bill No. 1470, or the “Anti-Bill Deposit Act,” Gatchalian seeks to prohibit distribution utilities (DUs) and electric cooperatives (ECs) from collecting bill deposits — a common requirement intended as security for the payment of future electricity bills.

“Sa ganitong paraan, masisiguro nating pantay-pantay at abot-kaya ang access ng lahat sa kuryente, nang hindi na kailangang magbayad ng deposito (In this way, we can ensure that everyone has equal and affordable access to electricity without having to pay a deposit(,” the senator said, emphasizing that the bill aims to promote fairness and affordability in electricity access.

The measure also requires the Energy Regulatory Commission (ERC) to conduct an independent audit of all bill deposit accounts and to introduce alternative, non-deposit-based mechanisms to manage credit risk. 

These may include prepaid or pay-as-you-go metering systems, staggered payment arrangements, or voluntary credit insurance or guarantee schemes.

Once enacted, DUs and ECs will be required to refund all existing bill deposits, along with accrued interest, either in cash, check, or electronic transfer. Consumers may also choose to apply their refunds as credits to future bills.

Gatchalian, who has long advocated for consumer protection in the energy sector, said the measure will promote transparency and ensure that customers’ money is not unnecessarily tied up as security deposits.