Bill removing system loss charges from electricity bills filed in House

A bill removing the system loss charges from consumers’ monthly electricity bills has been filed in the House of Representatives.

Navotas City Representative Tobias Tiangco made the proposal under House Bill 10273 or the "System Loss Charges Abolition Act of 2026," saying that consumers should not shoulder the costs arising from inefficiencies and losses beyond their control.

In the bill's explanatory note, he said that while previous laws allowed utilities to recover system losses within prescribed limits, the continued rise in electricity prices has shown that the system has failed to adequately protect consumers.

"Natutuwa ako na ang panukalang ito ay malinaw nang bahagi ng legislative agenda ng Pangulo. Magmula taong 2010, hindi ito umusad. Ngayon, malinaw na kinikilala na mismo ng Pangulo na dapat nang itigil ang pagpapasa ng systems loss sa mga konsyumer,” he said.

(I am happy that this measure was finally included in the President’s legislative agenda. This proposal has been pending since 2010. Now, no less than the President said that systems loss should be abolished.)

In his State of the Nation Address (SONA) on Monday, President Ferdinand "Bongbong" Marcos Jr. said that customers should not have to shoulder the burden of system loss that is not their fault.

EXPLAINER: What is system loss and why is it included in your electricity bill?

Tiangco said that private distribution utilities and rural electric cooperatives are allowed to pass on as much as 8.5% of the total kilowatt-hours purchased and generated, and a maximum of 13% of the total kilowatt-hours purchased and generated, respectively, of their total system losses to the consumers.

Systems losses can be non-technical, such as loss of electricity due to pilferage; or technical, such as the loss of electricity in the form of heat due to design fault, administration inefficiencies as well as the electric consumption of the distributors for their operation.

Systems loss comprises not less than five percent (5%) of the monthly electric bill and is likewise subject to the 12% Value-Added Tax (VAT).

“These kinds of abuses are exactly the evil things sought to be prevented by this proposed measure. It was enshrined in the 1987 Philippine Constitution that the State shall free the people from poverty through policies that provide adequate social services. Hence, legislators are duty bound to help the consuming public. In view thereof, the passage of this measure is earnestly urged,” Tiangco said.

“Umaasa ako na sa Kongresong ito ay magkakaroon na tayo ng sapat na political will upang maisabatas ang repormang ito. Ito ay konkretong hakbang na mararamdaman agad ng bawat pamilyang Pilipino sa kanilang buwanang bayarin,” he added.

(I hope that this Congress will have a political will to pass this measure into law. This is a concrete step to alleviate the plight of every Filipino family.) — BM, GMA News