Awareness of Consumers on the Rights and Obligations of Residential Electricity as Implications for Intervention

Authors

Stephanie A. Tarre

Graduate School Master in Public Administration, La Carlota City College, La Carlota City, Negros Occidental (La Carlota City Negros Occidental Philippines)

Article Information

DOI: 10.47772/IJRISS.2026.100800283

Subject Category: Public Administration

Volume/Issue: 10/8 | Page No: 4235-4279

Publication Timeline

Submitted: 2026-08-16

Accepted: 2026-08-21

Published: 2026-09-02

Abstract

This chapter presents the background of the study, the theoretical and conceptual framework, schematic diagram, statement of the problem, hypotheses, significance, scope and limitations, and definition of terms.
Background of the study
Electricity is an essential public utility that supports household activities, economic development, and social well-being. It provides energy needed for education, healthcare, communication, and livelihood, making reliable and affordable electricity an important factor in improving quality of life. In the Philippines, 94.8 percent of households use electricity, reflecting its significant role in the daily activities of Filipino families (Philippine Statistics Authority [PSA], 2025; International Energy Agency [IEA], 2021).
The continuous growth in population, urbanization, and economic activities has increased electricity demand, requiring the energy sector to maintain a reliable supply while ensuring accessibility and affordability. In response, the Philippine government has implemented programs and policies to improve the efficiency, sustainability, and reliability of the power sector (Department of Energy [DOE], 2023).
Along with ensuring electricity availability, protecting consumer welfare has become an important responsibility of regulators and distribution utilities. Consumer protection includes transparent billing, fair service delivery, accountability, and effective mechanisms for addressing consumer concerns (Pepino et al., 2021; Abrigo & Ortiz, 2024).
To strengthen these protections, the Energy Regulatory Commission (ERC) implemented the Magna Carta for Residential Electricity Consumers (MCREC) under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA). The MCREC defines the rights and obligations of residential consumers and the responsibilities of electricity providers to promote fairness, transparency, and accountability in electricity services (DOE, n.d.; ERC, 2024).
In a highly urbanized city, electricity remains a vital service for households' daily living and economic activities. However, limited information is available regarding the level of awareness of residential electricity consumers about their rights and obligations under the MCREC. Understanding consumer awareness is necessary to identify knowledge gaps and develop appropriate educational interventions.
Thus, this study determines the level of awareness of residential electricity consumers in a highly urbanized city regarding their rights and obligations under the Magna Carta for Residential Electricity Consumers. The findings will serve as a basis for an intervention program aimed at strengthening consumer education, promoting responsible electricity use, and enhancing consumer protection.

Keywords

NA

Downloads

References

1. a. Books [Google Scholar] [Crossref]

2. Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). SAGE Publications. [Google Scholar] [Crossref]

3. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman. [Google Scholar] [Crossref]

4. Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., & De Colle, S. (2010). [Google Scholar] [Crossref]

5. Stakeholder theory: The state of the art. Cambridge University Press. [Google Scholar] [Crossref]

6. https://doi.org/10.1017/CBO9780511815768 [Google Scholar] [Crossref]

7. International Energy Agency. (2021). World energy outlook 2021. International Energy Agency. [Google Scholar] [Crossref]

8. Komives, K., Foster, V., Halpern, J., & Wodon, Q. (2022). Water, electricity, and the poor: Who benefits from utility subsidies? World Bank Publications. [Google Scholar] [Crossref]

9. Saunders, M. N. K., Lewis, P., & Thornhill, A. (2023). Research methods for business students (9th ed.). Pearson Education Limited. [Google Scholar] [Crossref]

10. United Nations Conference on Trade and Development. (2020). Manual on consumer protection. United Nations. [Google Scholar] [Crossref]

11. United Nations Development Program. (2022). Human development report 2021/2022. United Nations Development Program. [Google Scholar] [Crossref]

13. b. Magazines / Journals / Publications / Research [Google Scholar] [Crossref]

14. Abrigo, M. R. M., & Ortiz, M. K. P. (2024). Residential electricity consumption over the demographic transition in the Philippines. The Journal of the Economics of Ageing, 27, 100503. https://doi.org/10.1016/j.jeoa.2023.100503 [Google Scholar] [Crossref]

15. Ahmed, I., & Ishtiaq, S. M. (2021). Reliability and validity: Importance in medical research. Journal of the Pakistan Medical Association, 71(10), 2401–2406. https://doi.org/10.47391/JPMA.06-861 [Google Scholar] [Crossref]

16. Anusuya, A., & Selvi, V. D. (2023). Do demographic variables dominate the awareness of consumer rights: An analytical purview. ComFin Research, 11(3), 20–25. https://doi.org/10.34293/commerce.v11i3.6381 [Google Scholar] [Crossref]

17. Ari, I., & Köksal, C. (2021). Residential consumer understanding of electricity bills. International Journal of Asian Business and Information Management, 12(3), 1–16. https://doi.org/10.4018/IJABIM.293275 [Google Scholar] [Crossref]

18. Bakare, M. S., Abdulkarim, A., Zeeshan, M., Shuaibu, A. N., Khan, B., Alhelou, H. H., Siano, P., & Ali, S. (2023). A comprehensive overview on demand side energy management towards smart grids: Challenges, solutions, and future direction. Energy Informatics, 6, Article 4. https://doi.org/10.1186/s42162-023-00262-7 [Google Scholar] [Crossref]

19. Cheung, K., Chau, A. K. C., Woo, J., & Lai, E. T. C. (2023). The age-based digital divide in an increasingly digital world: A focus group investigation during the COVID-19 pandemic. Archives of Gerontology and Geriatrics, 115, 105225. https://doi.org/10.1016/j.archger.2023.105225 [Google Scholar] [Crossref]

20. Clark, L. A., & Watson, D. (2021). Constructing validity: New developments in creating objective measuring instruments. Psychological Assessment, 33(8), 701–713. https://doi.org/10.1037/pas0000982 [Google Scholar] [Crossref]

21. Davydenko, M., & Peetz, J. (2020). Shopping less with shopping lists: Planning individual expenses ahead of time affects purchasing behavior when online grocery shopping. [Google Scholar] [Crossref]

22. Journal of Consumer Behaviour, 19(3), 240–251. https://doi.org/10.1002/cb.1812 [Google Scholar] [Crossref]

23. Drosos, D., Kyriakopoulos, G. L., Arabatzis, G., & Tsotsolas, N. (2020). Evaluating customer satisfaction in energy markets using a multicriteria method: The case of electricity market in Greece. Sustainability, 12(9), 3862. https://doi.org/10.3390/su12093862 [Google Scholar] [Crossref]

24. Dumagan, J. C., & Abrigo, M. R. M. (2021). Rational choices and welfare changes in Philippine family energy demand: Evidence from Family Income and Expenditure Surveys. Business and Economics Review, 32(1), 1–28. [Google Scholar] [Crossref]

25. Fiene, R. (2023). The importance of the theory of regulatory compliance (SSRN Scholarly Paper No. 4597469). SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4597469 [Google Scholar] [Crossref]

26. Francisco, K. A. (2025). Lifeline rate and senior citizen discount on electricity: Who pays and who benefits? Philippine Institute for Development Studies Discussion Paper Series, No. 2024-47. https://doi.org/10.62986/dp2024.47 [Google Scholar] [Crossref]

27. Hanif, M. W., Hafeez, S., Raza, S. A., Ahmad, M., & Ahmad, N. (2021). Domestic consumer awareness of energy consumption practices in Pakistan. International Journal of Energy Economics and Policy, 11(4), 581–592. [Google Scholar] [Crossref]

28. Javier, C. A., Capanzana, M. V., & Gohilde, S. S. (2024). Socio-demographic determinants of Filipino consumers reading food product labels and nutrition facts: Findings from the 2018–2019 Expanded National Nutrition Survey. Acta Medica Philippina, 58(8), 92–100. https://doi.org/10.47895/amp.vi0.7207 [Google Scholar] [Crossref]

29. Joshi, G., & Sen, V. (2021). Residential consumer understanding of electricity bills. International Journal of Asian Business and Information Management, 12(3), 1–16. https://doi.org/10.4018/IJABIM.293275 [Google Scholar] [Crossref]

30. Lind, T., Ahmed, A., Skagerlund, K., Strömbäck, C., & Västfjäll, D. (2020). Competence, confidence, and gender: The role of objective and subjective financial knowledge in household finance. Journal of Family and Economic Issues, 41, 626–638. https://doi.org/10.1007/s10834-020-09678-9 [Google Scholar] [Crossref]

31. Lozano, L., & Taboada, E. (2021). Applying user-perceived value to determine motivators of electricity use in a solar photovoltaic implementation in a Philippine Island. Sustainability, 13(14), 8043. https://doi.org/10.3390/su13148043 [Google Scholar] [Crossref]

32. Lusardi, A., & Messy, F.-A. (2023). The importance of financial literacy and its impact on financial behaviour. Journal of Financial Literacy and Wellbeing, 1(1), 1–23. https://doi.org/10.1017/flw.2023.8 [Google Scholar] [Crossref]

34. Online Sources [Google Scholar] [Crossref]

35. Bangko Sentral ng Pilipinas. (n.d.). Financial consumer protection framework. https://www.bsp.gov.ph [Google Scholar] [Crossref]

36. Department of Energy. (2023). Philippine Energy Plan 2023–2050. https://www.doe.gov.ph [Google Scholar] [Crossref]

37. Department of Energy. (n.d.). Electric Power Industry Reform Act of 2001 (Republic Act No. 9136). https://www.doe.gov.ph [Google Scholar] [Crossref]

38. Department of Trade and Industry. (2022, May 19). DTI releases policy advisory on basic consumer rights. https://www.dti.gov.ph [Google Scholar] [Crossref]

39. Department of Trade and Industry. (2023). Consumer protection. https://www.dti.gov.ph/konsyumer/consumer-protection/ [Google Scholar] [Crossref]

40. Department of Trade and Industry. (2023). Five (5) consumer responsibilities. https://dtiwebfiles.s3.ap-southeast 1.amazonaws.com/Advisories/PA.RESPONSIBILITIES.230705.005.MDBposting.pdf [Google Scholar] [Crossref]

41. Energy Regulatory Commission. (n.d.). Magna Carta for Residential Electricity Consumers. https://www.erc.gov.ph [Google Scholar] [Crossref]

42. Energy Regulatory Commission. (2004, June 17). Magna Carta for Residential Electricity Consumers. Asian Development Bank Law and Policy Reform Program. https://lpr.adb.org/resource/magna-carta-residential-electricity-consumers-philippines [Google Scholar] [Crossref]

43. Energy Regulatory Commission. (2004, June 24). Magna Carta for Residential Electricity Consumers. Supreme Court E-Library. https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/11/39112 [Google Scholar] [Crossref]

44. Food and Drug Administration. (n.d.). About the FDA. https://www.fda.gov.ph [Google Scholar] [Crossref]

45. International Energy Agency. (2021). World Energy Outlook 2021. https://www.iea.org/reports/world-energy-outlook-2021 [Google Scholar] [Crossref]

46. International Trade Administration. (2022, January 21). Philippines' rural electrification program. https://www.trade.gov/market-intelligence/philippines-rural-electrification-program [Google Scholar] [Crossref]

47. Manila Electric Company v. Castillo, G.R. No. 182976, 701 Phil. 416 (2013). Supreme Court E-Library. https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/55458 [Google Scholar] [Crossref]

48. National Telecommunications Commission. (n.d.). Consumer welfare and protection. https://ntc.gov.ph [Google Scholar] [Crossref]

49. Office for National Statistics. (2024). Age variable: Census 2021. https://www.ons.gov.uk/census/census2021dictionary/variablesbytopic/demographyvariablescensus2021/ag [Google Scholar] [Crossref]

50. Philippine Statistics Authority. (2025). Percentage of households using electricity increased (Reference No. 2025-101). https://psa.gov.ph/content/percentage-households-using-electricity-increased [Google Scholar] [Crossref]

51. Philippine Statistics Authority. (2025, June 10). PSA clears "2025 Family Income and Expenditure Survey," encourages participation for data-driven policy and poverty reduction efforts (Reference No. 2025-212). https://psa.gov.ph/content/psa-clears-2025-family-income-and-expenditure-survey-encourages-participation-data-driven [Google Scholar] [Crossref]

52. Republic of the Philippines. (1992). Republic Act No. 7394: Consumer Act of the Philippines. https://lawphil.net/statutes/repacts/ra1992/ra_7394_1992.html [Google Scholar] [Crossref]

53. United Nations Conference on Trade and Development. (2020). Manual on consumer protection. United Nations. https://unctad.org/publication/manual-consumer-protection [Google Scholar] [Crossref]

54. United Nations Development Program. (2022). Human development report 2021/2022. https://hdr.undp.org [Google Scholar] [Crossref]

Metrics

Views & Downloads

Similar Articles