Scrapping ‘system loss’ charge ‘too big’ a cost for industry – MVP

MANILA, Philippines — Businessman Manuel V. Pangilinan on Wednesday balked at President Marcos’ proposal to scrap system loss charges from electricity bills, saying the removal will entail costs “too big” for power industry players to shoulder. “When you push electricity through the copper wires, there will be a resistance. The longer the lines are, the more the loss,” Pangilinan said. System loss charges are passed on to consumers to cover the energy lost during transmission and distribution. Marcos Jr. wants to remove the charge to help lower electricity bills for consumers. Pangilinan, who chairs PLDT Inc., Metro Pacific Investments Corp., and publicly listed utility giant Manila Electric Co. (Meralco), said the cost of removing the system loss charge would be “too big” for power industry players to bear. He did not provide an estimate of the cost, but said it would be a “significant” amount. “It’s a question of how it will be absorbed,” Pangilinan said. He added that the removal of the system loss charge could affect the stability of the power supply and the investments in the power infrastructure. “We have to be careful about how we do it,” Pangilinan said. He said that the proposal is still under discussion and that the government and the power industry are working together to find a solution. “We are committed to ensuring that the Philippines has a stable and affordable supply of electricity,” Pangilinan said. He added that the government is also committed to ensuring that the power industry is sustainable and profitable. “We are confident that we can find a solution that will benefit all stakeholders,” Pangilinan said.