Consumers may feel some relief at the start of the new year, as the Energy Regulatory Commission (ERC) has instructed private distribution utilities (DUs) to refund P1.18 billion.

In a statement, the ERC said this refund stemmed from unused expenses intended initially for technical experts during the commission's periodic regulatory rate reset.

However, ERC explained that no actual payments were made to technical experts because the DUs did not engage them.

The funds for this purpose were instead provided to the ERC under the annual government budget.

The rate reset, conducted by the ERC, reviews and adjusts the rates that DUs can charge consumers.

The ERC will verify the accurate refund amount, stating, "The difference between the amount directed to be refunded and the actual refund disbursed to consumers will be verified during the regulatory rate reset."

The commission has ordered DUs to stop collecting fees related to the regulatory reset from consumers. A formal resolution outlining the refund process will be announced soon.

For Manila Electric Company (Meralco) customers, the refund will be P0.2264 per kilowatt-hour (kWh) for one month. Clark Electric Distribution Corp. (CEDC) will disburse the refund over two months.

These refunds will appear as a separate line item on consumers' electricity bills, the ERC said.