Electricity consumers under Cotabato Light and Power Company are set to receive a total of P53.87 million in refunds after the Energy Regulatory Commission (ERC) completed a comprehensive review of the utility’s pass-through costs and recovery adjustments spanning more than a decade (2013 to 2024).
The regulator’s Decision, promulgated on September 1, 2026, resolved Cotabato Light’s four compliance filings by establishing a net over-recovery of P54.37 million. Offsetting this with a remaining balance of P508,747.24 from an earlier regulatory period brought the final refundable amount to P53.87 million.
According to the Commission, discrepancies between billed amounts and actual allowable costs stem from fluctuations in generation sales, varying consumption levels, and timing delays in rate adjustments, clarifying that these variances do not imply deliberate overcharging by the distribution utility.
The ERC emphasized that resolving these historical true-up applications is part of a broader push to clear pending regulatory backlogs.
“We are delivering on our commitment to resolve the long-standing rate reset impasse. This Decision brings greater certainty to the regulatory process and ensures that confirmed over-recoveries are returned to consumers. This is fair, transparent, and accountable regulation in action,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.
The overall reimbursement is anchored by P40.77 million in excess system loss collections, alongside over-recoveries in generation (P17.64 million), lifeline subsidies (P2.83 million), transmission charges (P2.70 million), and real property taxes (P126,995.14).
These returns are offset by authorized under-recoveries that Cotabato Light must collect, consisting of P 10.19 million in local franchise taxes and P 12,989.21 in senior citizen subsidies.
| Component | Nature | Total Amount |
| System Loss | Over-recovery (Refund) | P40,770,000.00 |
| Generation | Over-recovery (Refund) | P17,640,000.00 |
| Lifeline Subsidy | Over-recovery (Refund) | P2,830,000.00 |
| Transmission | Over-recovery (Refund) | P2,700,000.00 |
| Real Property Tax | Over-recovery (Refund) | P126,995.14 |
| Local Franchise Tax | Under-recovery (Collection) | P10,190,000.00 |
| Senior Citizen Subsidy | Under-recovery (Collection) | P12,989.21 |
For household customers, the net adjustment translates to an estimated overall reduction rate of P0.0516 per kilowatt-hour (kWh), which will be factored into monthly utility bills over a period of roughly 48 months.
The itemized per-kWh rate adjustments for residential users include refunds of P0.0179/kWh for generation, P0.0010/kWh for transmission, P0.0402/kWh for system loss, P0.0029/kWh for lifeline subsidies, and P0.0001/kWh for real property taxes. Consumers will concurrently see collection charges of P0.0104/kWh for local franchise taxes and P0.0001/kWh for senior citizen subsidies.
In the same ruling, the Commission denied Cotabato Light’s attempt to recover P7.13 million in fuel expenses under its third compliance filing, explaining that the item falls outside automatic true-up mechanisms and must be filed in an independent petition.
Cotabato Light must apply the rate adjustments starting in the billing cycle immediately following receipt of the order. The utility is required to file a sworn compliance certificate within 10 days of implementation, alongside periodic progress reports until all balances are fully settled.
“Resolving long-standing regulatory matters means providing certainty to the industry while protecting consumers. We will continue to ensure that our Decisions are properly implemented and that consumers receive what is due to them,” Chairperson Juan said.