Manila Electric Company (Meralco), the Philippines' largest power distributor, has been directed by the Energy Regulatory Commission (ERC) to refund ₱9.5 billion ($156 million) to its customers. This refund stems from excess charges accumulated during a "lapsed regulatory period" in 2025, specifically between January and December, where the utility billed clients using outdated tariff structures while awaiting approval of revised rates. The ERC's decision, dated July 31, 2026, mandates Meralco to disburse this amount over a six-month period.
The refund will result in an average rate reduction of ₱0.34 per kilowatt-hour (kWh) for all customer classes. Residential customers are expected to see a higher average refund of approximately ₱0.59 per kWh, which translates to an estimated monthly bill reduction of roughly ₱117 for a typical household consuming 200 kWh. Meralco stated its full compliance with the directive, and the refund will appear as a separate line item on customers' electricity bills to ensure transparency.
Meralco clarified that it initiated the process by filing two separate applications in 2025 and early 2026 to reconcile the difference between its Actual Weighted Average Tariff (AWAT) and the approved distribution tariff. The company attributed the higher AWAT during the period to increased consumption from residential customers. This mechanism, known as a "true-up," is part of the ERC-approved regulatory process designed to ensure that distribution utilities refund any unintentional over-collections. This latest refund follows previous adjustments, including a ₱40.5 billion refund from March 2021 to May 2023, and an ongoing ₱20 billion refund that began in April 2025.
