The Energy Regulatory Commission (ERC) has issued an Order setting for hearing the application filed by Manila Electric Company (MERALCO) on 02 February 2026.
The application seeks approval of major regulatory components that will determine MERALCO’s allowable revenues and distribution rates beginning Regulatory Year (RY) 2027.
What MERALCO Is Seeking Approval For
Under this case, MERALCO is requesting ERC approval of the following
- Annual Revenue Requirement (ARR)
The total revenue MERALCO proposes to recover during the First Regulatory Period (1RP).
- Performance Incentive Scheme (PIS)
A regulatory mechanism that may allow performance-based returns depending on compliance with service standards.
- Maximum Average Price (MAP)
The proposed cap on the average distribution price for the First Regulatory Period.
- Translation into Distribution Rate Structure (RY 2027)
Conversion of the approved MAP into specific distribution rates for various customer classes in accordance with the Rationalized Rules for Setting Distribution Wheeling Rates (RRDWR), under ERC Resolution No. 24, Series of 2025
Scheduled Hearings
The ERC has set the following hearings at the ERC Hearing Room, 11th Floor, Exquadra Tower, Ortigas Center, Pasig City
March 3, 2026
- 9:00 A.M. – Determination of compliance with jurisdictional requirements and Expository Presentation
- 2:00 P.M. – Expository Presentation
March 10, 2026
- 9:00 A.M. – Pre-Trial Conference
- 2:00 P.M. – Pre-Trial Conference
ERC Directives to MERALCO
The Order directs MERALCO to comply with strict jurisdictional and notice requirements
- Publication Requirement
MERALCO must publish the Notice of Public Hearing (with Annex “A”) in two newspapers of nationwide circulation, twice within two successive weeks.
- LGU Notification and Posting
Copies of the Order and Notice must be furnished to:
- Provincial Governors
- City and Municipal Mayors
- LGU Legislative Bodies
For posting on official bulletin boards within MERALCO’s franchise area.
- Consumer Notification
MERALCO must inform consumers, by appropriate means, of:
- The filing of the application
- The reasons for the application
- The scheduled hearings
- Furnishing National Oversight Bodies
Copies must be furnished to:
- Office of the Solicitor General (OSG)
- Commission on Audit (COA)
- Senate and House Committees on Energy
These offices are requested to send representatives to attend the hearings.
Compliance Requirements Before Hearing
At least five (5) calendar days before the initial hearing, MERALCO must submit proof of compliance via e-mail, including
- Affidavits of publication
- Newspaper copies
- Certifications of LGU posting (with official seals)
- Proof of consumer notification
- Proof of receipt by OSG, COA, and Congressional Committees
- Proof of furnishing the application to requesting stakeholders
Failure to comply may result in cancellation of scheduled hearings.
Expository Presentation Requirement
MERALCO must:
- Conduct an expository presentation explaining the nature of the application in plain terms for consumers
- File a copy of its presentation at least five (5) calendar days prior to hearing
- Provide copies to stakeholders requesting them
The presentation must cite relevant information and justifications supporting the application.
Pre-Trial Requirements for All Parties
Both MERALCO and interested parties must submit a Pre-Trial Brief at least five (5) calendar days before the scheduled hearing and Pre-Trial Conference
The Pre-Trial Brief must include:
- Summary of admitted facts
- Proposed stipulation of facts
- Issues to be resolved
- List of documents or exhibits (with markings)
- List of witnesses with Judicial Affidavits attached
Submission of Hard Copies
All pleadings and required submissions electronically filed must be submitted in hard copy within five (5) working days from electronic submission
Coverage: LGUs Within MERALCO Franchise Area
The Order lists all cities, municipalities, and provinces within MERALCO’s franchise area that were furnished copies of the Order, including:
- Metro Manila Cities
- Bulacan
- Cavite
- Rizal
- Laguna
- Batangas
- Quezon Province
- Pampanga (Apalit, Candaba, San Simon)
- Concerned Provincial Governments
This ensures public posting and local awareness throughout MERALCO’s entire franchise area