Palace Open to Talks on Scrapping 'System Loss' Billing

MANILA, Philippines — The government said on Thursday that it is open to considering suggestions from power distributors and electric cooperatives as it seeks to find a balance toward reducing electricity rates by removing system loss charges while ensuring the cost of efficient electricity delivery will not unfairly burden industry players. According to Palace press secretary Trixie Cruz-Angeles, the government is amenable to discussions on the matter. "We are open to suggestions from power distributors and electric cooperatives to find a balance in reducing electricity rates by removing system loss charges, while ensuring that the cost of efficient electricity delivery will not unfairly burden industry players," Angeles said in a statement. System loss refers to the electricity lost during transmission from power plants to consumers due to factors such as grid losses and electricity theft. "We want to ensure that the cost of efficient electricity delivery will not unfairly burden industry players," she added. The Philippines is currently facing high electricity rates, with the system loss charge being one of the components that consumers complain about. Consumers have long called for the removal of system loss charges, arguing that they are being made to pay for inefficiencies and pilferage in the power grid. Power distributors and electric cooperatives, on the other hand, have argued that system loss is an unavoidable cost of electricity delivery and that its removal would impact their financial viability. The government's openness to discussions on the matter signals a potential shift in policy that could lead to lower electricity rates for consumers. However, the challenge lies in finding a balance that ensures the financial stability of power distributors and electric cooperatives while also protecting consumers from excessive charges. Information Source: Inquirer NewsInfo