FORMER Partylist Representative Atty. Nathan Oducado urged the Marcos administration to follow up the President’s State of the Nation Address with a clear path to reduce electricity costs, specifically the review of system loss charges that continue to burden Filipino consumers.
“Yesterday’s SONA rightly promised the removal of system loss charges in the electricity bill of ordinary Filipinos, but this promise must be matched by a clear pathway so that consumers will not end up paying more elsewhere,” said Oducado, speaking for the consumer watchdog and think tank CONSUMA PH.
System loss refers to electricity that is lost before reaching homes and businesses due to technical losses in transmission and distribution facilities and non-technical losses caused by illegal connections, meter tampering, and power theft, with distribution utilities currently allowed to recover system loss from consumers up to the limits set by the Energy Regulatory Commission.
“Consumers understand that some electricity is naturally lost while traveling through power lines, but they should not be made to pay for inefficiency or electricity theft that can and should be prevented,” he added.
He went on to say that any proposal to remove system loss charges should be accompanied by broader reforms because simply eliminating the charge without changing the system could lead utilities to seek increases in other regulated fees or reduce investments that ensure reliable electricity service.
“The objective is not to shift charges from one line of the bill to another but to eliminate unnecessary costs through better regulation, stronger enforcement, and a more efficient power sector,” he said. “Tatanggalin nga sa bill ang system loss, pero baka magdagdag lang naman ng panibagong buwis para i-subsidize ito. O ipapatong sa generation charge o sa ibang linya ng bill.”
Oducado called on Congress, the Department of Energy, and the Energy Regulatory Commission to make power affordability a priority following the SONA by reviewing system loss policies, strengthening anti-electricity theft measures, and ensuring that consumers pay only for electricity that is efficiently delivered to their homes.
“Any policy accounting for system loss should be clear how much electricity is lost and at what stage,” said Oducado. “This is so we know who must foot the bill, whether it’s the powerplants, the grid, or the DUs.”
Oducado stressed that while the administration highlighted economic gains and infrastructure development, millions of households continue to struggle with some of the highest electricity prices in Southeast Asia, with system loss charges remaining one of the many costs passed on to consumers under the current regulatory framework.
“What is clear is that it should not be passed on to the consumer,” said Oducado. “Not only does it raise our Bill, it also removes the incentive of the power sector to reduce losses by improving the system or going after electricity thieves.”
