The Energy Regulatory Commission (ERC) has granted Manila Electric Co. (Meralco) provisional authority to implement a refund scheme amounting to P19.95 billion, covering an over-recovery of rates from 1 July 2022, to 31 December 2024. The scheme will be executed over 36 months, with refunds starting in the next billing cycle.
The ERC decision, issued on Friday, was made following a 3-2 vote. Meralco is mandated to implement the refund immediately upon receipt of the order, with the refund rate set at P0.1189 per kilowatt-hour across customer classes. The amount is higher than the P19.096 billion initially proposed by Meralco due to the disallowance of the utility’s request to offset P862 million in alleged under-recoveries from the period between 1 July 2015, and 30 June 2020.
As part of the provisional authority, the ERC directed Meralco to list the refund as a separate line item in customer bills, labeled “AWAT(Refund)/Collect.” Additionally, the utility will be required to submit progress reports until the full amount is refunded.
Despite the majority ruling, two ERC commissioners, chairman Monalisa Dimalanta and commissioner Catherine Maceda, dissented. Dimalanta argued that a shorter 12-month refund period would have been more beneficial to consumers, while Maceda questioned the validity of the calculation method, expressing concern that a prolonged refund period would ultimately disadvantage consumers.
The provisional order remains subject to further review and final evaluation by the ERC, which will assess the full rate period extending through June 2025.
