DOE backs Marcos' call to amend EPIRA and remove system loss charges

The Department of Energy on Monday expressed support for President Ferdinand “Bongbong” Marcos Jr.'s call for the immediate amendment of the Electric Power Industry Reform Act (EPIRA) to remove system loss charges from consumers’ bills.

In a statement, the DOE said it would work closely with Congress, the Energy Regulatory Commission, industry stakeholders, and consumer groups in pursuing carefully considered amendments to EPIRA.

“Twenty-five years after EPIRA transformed the Philippine power sector, the time has come to ensure that our legal and regulatory framework keeps pace with today's realities,” the DOE said.

“The electricity sector has evolved significantly, with advances in technology, smarter electricity networks, and a rapidly changing energy landscape,” it added.

“Our policies must likewise evolve to deliver a power sector that is more efficient, transparent, accountable, and responsive to the needs of Filipino consumers,” the DOE said.

Marcos in his State of the Nation Address (SONA 2026) called on both chambers of Congress to amend the Electric Power Industry Reform Act (EPIRA) to put a stop to system loss charges, including an accompanying value-added tax (VAT), from being passed on to consumers.

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

Current laws such as the EPIRA and Republic Act No. 7832 or the Anti-Pilferage of Electricity and Theft of Electric Transmission Lines/Materials Act allow distribution utilities to recover a portion of system loss from end-consumers through system loss charge reflected in monthly electricity bills.

“At kung pagbawas ng presyo ang usapan, sa aking palagay, panahon na para tanggalin na natin ang system loss na pinapasa sa konsyumer. Pinapasa ito sa konsyumer at kinakarga sa bill na pinapatungan pa ng value-added tax,” Marcos said.

“Hindi naman kasalanan ng konsyumer kung bakit nagkaroon ng system loss, kaya hindi naman tama na kailangan sila pa ang pagbabayarin dito,” the President said.

(And if we're talking about lowering prices, I believe it's time we remove the system loss charges being passed on to consumers. These charges are passed on to consumers, included in their electricity bills, and are even subject to value-added tax (VAT). The system loss is not the consumers' fault, so it is not right that they should be the ones paying for it.)

“Therefore, we the people request, no we demand, for the immediate amendment of the EPIRA and to prohibit charging of system loss against consumers including the value added tax thereon,” Marcos said. –NB/KG, GMA News