EXPLAINER: Why some Meralco customers were charged zero in May

Select residential customers of the Manila Electric Company (Meralco) may have received unusually low bills for May or may even have been charged zero after the company refunded bill deposits and accumulated interest through credits applied directly to their accounts.

Why is Meralco refunding bill deposits?

Under amendments to the Magna Carta for Residential Electricity Consumers published by the Energy Regulatory Commission (ERC) in February, select customers are entitled to the Early Refund of Bill Deposit (ERBD).

The amendments took effect in May, resulting in lower or even zero charges for eligible customers.

What is a bill deposit?

When customers first sign up for electric service, they pay a deposit equivalent to one month’s estimated billing. Utilities firms such as Meralco hold these deposits, which earn interest over time, and this interest is included in the refund.

Who qualifies?

Those entitled to a refund are lifeline customers—or low-income electricity consumers who qualify for government-mandated subsidies—with 100% discount.

Also qualified are customers who have consistently paid their bills on or before the due date for the past two years. Prior to the amendments to the Magna Carta, customers would need three consecutive years of on-time payments.

How to claim?

No documents are needed to claim the ERBD, as this is automatically credited to the monthly bill. Entitled customers of Meralco in particular are notified through a bill advisory, and details are reflected in the “Applied Credits” portion of the bill. The refund will not be given through cash or check.

What if payments are missed after receiving the refund?



The bill deposit will be reimposed, and the customer will lose the right to an early refund prior to the termination of service. They will then need to pay consistently for another two years.

Meralco constructs, operates, and maintains electric distribution systems in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal, as well as certain areas in the Batangas, Laguna, Pampanga, and Quezon provinces.

The power distributor hiked its household rates for June, bringing the overall rate up by P0.1488 per kilowatt-hour (kWh) to P14.4833 per kWh from P14.3345 per kWh in May. This translates to a P29.76 increase in the monthly bill of a typical household consuming 200 kWh. — BM, GMA News