Meralco seeks okay for fresh P2.64-B refund

Manila Electric Co. (Meralco), the country’s biggest power distributor, is seeking regulatory approval to refund more than P2.64 billion to customers following a revised calculation for the lapsed period covering January to June of this year.

Based on its filings with the Energy Regulatory Commission (ERC), the power giant proposed refunds averaging P0.0487 per kilowatt-hour (kWh), giving its millions of consumers a small break from rising costs.

The refund, which would appear as a separate line item in the electricity bill, is eyed for completion over 12 months or until completed.

“Pending final approval …, 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,” it said in the filing.

Outdated rates

The application covers the first six months of 2026, where the group’s approved final distribution rate stood at P1.3522 per kWh, lower than the P1.5537 per kWh Meralco charged to consumers.

The “true-up” calculation shows the gap between Meralco’s actual weighted average tariff and the regulator-approved rate for the period under review.

A lapsed period, meanwhile, refers to the time since the last rate update and can affect the pricing and revenue of regulated entities such as Meralco.

During this period, consumers are charged at outdated rates that may no longer reflect current service costs as the company awaits new tariff adjustments.

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According to a notice dated Sept. 11, the ERC set hearings next month to determine compliance, expository presentation and pretrial conference on Meralco’s application.

Meralco delivers electricity to over 8.3 million consumers in Metro Manila and nearby provinces, including the municipalities of Sto. Tomas, San Pascual and Batangas City.

This month, the company implemented a rate cut of P0.0409 per kWh following the decrease in ancillary service charges collected by the National Grid Corp. of the Philippines, coupled with lower taxes.