MERALCO begins issuing its ₱9.5‑billion refund to over eight million customers, resulting in lower electricity bills this month.
The refund works out to a reduction of ₱0.59 per kilowatt‑hour for residential consumers, providing welcome relief intended to ease the impact of other rate adjustments in the August billing.
Meralco spokesman Joe Zaldarriaga explained that the refund comes from reconciling the company’s actual weighted average tariff with the ERC‑approved final distribution rates for the 2025 period.
However, the savings will be partially offset by several approved upward adjustments. The Feed‑in Tariff Allowance (FIT‑All) — the charge supporting renewable energy projects — rises to ₱0.3359 per kWh from ₱0.2011 per kWh.
Additionally, Meralco will begin collecting ₱8.7 billion in accumulated underrecoveries covering generation and transmission costs, system losses, and taxes. These will be recovered at ₱0.08 per kWh each month over a three‑year period. Zaldarriaga also noted that prices for power reserves procured by the National Grid Corp. of the Philippines have risen significantly, adding further pressure to rates.
Separately, a lawmaker has called on the Bureau of Internal Revenue (BIR) to remove the 12 percent value‑added tax imposed on system loss charges. Association of Philippine Electric Cooperatives (APEC) Party‑list Rep. Sergio Dagooc argued that consumers should not pay VAT on electricity that never reaches their homes, urging the BIR to make the change without waiting for new legislation.
Dagooc also criticized the way certain charges are labeled, suggesting that fees described as “line rental” should instead be called “generation charges” to be honest and transparent with the public. Meralco is set to formally announce its full August rate adjustment later today.
metrosundaily
