Palace: Scrapping of system loss charges to undergo extensive study

Malacañang on Thursday sought to allay concerns of energy stakeholders following the call of President Ferdinand "Bongbong" Marcos Jr. for companies to stop passing on system loss charges to consumers, including its accompanying value-added tax (VAT).

This developed after Meralco Chairman and CEO Manuel Pangilinan raised questions Wednesday on who should shoulder the cost of system losses, adding that discussions were needed on the matter as it would impact the country's entire power industry.

"Maganda po na senyales 'yan, although marami po talagang pagdaraanan na pag-aaral at maaaring maraming maapektuhan. But at least nakikita po natin na open sila for discussion," Palace Press Officer Undersecretary Atty. Claire Castro said in a press briefing.

(That’s a good sign, although this will still undergo a lot of study and many may be affected. But at least we see that they’re open for discussion.)

"Lahat po ito ay inaaral at bubuuin po nang hindi naman masyadong burdensome din sa iba nating mga kababayan at sa mga investors and utility companies," she added.

(All this will be studied and will be developed without being too burdensome to our citizens and to investors and utility companies.)

In his fifth State of the Nation Address, President Ferdinand "Bongbong" Marcos Jr. called on both chambers of Congress to amend the Electric Power Industry Reform Act (EPIRA) to remove the system loss charges.

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

Citing a statement from Energy Secretary Sharon Garin, Castro said the Department of Energy (DOE) is seeking patience from stakeholders while they continue to craft policies responding to the President's call.

"We are currently studying the regulations of ERC (Energy Regulatory Commission), legislations, and other policies, and doing consultations with stakeholders. The objective is to lower the electricity rates and I ask for patience and cooperation of all stakeholders while we craft the policies," Castro said, reading a message from Garin. — VDV, GMA News