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The undated photo shows a Meralco power line worker.
STAR / File
MANILA, Philippines — The Manila Electric Company (Meralco) must refund nearly P20 billion to customers over three years, starting with the next billing cycle.
In a 30-page decision promulgated on March 5, the Energy Regulatory Commission (ERC) approved Meralco’s proposed refund scheme for P19.096 billion but rejected its request to offset P862.034 million in under-recoveries.
As a result, Meralco must refund a total of P19.958 billion, inclusive of the charges it allegedly failed to collect from July 1, 2015 to June 2020, which ERC “disallowed” for offsetting.
The refund also stems from Meralco’s application in compliance with the ERC’s order in December 2024, which declared the period from July 1, 2022 to June 31, 2025 as a lapsed period.
Meralco applied for a refund scheme on January 28.
The refund translates to P0.1189 per kilowatt-hour (kWh), or the average rate for all customer classes, reducing electricity bills.
According to ERC, the equivalent refund rate per customer class is:
- Residential and General Service A - P0.2024 per kWh
- General Service B - P0.1308 per kWh
- General Power - P0.0587 per kWh
- GHMSCI - P0.0845 per kWh
- Flat Streetlights - P0.2202 per kWh
- Generator Wheeling - P0.0169
Customers will see this reflected in their bills under the line item “AWAT (Refund)/Collect,” the ERC said. AWAT refers to the actual weighted average tariff, or the average distribution rates across customer classes.
ERC, however, said that this provisional order is still “subject to further review and verification” because it will be included in the ERC’s final evaluation of rates for the fifth regulatory period.
Not a unanimous decision
The approval of Meralco’s application was a close decision, with a 3-2 vote. ERC Chairperson and CEO Monalisa Dimalanta and Commissioner Catherine Maceda dissented.
Both opposed the three-year refund, with Dimalanta asserting that a one-year refund would be more beneficial to consumers and justified.
In a statement on Friday, March 14, she argued that a shorter refund period of 12 months “would have yielded a more substantial refund amount.”
Meanwhile, Maceda said that “the refund should be completed in the shortest time possible.”
Meralco recently announced a rate hike of P0.2639 per kWh in March, bringing the overall electricity rate to P12.2901 per kWh. This is the second time they increased rates this year.
For a household consuming 200 kWh monthly, the total bill would be P2,458.02 or an additional P52.78.
With the average refund of P0.1189 per kWh, consumers may save about P23.78.
The power rate hikes were attributed to an increase in transmission charges for residential consumers, Feed-in Tariff Allowance (FIT-All) and other charges.
