ERC tells Meralco to refund P2.64 billion to customers

The Energy Regulatory Commission (ERC) has ordered the Manila Electric Company (Meralco) to refund around P2.64 billion to its customers.

The refund would be at an average rate of P0.1020 per kilowatt-hour over approximately six months, the ERC said.

The directive was included in the order approved by the ERC on October 9 in ERC Case No. 2026-129 RC, which granted Meralco provisional authority on its true-up of distribution charges for January to June 2026. This was the last of the lapsed period covered by the ERC’s confirmation process.

During the said confirmation process for the lapsed period, the ERC checked if the distribution rates Meralco charged customers matched what it was allowed to collect, based on its real revenues and electricity sales.

"This 'true-up' uses the Actual Weighted Average Tariff (AWAT), which Meralco computes from its actual revenues and electricity sales and compares against its approved distribution rate of PhP1.3522/kWh," the ERC said.

The ERC found out that the AWAT for January to June 2026 was P1.5537/kWh. This meant that "Meralco’s rates brought in about PhP0.20/kWh, or PhP5.36 billion, more than the approved rate," it added.

"After adjusting for the effects of earlier refund and true-up decisions, the net amount to be returned to consumers is PhP2.64 billion," the ERC said.

Meralco proposed to issue the refund at a rate of P0.0487/kWh over 12 months, but the ERC shortened the period of refund to six months at an average rate of P0.1020/kWh.

The refund will be reflected in customers' Meralco bills as a separate line item labeled "AWAT (Refund)/Collect," the ERC said.

Depending on customer class, the refund rate would be as follows:

“The true-up is a safeguard that makes sure what consumers pay always reflects what is fair. When Meralco collects more than it is entitled to, the ERC will make sure it is returned, and that it is returned quickly. By shortening the refund period to six months, we are giving consumers faster relief at a time when electricity prices remain elevated,” ERC Chairperson and CEO Atty. Francis Saturnino Juan said.

The ERC clarified that the refund is provisional and was based on its initial evaluation.

The refund is subject tor review and verification during ERC's final evaluation of the application, for which a hearing was set from October 16 to 23. Any adjustment needed will be made accordingly, the ERC said.

"The ERC will continue to closely monitor the implementation of the refund and require monthly reporting from Meralco until the full amount has been returned," it added. —KG, GMA News