Removal of electricity system loss charges may take up to 6 months for legislation -- Sen. Gatchalian

It might take lawmakers up to six months to work on the filed bills proposing to scrap system loss charges imposed by electric companies, following President Ferdinand "Bongbong" Marcos Jr.'s directive, Senate President Sherwin Gatchalian said on Sunday. "Dahil may meeting of the minds na — ang pangulo, ang House of Representatives, even sa Senate... Walo ang nag-file ng pagtanggal ng system loss...So sa tingin ko, kaya ito within, hanggang katapusan, three to six months kayang tapusin ito," he said in an interview with Super Radyo dzBB. (Because there is already a meeting of the minds—the President, the House of Representatives, and even in the Senate...Eight have filed to remove the system loss... So I think this can be finished within three to six months.) Gatchalian is among the senators who filed such a measure at the upper chamber. Senate President Pro-tempore Vicente “Tito” Sotto III, Senator Erwin Tulfo, and Senator JV Ejercito also filed similar measures. On the other hand, Navotas City Representative Toby Tiangco and Quezon City 5th district Representative Patrick Michael Vargas also filed similar measures. During his fifth State of the Nation Address on Monday, Marcos called on both chambers of Congress to amend the Electric Power Industry Reform Act (EPIRA) to put a stop to system loss charges, including an accompanying value-added tax (VAT), from being passed on to consumers. Current laws such as the EPIRA and Republic Act No. 7832 or the Anti-Pilferage of Electricity and Theft of Electric Transmission Lines/Materials Act allow distribution utilities to recover a portion of system loss from end-consumers through system loss charge reflected in monthly electricity bills. But the Department of Energy said that the implementation of the president's directive may take at least a year. Further, Gatchalian said that it's the Energy Regulatory Commission's (ERC) responsibility that such charges will not be hidden in other charges once the proposal is enacted into law. "Ang pinakamalaking magiging issue dito ay computation ng system loss...Paano maglalabas ng regulation na distribution (utility) ang sasalo nitong system loss at siguraduhing hindi ipapasa sa consumers, sa ibang mga items...Baka itatago sa ibang item," he said. (The biggest issue here will be the computation of the system loss... How to issue a regulation ensuring that the distribution utility absorbs this system loss and making sure it isn't passed on to consumers under other line items... It might just be hidden under another item.) "Ang pinaka nakikita kong bottleneck dito ay 'yung ERC. 'Yung maglalabas sila ng regulasyon na sisiguraduhin na hindi ito itatago sa ibang mga ipapasa sa atin," Gatchalian added. (The biggest bottleneck I see here is the ERC—whether they will issue a regulation ensuring that this won't be hidden among other charges passed on to us.) The ERC said it is backing Marcos' proposal to amend the EPIRA and put a stop to power distributors’ system losses from being charged against consumers. In a statement on Tuesday, the ERC said it “welcomes the President’s call and affirms its support for policy reforms that place the welfare of electricity consumers at the forefront.” “As the country’s independent electric power industry regulator, the ERC stands ready to work closely with Congress, the Department of Energy (DOE), industry stakeholders, and other concerned government agencies in advancing the legal and regulatory measures necessary to advance this reform,” it said. The Manila Electric Company (Meralco) meanwhile is seeking a thorough discussion about Marcos' proposal to scrap system loss charges from consumers’ electricity bills, noting its potential impact on power distribution utilities’ operational and financial health. —KG, GMA News