Meralco Refund Update: What Consumers Need to Know
- March 28, 2025
A recent Manila Standard opinion piece addressed two key issues concerning Meralco.
The first was the Energy Regulatory Commission’s (ERC) directive for Meralco last December 2024 to refund P987.16 million to customers, charged at 22 centavos per kilowatt-hour (kWh) for regulatory rate reset costs.
While utilities were allowed to collect up to 47 centavos per kWh to hire experts for this process, no consultants were engaged. The ERC explained that government funds had already covered these expenses, making the charges unjustified.
The second issue referenced a July 2023 Supreme Court ruling barring Meralco from cutting power without 48 hours’ notice. The case stemmed from a 1999 incident where Meralco disconnected Lucy Yu’s electricity without warning, leading to a legal battle that ended in the Court affirming the Court of Appeals’ decision.
The Court ruled Meralco’s lack of notice violated due process and ordered a P150,000 payment to Yu. Meralco’s appeal was denied, and it pledged to comply with the decision.
The opinion article also mentioned a past Supreme Court ruling—not just on disconnections but on refunds as well. It highlighted the drawn-out, exhausting process of a court-mandated reimbursement for excess charges, including 13.27 centavos per kWh collected since June 2004.
With the ERC’s recent refund order, consumers are closely monitoring its implementation, especially since this isn’t the first time Meralco has been directed to refund its customers.
In December 2020, the ERC ordered Meralco to refund P1.4 billion in overcollections, averaging P0.1331 per kWh, to be reflected in customers’ bills over three months. Additionally, in July 2021, the ERC mandated Meralco to refund an additional P21.76 billion to customers, following previous refunds of P13.9 billion in January 2021 and P4.8 billion in March 2021.
(Also read: NAIA Power Interruption Frustrates DOTr Chief)
Meralco refund set for April rollout
Recently, the ERC approved a P19.958-billion refund for Meralco customers, set to start in April and span three years.
ERC Chairperson Monalisa Dimalanta clarified that this stems from over-collection, not overcharging. Under the ERC’s rules, utilities must return excess revenue generated from an expanding customer base, as they operate under a revenue cap.
Meanwhile, Meralco spokesman Joe Zaldarriaga clarified that the refund will apply moving forward and won’t be calculated based on electricity use from 2022 to 2024. According to Meralco, the refund will be a straightforward process, calculated based on future electricity consumption. Residential customers will receive P0.20 per kWh used. For example, a household consuming 500 kWh in April would get a P100 refund.
The ERC has directed Meralco to start issuing refunds in the next billing cycle without delay.
Though the refund is scheduled over 36 months it may conclude earlier if completed ahead of time, Dimalanta stated.
Meralco is required to submit monthly reports to the ERC for transparency. “We will closely monitor the implementation and consumer groups are welcome to participate in hearings. Our consumer services division is also open for feedback,” Dimalanta added.
Senator Hontiveros: Refund is not enough
Senator Risa Hontiveros welcomed the P19.9-billion Meralco refund but argued it was just a fraction of the estimated P100 billion owed to consumers. She acknowledged the relief it provides but said in Filipino that “this amount is minimal compared to the estimated P100 billion in excess charges that rightfully belong to the public.”
Citing industry experts, Hontiveros claimed Meralco’s liabilities to consumers from 2011 to 2022 have reached P100 billion. She is pushing for a Senate probe into the overcollections, attributing them to a flawed and inconsistent rate reset process by the ERC over multiple regulatory periods.
Hontiveros criticized the ERC for its failure to enforce performance-based regulation (PBR), the global standard for rate-setting. She argued that this lapse enabled Meralco to impose “grossly unreasonable interim rates for nearly ten years.”
She emphasized that this refund is just the first step in reclaiming every centavo Meralco unfairly collected over the years, “while ERC slept on the job.”
(Also read: The Power of Competition Ensuring Affordable and Reliable Energy)
Ensuring Meralc delivers on its promise
Consumer advocacy groups, such as Laban Konsyumer Inc. (LKI), are actively monitoring the situation and urging timely action on related rate adjustments to maximize consumer benefits.
LKI Trustee Jorge Bandola described the refund as a welcome relief for consumers struggling with the increasing cost of living. “We will strictly monitor the rate reset proceedings and we expect the ERC to uphold consumer welfare by observing timeliness, fairness, and transparency in its regulatory actions,” he stated.
This month, Meralco increased electricity rates by P0.2639 per kWh, bringing the overall rate to P12.2901 per kWh. This hike was mainly due to the end of a one-time ERC-ordered refund, higher transmission charges, and an increase in the Feed-In Tariff Allowance (FIT-All).
However, generation charges dropped by P0.1686 per kWh due to lower supplier costs and a stronger peso.
When questioned about whether Meralco’s latest rate increase would cancel out the refund, Dimalanta stated that the ERC will keep evaluating price adjustments to guarantee they remain fair for consumers.
Sources:
https://manilastandard.net/opinion/314566917/threat-to-public-safety.html
https://plus.inquirer.net/business/meralco-to-refund-customers-p987m/
https://newsinfo.inquirer.net/1795783/sc-meralco-cant-cut-power-without-48-hr-notice
https://www.bworldonline.com/corporate/2022/07/07/459707/meralco-will-comply-with-ercs-refund-order/
https://manilastandard.net/news/314569725/hontiveros-p19-9b-meralco-refund-too-little-too-late.html
https://tribune.net.ph/2025/03/18/laban-konsyumer-backs-meralco-refund-urges-rate-reset
https://www.manilatimes.net/2025/03/12/news/national/meralco-hikes-rates-in-march/2070839
https://www.bworldonline.com/top-stories/2025/03/12/658788/meralco-hikes-rates-for-households-this-march/
