The Philippines' Energy Regulatory Commission (ERC) has authorized Manila Electric Company (Meralco) to collect a net P8.709 billion in underrecoveries from its customers.
The approved amount includes P595 million specifically allocated for system loss underrecoveries, allowing the utility to pass through costs associated with grid inefficiencies and technical losses.
51 billion to more than eight million customers for overcollected charges.
This regulatory decision arrives as Meralco navigates a significant financial headwind from a separate ERC order requiring the company to refund P9.51 billion to more than eight million customers for overcollected charges.
The new collection authority provides a critical counterbalance to that liability, helping to preserve the utility's liquidity position and mitigate the immediate impact of the refund obligation on its balance sheet.
System losses have emerged as a persistent cost driver for Philippine power consumers, with Meralco previously launching operational initiatives to clear excess wiring and improve network efficiency.
The ERC's approval of the P595 million system loss component signals continued regulatory tolerance for these costs, provided they are properly accounted for and recovered through tariffs.