President Ferdinand Marcos, Jr. on Monday, July 27, 2026, called on Congress to amend the Electric Power Industry Reform Act (EPIRA) to stop charging electricity consumers for systems loss, saying Filipinos should not have to shoulder costs that are beyond their control.
The proposal, which drew loud applause and cheers from lawmakers during Marcos’ fifth State of the Nation Address (SONA), seeks to prohibit distribution utilities from passing systems loss charges, including the corresponding value-added tax (VAT), on to consumers through their electricity bills.
"At kung pagbawas ng presyo ang usapan, sa aking palagay, panahon na para tanggalin na natin ang systems loss na pinapa-asa sa consumer. Pinapasa ito sa consumer na kinakarga sa bill na pinapatungan pa ng value added tax," Marcos said.
"Hindi naman kasalanan ng consumer kung bakit nagkaroon ng systems loss. Kaya hindi naman tama na kailangan sila pa ang pagbabayarin dito," he added.
The President then shifted from a request to a stronger appeal.
"Therefore, we, the people, request — no, we demand — the immediate amendment of the EPIRA, and to prohibit charging systems loss against consumers, including the value-added tax thereof," he said.
Systems loss refers to "the difference between the electrical energy delivered to the distribution system (energy input) and the energy delivered to residential consumers (energy output)," according to Senate Bill No. 2076 filed by Senator Risa Hontiveros, which seeks to remove the value-added tax (VAT) on systems loss charges.
It includes technical losses that occur during the transmission and distribution of electricity, as well as certain non-technical losses allowed under existing regulations. Under current rules, distribution utilities are allowed to recover a portion of these losses from consumers through their monthly electricity bills.
EPIRA, or Republic Act No. 9136, restructured the country's electric power industry in 2001 to encourage competition and private sector participation while promoting reliable and reasonably priced electricity. The law also provides the framework governing the recovery of allowable systems loss charges.
Marcos' call builds on his previous push to revisit the country's energy policies. In his 2024 SONA, he urged Congress to review EPIRA to determine whether amendments were needed to help lower electricity costs and address long-standing concerns in the power sector.
The issue of systems loss has also been the subject of legislative proposals. Earlier in 2026, lawmakers filed a measure seeking to remove the value-added tax imposed on systems loss charges, arguing that consumers should not bear additional taxes on costs that are already passed on through their electricity bills.
Marcos made the appeal as part of his administration's broader efforts to ease the financial burden on Filipino households amid rising living costs.
The President also urged Congress to pass the proposed “Sariling Kuryente” Act, which aims to make it easier for households and businesses to install rooftop solar systems and battery storage to reduce electricity expenses.
