Manila Electric Co. (Meralco) was ordered by energy regulators to refund ₱9.51 billion to its customer base after collecting unauthorized charges.

The Energy Regulatory Commission (ERC) directed the country’s largest power distributor to return an average rate of ₱0.3449 per kilowatt-hour across all customer categories over a six-month window, according to a 28-page decision dated July 31.

The rate adjustment will be reflected as a distinct line item on monthly power bills, beginning in the upcoming billing cycle once Meralco officially receives the ruling.

ERC Chairman Francis Saturnino Juan confirmed that implementation will take effect upon receipt.

Under the mandate, Meralco is required to refund a total of ₱9,506,566,556 over six months, or maintain the rebate mechanism until the full sum of over-recovered funds has been completely disbursed to consumers.

The multi-billion-peso payout stems from price corrections associated with a lapsed regulatory period running from January through December 2025.

In utility oversight, a lapsed period refers to the duration between rate reset cycles during which regulated entities continue billing clients using legacy tariff structures while pending official review and approval of revised tariffs.

Consequently, power rates charged during this interval failed to mirror actual service costs.

Because Meralco accumulated excess revenues throughout the covered period, the ERC mandated that the total payout include accrued interest costs to properly compensate rate-payers. T

he commission emphasized in its order that factoring interest into the financial correction was a necessary step to address the unauthorized collections incurred during the 2025 regulatory year.

Under the standard rate reset framework, distribution utilities such as Meralco must submit detailed projections of capital expenditure, operational costs, and proposed infrastructure developments covering a multi-year horizon—typically five years—for regulatory assessment.

The ERC’s evaluation of these submissions determines the final baseline tariff that utilities may lawfully pass along to retail customers.