III. Market Participants Obligations
b. Retail Electricity Supplier (RES) / Local RES
1. Obligation to secure a RES License
A RES should secure a Supplier’s License from the Energy Regulatory Commission (ERC) before it commences operations. It is not allowed to advertise or market its services, or apply as a WESM member, until it is licensed by the ERC.
A Local RES does not need a RES license, but it will have to wait for one RES to be licensed (in the Local RES’ area) before the Local RES can start its marketing activity.
Obligation to abide by the rules
A RES should comply with all applicable Philippine laws, and all rules and guidelines issued by the ERC. Violation of such rules may be a basis to penalize the RES or revoke its license.
3. Obligation to provide a Disclosure Statement
A RES should provide a Disclosure Statement that contains all details of the RES’ offer, including applicable fees and charges, promos and other value added services. What is written in the Disclosure Statement will eventually form part of the Retail Supply Contract (RSC), therefore it is incumbent for the customer to be provided with a copy.
4. Obligation to provide a copy of the Retail Supply Contract
A RES should provide an original copy of the RSC to its customer.
5. Obligation to observe the Cooling-Off Period
A RES should observe the five (5) day Cooling-Off Period. Any cancellation of RSC made within the Cooling-Off Period shall not be charged with any early termination fee.
6. Obligation to provide continuous supply to its customers
A RES is responsible for procuring energy and all other related services on behalf of its customers to make sure electricity supply is sufficient and is continuously delivered to them.
7. Obligation to observe the terms of contractual agreements
A RES is responsible for all its contractual agreements with its customers, the Distribution Utility, the National Transmission Company (TransCo), generating companies, and the Market Operator (MO) (if applicable).
8. Obligation to remit payments
A RES is responsible for remitting all amounts due to the DU, TransCo, WESM or generating company, and any other entity from which it purchased products and services to supply electricity to its customers. Non-payment is a ground for license revocation.
9. Obligation to conduct professional marketing activities
A RES is responsible for the conduct of all its salespersons and employees, and should ensure that none of them engage in misleading and deceptive conduct in marketing its products and services. The Code of Conduct issued by the ERC shall be complied with at all times.
10. Obligation to conduct marketing activities within the appropriate time
A RES must not visit or call you anytime on a Saturday, Sunday or other public holiday, or on any other day before 8 A.M. and after 5 P.M., unless you have earlier agreed to be contacted by the RES.