Bill Filed to Remove System Loss Charges from Electricity Bills

A new bill has been filed in the Philippines seeking to prevent "system loss" charges from being passed on to consumers in electricity bills, mandating distribution utilities to absorb these costs. House Bill No. 10585, filed by Party-list Rep. Jose Manuel Tadeo “Chel” I. Diokno and three other lawmakers, aims to amend the Electric Power Industry Reform Act (EPIRA) and enhance accountability for electric companies. The measure tasks the Energy Regulatory Commission (ERC) with ensuring that both technical and non-technical system losses are not passed on to consumers. Non-technical losses include electricity theft, meter tampering, and fraud. Mr. Diokno argued that households should not have to shoulder losses caused by inefficiencies and pilferage. President Ferdinand R. Marcos, Jr. has also called for the removal of system loss charges. In the Philippines, it is common for distribution utilities to bill consumers for costs associated with maintaining the power grid and for non-technical losses such as electricity theft and meter tampering. This new bill seeks to review these cost structures, potentially leading to a reduction in electricity bills for the public. Similar discussions have occurred in the past, but without leading to legislation.