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ABOUT THE MERALCO REFUND AND WHY YOUR BILL CAN STILL GO UP
You hear that Meralco has been ordered to return billions of pesos. Then another announcement says the electricity rate is going up. If you are trying to stretch the household budget until payday, the obvious question is: may refund nga, bakit mas mahal pa rin?
There are several changes behind those headlines. They cover different charges and different billing periods. Understanding them will help you check what you are paying and what you should get back.
Reporting cutoff: October 14, 2026, 8:00 AM Philippine time.
1
OCTOBER'S HIGHER RATE IS ALREADY A SEPARATE ANNOUNCEMENT
Meralco's October rate for a typical household is ₱15.0615 per kilowatt-hour, up from ₱14.7424 in September. The increase is ₱0.3191 per kWh, or just under 32 centavos. [GMA's report on the October adjustment](https://www.gmanetwork.com/news/money/economy/1005743/meralco-rates-up-in-october/story/)
At 200 kWh, multiplying the announced increase by consumption gives ₱63.82, about ₱64. That calculation holds consumption steady to show the effect of the rate change. If your household uses more electricity than last month, the increase in your actual bill can be larger. If you use less, that can soften the effect.
WHAT TO WATCH
Compare the kWh used on your September and October statements before judging the change in pesos. Looking only at the total can hide whether the difference came from the rate, consumption or both.
2
THE NEW REFUND RETURNS EXCESS COLLECTIONS FROM AN EARLIER PERIOD
The Energy Regulatory Commission (ERC) ordered a roughly ₱2.64-billion refund after its initial review of Meralco's distribution collections for January to June 2026. The Philippine Star reports a residential refund rate of ₱0.1733 per kWh. It also reports that the amount remains subject to the regulator's final review, with proceedings scheduled for October 16 to 23. [The Philippine Star's report on the refund order](https://www.philstar.com/headlines/2026/10/12/2562651/erc-orders-meralco-refund-p264-billion-customers/amp/)
That means households should treat the refund as money being returned through their electricity bills. The large total in the headline is spread across customers. It does not mean every household receives an equal cash payment, and it does not erase the rest of the charges on the bill.
WHAT TO WATCH
Follow the October 16 to 23 proceedings and any final ERC order. A later change to the approved amount or refund period could change what customers receive.
3
THE NEW RESIDENTIAL CREDIT STARTS WITH NOVEMBER BILLING
Meralco says the refund begins in November and will run for six months or until the full amount has been returned. The residential rate is ₱0.1733 per kWh; the ₱0.1020 figure also in the announcement is an average across customer classes. [Meralco's refund timetable](https://company.meralco.com.ph/news-and-advisories/higher-residential-rates-october-2026)
Using the residential rate, 200 kWh gives a ₱34.66 refund component for that billing period. This is a simple illustration, not a forecast of the final bill or a fixed monthly payment. Do not subtract it from October's ₱63.82 increase and announce the answer as the household's new bill. The amounts belong to different billing months, and November's other charges can change.
WHAT TO WATCH
Look for the refund in your November statement. The reported bill label is “AWAT (Refund)/Collect.” If the entry is unclear, ask Meralco which refund period and rate it covers. [The Philippine Star's explanation of the bill entry](https://www.philstar.com/headlines/2026/10/12/2562651/erc-orders-meralco-refund-p264-billion-customers/amp/)
4
THE DISTRIBUTION-RATE RESET IS ANOTHER CHANGE AGAIN
The ERC's October 10 announcement puts Meralco's approved average distribution rate for the first regulatory year at ₱1.48 per kWh. That is the charge for delivering electricity through the distribution network. The regulator explains that this review does not cover generation, transmission, taxes and other charges passed on through the bill. [ERC's rate-reset announcement](https://erc.gov.ph/Press-Singular/85294)
The ₱1.48 figure is therefore neither a ₱1.48 increase nor the full price of a kilowatt-hour. It is also an average, so readers should check the rate for their customer class instead of treating it as a flat charge that applies identically to everyone.
WHAT TO WATCH
The detailed customer-class schedule and its billing start date. Ask for a sample residential computation so you can see the change beside the refunds, rather than comparing unrelated headline figures.
5
A REFUND CAN LOWER ONE PART OF A BILL WHILE OTHER COSTS RISE
Meralco attributes October's increase mainly to a ₱0.4973-per-kWh rise in generation charges. Lower NGCP charges and a net reduction in taxes and other charges partly offset that increase. The company says generation charges go to power suppliers, while transmission and ancillary-service charges go to NGCP. [Meralco's breakdown of October charges](https://company.meralco.com.ph/news-and-advisories/higher-residential-rates-october-2026)
A refund can be fully credited while the final amount due still rises. That does not excuse an incorrect charge. It means a useful complaint starts with the entry that appears wrong: the consumption, the rate applied, a missing credit or another part of the computation. Asking about a particular entry gives the company and regulator a question they can answer with records.
WHAT TO WATCH
Keep the next statements and compare the same entries from month to month. If a promised credit is missing or the computation does not match the published schedule, ask for a written breakdown and keep the reply.
BOTTOM LINE
Households should receive the money owed to them and a clear explanation of every new charge. Check three things first: which month the change applies to, which part of the bill it affects, and how much electricity you used. Those checks will tell you more about your payment than the size of a refund headline.
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