Consumers welcomed President Ferdinand Marcos Jr.'s call to amend the Electric Power Industry Reform Act (EPIRA) of 2001 to remove the system loss charge from electricity bills, while a local power distributor said any change would require regulatory approval and public consultation.

One of the most applauded proposals during the President's fifth State of the Nation Address (SONA) on Monday was his appeal to immediately amend the EPIRA to stop the collection of system loss charges from consumers.

Under the current law, distribution utilities and transmission companies are allowed to pass on certain costs to consumers, including system loss charges, subject to a cap.

System loss refers to electricity generated at power plants that does not reach consumers. It includes technical losses, caused by the physical limits of transmission and distribution systems, and non-technical losses, which result from illegal connections, electricity theft, and meter tampering.

Consumers also pay a 12 percent value-added tax (VAT) on the system loss charge.

Among those who welcomed the proposal was Dagupan resident Ike Quesora, who said he paid nearly P100 in system loss charges on his June electricity bill.

"Dapat alisin niya. Pati 'yung VAT, malaki-laki eh. Hindi naman nakikinabang ang mga tao diyan," Quesora said.

However, the Dagupan Electric Corporation (DECORP) said removing the charge would not be simple and could have a significant impact on distribution and transmission companies.

DECORP Chief Operating Officer Atty. Randy Castilan said implementation would depend on the rules that the Energy Regulatory Commission (ERC) would issue.

"To totally eliminate will be up to the ERC kung ano ang ilalabas nilang rules and regulation regarding that. Pero definitely magkakaroon 'yan ng public consultation," he said.

Castilan said the utility supports removing the 12 percent VAT imposed on the system loss charge.

"Kasi naka-VAT naman lahat eh, except pag aalisin ang system loss. Pero hopefully lahat ng tax maalis sana kasi wala naman 'yan sa umpisa eh," he said.