The Energy Regulatory Commission (ERC) has directed all private distribution utilities (DUs) to refund P1.18 billion to consumers, representing unused fees previously collected to cover the cost of periodic regulatory resets.
The refund will be rolled out over one month in 16 DUs. Clark Electric Distribution Corp. was given a two-month period for the refund. Manila Electric Co. (Meralco) leads the refund, with P987.16 million due its customers. The exact amount varies by utility, with Meralco consumers set to receive P0.22 per kilowatt-hour (kWh) of electricity.
The refunds arise from fees the DUs initially collected to fund regulatory resets that typically involve the engagement of technical experts. But the ERC confirmed that no such experts were hired as the need was instead addressed under the government’s annual budget. As a result, the collected funds are rechanneled back to consumers.
The ERC emphasized that the refund will appear as a separate line item on electricity bills and that verification of the total refund amount will be conducted during the next regulatory rate reset. An official order to initiate the refund process is expected in early 2024.
