The utility distrubution company has been directed by the commission.
In an order issued on Friday, 14 March 2025, the Energy Regulatory Commission (ERC) said that it has approved the proposed measures of the Manila Electric Company (Meralco) for the refund of Php 19.95 billion-worth of over-recovery of rates from July 1, 2022 until December 31, 2024.
It may be recalled that on 17 December 2024, the Commission issued an Order of even date under ERC Case No. 2022-015 RC, which declared the period from July 1, 2022 to 30 June 2025 pertaining to MERALCO’s original 5th regulatory period (5th RP) as lapsed.
It then directed MERALCO to file an application for the true-up calculation of its Maximum Average Price (MAP) versus the Actual Weighted Average Tariff (AWAT) covering the period declared as lapsed within 30 days from receipt of the said order.
In response, Meralco then filed before the commission the said application lats January 28, under ERC Case No. 2025-025 RC, covering the period from July 1, 2022 to 31 December 2024.
In its application, the utility company manifested that it will file a supplemental application for the remaining period from January 1, 2025 to 30 June 2025, after it determines its AWAT for the said period.
In a 3-2 vote, the Commission resolved to grant the proposed refund scheme of Meralco.
However, it disapproved its proposed offsetting of alleged under-recoveries from July 1, 2015 to June 30, 2020, in the amount of PhP862.034 million, resulting in a refund amount of Php 19.958 billion — higher than Meralco’s proposed Php 19.096 billion.
The said provisionally approved refund amount is equivalent to an average refund rate Php 0.1189 per kilowatt-hour (kWh) for all of the distribution utility’s customer classes.
“The Commission ordered the MERALCO to immediately implement the refund in the next billing cycle upon receipt of the Order,” the ERC said in its statement.
Furthermore, the Commission also directed Meralcl to reflect the refund rate as a separate line item in customer bills as “AWAT(Refund)/Collect” and required the company to submit a report in the prescribed format until the amount of over-recovery has been fully refunded.
This provisional order, however, remains subject to further review and verification as part of the final evaluation of rates for the full lapsed period of July 1, 2022 to June 30, 2025, the ERC noted.