MANILA, Philippines — Manila Electric Company has yet to issue an official statement following President Ferdinand Marcos Jr.’s call during his fifth State of the Nation Address (SONA) to remove the system loss charge from consumers’ electricity bills.
In his SONA, Marcos directed lawmakers to pursue amendments to the Electric Power Industry Reform Act (EPIRA), including the removal of charges that consumers continue to shoulder, such as the system loss charge.
As of Tuesday, Meralco had not released a formal reaction to the President’s proposal.
However, the power distributor has consistently maintained that the system loss charge is authorized under existing laws and regulations and is not a source of profit for the company.
According to Meralco’s billing information, the system loss charge is a regulated pass-through cost that covers electricity lost during transmission and distribution due to technical and non-technical factors. The Energy Regulatory Commission (ERC) sets the allowable cap on recoverable system losses, while any losses beyond that limit are absorbed by the distribution utility.
Meralco has also said the charge is not unique to its franchise area but applies to distribution utilities nationwide under current industry regulations.
The President’s proposal would require amendments to EPIRA and corresponding regulatory changes before any removal of the system loss charge could be implemented.
The Department of Energy, the Energy Regulatory Commission, and Congress are expected to play key roles in evaluating and implementing any legislative changes stemming from the President’s directive.
Tutubi News Magazine will update this story once Meralco issues an official response.
Carlo Juancho FuntanillaFrontend Developer, WordPress, Shopify
Contributing Editor
AMA ACLC San Pablo
- Carlo Juancho Funtanilla
- Carlo Juancho Funtanilla
- Carlo Juancho Funtanilla
- Carlo Juancho Funtanilla
