The Manila Electric Co. (Meralco) has indicated that consumers could receive refunds totaling P16 billion should the Energy Regulatory Commission (ERC) allow a rate reset of the company’s fifth regulatory period (5RP).
At a briefing in Pasig City on Monday, Meralco senior vice president Jose Ronald Valles said there are indications the ERC treat the 5RP, covering 2022 to 2026, as a lapsed period. A rate reset, conducted by the ERC, periodically reviews and adjusts the distribution rate to reflect actual costs, including inflation and operational expenses.
Valles explained that should the ERC confirm the 5RP rate at P1.3522 per kilowatt-hour (kWh)—lower than the P1.57 per kWh Meralco initially requested—it would direct the company to refund any amount exceeding this rate for the duration of the 5RP.
“We estimate the total refund could be at least P16 billion, driven by our sales mix, particularly during periods of higher residential consumption,” Valles said. He noted that the current rate of P1.3810 per kWh is already cut nearly 3 centavos after an ERC review.
Should the ERC approve Meralco’s proposed rate of P1.57 per kWh, the potential for a significant refund would diminish as there would be little excess over the AWAT.
Looking ahead, Meralco is preparing for the next rate reset of the sixth regulatory period (6RP), effective July 2026. Valles emphasized the importance of timely decisions, saying delays in the 5RP resolution will impact the timeline of the 6RP reset.
“We have a full 21-month period to prepare, and we want to avoid any further delays,” he said.
