Meralco seeks ERC nod for P2.64 billion refund scheme

MANILA, Philippines — Power utility giant Manila Electric Co. (Meralco) is seeking regulatory approval to return an additional P2.64 billion to its more than eight million customers.

Meralco has asked the Energy Regulatory Commission (ERC) to confirm its proposed refund scheme for the lapsed period covering January to June 2026.

In its filing, the company proposed an average refund rate of P0.0487 per kilowatt-hour (kWh) across all customer classes over 12 months or until the full amount is refunded.

Residential customers stand to receive a higher refund of P0.0828 per kWh, translating to savings of about P16.56 for households consuming 200 kWh a month.

Once approved, the adjustment will appear as a separate line item on customers’ Meralco bills throughout the refund period.

“Pending final approval of the instant application, the issuance of a provisional authority will allow Meralco’s customers to immediately enjoy the benefits of the refund sought to be implemented, providing welcome relief to consumers during this time,” the utility said.

The refund stems from true-up calculation, which reconciled the difference between Meralco’s actual weighted average tariff (AWAT) of P1.5537 per kWh from January to June 2026 and the approved final distribution rate of P1.3522 per kWh for the same period. The computation also included adjustments from previous AWAT true-ups.

A lapsed period represents the time that has passed since the last rate adjustment, affecting the pricing and revenue structures of regulated entities like Meralco.

In July, the ERC ordered Meralco to refund P9.5 billion in over-recoveries based on a true-up calculation for the lapsed period last year.

The refund, equivalent to P0.5861 per kWh, is being implemented over six months starting with the August billing period.

Meralco is the country’s largest power utility serving consumers in Metro Manila and nearby provinces.