Meralco customers to receive P2.64 billion refund under ERC order

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Meralco customers refund order

Highlights

The Energy Regulatory Commission approved a P2.64 billion refund for Meralco customers, to be credited over about six months at an average P0.1020 per kWh.
Meralco's excess collections from January to June 2026 totaled P5.36 billion, with the net refund amount adjusted to P2.64 billion after previous decisions.
The ERC set Meralco's total allowed revenue at P342 billion for July 2026–June 2030, 36% below the P532 billion requested by the company.

Refund terms and rate review

As reported by BusinessWorld, citing the Energy Regulatory Commission, the regulator approved a P2.64 billion refund for customers of Manila Electric Co., or Meralco, after a true-up review of distribution charges collected from January to June 2026. The order, approved on Oct. 9, grants Meralco provisional authority to implement the refund in the next billing cycle after receiving the directive.

The ERC said the refund will be implemented at an average rate of P0.1020 per kilowatt-hour over about six months, shorter than the 12-month period proposed by Meralco. Residential customers are set to receive P0.1733 per kWh, which will appear as a separate line item on electricity bills.

In its review, the regulator said Meralco's actual weighted average tariff reached P1.5537 per kWh in the January to June period, above the approved distribution rate of P1.3522 per kWh by about P0.20 per kWh. That resulted in excess collections of about P5.36 billion, and after adjustments from previous refund and true-up decisions, the net amount due back to consumers stood at P2.64 billion.

The refund remains provisional and is still subject to further review and verification by the ERC. Any additional adjustments will follow the regulator's final evaluation.

Consumer impact and regulatory context

The ERC says the shorter refund window is intended to return excess collections more quickly while electricity prices remain elevated. ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan says the refund will be issued alongside the decision on the rate reset so there will be almost no movement in Meralco's current rates.

The refund covers the remaining lapsed period before the start of Meralco's first regulatory period under the ERC's revised rate-setting framework. That first regulatory period runs from July 2026 to June 2030, when the commission reviews the utility's costs, investments and performance to determine allowable distribution rates.

The regulator earlier approved an average distribution rate of P1.48 per kWh for the first regulatory year, versus the existing average rate of about P1.35 per kWh. It also approved about P342 billion in total revenue requirements for Meralco over four years, 36% below the P532 billion sought by the company.

Meralco is the Philippines' largest private electric distribution utility, serving more than 8.1 million customers in Metro Manila and nearby provinces. For September, the company reduced electricity rates by P0.0409 per kWh, bringing the overall rate for a typical household to P14.7424 per kWh from P14.7833 per kWh in August.

Metrobank’s fixed-income market rankings at The Asset Benchmark Research Awards 2026 highlighted the bank’s strength in both peso-denominated bonds and G3 bonds, alongside individual recognition for members of its trust and trading teams. Our earlier coverage also pointed to how investor sentiment can shift in the Philippine financial sector, noting that BDO Unibank’s share move was driven largely by bargain hunting and expectations for core banking metrics rather than operational upgrades.

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