Actual Weighted Average Tariff (AWAT)
1. Why is there a refund? Has Meralco been charging me in excess?
For the period July 2022 to December 2024, the Actual Weighted Average Tariff (AWAT) exceeded the Approved Final Distribution Rate. To maintain rates at the approved level, the ERC directed that the difference between the AWAT and the Approved Final Distribution Rate be refunded.
Based on the ERC Order issued in March 2025, the refund commenced with the April 2025 billing and was initially scheduled to run for 36 months, or until the full amount is refunded. Subsequently, to mitigate the impact of anticipated power price increases on consumers, the ERC revised the refund period and rates, with updated terms taking effect in May 2026.
2. Why did the refund rate increase starting May 2026?
In April 2026, the ERC directed Meralco to shorten the remaining refund period from the original implementation timeline to approximately 12 months.
Because the remaining refund amount will now be refunded over a shorter period, customers will see higher refund rates reflected in their bills starting May 2026.
3. How can you assure me that Meralco isn’t overcharging me given that Meralco has been giving multiple refunds?
Meralco only charges rates that are duly approved by the ERC. Rate true-up mechanisms are incorporated under the ERC Rules such that any petition for a rate adjustment would have to be filed by the DU and reviewed/approved by the ERC.
4. When will the refund start and end?
The refund started in April 2025.
Following the ERC Decision received in April 2026, the remaining refund amount will now be refunded over a shorter period of 12 months (May 2026 to April 2027), or until the ERC-approved AWAT Refund amount is fully refunded.
5. Who are qualified for the refund?
All customers with active accounts and kWh consumption are qualified to receive the refund.
6. How much refund will I get?
The refund is computed based on your monthly kWh consumption and applicable customer class refund rate.
Sample computation for a residential customer:
Total kWh consumption for the month: 200kWh
AWAT Refund rate: Php0.4278/kWh
Total AWAT refund: Php85.56
7. Where do I see the refund in my bill?
It can be found at the back of the bill, labeled AWAT (Refund)/Collect, under Rate Components.
8. Does everyone still get a refund, regardless of kWh consumption and payment status?
The refund will be reflected on the bill of all customers with active accounts and kWh consumption. Those with terminated accounts are not eligible.
9. I have a terminated account, but my account was active during the period covered by the refund, how will I get refunded?
Customers with terminated accounts are not eligible for the refund. The refund, which started on April 2025, is applied only to active customers. The accelerated refund implementation beginning May 2026, will also be applied only to active customers at that time.
10. I have a newly energized account/I have an account that will be energized soon. Will I also get the refund?
All customers with active accounts are eligible to receive the AWAT refund. The refund was first implemented in April 2025, while the accelerated refund implementation begins in May 2026 and will continue until the full refund amount has been completed.
11. How many more refunds can I expect for the year or years to come?
The implementation of any refund will be done in accordance with any directive made by the ERC.
12. How can you assure me that I am being properly refunded?
The refund is based on your kWh consumption per month, and the computation is reflected on your bill.
13. Will the customers under Customer Choice Programs (CREM, GEOP, RAP) receive this refund too?
Yes. All customers, whether captive or contestable, will receive the refund.
14. Instead of credit to bill, can I collect the refund one-time in cash?
The refund may not be claimed in cash. Per ERC Order, the refund will be reflected as a separate line item in the customers’ bill for the prescribed period.