ERC orders Meralco to refund P19.95 billion to customers

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Meralco customers can expect an average refund rate of P0.1189 per kilowatt hour

MANILA, Philippines – The Energy Regulatory Commission (ERC) has ordered power distributor Manila Electric Company (Meralco) to refund P19.95 billion to consumers.

The refund will “account for Meralco’s over-recovery of rates” from July 2022 to December 2024, according to the ERC’s statement issued Friday, March 14.

Meralco customers can expect an average refund rate of P0.1189 per kilowatt hour starting April. It will be reflected as a separate line item on customers’ bills.

The refund was based on the difference between the approved final distribution rate and Meralco’s actual average distribution rates from July 2022 to December 2024.

ERC Chairperson and CEO Monalisa Dimalanta and Commissioner Catherine Maceda dissented from the majority’s ruling, arguing that a shorter refund period could have benefited consumers more.

In her dissenting opinion, Dimalanta said she found “incomprehensible, unacceptable, and unjust” that the refund period (three years) is longer than the years Meralco charged its customers more than it should have (two years).

“Directing a shorter refund period would have yielded a more substantial refund amount per consumer and would have allowed Meralco to address the issue of over-recovery sooner,” wrote Dimalanta.

The long refund period “gives Meralco the authority to gouge consumers at will without accountability,” energy consumer advocacy group Power for People coalition said in a statement Friday.

“Meralco can overcharge consumers now, then pay it back at a lower amount in installments,” coalition convenor Gerry Arances said. – Rappler.com