Meralco defers bill deposit collection to 2027

Here’s what customers need to know.

Meralco recently announced that it is delaying the collection of its reimposed bill deposits until next year.

This comes after widespread consumer complaints over October 2026 bills that nearly doubled for some customers after thousands of pesos were added under “other charges” for updated bill deposits.

Meralco noted that only around 20,000 of its more than 8 million customers were required to pay a reimposed bill deposit after failing to pay their bills on time consistently.

“We are working with the ERC (Energy Regulatory Commission) to defer the reimposition of the Bill Deposit and offer installment payment options,” the private company wrote in its advisory on the MyMeralco app.

For consumers who already paid the extra deposit in October, Meralco assured them that the amount would be automatically credited to their November bills.

Why is there a need to deposit?

A bill deposit serves as a financial guarantee against unpaid electricity bills and is equivalent to a customer’s average monthly bill over the past 12 months.

Under the Magna Carta for Electricity Consumers, the ERC allows distribution utilities (DUs) like Meralco to reimpose bill deposits. While DUs hold exclusive franchises in their service areas, leaving consumers with no alternative provider, this charge is permitted to protect distributors from unpaid accounts.

To regulate this, the ERC issued an advisory on Oct. 23 instructing DUs nationwide to serve formal written notices explaining the basis and computation before collecting any deposit, which consumers may pay in three equal monthly installments.

However, consumers protected under the No Disconnection Policy for specified 2026 billing periods are explicitly exempted from these reimposed deposits.

The policy also rewards customers with a consistent payment record. Those who pay their bills on or before the due date for two consecutive years qualify for an automatic full refund of their deposit, including accrued interest.

The deposit also earns annual interest, which is credited to the customer’s account or included in the final refund.

Viral post highlights billing discrepancy

“This isn’t about refusing to pay. It’s about paying what is properly due and challenging charges that need justification,” customer Ann YL wrote in one of her viral “Meralco serye” posts.

On Oct. 16, Ann shared on Facebook that she received a monthly bill totaling nearly ₱20,000, which included a ₱9,634.91 “other charge” for a bill deposit adjustment.

Customer service representatives repeatedly claimed the deposit stemmed from late payments in March, July, August, and September.

Armed with PSBank receipts proving she paid her electricity bills on time, Ann refused to settle the unverified deposit and requested an in-person audit at Meralco’s San Pedro branch. Branch staff reviewed her account, found no record of late payments, and submitted a cancellation request to the main office.

While her mobile app balance dropped to ₱0 after she settled her regular October bill, Ann is still awaiting formal written confirmation to clarify whether the disputed deposit was permanently canceled or merely placed on hold.

In 2025, the power giant collected ₱14.69 billion in bill deposits, while refunds to eligible consumers reached ₱9.33 billion.

For consumers, the latest controversy highlights the importance of clear explanations for charges added to their electricity bills, especially when the amounts can significantly increase what they owe in a given month.

Meralco’s planned deferral gives the company and the ERC time to work out how the deposits will be collected, but customers will still need clear notice of why they are being charged, how the amounts are computed, and what they can do if they believe an adjustment is incorrect.

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