Marcos Jr. Calls for Removal of System Loss Charges from Electricity Bills

President Ferdinand Marcos Jr. has called on Congress to amend the Electric Power Industry Reform Act (EPIRA) of 2001 to remove system loss charges from consumers' electricity bills, a move aimed at alleviating the financial burden on Filipinos amid high electricity costs. In his recent State of the Nation Address (SONA), Marcos Jr. highlighted that system loss, which refers to the discrepancy between power delivered to a distribution system and the actual electricity billed to consumers, is often caused by technical inefficiencies and electricity theft. He argued that it is unfair for consumers to shoulder these charges, which are further subject to value-added tax, when they are not responsible for the losses. "It is time we remove the system loss that is passed on to consumers," Marcos Jr. stated during his SONA, receiving applause from lawmakers. He further demanded an immediate amendment to EPIRA to prohibit the charging of system loss against consumers, including the VAT thereon. The Philippines has been grappling with high electricity rates, recording the highest residential electricity prices in Southeast Asia in June. Marcos Jr.'s call to remove system loss charges has resonated widely on social media, with many Filipinos tagging Meralco, the country's largest private electric distribution utility, demanding the removal of these charges. Meralco has explained that system loss charges represent the cost of electricity lost during delivery and are a pass-through charge, meaning the revenue does not go to Meralco. However, the public's demand for relief persists. In addition to addressing system loss, President Marcos Jr. also urged lawmakers to pass the "Sariling Kuryente Act" to simplify and make more affordable the installation of solar panels and battery storage systems in households, as Filipinos seek alternative ways to manage their electricity expenses.