ERC orders Meralco to refund P9.5B to customers

The Manila Electric Company (Meralco) was directed by the Energy Regulatory Commission (ERC) to refund P9.5 billion to its customers.

”MERALCO is DIRECTED to refund the total amount of Nine Billion Five Hundred Six Million Five Hundred Sixty-Six Thousand Five Hundred Fifty-Six Pesos (PhP9,506,566,556.00) or an equivalent average refund rate for all customer classes in the amount of PhP0.3448/kWh," the ERC said in its 28-page decision.

"The refund scheme and implementation period shall be within six months or until such time that the amount of over recovery shall have been fully refunded to its customers," according to the ERC decision that was promulgated on July 31, 2026.

The ERC decision stems from applications made by Meralco where it sought the commission's approval and confirmation of the true-up calculation of the Actual Weighed Tariff (AWAT) from the periods January 2025 to June 2025 and July to December 2025.

Under the ERC decision, the specific breakdown of the P0.3448 per kWh average refund rate per customer class is as follows:

• Residential and General Service A - P0.5861
• General Service B - P0.3879
• General Power - P0.1740
• GHMSCI - P0.2298
• Flat Streetlights - P0.5746
• Generator Wheeling -P 0.0493

Meralco is directed to reflect these rates as a separate line item on monthly bills, labeled “AWAT (Refund)/Collect.”

The ERC also ordered Meralco to submit monthly compliance reports on the 30th of every month until all overcharged amounts have been fully paid back.

‘We will comply’

In a statement released Sunday, Meralco said it will comply with the ERC’s directive to implement the refund of P9.5 billion.

“We will comply with the most recent directive of the ERC to implement the refund of P9.5 billion over a six-month period, equivalent to an average rate of P0.34 per kWh, with residential customers getting a refund of about P0.59 per kWh,” Meralco’s statement read.

It noted that the ERC directive resulted from the two refund applications it filed in compliance with the regulatory commission.

“To recall, it was Meralco that filed two separate applications for refund in 2025 and early 2026, covering the period from January 2025 to June 2025 and July 2025 to December 2025, respectively,” the company said.

“The recent Decision of ERC ordering a refund of P9.5B, more or less, approved these two applications of Meralco,” it said.

Previously, Meralco applied for two refunds: a P40.5 billion refund covering the period from July 2015 to June 2022—which was fully implemented between March 2021 and May 2023—and an ongoing P20 billion refund covering July 2022 to December 2022, which began rollout in April 2025.

Meralco said, similar to its previous refunds, the latest approved adjustment will appear as a separate line item on customers' electricity bills. —with Lyjah Tiffany Bonzo/RF, GMA News