Manila Electric Co. (Meralco), the largest power distributor in the Philippines, has been directed by the Energy Regulatory Commission (ERC) to refund $156 million (PHP9.5 billion) to its more than 8 million customers. This refund covers unauthorized charges and over-recoveries from a lapsed regulatory period in 2025. The decision, promulgated on July 21, 2026, and dated July 31, mandates Meralco to disburse these funds over a six-month period.
The refund will result in an average reduction of PHP0.3448 per kilowatt-hour (kWh) for all customer classes. Residential customers are expected to see a higher refund rate of PHP0.5861 per kWh, translating to an estimated monthly bill reduction of approximately PHP117 for a typical household consuming 200 kWh. Meralco has pledged full compliance with the ERC's order, confirming that the adjustment will appear as a separate line item on customers' electricity bills for transparency.
The excess collections stemmed from mandatory true-up calculations rather than arbitrary billing adjustments, according to Meralco. The company clarified that its Actual Weighted Average Tariff (AWAT) was higher than the approved tariff during the covered periods due to significantly higher consumption from residential customers, which drove up Meralco's AWAT. Meralco had proactively submitted two filings in 2025 and early 2026 for the first and second halves of 2025, respectively, which the ERC's recent decision approved. This latest refund follows previous clawbacks, including a $700 million refund from March 2021 to May 2023 and an ongoing $340 million refund that began in April 2025.
