THE Energy Regulatory Commission (ERC) has directed the Manila Electric Company (Meralco) to return an estimated ₱2.64 billion in excess charges collected from its customers, following a review of the utility’s distribution rates for the first half of 2026.
The decision, issued October 9 in ERC Case No. 2026‑129 RC, grants provisional authority for the refund to be applied over approximately six months at an average rate of ₱0.1020 per kilowatt‑hour, appearing as a separate line item labeled “AWAT (Refund)/Collect” on customers’ monthly bills.
The order stems from the commission’s “true‑up” process, which compares the Actual Weighted Average Tariff (AWAT) derived from Meralco’s real revenues and sales against the approved distribution rate of ₱1.3522 per kWh. For January through June 2026, the ERC found that Meralco’s effective AWAT reached ₱1.5537 per kWh — about ₱0.20 higher than authorized — resulting in total excess collections of roughly ₱5.36 billion. After accounting for prior adjustments and refund decisions, the net amount due to consumers stands at ₱2.64 billion.
Meralco had originally proposed a smaller refund of ₱0.0487 per kWh spread over 12 months, but the ERC shortened the period and increased the per‑kWh credit to deliver the full amount to customers more quickly. As of this report, Meralco has not yet issued an official statement regarding the order. The ERC emphasized that this marks the final true‑up period covered under the existing confirmation process, ensuring that rates align with actual costs and approved tariffs.
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