MANILA — THE House Committee on Energy on Wednesday tackled proposals to reduce or remove system loss charges from electricity bills, following President Ferdinand R. Marcos Jr.’s call in his recent State of the Nation Address (SONA) to ease the burden on consumers.
Committee Chairman and Palawan Rep. Jose Alvarez said non-technical loss (NTL), which refers to electricity theft and pilferage, can be removed more easily from billing charges. However, he noted that technical loss (TL) — the electricity lost during transmission and distribution — cannot be eliminated outright and should instead be minimized through improved systems and efficiency measures.
Cagayan de Oro City Rep. Rufus Rodriguez said Congress cannot simply abolish all system loss charges, stressing the need for further study. He added that while technical losses cannot be completely removed, they can be reduced.
BH Party-list Rep. Robert Nazal argued that consumers should not bear the cost of non-technical losses, inefficiencies, defective systems, or the failure of utilities to improve their operations. He questioned how long the public would continue paying for losses that utilities themselves should work to reduce.
Ako Bicol Party-list Rep. Alfredo Garbin Jr. sought assurances that funds collected through system loss charges are being used for their intended purpose and not serving to unjustly enrich electric cooperatives.
Meanwhile, APEC Party-list Rep. Sergio Dagooc highlighted what he described as a conflict within Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001. He noted that while the law requires electric cooperatives to remain financially viable, it also mandates them to expand service to far-flung and unviable areas, creating challenges for their operations.
Lawmakers said the committee will continue discussions in future hearings, with specific measures to reduce system loss charges expected to be taken up in succeeding meetings.
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