The Energy Regulatory Commission (ERC) has directed Manila Electric Company (Meralco) to return a net total of P2.64 billion to its customers, to be spread over roughly six months rather than the full year the company originally proposed, with the rebate likely showing up at the next billing cycle.
Approved on October 9, 2026, the order stems from a routine “true-up” review, which checks whether what Meralco actually charged matched the rates it was allowed to collect between January and June this year. The review found that the company’s actual weighted average tariff worked out higher than the approved P1.3522 per kilowatt hour, resulting in excess collections. After accounting for earlier adjustments, the net amount due back the customers stands at P2.64 billion.
Instead of Meralco-proposed 12-month schedule, the ERC shortened the period to deliver faster relief. The average refund rate will be P0.1020 per kilowatt hour, appearing as a clear separate line item labeled “AWAT (Refund)/Collect” on monthly bills. The exact rate varies across customer groups, with residential and small general service customers seeing P0.1733 per kilowatt hour credited back, while other classes such as businesses and government institutions have their respective applicable rates.
This decision carries important corporate and regulatory meaning: it reinforces that utility earnings are kept within agreed boundaries, and any over-collection must be returned promptly. It also signals the ERC’s commitment to balancing fair returns for service providers with protection for consumers, particularly amid high electricity costs. ERC Chairperson Atty. Francis Saturnino Juan noted the true-up process exists to ensure customers pay only what is fair and permitted under the rules.
For households, the refund translates into immediate savings on monthly electricity bills, easing cost pressures at a time when living expenses remain elevated. For businesses — from small shops to large industrial users — the credit will help lower operating costs, offering some financial breathing space and supporting cash flow. The ERC also intends to roll out this refund alongside its recently approved distribution rate adjustment for 2027, so that the credit helps offset the impact of the rate increase and keeps overall changes more manageable for consumers. The approved new rate of P1.48 per kilowatt hour was significantly lower than what Meralco had originally requested, further softening the impact on end-users.
The ERC clarified that this refund is provisional, and the final amount may still be adjusted following hearings scheduled from October 16 to 23, 2026. Meralco has acknowledged the development, stating it has not yet received the official order but confirming that, as with previous similar refunds, the credit will help bring down customer bills once implemented. Both the commission and the power distributor are working to ensure the refund reaches customers’ accounts as quickly as possible.
