The Energy Regulatory Commission (ERC) has ordered Manila Electric Company (Meralco) to refund ₱9.5 billion to its consumers, following a decision dated July 31, 2026.
The ERC directed the country’s largest power distributor to return the equivalent of ₱0.3449 per kilowatt-hour (kWh), to be reflected as a separate line item on consumers’ electricity bills over a period of six months.
According to ERC chair and CEO Francis Saturnino Juan, the refund will take effect starting the next billing cycle after Meralco receives the ruling. For a household consuming around 200 kWh a month, the refund works out to roughly ₱69 credited to the bill each month for six months – about ₱414 in total – though actual amounts will vary based on individual consumption.
The refund stems from Meralco’s rate reset process, under which regulated utilities submit their spending and proposed projects, typically covering a five-year period, to the ERC. This submission serves as the basis for the rates passed on to consumers.
The P9.5-billion amount corresponds to a price correction covering the “lapsed period” from January to December 2025. A lapsed period refers to the stretch of time since a utility’s previous rate update. During this window, consumers continue paying rates that may no longer reflect the company’s actual costs, since new tariff adjustments are still pending ERC approval.
In its decision, the ERC noted that Meralco had over-collected from consumers during the covered regulatory years, and factored interest into the total refund amount. “Considering that Meralco collected the over-recovery during the regulatory years covered by the lapsed period, the Commission finds it prudent to include the interest cost in the computation of the total refund of Meralco relative to the instant case,” the ERC said in its ruling.
Meralco serves millions of households and businesses across Metro Manila and nearby provinces, making it the Philippines’ largest electric utility by customer base. Consumers who wish to verify the refund on their bills can check for the itemized deduction once Meralco implements the ERC order in the coming billing cycle.
