Meralco to refund P16 billion to consumers

MANILA, Philippines — Power distributor Manila Electric Co. (Meralco) has estimated around P16 billion worth of refunds to consumers once the Energy Regulatory Commission (ERC) resolves its fifth regulatory rate reset.

“In our initial estimate for at least three years, that would be around P16 billion. So that’s a big, big, big relief for consumers. That’s why we want to have that closure already,” Meralco senior vice president and head of regulatory management Jose Ronald Valles said.

He said the refund represents the difference between the actual weighted average price and the maximum average price, or the highest allowable costs that can be charged to consumers.

Citing suspended ERC chairperson Monalisa Dimalanta, Valles said the ERC “supposedly ruled” that Meralco’s fifth regulatory period (5RP) covering 2022 to 2026 is already considered lapsed.

The ERC has yet to respond to The STAR’s request for confirmation.

During a lapsed period, consumers pay charges that are no longer reflective of the current cost of the service while awaiting the approval of a new rate.

Following the approval of a new rate, the power regulator may order distribution utilities to implement necessary adjustments such as a refund scheme to account for any discrepancies during the lapsed period.

Meralco, Valles said, is waiting for the ERC’s official decision on its 5RP to start the preparation process for the 6RP and trigger the corresponding filing of the refund application.

“We want to prepare this early for the 6RP because we have a full 21-month period under the rules to prepare for the reset,” he said.

The power distribution giant’s 6RP reset will commence in July 2026.

“If the decision on the 5RP will continue to be delayed, then consequently, the 6RP will also be delayed. We’re trying to avoid that,” Valles pointed out.

For Meralco’s 4RP, ERC commissioner Floresinda Baldo-Digal earlier said the power watchdog ordered Meralco to refund at least P40 billion, equivalent to around P0.73 per kilowatt-hour on the part of consumers.