The Energy Regulatory Commission (ERC) has directed Manila Electric Co. (Meralco) to refund approximately P9.5 billion to its customers following the completion of its review of the utility’s rates for the 2025 regulatory period.
In a decision dated July 31, the ERC ordered Meralco to implement a refund equivalent to P0.3449 per kilowatt-hour (kWh) to be credited to consumers over a six-month period. The refund will appear as a separate line item in consumers’ monthly electricity bills.
ERC Chairperson and Chief Executive Officer Francis Saturnino Juan said the refund will take effect in the next billing cycle after Meralco formally receives the Commission’s decision.
The refund covers the January to December 2025 lapsed regulatory period, during which Meralco continued charging rates previously approved by the ERC while the Commission was still evaluating the utility’s application for new distribution tariffs under the rate reset process.
Under the rate reset mechanism, distribution utilities periodically submit their proposed operating expenses, capital expenditures and investment plans to the ERC. The Commission then determines the appropriate electricity rates that utilities are allowed to charge to ensure that only prudent and reasonable costs are passed on to consumers.
The ERC said its review found that Meralco had collected more than what was ultimately allowed under the approved rates. As a result, the Commission ordered the utility to return the excess collections, including the corresponding interest, to consumers.
The refund intended to return excess collections made during the regulatory period, ensuring that consumers are charged only the electricity rates approved by the ERC following its review.