Millions of Meralco Customers Set to Receive Refunds Worth ₱9.5 Billion
MERALCO – Millions of electricity consumers may soon see lower power bills after Meralco confirmed it will comply with an ERC directive to refund billions of pesos in overcollected charges.
The Manila Electric Company (Meralco) has announced that it will comply with the directive of the Energy Regulatory Commission (ERC) to return ₱9.5 billion to electricity consumers after the regulator approved the refund of overrecoveries, or charges that exceeded the approved tariff.
In an official statement released on Sunday, August 2, Meralco expressed its support for the government’s efforts to provide financial relief to consumers through the approved refund program.
According to Atty. Jose Ronald V. Valles, Meralco Senior Vice President and Head of Regulatory Management, said the refund will be implemented over six months. He explained that customers across all classifications will receive an average refund of ₱0.34 per kilowatt-hour (kWh), while residential customers are expected to receive a higher average refund of approximately ₱0.59 per kWh.
The power distributor also clarified that it was the one that filed the two refund applications with the ERC in 2025 and early 2026. These applications covered billing periods from January to June 2025 and from July to December 2025.
Meralco explained that the refund resulted from the difference between the Actual Weighted Average Tariff (AWAT) and the approved distribution tariff during those periods. The company said the AWAT turned out to be higher primarily because residential customers recorded greater electricity consumption compared to other customer classes.
The company further emphasized that the ERC’s “true-up mechanism” is designed to ensure that consumers are reimbursed whenever distribution utilities collect more than what is authorized under the approved tariff. Meralco noted that this mechanism applies to all private distribution utilities in the country and may either result in refunds or additional collections, depending on the outcome of tariff computations.
To make the process transparent, Meralco said the refund will appear as a separate line item on customers’ monthly electricity bills. This will allow consumers to easily identify the amount being credited back to their accounts during the six-month implementation period.
The ERC’s approval of the ₱ 9.5 billion refund is expected to benefit more than eight million Meralco customers. With the company confirming its compliance, eligible consumers can expect to see the corresponding refund reflected in their electricity bills, providing some relief amid continuing concerns over household expenses and the rising cost of living.
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