The Energy Regulatory Commission (ERC) has mandated Manila Electric Co. (Meralco) to expedite the distribution of a P14.17 billion refund to its customer base, a move designed to alleviate financial strain on over eight million households and businesses. This directive comes as global energy markets face volatility due to escalating tensions in the Middle East.
Based on a document posted on its website, the commission said it directed the Pangilinan-led firm to implement the remaining P14.17 billion in refund out of P19.96 billion over 12 months, from the original target of 36 months.
The accelerated refund schedule will see the remaining balance distributed over the next year, a significant reduction from the initial three-year plan. The program, which began a year ago with an initial P5.8 billion refund, will now proceed at a higher average rate of P0.2511 per kilowatt-hour (kWh). This adjustment is part of a regulatory true-up calculation covering the period from July 2022 to December 2024, which identified a discrepancy between Meralco's actual tariffs and approved rates.
Residential customers are set to benefit most, with an estimated reduction of P0.4278 per kWh on their electricity bills starting next month. The ERC's intervention aims to cushion consumers from rising generation costs linked to international oil price fluctuations, providing timely financial relief during a period of economic uncertainty.