House Committee on Public Accounts Chairman Bicol Saro Party-list Rep. Terry Ridon says the Energy Regulatory Commission (ERC) should review its proposal to do away with so-called bill deposits.

"The ERC should further study the impact of its bill deposit removal policy, particularly on the ability of electric cooperatives (ECs) to sustain operations if a not insignificant portion of their cash reserves is removed from their balance sheets," Ridon said on Thursday, Jan. 8.

It was during a public conference on Dec. 9, 2025 that the ERC proposed to dispense with the bill deposit, which is a guarantee of payment of electric bills.

This instantly raised worries on the impact such move will have on the operation of EC in the countryside; specifically, with their ability to pay generation companies on time.

Its possible effects on the service enjoyed by consumers was also a major point of concern.

"As not all ECs are in the same financial position, the ERC should determine which cooperatives will suffer adverse financial and operational effects—such as difficulties in settling obligations with power generators or, in the worst case, an increased risk of power interruptions in their service areas," Ridon noted.

"Power outages in vulnerable EC localities can result in significant economic losses for businesses and government operations, aside from social costs borne by communities and schools," stressed the lawyer-solon.

Ridon added: "Prior to implementing this new bill deposit policy, the ERC should first complete a full impact assessment."

Aside from power outages, an increase in the number of disconnections is also a feared consequence of dispensing with bill deposits.