As the switch is not expected to be hassle-free, the rules promulgated by the Energy Regulatory Commission (ERC) for prepaid retail electricity service (PRES) provides that a customer may avail of the six-month trial period before deciding on taking the option.

The regulator said the trial phase will afford the customer “the opportunity to assess the impact of using the prepaid service.”

After the trial period, the customer can then decide whether to: Enter into a prepaid service contract with a distribution utility with a retention period (also called lock-up period) of 24 months; or to revert to being a post-paid customer.

After the 24 month lock-up period for prepaid service, the customer may still opt to go back to the traditional post-paid service after payment of the bill deposit set forth under the Rules.

As the expensive cost of the prepaid electric meters are seen among the hurdles of prepaid electricity implementation, the PRES Rules specified that “customers shall not be made to advance the cost of or to purchase the prepaid meter.”

The regulator added that “prepaid meter deposits shall not be collected by the DUs from their customers.”

Distribution utilities, like the Manila Electric Company (Meralco) and Visayan Electric Company (VECO), are currently working on their pilot offers on prepaid electricity service; and have also been exploring ways on how best they can ease cost impact of the meters.

As specified, the prepaid electric meters shall have the capacity to load purchased energy, to display real-time information on how the load is being consumed; and to give a warning that the load is closing in to zero to provide positive buffer before electricity is automatically disconnected.

Given that prepaid meters are set on consumption basis, the DUs are also required to ensure that customers will have ease of access to reloading facilities for their prepaid meters.

“The DU offering PRES using a prepaid metering system shall allow reasonable means by which the residential customer shall have easy access to the purchase of electric energy credit for 24 hours to ensure continuous service,” the ERC Rules indicated.