Manila Electric Company (Meralco) customers are set to receive a total of P19.95 billion in refunds over the next three years, following a decision by the Energy Regulatory Commission (ERC) to grant the utility provisional authority to implement the refund scheme.

The ERC announced on Friday that the refund will be applied starting in April to address the difference between Meralco’s actual weighted average tariff (AWAT) and its approved distribution tariff from July 2022 to December 2024.

This follows the Commission’s earlier order declaring the July 2022 to June 2025 period as lapsed due to an incomplete reset process under the Fifth Regulatory Period.

Positive impact

Meralco vice president and head of Corporate Communications Joe Zaldarriaga welcomed the development, noting the positive impact it will have on consumers, particularly during the summer months when electricity rates typically rise due to higher demand.

“While we have yet to receive the official ERC Order, we were informed that the regulator will be granting a Provisional Authority on Meralco’s refund application,” Zaldarriaga said in a text message to reporters.

“We welcome this development as this will provide relief to our customers especially as we approach the summer months when rates historically increase due to high electricity demand,” he added.

Separate line item

The refund will be shown as a separate line item labeled “AWAT(Refund)/Collect” on customer bills, beginning with the next billing cycle. Meralco will also be required to submit regular reports until the full refund has been processed.