The P9.51 billion refund ordered for Manila Electric Co. (Meralco) customers will deliver reduced savings because the regulator has also approved a three-year cost recovery charge for the utility, the Energy Regulatory Commission (ERC) confirmed Monday.
ERC chairman Francis Saturnino Juan explained the refund works out to roughly P0.50 per kilowatt-hour (kWh) for residential users, or around P100 off the monthly bill for a typical household consuming 200 kWh. This relief will be applied over six months.
However, Meralco may now recover P7.29 billion in under-recovered costs at a rate of P0.0701 per kWh for 36 months. Juan clarified this amount is passed through to power generators and transmission providers, not kept as profit by Meralco. “Pass-through charges are revenue-neutral for distribution utilities. The ERC scrutinizes every peso to ensure only legitimate, allowable costs are recovered,” he said.
The refund stems from a true-up review of actual tariffs for July to December 2025. It remains unclear whether the adjustment will appear in this month’s bills.
The Power for People Coalition welcomed the six-month payout period as a positive shift from earlier longer schedules, but noted the relief is modest compared to overall household costs. The group urged deeper reforms, including reviews of generation charges and Meralco’s pending application for a P0.99 per kWh distribution rate increase for 2027–2030.
Meralco serves customers across Metro Manila and parts of Rizal, Bulacan, Cavite, Laguna, Quezon, and Batangas.
