MANILA Electric Co. (Meralco) customers will get a temporary reprieve from high power costs as the Energy Regulatory Commission (ERC) on Wednesday ordered the power distributor to refund a remaining P14.172 billion in over-recoveries at the soonest possible time.
The ERC said Meralco should refund a total of P14,173,358,349.09, equivalent to P0.2511 per kilowatt-hour (kWh), starting in May. It also must be done within a year, the regulator said in the decision.
The ERC directive followed completion of the regulatory “true-up” process for distribution charges implemented from July 2022 to December 2024. The power firm was asked in 2025 to refund P19,958,945,951, or an equivalent of P0.1189 per kWh, which should be finished in 36 months.
The initial refund began in April 2025, the ERC said, but the rest remains unrefunded as of February 2026.
The ERC said it wanted to provide more immediate relief to customers, particularly given the expected rise in generation charges due to the Middle East conflict.
“The ERC’s mandate is to protect consumers while ensuring a stable and predictable regulatory environment,” Chairman and CEO Francis Saturnino Juan said.
“By expediting the refund, we are providing more immediate relief to Meralco consumers, particularly in the face of rising electricity costs driven by global and domestic factors,” he added.
“The true-up mechanism is a safeguard embedded in our regulatory framework, ensuring that tariffs remain cost-reflective and reasonable at all times.”
The ERC said it will continue to closely monitor the implementation of the refund and require regular reporting from Meralco until the full amount has been returned.
ED PAOLO SALTING
