ERC to rule on Meralco’s P19 billion refund proposal by March

The Energy Regulatory Commission (ERC) is set to decide on Manila Electric Company’s (Meralco) proposed P19-billion refund to its customers by March, ERC Chairperson Mona Dimalanta announced Monday.

Meralco’s refund covers the difference between its actual weighted average tariff and the last approved rate of P1.36 per kWh from July 2022 to December 2024. This translates to a refund of P0.19 per kilowatt-hour (kWh) for residential customers over three years, based on Meralco’s prevailing rate of P11.7428 per kWh as of January 2025.

“[Meralco] applied for refund, and our technical and legal staff are evaluating this so that as early as March 1, ito yung takdang araw na pwede na naming ma-actionan yung application nila. Ang pinakamaagang [petsa na] ma-aksyonan ito ay March,” Dimalanta told reporters after attending the House inquiry on Meralco’s proposed refund and weighted average cost of capital (WACC) which has remained at 14.97% since 2015.

(Meralco applied for a refund, and our technical and legal teams are evaluating it. As early as March 1, we can take action on their application.)

Dimalanta noted that under the Electric Power Industry Reform Act (EPIRA), the ERC must decide on the proposal within 30 days of its filing.

“Tamang tamang [na] pagpasok ng summer months, maramdaman na natin yung impact,” Dimalanta added.

(The timing is ideal since the refund can take effect as summer begins, when electricity demand surges.)

Meralco filed its P19-billion refund request on January 28, 2025. The hottest months in the Philippines typically fall between March and May.

Dimalanta also revealed that the ERC was reviewing the proposal to determine if the refund should be higher.

“We are evaluating if their proposed refund is enough. In fact, over collection kasi itong [sitwasyon nila kaya nag propose sila ng refund]. So, titingnan natin sa sariling computation ng komisyon kung may kailangan idagdag na amount,” she said.

(We are evaluating whether Meralco’s proposed refund is sufficient. This situation stems from an overcollection, so we are checking if an additional refund is necessary.)

Meralco serves approximately seven million customers in its franchise area. — DVM, GMA Integrated News