The Energy Regulatory Commission (ERC) has directed the Manila Electric Company (Meralco) to refund P2.64 billion to its customers over a compressed six-month period, translating to an average rate reduction of P0.1020 per kilowatt-hour (kWh).
The directive stems from an ERC order approved on October 9 under ERC Case No. 2026-129 RC, granting Meralco provisional authority for its distribution charge true-up mechanism covering the period of January to June 2026.
The true-up evaluation verifies whether Meralco’s actual revenues collected from consumers are aligned with the distribution rate approved by the regulatory body.
According to the ERC, Meralco’s Actual Weighted Average Tariff (AWAT) reached P1.5537 per kWh for the first half of 2026, exceeding its approved distribution rate of P1.3522 per kWh by approximately P0.20 per kWh or an over-collection total of P5.36 billion.
“After adjusting for the effects of earlier refund and true-up decisions, the net amount to be returned to consumers is PhP2.64 billion,” the commission noted in a statement.
While Meralco initially proposed distributing the refund at P0.0487 per kWh spread across a 12-month timeline, the ERC slashed the implementation window in half to accelerate consumer relief.
The refund will reflect on monthly electricity statements as a distinct line item labeled “AWAT (Refund)/Collect.”
“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,” said ERC Chairperson and CEO Atty. Francis Saturnino C. Juan. “By shortening the refund period to six months, we are giving consumers faster relief at a time when electricity prices remain elevated.”
The ERC emphasized that the ruling remains provisional based on preliminary technical assessments and will undergo final verification during formal hearings scheduled from October 16 to 23. Meralco is required to submit monthly compliance reports until the refund is fully executed.