TUCP Urges Removal of System Loss Charge in Electricity Bills

The Trade Union Congress of the Philippines (TUCP) is strongly urging the government to remove "system loss" charges from electricity bills, in addition to the 12-percent value-added tax (VAT). The labor group argues that these system loss charges are a result of inefficiencies and power losses by distribution companies, which should not be shouldered by consumers. While President Marcos mentioned the removal of VAT from electricity bills in his State of the Nation Address (SONA) on July 27, the TUCP believes this is insufficient. The union explains that system loss charges ultimately pass on the costs of power losses, which can stem from delayed infrastructure investments, aging transmission grids, and even fraudulent activities by distribution companies, to the consumers. TUCP asserts that removing system loss charges will alleviate the financial burden on households and lead to more equitable electricity prices. For citizens facing inflation and economic hardship, a reduction in electricity costs is a critical issue directly impacting their daily lives. The union calls for stronger government oversight to encourage efficiency improvements by distribution companies and for thorough investigation into the causes and accountability for system losses. The efficiency of Distribution Service Providers (DSPs), which are responsible for a significant portion of the country's power supply, has been a long-standing issue in the Philippines. System loss arises from a complex set of factors, including technical problems, electricity theft, and underdeveloped infrastructure. The TUCP's demand shines a light on these structural issues within the power supply system, aiming for a fairer and more efficient electricity pricing mechanism.