The Energy Regulatory Commission (ERC) of the Philippines has directed Manila Electric Company (Meralco) to refund approximately PhP2.64 billion to its consumers following a review of distribution charges collected between January and June 2026. The decision was approved through an Order dated 9 October 2026 under ERC Case No. 2026-129 RC, granting Meralco provisional authority to implement the refund arising from the true-up of its distribution rates.
The review covers the final portion of the period before Meralco’s First Regulatory Period began on 1 July 2026 under the Rationalized Rules for Setting Distribution Wheeling Rates (RRDWR), issued in November 2025. The true-up process enables the ERC to verify whether the distribution charges collected by Meralco were consistent with the rates permitted by the regulator, considering actual revenues and electricity sales.
During the January-June 2026 period, Meralco’s Actual Weighted Average Tariff (AWAT) reached PhP1.5537 per kilowatt-hour (kWh), compared with the approved distribution rate of PhP1.3522/kWh. The difference resulted in excess collections of approximately PhP0.20/kWh, equivalent to around PhP5.36 billion above the permitted level.
After accounting for adjustments arising from previous refund and true-up decisions, the net amount remaining to be returned to consumers was calculated at approximately PhP2.64 billion. The ERC’s order aims to ensure that consumers receive the excess amounts collected through their electricity bills.
Meralco initially proposed distributing the refund over 12 months at a rate of PhP0.0487/kWh. However, the ERC shortened the refund period to approximately six months to accelerate financial relief for consumers. Under the revised arrangement, the average refund rate will increase to PhP0.1020/kWh.
Consumers will see the adjustment as a separate item on their monthly electricity bills, labelled “AWAT (Refund)/Collect.” The refund rates will differ across customer categories, depending on the applicable distribution charges and regulatory calculations.
Flat streetlight accounts will receive a refund rate of PhP0.1764/kWh, while residential and General Service A customers will receive PhP0.1733/kWh. General Service B customers will receive PhP0.1147/kWh. The rates for government hospitals, metered streetlights, and charitable institutions under GHMSCI will be PhP0.0706/kWh. General Power customers will receive PhP0.0514/kWh, while Generator Wheeling accounts will receive PhP0.0128/kWh.
ERC Chairperson and Chief Executive Officer Atty. Francis Saturnino C. Juan said the true-up mechanism serves as a safeguard for consumers by ensuring fair billing and compliance with approved distribution rates. He highlighted that the shorter refund period is intended to provide faster financial relief while electricity costs remain elevated.
The refund remains provisional and is subject to formal verification. The ERC has scheduled hearings on Meralco’s application for 16–23 October 2026. It will also require the company to submit monthly progress reports until the entire refund amount has been returned to eligible consumers.
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