Consumers can expect a temporary reduction in their electricity bills as the Energy Regulatory Commission (ERC) has ordered private distribution utilities (PDUs) to refund regulatory reset fees previously collected, amounting to up to P987.164 million.

The refund, ranging from P0.0476 per kilowatt-hour (kWh) to P0.3190/kWh, will be reflected as a separate line item in consumer bills and is set to be implemented over one to two months, depending on the PDU.

The directive, announced on Tuesday, applies to fees collected after a similar refund was issued in July 2019.

While most PDUs will complete the refund in one month, Clark Electric Distribution Corporation (CEDC) will process it over two months.

“We are targeting the release of the resolution within the month so it can be implemented early 2025,” ERC Chairperson Monalisa Dimalanta said in a text message.

The ERC clarified that these fees, initially approved to fund technical experts for regulatory resets, were unnecessary as "no actual payments were made, and amounts were provided to the ERC under the annual government budget for these purposes."

In addition to the refunds, the ERC has ordered PDUs to cease collecting regulatory reset fees entirely.

The difference between the refunded amount and the total collected will be verified during the next regulatory rate reset.

A formal resolution will soon be issued to guide the implementation of this refund.