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1. What is a Bill Deposit Deficit?
1. What is a Bill Deposit Deficit?
A Bill Deposit Deficit refers to the amount that is insufficient to cover the average monthly bill variations over time as per the DSOAR regulations. This deficit occurs when the existing bill deposit is less than the calculated requirement based on recent billing history.
The DU like Davao Light is allowed by the Energy Regulatory Commission (ERC) to collect additional Bill Deposit. This practice, which has not been previously enforced by the Davao Light, will now be initiated for eligible customers.
However, customers who consistently pay their bills promptly for three consecutive years will have their full Bill Deposit amount returned, along with any accrued interest, at the end of this period.
2. How is the Bill Deposit Deficit calculated?
2. How is the Bill Deposit Deficit calculated?
The deficit is determined through a Deposit Review process in the system. It compares the current bill deposit with the average monthly bill variations over a specified period, typically one year. If the actual bill variations exceed 10% of the deposit, adjustments are made accordingly.
3. Who is required to pay a Bill Deposit Deficit?
3. Who is required to pay a Bill Deposit Deficit?
The distribution utility (DU) requires payment of Bill Deposit deficits from active non-disconnected customers, primarily focusing on Large Commercial and Industrial accounts to mitigate Accounts Receivable (AR) Bad Debt exposure. (for now)
4. What payment options are available for settling Bill Deposit Deficits?
4. What payment options are available for settling Bill Deposit Deficits?
The DU offers several options:
Full Payment, No Bill Display but Letter Billing Only: This option allows customers to pay the entire deficit amount without it being displayed on their bill, with communication through a letter instead.
Through Post-dated Check (PDC): Customers can provide post-dated checks as payment.
One-time Payment (display on bill): The deficit amount is displayed on the bill and can be paid in one installment.
Installment (display on bill through Payment Arrangement): The deficit amount is displayed on the bill and can be paid in installments through a structured payment arrangement.
5. How often does the Bill Deposit Deficit need to be reviewed?
5. How often does the Bill Deposit Deficit need to be reviewed?
The Bill Deposit Deficit is reviewed annually, or more frequently if significant bill variations occur, to ensure the deposit amount remains adequate based on current usage patterns.
6. Can customers dispute their Bill Deposit Deficit amount?
6. Can customers dispute their Bill Deposit Deficit amount?
Yes, customers can dispute the deficit amount by contacting the DU’s customer service and providing supporting documentation or requesting a review of their billing history. But the burden of proof now lies in the customer to prove that the existing BD is sufficient enough to cover the required Bill Deposit.
7. Can the customer avail of a payment arrangement in paying the required BD?
7. Can the customer avail of a payment arrangement in paying the required BD?
Yes, if the customer will ask, we will inform them that a payment arrangement (PA) is possible. However, we will not offer the PA scheme and if the customer decides to avail of the PA, we’ll inform them that such will be subject to team leader’s approval. However, payments for the PA option will only be accepted until December 2024.
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