ERC ready to work with Congress on scrapping system loss charge, amend EPIRA

The Energy Regulatory Commission (ERC) is backing President Ferdinand “Bongbong” Marcos Jr.'s proposal to amend the Electric Power Industry Reform Act (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.

Marcos, in his fifth State of the Nation Address (SONA 2026), called on both chambers of Congress to amend the EPIRA in a bid to crap system loss charges from consumers’ electricity bills to ease the burden of rising electricity costs on Filipino households and businesses.

System loss refers to electricity lost during transmission and distribution, whether caused by technical issues or illegal acts such as use of “jumpers” or pilferage.

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.

“The ERC remains committed to fulfilling its regulatory mandate to protect consumer welfare through transparent, fair, and accountable regulation,” the power industry regulator said.

“The Commission likewise recognizes the importance of pursuing measures that help reduce unnecessary costs while ensuring the viability of all distribution utilities and promoting a more efficient, affordable, and reliable power sector,” it added.

The Energy Department has also expressed support for the President’s call to remove system loss charges.

The Manila Electric Company (Meralco), the country’s largest power distribution utility, however, sought a thorough discussion about the proposal, citing its potential impact on power distribution utilities’ operational and financial health.

The ERC, nonetheless, said it will continue to promote efficiency and support meaningful reforms that would contribute to lower electricity rates without compromising the quality, reliability, and sustainability of electric service for all Filipinos. —VAL, GMA News