The Energy Regulatory Commission (ERC) has directed the Manila Electric Company (Meralco) to refund PHP 14.17 billion to its customers, following the completion of its regulatory true-up process for distribution charges.

In a decision dated April 22, 2026, the ERC ordered the remaining refund balance to be returned at a rate of PHP 0.2511 per kilowatt-hour (kWh), which will be reflected in consumers’ electricity bills over the next 12 months.

The refund stems from the Commission’s confirmation of Meralco’s approved distribution rates compared against the Actual Weighted Average Tariff (AWAT), which is based on the utility’s actual revenues and electricity sales from July 2022 to December 2024.

“The ERC’s mandate is to protect consumers while ensuring a stable and predictable regulatory environment. By expediting the refund, we are providing more immediate relief to Meralco consumers,” said ERC Chairperson and CEO Francis Saturnino C. Juan.

The regulator shortened the refund period to 12 months from the original 36 months, resulting in a higher refund rate that will allow consumers to feel the benefits sooner.

The refund process began in April 2025, when Meralco started returning nearly PHP 20 billion to customers at a rate of PHP 0.1189 per kWh. As of February 2026, PHP 14.17 billion remains unrefunded, prompting the ERC to accelerate the payout schedule.

The refund will appear as a separate line item labeled “AWAT (Refund)/Collect” in electricity bills, allowing customers to clearly track the amount being returned each month.

According to the ERC, the true-up mechanism ensures that consumers are charged fairly, preventing over- or under-recovery by utilities during periods when rate resets are not conducted.

The Commission added that residential customers are expected to see more noticeable reductions in their monthly bills, as the refund rate for this segment is higher compared to other customer classes.

The ERC said it will continue to monitor the implementation of the refund and require regular reporting from Meralco until the full amount has been returned.

How much of a difference do you think faster electricity refunds will make for consumers facing rising power costs?

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