Meralco to Refund P9.5 Billion Overcharged Customers

MANILA, Philippines – More than eight million Manila Electric Company (Meralco) customers are set to receive a combined P9.51 billion refund after the Energy Regulatory Commission (ERC) determined that the power distributor collected more revenue than it was entitled to during 2025. The refund will be credited to customers’ bills over six months at an average rate of P0.3448 per kilowatt-hour (kWh) across all customer classes. Residential customers will receive a refund of P0.5861 for every kilowatt-hour they consume, meaning the actual amount will vary depending on monthly usage. A household consuming 200 kWh, for instance, would receive a bill reduction of about P117.22 for that month. The ERC decision was made public on Sunday, August 2. The overrecovery resulted from a regulatory “true-up” of Meralco’s actual weighted average tariff against the distribution rates it was allowed to collect during the period. In other words, Meralco continued charging its existing distribution rates while the ERC had yet to approve updated rates for a new regulatory period. The regulator later reviewed how much Meralco collected in 2025 and compared it with the revenue the company was ultimately allowed to earn. Because Meralco collected P9.51 billion more than the approved amount, the ERC ordered the excess returned to customers. The refund comes as the ERC evaluates Meralco’s separate rate-reset application, with a decision expected by late August or September that could either raise or lower the utility’s distribution charges. Meralco’s challenges The refund adds to growing scrutiny of Meralco’s electricity charges following President Ferdinand Marcos Jr.’s push to remove system loss charges and the corresponding value-added tax from consumers’ monthly bills. During his State of the Nation Address on July 27, Marcos called for the immediate amendment of the Electric Power Industry Reform Act, arguing that consumers should not have to pay for electricity lost before it reaches their homes and businesses. System loss refers to electricity lost while passing through wires, transformers, and other equipment, as well as losses caused by power theft, illegal connections, defective meters, and billing errors. The charge currently accounts for around 5% of the average Meralco bill. (READ: EXPLAINER: What is system loss, and how does it affect your power bill?) Meralco chairman Manuel V. Pangilinan has warned that the Philippine power industry “may not survive” if utilities and other industry players are forced to shoulder the full cost. “So, who is going to pay for that? The industry? It’s going to cost tens of billions of pesos. We will not survive,” Pangilinan said. – Rappler.com