THE Energy Regulatory Commission (ERC) has ordered the Manila Electric Company (Meralco) to refund a total of P9.5 billion to its consumers to correct electricity rates charged during the period from January to December 2025.
In a decision dated Friday, July 31, 2026, the ERC directed Meralco to return the amount to its around 8 million customers through a refund equivalent to P0.3448 per kilowatt-hour (kWh).
The refund will be spread over six months starting in the next billing cycle and will appear as a separate line item on consumers’ electricity bills.
The refund stems from the ERC’s review of Meralco’s distribution charges under the performance-based regulation (PBR) system, which determines whether the utility charged customers the correct rates while awaiting approval of new rates.
Under the PBR framework, when a scheduled rate review is delayed, distribution utilities are allowed to continue charging their existing rates until the ERC completes its evaluation.
After the review, the commission determines whether customers were overcharged and should receive a refund, or whether the utility is entitled to recover additional costs.
In a statement, Meralco said it will comply with the ERC’s directive and reiterated its commitment to support the Marcos administration’s efforts to provide relief to consumers.
“The refund pertains to the difference between Meralco’s Actual Weighted Average Tariff (AWAT) and its approved distribution tariff during those periods. The AWAT of Meralco was higher than the approved tariff at those times because of much higher consumption from residential customers compared to other customer classes, which drove Meralco’s AWAT to increase,” the company said.
It added that the refund is part of the ERC-approved “true-up” mechanism, which ensures that any excess amount unintentionally collected by a distribution utility is returned to consumers.
Meralco said the same process applies to all private distribution utilities and, depending on the outcome of the review, may result in either a refund to customers or an additional collection. (TPM/SunStar Philippines)