Zubiri Eyes Scrapping System Loss Charges Before Christmas

MANILA, Philippines — Senate Majority Leader Juan Miguel Zubiri said Monday that the Senate would try to accomplish before Christmas President Ferdinand Marcos Jr.’s call to stop passing on system loss charges to consumers. Marcos, during his penultimate State of the Nation Address (Sona), called for the immediate amendment of the Electric Power Industry Reform Act (EPIRA). "We will try to do it before Christmas," Zubiri told reporters, referring to the proposed amendment to the EPIRA. He added, "It is a call of the President to stop passing on system loss charges to consumers." System loss refers to the electricity that is lost or unaccounted for during transmission and distribution from power plants to consumers. This can be due to technical factors like line losses or non-technical factors such as pilferage or inefficient collection of bills. Under the current EPIRA law, a portion of these system losses is passed on to consumers in their monthly electricity bills. Consumer advocacy groups have long called for the abolition of these charges, arguing that they unfairly burden consumers for inefficiencies or illegal activities within the power distribution system. Zubiri acknowledged the significant impact of these charges on the Filipino populace, especially during times of economic hardship. "This is one of the calls of the President that we will heed. This is a call for the welfare of the Filipino people," he said. The Senate Majority Leader expressed confidence that the proposed amendment would garner broad support from his colleagues. He indicated that the Senate committees concerned would be tasked to study the proposed amendments and to fast-track the legislative process. "We will prioritize this. We will try to pass this before Christmas," Zubiri reiterated, emphasizing the urgency of the matter. He also mentioned that the Senate would coordinate with the House of Representatives to ensure the swift passage of the bill in both chambers. The move is seen as a significant step towards consumer protection in the energy sector. If passed, it could lead to a reduction in electricity bills for millions of Filipino households, providing much-needed relief to consumers struggling with high energy costs. However, the exact mechanism for covering the costs associated with system losses after the charges are removed will need to be determined. This may involve adjustments to the operational efficiency of power distributors or potential subsidies, which will require careful consideration and public consultation.