MERALCO to Refund PHP19.95B to Consumers Over 36 Months

The Energy Regulatory Commission (ERC) has ordered the Manila Electric Company (MERALCO) to refund PHP 19.95 billion to its customers, following the approval of a provisional authority. The refund, to be implemented over approximately 36 months starting this April, addresses overrecoveries in electricity rates from July 1, 2022 to December 31, 2024, as outlined in an ERC press release issued today.

The decision stems from an earlier ERC Order last month, which declared the period from July 1, 2022 to June 30, 2025—originally part of MERALCO’s 5th Regulatory Period (5th RP)—as lapsed due to an incomplete reset process. The ERC directed MERALCO to file an application for a “true-up” calculation comparing its Maximum Average Price (MAP) to its Actual Weighted Average Tariff (AWAT) for the lapsed period. 

MERALCO complied on January 28, submitting its application under ERC Case No. 2025-025 RC.

In a 3-2 vote, the ERC approved MERALCO’s proposed refund scheme but rejected the company’s request to offset alleged under-recoveries of PHP 862.034 million from July 1, 2015 to June 30, 2020. This adjustment increased the refund amount from MERALCO’s proposed PHP 19.096 billion to PHP 19.958 billion, equivalent to an average refund rate of PHP 0.1189 per kilowatt-hour (kWh) across all customer classes. 

The ERC mandated MERALCO to begin the refund in the next billing cycle, with the amount reflected as a separate line item labeled “AWAT(Refund)/Collect” on customer bills. MERALCO is also required to submit regular reports until the full over-recovery is refunded.

Meralco vice president and head of corporate communications Joe Zaldarriaga responded to the ERC’s decision, stating, “While we have yet to receive the official ERC Order, we were informed that the regulator will be granting a Provisional Authority on MERALCO’s refund application. We welcome this development as this will provide relief to our customers, especially as we approach the summer months when rates historically increase due to high demand for electricity.” 

He added that the refund was filed in compliance with the ERC’s December 2024 Order and covers the difference between MERALCO’s AWAT and its approved distribution tariff from July 2022 to December 2024. Zaldarriaga also noted that a supplemental application for the remaining period of January to June 2025 will be filed once the AWAT for that timeframe is determined.

However, the ERC’s decision was not unanimous. Chairperson and CEO Atty. Monalisa C. Dimalanta dissented, arguing that a shorter 12-month refund period—permissible under a provisional authority’s one-year effectivity—would have delivered a more significant benefit to consumers. Commissioner Catherine P. Maceda, also dissenting, questioned the validity of the true-up calculation and criticized the 36-month timeline, asserting that a prolonged refund period disadvantages consumers.

The provisional order remains subject to further review as part of the ERC’s final evaluation of rates for the full lapsed period of July 2022 to June 2025.  

Follow Power Philippines for more updates.