ERC orders Meralco to refund P2.64B to consumers over six months

The Energy Regulatory Commission (ERC) on Monday issued an order requiring Manila Electric Co. (Meralco) to refund about P2.64 billion to consumers over a six-month period. The directive came shortly after the regulator had approved the power distributor's first rate adjustment in a decade and a half.

The refund reflects adjustments to Meralco's regulatory accounts, which track differences between the costs the company actually incurs and the revenues it collects from consumers. The ERC regularly reviews these accounts to ensure rates remain fair and appropriate.

The move underscores the ERC's role in balancing the interests of power distributors and the consumers they serve. By approving rate increases while simultaneously ordering refunds, the commission aims to maintain tariff stability while returning excess collections to customers.

The phased refund schedule will distribute the payments across six months, allowing Meralco to manage the cash outflow while ensuring consumers receive their credits systematically. Details on the specific timeline and implementation method are expected to follow in subsequent regulatory guidance.