Meralco customers to get P2.64-B refund over six months

ASM, Philippine Canadian Inquirer
October 12, 2026

Photo courtesy: InsiderPH

MANILA, Philippines — Meralco customers are set to receive another refund after the Energy Regulatory Commission ordered the utility to return about P2.64 billion in excess distribution charges collected during the first half of 2026.

The refund will be applied over roughly six months at an average rate of P0.1020 per kilowatt-hour, although the actual amount credited will vary depending on the customer class.

The ERC said the adjustment will appear as a separate item on electric bills labeled “AWAT (Refund)/Collect,” allowing consumers to see how much is being credited back each month. 

The order followed the regulator’s review of Meralco’s Actual Weighted Average Tariff, or AWAT, from January to June 2026.

During that period, Meralco’s AWAT reached P1.5537 per kWh, compared with its approved distribution rate of P1.3522 per kWh. The difference translated to about P5.36 billion more than the approved rate, before adjustments from earlier refund and true-up decisions brought the net refundable amount to P2.64 billion.

Meralco had originally proposed spreading the refund over 12 months at an average rate of P0.0487 per kWh, but the ERC shortened the period to six months to provide faster relief to consumers amid elevated electricity costs. 

Residential and General Service A customers, which include households and many small businesses, are expected to receive among the highest refund rates relative to their consumption. 

The latest refund order comes as the ERC also approved Meralco’s first major distribution rate reset in more than a decade.

For the regulatory period covering July 2026 to June 2030, the commission set Meralco’s average distribution rate at P1.48 per kWh, higher than the previous P1.35 per kWh level but substantially below the P2.34 per kWh sought by the utility. The ERC also approved around P342 billion in revenue requirements, 36% lower than Meralco’s P532-billion application.

Meralco said the rate reset would give the company greater clarity as it pursues investments in its distribution network and service improvements.

The P2.64-billion refund remains provisional and will still undergo final review and verification by the ERC. Hearings on the application are scheduled from October 16 to 23, with any necessary adjustments to be made afterward. The regulator said it will require Meralco to submit monthly reports until the full amount has been returned to customers.