Households and businesses served by Manila Electric Co. (Meralco) will get relief from high electricity bills over the next six months after regulators ordered the power distributor to return P2.64 billion in excess collections.
The Energy Regulatory Commission (ERC) said Monday it directed Meralco to implement the refund at an average rate of P0.1020 per kilowatt-hour (kWh), with residential customers receiving a higher refund of P0.1733 per kWh.
For a typical household consuming 200 kWh monthly, this translates to about P34.66 in monthly bill reductions, while customers using 300 kWh could save approximately P52 per month.
Citing an order approved on 9 October, the ERC noted that it shortened the refund period to six months from the 12 months Meralco proposed to accelerate the return of billions of pesos to consumers.
The power distributor had proposed a refund rate of P0.0487 per kWh over one year, but the regulator instead approved a higher average rate to provide faster relief.
The directive followed an ERC review that found Meralco collected about P5.36 billion above its authorized distribution charges from January to June 2026.
During the period, Meralco's actual weighted average tariff reached P1.5537 per kWh, exceeding its approved distribution rate of P1.3522 per kWh by roughly P0.20.
After accounting for previous refund and rate adjustment decisions, the ERC determined that the net amount to be returned to customers stood at P2.64 billion.
“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 Francis Saturnino C. Juan said.
Residential and General Service A customers will receive a refund of P0.1733 per kWh, among the highest rates across customer categories.
General Service B customers will receive P0.1147 per kWh, while government hospitals, metered streetlights, and charitable institutions will get P0.0706 per kWh.
General power customers will receive P0.0514 per kWh, while generator wheeling customers will get P0.0128 per kWh.
The refund will appear as a separate line item labeled “AWAT (Refund)/Collect” in customers' monthly electricity bills.
The ERC said the adjustment covers the final six months of Meralco's previous regulatory period, before the implementation of its new four-year regulatory framework beginning 1 July.
The regulator explained that the review is intended to ensure that the distribution charges collected by Meralco remain within the rates it is authorized to recover from consumers.
However, the P2.64-billion refund remains provisional and could still be adjusted following the ERC's final evaluation.
Hearings are scheduled for 16 to 23 October, while Meralco will be required to submit monthly reports to the regulator until the full refund has been returned.
Meralco has yet to comment on the ERC directive as of press time.
Stay informed
Get Daily Tribune in your inbox
Breaking news, opinion, and business coverage for readers in the Philippines and abroad.
Subscribe to the newsletterPrefer chat alerts? Join the Daily Tribune Viber community.