Electricity rates will once again increase this April in Metro Manila and neighboring provinces. The Manila Electric Company (Meralco) announced on April 11 that it will raise electricity rates by ₱0.72 per kilowatt-hour (kWh). This will increase the total charge for households from ₱12.2901/kWh in March to ₱13.0127/kWh. Consequently, the monthly bill of an average household using 200 kWh per month will increase by approximately ₱144. Meralco attributes the sharp rate hike to rising generation charges.

The massive rate increase nullifies the refund that Meralco should be returning to consumers under the Energy Regulatory Board (ERB) order. The refund, amounting to ₱19.95 billion, stems from the company’s overcharging due to discrepancies between the actual weighted average tariff (AWAT) and the approved distribution rate of ₱1.35-₱1.36/kWh from July 2022 to December 2024. This means Meralco implemented a higher distribution rate (up to ₱1.57/kWh) exceeding ERC’s approved rate (₱1.35-₱1.36/kWh) during that period. The ERC ordered the refund to be implemented over 3 years, further reducing and nullifying the monthly deductions.

Although the rate increase calculation is separate from the refund process, the former’s impact outweighs the latter. For example, for a 200 kWh consumption this April, the refund amounts to only ₱23.78-₱40.48/kWh, while the increase amounts to ₱175/kWh.