Manila: Officials of the Department of Energy (DOE), Energy Regulatory Commission (ERC), and the Manila Electric Company (Meralco) have started discussions on policy reforms to ensure fairer energy prices for consumers.
According to Philippines News Agency, DOE, in a news release Thursday, stated that the meeting was held on Tuesday, a day after President Ferdinand R. Marcos Jr., in his State of the Nation Address (SONA), pushed for the amendment of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA). The proposed amendment aims, among other things, to remove the collection of systems loss charges from power consumers. System loss refers to the electricity lost through technical and non-technical means, such as pilferage, during the transmission of power from the source to end-users.
Distribution utilities and electric power cooperatives typically charge their system loss, pegged at least 5 percent, to their clients, a practice that the President emphasized should be revised. During the meeting, DOE reported that officials from the publicly listed Meralco expressed their commitment to exploring operational adjustments aimed at reducing electricity prices for customers in the coming months. This aligns with the collective goal of easing the financial burden on households and businesses.
The news release also mentioned that DOE and ERC are coordinating with the National Electrification Administration (NEA) to assess the implications of the proposed reforms on electric cooperatives and distribution utilities nationwide. Energy Secretary Sharon Garin emphasized that 'the President's directive is clear: consumers should only pay for the electricity they actually use, not for losses they did not cause.'
Secretary Garin further stated, "Every peso saved on electricity matters to Filipino families. Our responsibility now is to work closely with our regulators, lawmakers, and the power industry to ensure that our policies better protect consumers while preserving the reliability, stability, and long-term sustainability of our power sector. Consumer protection and energy security must always go hand in hand."
Meanwhile, the DOE announced the establishment of a joint task force with the ERC, NEA, and the electric cooperatives. This task force is aimed at formulating policies on the removal of system loss charges and their corresponding value-added tax (VAT) on power bills. The DOE is also coordinating with other private distribution utilities (DUs) to ensure the reforms deliver meaningful savings for consumers and operationally efficient electricity services.
The task force is tasked with ensuring technical collaboration and inclusive stakeholder participation as legislative and regulatory measures are developed. Central to its mandate, the Joint Task Force will pursue reforms designed to protect consumer interests, improve operational efficiencies, and strengthen the long-term reliability of the Philippine power sector.
