By Joann Santiago-Villanueva
MANILA – The Energy Regulatory Commission (ERC) has ordered Manila Electric Company (Meralco) to refund PHP2.64 billion to customers over the next six months, averaging PHP0.1020 per kilowatt hour (kWh).
The ERC order issued Oct. 9 said the figures were arrived at after it granted the distribution utility (DU) on its true-up of distribution changes for the first six months this year, the last of the lapsed period covered by ERC’s confirmation process.
In a news release Monday, ERC said the true-up was based on the actual weighted average tariff (AWAT). It is based on the DU’s actual revenues and electricity sales against the ERC-approved distribution rate of PHP1.3522/kWh.
“For January to June 2026, the AWAT came out at PhP1.5537/kWh, meaning Meralco’s rates brought in about PhP0.20/kWh, or PHP5.36 billion, more than the approved rate,” it said.
The order did not mention when the refund period will start.
Initially, the refund period is 12 months but ERC shortened it to six months “to give consumers faster relief.”
“The true-up is a safeguard that makes sure what consumers pay always reflects what is fair. When Meralco collects more than it is entitled to, the ERC will make sure it is returned, and that it is returned quickly. By shortening the refund period to six months, we are giving consumers faster relief at a time when electricity prices remain elevated,” ERC Chairperson and Chief Executive Officer Francis Saturnino Juan said.
“This is the one that we are looking at because we have to ensure the completion of our immediate and interim solutions — the battery energy storage system and the power barges — to be ready by the first quarter of 2027.”
