Meralco rate reset completed by mid-2025, says ERC chief

The Energy Regulatory Commission (ERC) will re-adjust the tariff of distribution giant Manila Electric Co. (Meralco) by June next year, which could temper calls against “outdated rates” being collected from consumers.

ERC chair Monalisa Dimalanta said the regulator ordered the Pangilinan-led firm to submit a new application that reflects the new period for its fifth regulatory process or “5RP.”

The last petition initially covered July 2022 to June 2026. However, the Dimalanta said this was updated to 2025-2028, with the months covered yet to be decided.

Dimalanta said she could not explain why the 2022-2024 period was excluded from the computation as the decision was made when she was under preventive suspension.

Under a rate reset process, a regulated entity such as Meralco must submit to the ERC its proposed expenditures and projects over a given period, usually five years unless extended by the regulator. This will then be the basis of the distribution rate that will be charged to consumers.

Meralco’s distribution charge remained unchanged since August 2022.

“There will be a reset and this Commission is in fact working hard to ensure that a reset will be completed as soon as possible,” she told the Inquirer on Tuesday.

Dimalanta said that if Meralco could file its application next month, the ERC could complete its ruling by June 2025.

Since the years 2022 and 2024 would no longer be considered in the 5RP, she said the ERC may release an order directing Meralco to issue refunds to about eight million customers in Metro Manila and nearby provinces.

P16 billion

Earlier, an official of Meralco said the group was seeing about P16 billion worth of refund once the ERC resolved its 5RP as lapsed.

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The refund would represent the difference between the actual average prices and the highest allowable costs that consumers should pay.

Meralco’s franchise area covers Metro Manila, Bulacan, Cavite, Rizal, and select areas in Pampanga, Laguna, Batangas and Quezon.

The rate reset issue of Meralco caught the attention of Sen. Win Gatchalian during a previous budget hearing, as he questioned the ERC’s earlier decision to “forego” the 5RP.

By “foregoing,” the current petition would lapse without action from the regulator and current rates would be maintained until the next rate is approved.