Lower-than-expected May electricity bills expected as MERALCO refund offsets rate increases

₱14.17 billion refund to be released ahead of schedule, easing pressure on household power costs.

MERALCO customers can expect lower-than-expected electricity price increases in May as the concessionaire expedites a refund order covering almost two years’ worth of distribution charges.

The Manila Electric Company (MERALCO) currently owes ₱14.17 billion in refunds to customers following the completion of regulatory review covering distribution charges from July 2022 to December 2024. The amount stems from adjustments approved after final reconciliation of allowable charges during the period.

To help cushion the impact of rising electricity costs, the Energy Regulatory Commission (ERC) shortened the refund period to one year, allowing consumers to benefit from the adjustment sooner rather than through a longer phased schedule.

Breaking down the savings

Under the rollout, MERALCO is expected to begin issuing refunds averaging ₱0.25 per kilowatt-hour (kWh) starting May 2025. Residential customers will receive an additional ₱0.22 per kWh in adjustments, effectively translating to lower monthly bills during the refund period.

The timing is significant as electricity rates have already increased by ₱1.3988 per kWh since January 2026, with earlier hikes implemented in February. Energy authorities have also indicated that adjustments in May 2026 will not exceed ₱2.00 per kWh.

With the refund factored in, consumers are expected to feel partial relief against the upward movement in power costs, particularly for residential users already adjusting to higher monthly bills.