By Sheldeen Joy Talavera, Reporter
CUSTOMERS of Manila Electric Co. (Meralco) will receive a bigger electricity refund starting May after the Energy Regulatory Commission (ERC) ordered the acceleration of a P19.96-billion rebate to help ease the impact of higher power costs linked to global oil price pressures.
In a 24-page decision dated April 22, the ERC ordered Meralco to refund the remaining P14.17-billion balance of its regulatory adjustment covering the period July 2022 to December 2024. The period formed part of the utility’s distribution rate “true-up” or reconciliation process.
The accelerated refund will be implemented over 12 months instead of the original 36-month schedule, resulting in an average refund rate of P0.2511 per kilowatt-hour (kWh). The amount will appear as a separate line item in consumers’ monthly electricity bills starting in the next billing cycle.
Meralco head of public relations Claire-Ann Marie C. Feliciano in a Viber message said Meralco would issue a statement about the refund.
For households, the adjustment translates to an estimated reduction of P0.4278 per kWh in total electricity charges, providing near-term relief amid expectations of higher generation costs.
Meralco had already begun an initial refund of P19.96 billion in April last year, equivalent to P0.1189 per kWh, under the earlier 36-month schedule. The latest order effectively speeds up the return of remaining amounts to consumers.
“To provide more immediate relief, particularly given the expected rise in generation charges due to the Middle East conflict, the ERC has mandated that the remaining amount be refunded over a shorter period of 12 months instead of the original 36 months,” the regulator said.
The refund stems from the difference between Meralco’s actual revenues and its approved distribution rate of P1.35 per kWh during the regulatory period. Distribution utilities undergo periodic “rate reset” reviews where forecasted costs and investments are reconciled with actual performance.
ERC Chairman Francis Saturnino C. Juan said the decision balances consumer protection with regulatory stability.
“The ERC’s mandate is to protect consumers while ensuring a stable and predictable regulatory environment,” he said in a statement. “By expediting the refund, we are providing more immediate relief to Meralco consumers.”
Meralco, the country’s biggest power distributor, serves more than 8.1 million customers across Metro Manila and nearby provinces.
The company is seeking approval for a higher distribution tariff of P2.34 per kWh to fund a proposed P532.13-billion capital expenditure program until 2030.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
