ERC to decide on Meralco's rate reset by September 2026

The Energy Regulatory Commission (ERC) on Thursday said it expects to make a formal decision on Meralco's application to raise its average distribution charge by the end of August or in September, after completing inspections of the utility’s assets. According to ERC Chairperson and CEO Francis Saturnino Juan, the agency has already started the evaluation and informal deliberation on Meralco’s rate reset, where the company seeks to collect some P532.13 billion from consumers from 2027 to 2030. The company is proposing to increase the average distribution charge to P2.34 per kilowatt-hour (kWh) from P1.35, an increase of P0.99. “There are still things that we need to do before we are able to close proceedings, like conduct the spot check or inspection of Meralco assets, and these inspections are scheduled within the month and until next month,” he said in a briefing. “Most likely the earliest that we will be able to take up the recommendation of staff insofar as the recent application of Meralco will already be towards the end of August or September,” he added. Juan said that the ERC has already started to look at the different “building blocks” while the spot checks have yet to be completed. “We are already trying to assess where we stand on each of these issues that will have to be resolved so that we can consolidate all these and come out with a decision on the building blocks leading to the final decision on the revenue requirement and the maximum annual price, not just for Meralco but for the other utilities that belong to Group A,” he said. Among those in the first entry group are Meralco, Cagayan Electric Power and Light Co. Inc., Cotabato Light and Power Co. Inc., and Dagupan Electric Corp. In the same briefing, Juan said the ERC will look into consumer complaints separately from the rate reset. “If there are violations committed by Meralco, these are separate matters, separate from these pending proceedings for us to be able to determine what should its correct rates (be) moving forward,” he said. A number of Meralco customers have complained of “bill shocks” during the summer season, which the company responded to by saying that all components of the monthly bills are approved by regulators before implementation. Meralco constructs, operates, and maintains electric distribution systems in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal, as well as certain areas in the Batangas, Laguna, Pampanga, and Quezon provinces. The Pangilinan-led firm posted a 12% increase in its consolidated core net income for 2025 to P50.6 billion, with its distribution utility business accounting for 58% or P29.6 billion. — BM, GMA News