The Energy Regulatory Commission (ERC) has ordered the Manila Electric Co. (Meralco) to refund customers almost P22 billion or an average refund rate of P0.4790 per kilowatt hour (kWh), covering the period July 2015 to June 2022. The average refund for residential is P0.87 per kWh.
The ERC said the actual amount is P21,769,496,221 and must be implemented by Meralco in the next billing cycle.
“The commission endeavored to review the rate components that can be adjusted under the existing rules. In particular, we made adjustments on the regulatory asset base and recomputed the interim average rate. We wanted to ensure that all over-recoveries shall be refunded complete with interest,” said Agnes Devanadera, ERC chairperson, in a statement.
Devanadera said in the decision, ERC directed Meralco to effect the refund in approximately 12 months or until the amount is fully refunded to customers as well as to reflect it in a separate line item in the bills during the refund.
Joe Zaldarriaga, Meralco vice president and head of corporate communications, confirmed the receipt of the ERC order and noted the refund may possibly offset the likely increase this month.
“We will comply with the ERC’s directive. We are currently studying the order so we can start reflecting this in the power bills this month. While we have yet to receive supplier billings, there is a possibility that the refund can offset the expected increase in generation charge and lead to a reduction in the overall power rates for July,” Zaldarriaga said.
ERC said this latest Meralco refund order is the fourth since January 2021: the P13.9 billion from January; the P4.8 billion from February; and the P7.7 billion from March
The regulatory body also said Meralco’s previous refunds are to be implemented until 2023, with all total refund for residential consumers now at P1.8009 per kWh.
