Over P7 billion needed to remove non-technical power loss charges

Around P7.5 billion in funding is needed to remove non-technical system loss charges from consumers’ electricity bills, the Department of Energy (DOE) said on Monday.

"Ang kailangan nating funding to do this is about more than P7 billion," said DOE Undersecretary Rowena Guevarra in a press briefing.

The National Electrification Administration (NEA) previously proposed a four-stage implementation for the removal of non-technical system losses.

For stage 1, the energy agencies propose the removal of 25% of non-technical system losses. For stage 2, 50% of the non-technical system loss is removed; while for stage 3, 75% is already removed.

Under stage 4, 100% of the non-technical system loss is removed.

System loss refers to electricity lost during distribution due to technical and non-technical factors. Electric consumers are charged for non-technical losses, which include electricity theft, pilferage, and illegal connections such as the use of “jumpers.”

As part of its program to gradually reduce non-technical system loss charges, the DOE will strengthen its anti-pilferage measures.

"Una is anti-pilferage enforcement. May mga households tayo na pumapayag na magpa-jumper. So we need to inform those consumers na kapag pumayag ka niyan, parang pinayagan mong magnakaw sa lahat ng consumers," said DOE Undersecretary Rowena Guevarra.

(First is anti-pilferage enforcement. We have households that allow illegal power connections (jumpers). So we need to inform those consumers that if you allow that, it's like allowing stealing from all consumers.)

The DOE is also eyeing to improve billing and collection efficiency.

"May mga lugar na hindi lahat nagbabayad kasi mahina iyong collections. So we will strengthen that," said Guevarra.

(There are areas where not everyone pays because collections are weak. So we will strengthen that.)

The DOE also encouraged the public to report incidents of electricity theft via the eGOVPH mobile platform.

The NEA earlier said that it is proposing to implement the gradual removal of non-technical system loss in January 2027 alongside its plan to extend loans to electric cooperatives to ease their burden in absorbing system loss charges.

The DOE admitted that it is still looking for sources for the P7.5 billion budget needed to implement the program.

"We have just finished the estimates, and we are looking for the sources, and we will talk to the DBM and the Executive Secretary for sourcing of this. Options can vary from national government funds or through loans also. So we’ll finalize that, and once we have that, we’ll report to you," said Energy Secretary Sharon Garin.

The DOE chief added that the gradual scrapping of non-technical system loss charges may take a year.

"Rough estimate from our team is one year," said Garin. —LDF, GMA News