Regulator orders nearly ₱20-B Meralco refund to customers in 3 years

Metro Manila, Philippines – The Energy Regulatory Commission (ERC) has ordered the Manila Electric Company (Meralco) to refund P19.95 billion to customers within three years beginning April.

In a statement, the ERC said the refund stems from overcharged rates from July 1, 2022 to Dec. 31, 2024.

Customers can expect an average of P0.1189 per kilowatt-hour reduction in their monthly bills.

The refund will be a separate item in the bill called “AWAT Refund/Collect.”

Why is Meralco refunding customers?

The refund was a result of ERC’s review of Meralco’s actual weighted average tariff (AWAT) against the maximum average price, which determines whether consumers were charged more than the approved rates.

ERC said its findings confirmed an over-recovery, thus the refund order.

It said the refund amount may be adjusted after ERC completes its full evaluation of rates from July 1, 2022, to June 30, 2025.

Meralco said in a statement that it has not yet received the ERC order but acknowledged the regulator’s approval of the refund.

“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,” said Meralco vice president Joe Zaldarriaga.

The power distributor said a separate refund calculation will be made for the period January to June 2025 once final figures are available.

Meralco’s franchise area covers Metro Manila, Bulacan, Cavite, Rizal, and select areas in Pampanga, Laguna, Batangas and Quezon.