THE Energy Regulatory Commission (erc) has directed the Manila Electric Co. (Meralco) to refund its consumers a total of P19.958 billion, equivalent to P0.1189 per kilowatthour to be reflected in the April bill of consumers.
ERC, in its notice of commission action, said that after careful deliberation, the majority of commissioners resolved to grant provisional authority to Meralco’s application for confirmation of the trueUp calculation of the actual weighted average tariff (AWAT) vis-à-vis approved final distribution rate Implemented during the lapsed period from July 2022 to December 2024.
The commissioners, Alexis Lumbatan, Floresinda Baldo-Digal, and Marko Romeo Fuentes, approved the refund with modifications and subject to the instructions issued by the commission during the discussion.
In a 3-2 vote, the ERC resolved to grant the proposed refund scheme of Meralco but disallowed its proposed offsetting of alleged under-recoveries from July 1, 2015 to June 30, 2020 in the amount of P862.034 million, resulting in a refund amount of P19.958 billion higher than Meralco’s proposed P19.096 billion.
“Accordingly, Meralco shall be directed to refund the total amount of P19,958,945,951 or an equivalent average refund rate for all customer classes amounting to P0.1189 per kWh,” the ERC said.
It said Meralco shall implement the refund over 36 months or until such time that the amount of overrecovery is fully refunded, subject to the discretion of the Commission to accelerate payment after full validation in the final determination, which will happen within one year from the issuance of the provisional authority.
The ERC said Meralco’s refund rate shall be reflected as a separate line item in the bills of the customers during the refund period using the term “AWAT(Refund)/Collect” and the refund is without prejudice to the outcome of the final determination of this case and the subsequent reset process for Meralco’s Fifth Regulatory Period (5th RP).
“Lastly, Meralco shall be directed to accomplish and submit a report, in accordance with the prescribed format, on or before the 30th day of the following month or until such time that the amount of over recovery shall have been fully refunded,” it said.
ERC chairperson and chief executive Monalisa Dimalanta and commissioner Catherine Maceda dissented from the resolution adopted by the majority and manifested to issue their respective dissenting opinions.
Dimalanta argued that directing a short refund period of twelve (12) months—justified as it is under a provisional authority and thus limited to a one-year effectivity—would have yielded a more substantial refund amount for the consumers.
Meanwhile, Maceda continued to question the validity of the true-up calculation and further said that consumers stand to lose more due to the protracted refund period, reiterating that the refund should be completed in the shortest time possible.