FOLLOWING a hiatus of over 15 years without a rate reset, the Energy Regulatory Commission (ERC) has approved an average distribution rate of P1.48 per kWh for the Manila Electric Company (Meralco).
The ruling covers the First Regulatory Period spanning July 1, 2026, to June 30, 2030.
Although Meralco has not yet received an official copy of the decision, the utility welcomed the milestone, noting it resolves lingering regulatory uncertainties and establishes sector stability.
Notably, despite inflation, minimum wage increases, and currency depreciation over the past decade and a half, Meralco’s actual distribution charge had remained stable, even dropping to ₱1.35 in 2016.
Senior Vice President and Head of Regulatory Management Atty. Jose Ronald V. Valles stated that the decision provides crucial clarity.
The utility plans to leverage this momentum to pursue vital network upgrades, including advanced metering infrastructure, cybersecurity enhancements, and modern grid initiatives designed to boost reliability and operational efficiency over the next four years.
Concurrently, the ERC approved Meralco’s application to refund ₱2.64 billion to consumers.
This translates to an average refund rate of ₱0.1020 per kWh across all customer tiers, with residential customers receiving a higher relief of ₱0.1733 per kWh.
The rollout begins with the November 2026 billing cycle and will run for six months or until fully disbursed.
Atty. Valles expressed gratitude for the regulator’s prompt action, emphasizing that the refund aims to provide immediate financial relief to consumers.
This latest initiative covers the lapsed period from January to June 2026, bridging the gap between Meralco’s actual weighted average tariff and approved distribution tariffs.
This new relief adds to Meralco’s ongoing consumer refunds, which currently total ₱1.0139 per kWh for residential customers, addressing previous lapsed periods stretching from July 2022 to December 2025.