Manila Electric Co. (Meralco) customers will receive a reprieve on their electricity bills starting next month after the Energy Regulatory Commission (ERC) ordered the utility to accelerate the multibillion-peso refund to insulate households from global energy volatility.

In a statement on Wednesday, April 22, the ERC said it directed the country’s largest power distributor to refund approximately ₱14 billion to consumers beginning in May.

Under the revised schedule, Meralco will apply a deduction of ₱0.2511 per kilowatt-hour to monthly bills, according to the ERC. The adjustment will appear as “AWAT (Refund)/Collect” on billing statements and is expected to continue through next year.

The refund stems from a “true-up” mechanism covering distribution rates implemented between July 2022 and December 2024. This regulatory process compares the official rates charged to customers against the Actual Weighted Average Tariff, which is calculated based on Meralco’s audited revenues and energy sales.

ERC said the discrepancy suggests that actual earnings during the period exceeded the levels permitted under the regulatory framework, necessitating a return of capital to the ratepayer base.

To maximize the impact of the relief, the ERC ordered Meralco to compress the refund period to 12 months, down from the previously considered 36-month window.

The decision to frontload the rebates comes as the government seeks to dampen the domestic inflationary impact of escalating tensions in the Middle East. Geopolitical instability in the region has placed sustained upward pressure on global oil benchmarks and power generation costs, threatening to raise the cost of living for Metro Manila residents.

The current mandate follows a separate ₱20 billion refund program initiated in April last year, which provided a ₱0.1189 per kilowatt-hour reduction. The ERC noted that as of February, roughly ₱14.17 billion from previous adjustments remained outstanding, prompting the move to expedite the payout.

ERC Chairperson Francis Saturnino Juan said the expedited timeline is essential for maintaining fair pricing amid economic uncertainty.

He noted that while the commission must ensure predictable environment for utilities, its primary mandate is consumer protection.

“The ERC’s mandate is to protect consumers while ensuring a stable and predictable regulatory environment,” he said. “By expediting the refund, we are providing more immediate relief to Meralco consumers, particularly in the face of rising electricity costs driven by global and domestic factors.”

Juan described the true-up mechanism as a critical safeguard that ensures tariffs remain cost-reflective. (Gabriell Christel Galang)