Meralco says it would be operating at a loss without system loss charge

Meralco on Wednesday defended the company’s charging of its system loss on consumers, saying that it would be operating at a loss if it were removed.

The House Committee on Energy held a hearing to tackle the removal of the system loss charge following President Ferdinand Marcos Jr.’s call to do so during his fifth State of the Nation Address last month.

In a 24 Oras report from Tina Panganiban-Perez, Meralco chief operations officer Ronnie Aperocho said that the company would be operating at a loss with the removal of the system loss charge.

“Ang income po ng Meralco only as a distribution business ay umaabot lamang ng P29 [billion] to P30 billion noong 2025. Ang system loss charge po, kagaya ng nasabi kanina, kung tatanggalin 'yung buong-buo system loss charge ay umaabot po yan sa mahigit P27 [billion] to P28 billion,” Aperocho said.

(Meralco’s income as a distribution business is only P29 to P30 billion. The system loss charge, like what was said earlier, if it is removed then it will reach P27 to P28 billion.)

"Yes, we will be operating at a loss," he added.

EXPLAINER: What is system loss and why is there a charge for it in your bill?

Philippine Rural Electric Cooperatives Association, Inc. executive director and general manager Janeene Depay-Colingan also said that power firms will struggle if they have to answer for the system loss charge.

“Only 10% of what they collect will be left, and this 10% is not enough to prepare and fund the infrastructure of our cooperatives,” Depay-Colingan said in Filipino.

Meanwhile, Energy Secretary Sharon Garin maintained that the removal of the system loss will take time, money and enforcement.

“There has to be a cost-benefit analysis in this. How much are we willing to spend to lessen it?” Garin told lawmakers. — Jean Mangaluz/BM, GMA News