ERC approves Meralco rate reset after 15 years
The Energy Regulatory Commission in the Philippines has approved a rate reset for Meralco, the country's largest power distributor, after a 15-year delay. The approved revenue requirement is significantly lower than what the company requested.
Why it matters
Regulatory decisions on utility pricing directly impact consumer costs and the financial health of essential infrastructure providers.
<p>The Energy Regulatory Commission (ERC) on Saturday announced that it had approved Manila Electric Company's (Meralco) regulatory rate reset for the first time in more than a decade.</p><p>In a statement, the ERC said it approved Meralco's rates for the July 2026 to June 2030 regulatory period under ERC Case No. 2026-016 RC.</p><p>The regulator approved a total revenue requirement of around P342 billion for Meralco over the four-year period, P190 billion, or about 36%, lower than the P532 billion sought by the power distributor.</p><p>The ERC also approved an average distribution rate of P1.48 per kilowatt-hour (kWh) for 2027, lower than Meralco's proposed rate of P2.34 per kWh and the P1.60 to P1.98 per kWh proposed by some intervenors in the case.</p><p>A rate reset is a periodic review that determines how much Meralco may charge consumers for distributing electricity through its poles, wires, and substations during a regulatory period.</p><p>It covers only Meralco's…
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