Republic of the Philippines

ENERGY REGULATORY COMMISSION

A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.


ERC Orders MERALCO to Refund Additional PhP21.8 Billion

In a 68-page Decision in ERC Case No. 2020-043 RC, the Energy Regulatory Commission (ERC) ordered the Manila Electric Company (MERALCO) anew to refund to its customers the additional amount of PhP21,769,496,221.00 or an average refund rate of PhP0.4790 per kWh, covering the period from July 2015 to June 2022. The refund is to be implemented in the next billing cycle from MERALCO’s receipt of the cited Decision.

“The Commission endeavored to review the rate components that can be adjusted under the existing rules. In particular, we made adjustments on the Regulatory Asset Base (RAB) and recomputed the Interim Average Rate (IAR). We wanted to ensure that all over-recoveries shall be refunded complete with interest,”ERC Chairperson and CEO Agnes VST Devanadera emphasized.

The ERC’s refund directive is the fourth since January 2021, as follows: (1) PhP13.9 B as per Order dated 27 January 2021; (2) PhP4.8 B as per Supplemental Order dated 23 February 2022; (3) PhP7.7 B as per Order dated 8 March 2022 (covered by various other cases); and (4) PhP21.8 B as per Decision dated 16 June 2022. MERALCO’s previous refunds are to be implemented until 2023. Thus, the updated total refund for Residential Consumers is now at PhP1.8009/kWh to include the latest PhP21.8 B refund.

In its Decision, the ERC further directed MERALCO to effect the refund in approximately twelve (12) months or until the amount is fully refunded to its customers, and to reflect the refund rate as a separate line item in the bills of MERALCO’s customers during the refund period.

“The Commission has carefully evaluated the case at hand of MERALCO and considered the views and concerns of the various stakeholders. We are confident that our Decision exercised fairness, and promoted the interests of the consuming public who bears the brunt of all these electricity charges. Let’s not forget that the provision of electricity is a public service and providers should only earn just and reasonable return on their investments,” ERC Chair Devanadera added.

Date Published: 7/7/2022

 


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