The Energy Regulatory Commission (ERC) has ordered Manila Electric Co. (Meralco) to return approximately P2.64 billion to consumers over six months, following a review that found the company had collected more than its approved distribution charges.
The directive comes days after the regulator approved a new distribution rate for Meralco, its first adjustment in 15 years.
Under the order announced Monday, October 12, the average refund will be P0.1020 per kilowatt-hour (kWh), while residential customers will receive P0.1733 per kWh.
ERC Orders Faster Refunds
The refund covers electricity charges from January to June 2026. The ERC calculated Meralco’s approved distribution rate for the period at P1.3522 per kWh, lower than the P1.5537 per kWh the company charged.
Meralco initially proposed distributing the refunds over 12 months, but the commission shortened the period to six months to provide consumers with faster relief.
ERC Chair and CEO Francis Saturnino Juan said the adjustment ensures that electricity customers pay only what is authorized by the regulator.
The refund will coincide with the implementation of Meralco’s new distribution rate, with the ERC aiming to minimize changes in consumers’ electricity bills.
New Distribution Rate Approved
The ERC approved an average distribution rate of P1.48 per kWh for Meralco’s regulatory period covering July 2026 to June 2030.
Although higher than the existing rate of P1.35 per kWh, the approved amount is below the P2.34 per kWh requested by the company. The commission has yet to announce when the new rate will take effect.
A rate reset allows regulators to review a utility’s expenses and planned investments before setting the charges passed on to customers. For Meralco, this covers distribution infrastructure, including poles, wires and substations.
El Niño May Increase Power Demand
The rate adjustment comes amid concerns that a strong El Niño could increase electricity consumption, strain power supplies and contribute to higher bills.
Energy Secretary Sharon Garin warned that rising demand could also lead to power interruptions. She said the Department of Energy would coordinate with the ERC to ensure power companies do not take advantage of the situation.
The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) expects El Niño to peak toward the end of 2026 and persist into early 2027. The phenomenon is associated with hotter temperatures, drought and irregular rainfall, which could put additional pressure on the country’s energy supply.
