Meralco eyes P9 billion refund for customers

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April 18, 2026 | 12:00am

MANILA, Philippines — Power utility giant Manila Electric Co. (Meralco) is seeking regulatory approval to refund over P9 billion to customers following a true-up calculation for the 2025-lapsed period.

In separate filings with the Energy Regulatory Commission (ERC), the company proposed refunds of about P4.69 billion for the lapsed period January to June 2025 and P4.32 billion for July to December 2025.

This could translate to a reduction of around P0.09 per kilowatt-hour for residential customers, to be implemented over three years or until the full amount is refunded.

The adjustment will be reflected as a separate line item in the Meralco customer bills during the refund period.

The true-up calculation reflects the difference between Meralco’s actual weighted average tariff and its approved final determination rate during the lapsed period.

A lapsed period represents the time that has passed since the last rate adjustment, affecting the pricing and revenue structures of a regulated entity like Meralco.

During a lapsed period, consumers pay charges that are no longer reflective of the current cost of the service, while awaiting the approval of a new rate.

In a notice promulgated on April 1, the ERC set hearings on May 5 and 12 for the determination of jurisdictional compliance, expository presentation and pre-trial conference on Meralco’s applications.

Meralco is directed to mirror the virtual hearings at its Pasig office and ensure that the venue remains open to the public.

“Moreover, Meralco shall guarantee that, during the conduct of the expository presentation, the participation of the public shall not be impaired,” the regulator said.

Pending the hearing of the merits of the applications, Meralco has asked the ERC to issue a provisional authority to immediately implement the refund to its customers.

As the country’s largest power utility, Meralco provides electric service to over eight million customers in Metro Manila, Bulacan, Cavite and Rizal, as well as certain areas in Batangas, Laguna and Quezon.

Meanwhile, the ERC is being pressed to freeze power rate hikes and service disconnections for those unable to settle their electricity bills amid the ongoing energy emergency.

The Power for People Coalition (P4P) trooped to the ERC yesterday, calling for the nationwide implementation of these measures to cushion the impact of rising energy costs on consumers.

P4P convenor Gerry Arances said it is “inhumane” to cut electricity access as consumers grapple with the combined effect of summer heat and the global oil crisis.

“Electricity bills are getting more expensive alongside fuel for transport and basic commodities. The ERC needs to decisively exercise its mandate of protecting power consumers at this time,” Arances said.

Over a month since the US-Israel war with Iran erupted in late February, domestic pump prices have more than doubled. Although oil and gas make up only a small portion of the country’s power mix, their surging prices put pressure on other energy sources.

In the Meralco franchise area, electricity rates rose by P0.5335 per kilowatt-hour in April, bringing the overall rate to P14.3496 per kWh from P13.8161 per kWh in March.

The adjustment translates to an increase of around P107 in the power bills of typical households consuming 200 kWh a month.

While the Middle East war has yet to impact power bills, a Meralco official has warned that surging fuel costs could push up electricity rates next month.

Meanwhile, Murang Kuryente party-list Rep. Arthur Yap is pushing for a P25-billion financing plan for micro, small and medium enterprises (MSMEs), citing the need to shift to capital mobilization from subsidies.

Yap called yesterday for the immediate creation of a national MSME risk facility to unlock more than P25 billion in financing, using the Department of Trade and Industry’s existing funds more strategically.