ERC orders Meralco to refund P2.64 billion to customers

Linemen install new transformers on an electric post along United Nations Avenue in Manila on March 22, 2026.

The Philippine STAR / Ryan Baldemor

MANILA, Philippines — The Energy Regulatory Commission (ERC) has directed the Manila Electric Company (Meralco) on Monday, October 12, to refund around P2.64 billion in excess charges to its consumers.

The refund is expected to reduce bills by an average of P0.1020 per kilowatt-hour (kWh) for at least six months, according to the ERC.

The refund rates, however, differ according to customer class:

• Flat streetlights - P0.1764 per kWh
• Residential and General Service A - P0.1733 per kWh
• General Service B - P0.1147 per kWh
• Government hospitals, metered streetlights, and charitable institutions - P0.0706 per kWh
• General Power - P0.514 per kWh
• Generator Wheeling - P0.0128 per kWh

Residential customers and small businesses will receive the “largest reduction in their monthly bills relative to their consumption,” the ERC said.

The order to refund comes after the agency found in its initial review, or “true-up,” that Meralco collected more in distribution charges than its approved rate from January to June this year.

The ERC-approved distribution rate was only P1.3522 per kWh, while Meralco charged P1.5537 per kWh, resulting in excess charges of P0.2015 per kWh, or P5.36 billion more than the approved rate.

The agency said Meralco had proposed refunding the excess charges over 12 months at a rate of P0.0487 per kWh, but the ERC shortened this period to give customers “faster relief.”

“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 Saturnino Juan said in the statement.

The refund will be reflected as a separate line item on customers’ electricity bills labeled “AWAT (Refund)/Collect.”

The ERC noted, however, that the amount is still subject to review and verification during its final evaluation scheduled for October 16 to 23.