The Department of Energy said it may take about a year to eliminate the system loss charge from electricity bills. Energy Secretary Sharon Garin said the charge could be scrapped by 2027 after infrastructure upgrades and regulatory adjustments.
President Ferdinand Marcos Jr. urged Congress in his State of the Nation Address on Monday to amend the Electric Power Industry Reform Act to stop distribution utilities from charging consumers for system losses and the value-added tax on those charges.
Energy Secretary Sharon Garin said Tuesday that the DOE, Energy Regulatory Commission and National Electrification Administration would assess more than 100 electric cooperatives and private distribution utilities. She added that discussions would start immediately and that the charge could be scrapped before the next State of the Nation Address.
Manila Electric Co. executive vice president Ronnie Aperocho said the company is ready to participate in discussions but stressed that any reform should ensure distribution utilities remain capable of investing in infrastructure. ERC Chair Francis Saturnino Juan said Congress must first amend Section 43(f) of the law before the charge can be removed.
