The Energy Regulatory Commission (ERC) ordered Manila Electric Co. (Meralco) to refund consumers P0.2264 per kilowatt-hour for a month, totaling P987.164 million, for the expenses of its regulatory reset.
The ERC directed 17 private distribution utilities (PDUs), including Meralco, to refund the remaining amounts collected from consumers for the expenses of the regulatory reset periodically conducted by the regulator.
The regulatory reset costs cover expenses for hiring technical experts. The ERC said that based on the monitoring of bills by PDUs on Tuesday, it determined the continued inclusion of regulatory reset fees in the rates collected by PDUs and thus directed them to refund the corresponding amounts collected from consumers, ranging from P0.0476 centavos to P0.3190 centavos per kWh for a total refund amount of P1.177 billion.
“We are targeting the release of the resolution within the month so it can be implemented early 2025,” ERC Chairperson Monalisa Dimalanta said.
The ERC said a similar order was issued to PDUs in 2019, covering collections for prior periods, and this was implemented as a one-time refund in July 2019.
It said the current refund would cover collections for the period following the July 2019 initial refund.
The refund will be implemented for a period of one month for most PDUs, except for Clark Electric Distribution Corp. (CEDC), for which the refund will be implemented for two months.
The ERC said these refunds would be reflected as a separate line item in the electricity bills of consumers.
The regulator said these amounts were initially approved to be collected to engage technical experts for the periodical regulatory rate reset conducted by the ERC.
It said no actual payments were made as the PDUs did not engage technical experts, and amounts were provided to the ERC under the annual government budget for these purposes.
The difference between the amount directed to be refunded and the actual refund disbursed to consumers will be verified during the regulatory rate reset to be conducted by the ERC.
The commission also resolved to order PDUs to cease from collecting the regulatory reset fees from consumers. It is also set to issue a formal resolution to guide the refund of the rates.
