ERC Orders P9.5 Billion Meralco Refund for 8 Million Consumers

ERC Orders P9.5 Billion Meralco Refund for 8 Million Consumers

By Bing Jabadan – TheNATIONWEEK.com | August 3, 2026

MANILA, Philippines – In a significant directive aimed at providing financial relief, the Energy Regulatory Commission (ERC) has mandated Manila Electric Co. (Meralco) to issue a P9.5 billion refund to over 8 million consumers. This monumental decision, dated July 31, requires a reimbursement of P0.3448 per kilowatt-hour (kWh) to be itemized separately on electricity bills over the next six months, starting with the upcoming billing cycle.

ERC Chair and CEO Francis Saturnino Juan confirmed the immediate implementation of this long-awaited rate correction. The substantial refund addresses an “over-recovery” by Meralco during a “lapsed period” from January to December 2025. During this time, consumers were charged outdated rates that did not reflect the true costs of service while new tariff adjustments were pending. Investigations revealed that Meralco’s actual weighted average tariff of P1.5224 per kWh significantly exceeded the approved final distribution rate of P1.3522 per kWh. The ERC further enhanced the refund by including an additional P496 million in accrued interest costs.

Meralco, the nation’s largest power distributor serving approximately 8.3 million consumers across Metro Manila and surrounding provinces, has publicly expressed its support for government initiatives that provide consumer relief. Jose Ronald Valles, Meralco’s SVP and head of regulatory management, affirmed the company’s commitment to transparency in the refund process.

This mandated refund comes amidst growing public frustration over recent electricity bill hikes, including a P0.3428 per kWh increase in July, attributed to rising fuel prices and a weakened local currency—factors Meralco maintains are “beyond its control.” Critics have also questioned various line items on consumer bills, such as lifeline program charges, senior citizen discounts, and renewable energy initiatives.

In response to widespread public outcry, particularly on social media, the Department of Energy (DOE) and the ERC have launched a comprehensive review of Meralco’s pricing structures. This inter-agency effort aims to ensure fairer electricity bills for Filipino consumers, with discussions already underway to implement President Ferdinand Marcos Jr.’s directive to abolish “system loss” charges.

System loss, defined as the discrepancy between electricity entering a distribution network and the amount billed to customers, includes both technical losses from infrastructure and non-technical losses due to theft or billing errors. However, Meralco Chairman Manuel V. Pangilinan has cautioned against the complete removal of these charges, warning that the “tens of billions of pesos” in costs could cripple the power sector. DOE Secretary Sharon Garin, asserting that “consumers should only pay for the electricity they actually use,” acknowledged that fully implementing the President’s order may take up to a year. The DOE pledged to collaborate with regulators, lawmakers, and industry stakeholders to protect consumers from exorbitant billings while preserving the sector’s long-term viability.

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