ERC allows Meralco to collect P8.71B in unrecovered fees

The Energy Regulatory Commission (ERC) has authorized Metropolitan Electric Company (Meralco) to collect approximately P8.71 billion in unrecovered pass-through charges, including costs linked to system loss. This approval comes after Meralco was previously ordered to refund about P9.5 billion to over eight million consumers due to overcollections. Under the ERC's decision, the Manuel V. Pangilinan-led company was allowed to recover P7.3 billion for generation, P615.93 million for transmission, P595.05 million for system loss, and P228.87 million for real property tax. The collection period will span 36 months. ERC Chair Francis Saturnino Juan stated that these charges are "revenue-neutral" for distribution utilities, meaning they are not profit sources but merely costs Meralco collects on behalf of generation companies, the transmission provider, and government agencies, which are then passed on to consumers. Pass-through charges are estimated using power sales from previous months, and actual collections may vary based on household consumption. The ERC emphasizes its close scrutiny of Meralco's charges against actual, allowable costs to protect consumers from unapproved or excessive fees. Concurrently, the ERC found that Meralco had over-collected charges related to lifeline and senior citizen subsidies. The company has been directed to refund P554,786.62 for lifeline subsidy and P2.24 million for senior citizen discount subsidy to affected customers within one month. Meralco also owes approximately P27.337 million for local franchise tax over 36 months. This follows an earlier directive on July 31, where the ERC ordered Meralco to refund the equivalent rate of P0.3448 per kilowatt-hour (kWh) to over eight million consumers within six months, totaling P9.5 billion. This refund represented a price correction for the period of January to December 2025. The ERC noted that Meralco's actual weighted average tariff was higher than the final distribution rate. Information Source: Inquirer Business