Meralco Refunds Expanded: Consumers To See Higher Bill Deductions Within A Year

Customers of Manila Electric Co. (Meralco) may soon see lower electricity bills as both ongoing and newly proposed refunds move forward.

The Energy Regulatory Commission (ERC) has ordered the power distributor to speed up the return of more than ₱14 billion to consumers, allowing the refunds to be completed within one year instead of three. This means customers will receive bigger monthly deductions of about ₱0.2511 per kilowatt-hour (kWh), which can help offset recent increases in electricity costs.

At the same time, Meralco is asking regulators to approve an additional ₱9-billion refund covering more recent billing periods in 2025. If approved, this could further reduce power rates by around ₱0.09 per kWh for households, although the amount would be spread out over a longer period.

ERC Accelerates Refunds

The faster refund timeline covers the remaining ₱14.17 billion from an earlier ₱19.96-billion refund program tied to the period from July 2022 to December 2024, when final rates had yet to be reset.

Originally, the refund was scheduled to be returned over 36 months at a rate of ₱0.1189 per kWh. Under the ERC’s April 2026 order, however, the remaining balance will now be refunded over just 12 months, effectively doubling the monthly benefit to consumers.

ERC Chairperson Francis Saturnino Juan said the move is intended to provide “immediate relief” as households and businesses deal with rising electricity costs driven by both global and domestic factors.

The refund program began earlier with an initial ₱5.8 billion already being returned. The remaining amount will continue to appear as a separate line item labeled “AWAT (Refund)/Collect” in customer bills, allowing consumers to track how much is being refunded each month.

Billing Period Covered

Separately, Meralco has filed applications with the ERC to refund a total of about ₱9.01 billion covering two periods in 2025: ₱4.69 billion for January to June and ₱4.32 billion for July to December.

These proposed refunds are based on a regulatory review comparing what customers were charged against the utility’s actual costs during those periods. When the collected amounts exceed what is allowed, the difference is returned to consumers.

If approved, the refund could translate to a reduction of around ₱0.09 per kWh for residential customers, to be implemented over three years or until the full amount is returned. Meralco has also requested provisional authority to begin implementing the refund ahead of a final decision.

The ERC has scheduled hearings on May 5 and 12 to assess the application and ensure compliance with regulatory requirements. The utility has been directed to make the proceedings accessible to the public, including through on-site viewing at its Pasig office.

Rising Power Costs Add Urgency

The push to accelerate refunds comes as electricity rates face upward pressure, partly due to global fuel market volatility linked to the ongoing conflict in the Middle East.

In April, Meralco raised electricity rates by ₱0.5335 per kWh, bringing the overall rate to ₱14.3496 per kWh from ₱13.8161 per kWh in March. For a typical household consuming 200 kWh, this resulted in an increase of about ₱107 in monthly bills.

While oil and gas account for only a portion of the country’s power generation mix, higher global fuel prices can still influence overall electricity costs. Meralco has warned that sustained increases in fuel prices could lead to further rate hikes in the coming months.

Other Relief Measures

Amid rising costs, consumer advocacy groups are calling for additional protections. The Power for People Coalition has urged the ERC to freeze electricity rate increases and suspend service disconnections for customers unable to pay their bills.

The group cited the combined impact of higher electricity prices, rising transport costs, and inflation, warning that cutting off power would worsen the burden on households already struggling with expenses.

The ERC emphasized that refund mechanisms are part of a broader regulatory framework designed to ensure that electricity rates remain fair and reflective of actual costs.

Beyond refunds, Meralco is also undergoing a rate reset process, which includes a proposed ₱272-billion capital expenditure plan through 2030. This will help determine future electricity rates as the utility continues to invest in infrastructure and service improvements.

As the country’s largest power distributor, serving more than eight million customers across Metro Manila and nearby provinces, Meralco’s rate adjustments and refund programs have a significant impact on consumers nationwide.

Source:

https://businessmirror.com.ph/2026/04/22/erc-to-meralco-shorten-refund-period-to-12-months

https://www.philstar.com/business/2026/04/18/2521686/meralco-eyes-p9-billion-refund-customers

https://business.inquirer.net/586556/meralco-customers-to-get-bigger-rebate