Power firms to go bankrupt without system loss? ERC calls it doomsday scenario

The Energy Regulatory Commission (ERC) on Friday said firms claiming that they cannot remove the system loss charge due to possible bankruptcy are painting a doomsday scenario.

During his fifth State of the Nation Address, President Ferdinand Marcos Jr. demanded to remove the system loss charge in consumers’ energy bills.

Several energy firms have expressed reluctance, with Meralco chair Manny V. Pangilinan saying that the electricity industry would not survive.

Asked about these sentiments on Unang Balita, ERC chair Francis Saturnino Juan called them “doomsday scenarios.”

“Ito ang mga doomsday scenarios na pinipinta ng ilan. Hindi naman maaari na ganyan ang hayaan natin mangyari dahil serbisyo pa rin sa customer ang sang alang-alang,” Juan said.

(These are doomsday scenarios that they are painting. We will not allow something like that to happen because the priority is service to the customers.)

Juan said that the ERC is currently studying how it can lower the cost of energy for consumers, even checking if they can remove or lessen the non-technical system loss.

“Administratively, we are looking at, we are studying if there is a legal basis, if the ERC itself can decide to remove even just the non-technical loss. This non-technical system loss, our distribution facilities have control over this,” Juan said.

Non-technical system loss is electricity that is lost due to stealing. Juan said that if power firms could add more safeguards or chase perpetrators, this could already lower the non-technical system loss charge.

Energy Secretary Sharon Garin had stated that removing the system loss charge may take up to one year. Juan said that deciding to have it removed is easy, but preparing to remove it is a long process.

Energy firms would need time to ensure that the sudden loss of the charge does not affect their other services, he said. There is also the matter of how quickly Congress can enact the measure. — Jean Mangaluz/RSJ, GMA News