Consumers will see more deductions in their electricity bills over the next 12 months after the Energy Regulatory Commission (ERC) ordered Manila Electric Company (Meralco) to accelerate the refund of P14.17 billion.

In a final decision on ERC Case No. 2025-025 RC, the regulator directed Meralco to return the remaining balance from its regulatory “true-up” covering distribution charges from July 2022 to December 2024 starting next month.

The ERC said Wednesday the refunds of nearly P20 billion began in April 2025 at a rate of P0.1189 per kilowatt-hour (kWh). However, as of February, P14.17 billion remains unrefunded. 

To speed up consumer relief, the ERC shortened the refund period to 12 months from the original 36 months, raising the average refund rate to P0.2511/kWh.

According to the regulator, the adjustment ensures customers were billed in line with approved rates, based on a comparison with the utility’s Actual Weighted Average Tariff, which reflects actual revenues and electricity sales. 

The mechanism is meant to ensure consumers are charged fairly during periods when rate resets were not conducted under performance-based regulation.

“The ERC’s mandate is to protect consumers while ensuring a stable and predictable regulatory environment,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

“By expediting the refund, we are providing more immediate relief to Meralco consumers, particularly in the face of rising electricity costs driven by global and domestic factors,” he added.

The ERC said households and businesses will see lower electricity bills, with residential customers expected to benefit the most due to a higher refund rate.

The regulator added that it will closely monitor the refund’s implementation and require regular reports from Meralco until the full amount is returned.

Meralco, however, has yet to issue a comment on the ERC’s decision as of posting time.