The Energy Regulatory Commission (ERC) has ordered Manila Electric Company (Meralco) to refund P19.95 billion to its customers due to overcharged rates from July 2022 to December 2024.
Starting April, Meralco consumers will receive an average refund of P0.1189 per kilowatt-hour, which will appear as a separate line item on their bills.
In an advisory on Friday, March 14, ERC said the refund is based on the discrepancy between Meralco’s approved final distribution rate and the actual average rates it charged during the specified period.
The ERC also asked Meralco to immediately implement the refund in the next billing cycle.
“The Commission further directed the MERALCO to reflect the refund rate as a separate line item in customer bills as “AWAT (Refund)/Collect”. The distribution utility is also required to submit a report in the prescribed format until the amount of over-recovery has been fully refunded,” the ERC said.
However, ERC Chairperson Monalisa Dimalanta and Commissioner Catherine Maceda opposed the ruling, arguing that the three-year refund period is too long.
Dimalanta criticized the decision, calling it “incomprehensible, unacceptable, and unjust” since the overcharging lasted only two years.
She said that a shorter refund period would have given consumers a higher refund amount and ensured quicker resolution of the over-recovery issue.
Consumer advocacy group Power for People Coalition also condemned the lengthy refund period, claiming it allows Meralco to exploit customers without accountability.
“Meralco can overcharge now and repay in smaller installments later,” said coalition convenor Gerry Arances.
Party-list group Bayan Muna welcomed the ERC’s decision but emphasized that it falls short of addressing the broader issue. Former Bayan Muna representative Carlos Zarate urged the ERC to investigate what he described as Meralco’s long-standing practices of overcharging consumers.
“The ERC must conduct a full audit and investigation into these questionable charges to protect the public from further abuse,” Zarate said. (TCSP)
