The Energy Regulatory Commission (ERC) conducted on Tuesday, 03 March 2026, a public hearing and expository presentation on the application of Manila Electric Company (Meralco) seeking approval of its proposed distribution rates for the first regulatory period 2027–2030.
The initial hearing forms part of the Commission’s regulatory review process before any rate adjustments may be implemented.
Meralco presented its application for approval of the Annual Revenue Requirement (ARR), Performance Incentive Scheme (PIS), and Smoothed Maximum Average Prices (MAP) for the First Regulatory Period covering RY 2027 to 2030.
The utility also requested approval of its proposed MAP for RY 2027 and its rate translation into specific distribution, supply, and metering rates for residential, commercial, and industrial customers.
“The rates reflect investments in network capacity, technology upgrades, and service improvements.”
Under the proposal, the 2027 MAP is P2.3436 per kilowatt-hour (kWh), with distribution, supply, and metering charges of P1.8142, P0.2705, and P0.2589 per kWh, respectively. Meralco said the rates reflect investments in network capacity, technology upgrades, and service improvements, following the ERC’s Rationalized Rules for Setting Distribution Wheeling Rates (RRDWR).
Meralco also submitted its proposed Price-Linked Performance Incentive Scheme, which provides financial rewards or penalties based on service performance indicators, including the frequency of power interruptions, system losses, and response times for new connections and customer calls. In addition, the Guaranteed Service Levels (GSL) program provides for direct compensation to customers when minimum service standards are not met.
The ERC may approve, modify, or disallow portions of the application if certain costs are found to be excessive, unsupported, or not aligned with service improvement commitments.
Under the regulatory process, the ERC may approve, modify, or disallow portions of the application if certain costs are found to be excessive, unsupported, or not aligned with service improvement commitments.
The hearing gives stakeholders, consumer groups, and other interested parties the opportunity to ask questions and submit comments before the Commission renders its decision.
“This process ensures transparency and protects consumers while supporting the utility’s reliable operations,” ERC Chairperson and CEO Atty. Francis Saturnino Juan said.
The next hearing with pre-trial conferences is scheduled on March 10, 2026.
