ERC OKs P4 billion recovery from Meralco customers

MANILA, Philippines — Customers served by Manila Electric Co. are set to incur over P4 billion in additional charges later this year, after regulators granted Meralco’s recovery of costs tied to a major gas supply deal.

The Energy Regulatory Commission (ERC) authorized the collection of monthly fixed fees of P3.7 billion and $6.37 million (about P381.7 million) owed by Meralco to Excellent Energy Resources Inc. (EERI).

The amount translates to an additional charge of P0.1099 per kilowatt-hour for Meralco customers that will be recovered over a 12-month period.

“Considering the current situation of increasing prices of electricity, the commission finds it prudent to adjust the start of the recovery period not earlier than the September 2026 billing,” the ERC said in an 18-page order.

This follows the regulator’s provisional approval of the 15-year power supply agreement between Meralco and EERI in late 2024, paving the way for electricity delivery.

EERI, which operates a 1,275-megawatt combined-cycle power plant in Batangas, is jointly owned by the Meralco, Aboitiz and San Miguel groups following a $3.3-billion gas deal sealed last year.

Earlier this year, the ERC ordered the recovery of over P31 billion from Meralco customers to offset the losses incurred by power producers from fuel price spikes during the height of the Russia-Ukraine war and the pandemic.

Meanwhile, Meralco filed a complaint against two people involved in the unauthorized removal of an electric meter at a subdivision in Rodriguez, Rizal.

The incident, which was captured on video and quickly went viral on social media, shows a man forcibly taking down a power meter despite the homeowner’s clear objections. 

The power utility immediately responded to the incident and formally filed the criminal complaint for malicious mischief, citing deliberate damage to the company’s property.