ERC Orders Meralco to Refund P19.95 Billion to Customers

The Energy Regulatory Commission (ERC) has directed Manila Electric Company (Meralco) to refund a total of P19.95 billion to its customers due to over-recovered charges from July 1, 2022, to December 31, 2024.

Refund Breakdown and Implementation

🔹 The refund will be implemented over 36 months (3 years).
🔹 Residential customers will receive a refund of approximately P0.1189 per kilowatt-hour (kWh).
🔹 The refund will appear as a separate line item in customer bills labeled “AWAT (Refund)/Collect”.

The ERC instructed Meralco to start the refund in the next billing cycle and submit regular reports until the full amount is returned to consumers.

ERC’s Decision and Dissenting Opinions

In a 3-2 vote, the ERC approved Meralco’s refund proposal but rejected its request to offset P862.03 million in alleged under-recoveries from 2015 to 2020, which increased the refund amount to P19.958 billion—higher than Meralco’s original P19.096 billion proposal.

🔹 ERC Chair Monalisa Dimalanta dissented, arguing that the refund should have been completed in 12 months for a more substantial consumer benefit.
🔹 Commissioner Catherine Maceda also opposed the ruling, questioning the validity of the true-up calculation and stressing that a shorter refund period would be fairer to consumers.

Impact on Electricity Bills

This refund comes as electricity bills remain high, with Meralco’s January 2025 rate at P11.7428 per kWh. The refund will slightly ease costs for consumers over the next three years.