Consumers shouldn't bear brunt of power system losses, business groups urge gov't

MANILA, Philippines — One of the country’s most influential business groups has called on the government to take a tougher stance against power utilities and electric cooperatives that consistently post high system losses, saying that consumers should not bear the cost of these inefficiencies. In a statement on Friday expressing support for President Marcos’ call to reduce system losses, the Philippine Chamber of Commerce and Industry (PCCI) said that the burden of these losses should not fall on consumers. “We support the call of President Marcos to reduce system losses. It is imperative that the government take a more proactive and stringent approach in regulating power utilities and electric cooperatives to ensure that consumers are not unfairly burdened by inefficiencies,” said PCCI President George Barcelon. System losses in the power sector refer to the difference between the amount of electricity generated and the amount delivered to consumers. These losses can be attributed to various factors, including technical losses (due to the transmission and distribution of electricity) and non-technical losses (such as electricity pilferage, meter tampering, and billing errors). The PCCI highlighted that high system losses often translate into higher electricity rates for consumers, as power utilities are allowed to recover these losses through their approved tariffs. This practice, they argue, is unfair to consumers who are already struggling with the rising cost of living. “Consumers should not be made to pay for the inefficiencies of power providers. We urge the Energy Regulatory Commission (ERC) to intensify its oversight and to impose stricter penalties on utilities and cooperatives that fail to manage their system losses effectively,” Barcelon added. The business group also called for increased investment in modernizing the country’s power infrastructure to reduce technical losses. Furthermore, they emphasized the need for stronger enforcement against electricity pilferage and other forms of non-technical losses. “Addressing system losses is crucial for ensuring affordable and reliable electricity for all Filipinos. We believe that with a concerted effort from the government, regulatory bodies, and the private sector, we can significantly reduce these losses and create a more equitable energy system,” Barcelon stated. Source: Inquirer NewsInfo