Manila: The draft measures on the proposed amendments to the Electric Power Industry Reform Act (EPIRA) are already with the Presidential Legislative Liaison Office (PLLO), with officials of the Department of Energy (DOE) expressing their willingness to provide technical guidance to lawmakers on the move. President Ferdinand R. Marcos Jr., in his 5th State of the Nation Address (SONA) on Monday, called for EPIRA's amendment to protect power consumers, citing in particular the charging of system loss to power consumers even if they should not be shouldering this.
According to Philippines News Agency, Energy Secretary Sharon Garin, in a briefing on Tuesday, said DOE officials will continue to work with the Energy Regulatory Commission (ERC) and other power sector stakeholders for the amendments. 'Over the years, during this administration, we have done consultations with the stakeholders, including ERC and the other agencies. So, tuloy-tuloy naman po yan. Meron kaming mga suggestions sa (So, that a continuous work. We have suggestions to the) HOR at sa (House of Representatives and the) Senate. But ultimately, it's a discretion or decision of Congress,' she said.
System loss charges are being collected by distribution utilities (DUs) to compensate for technical and non-technical causes, such as pilferage and system-related factors. The President said these losses should not be charged against power consumers because it is not their fault why there are system losses. 'Therefore, we, the people, request, no, we demand for the immediate amendment of the EPIRA to prohibit charging systems loss against consumers, including the value-added tax,' he said.
System loss accounts for at least 5.5 percent of private DUs' charges and up to 12 percent for electric cooperatives. Power consumers may see the removal of the system loss charges 'before the next SONA, one year,' Garin said, noting that system loss due to pilferage can be immediately addressed but the technical factor needs more time because this needs to be addressed through capital outlays. 'DOE and the ERC will work on that, as mandated by the President, to reduce consumers' power bills,' she said in a mix of Filipino and English.