Northern samar: Northern Samar 2nd district Rep. Edwin Ongchuan has urged the Energy Regulatory Commission (ERC) to explore the immediate reduction of system loss charges while Congress deliberates on measures seeking their eventual abolition.

According to Philippines News Agency, Ongchuan stated on Thursday that during the House Committee on Energy hearing on August 5, he inquired whether the ERC could reduce system loss charges under its existing regulatory authority even before proposed amendments to the Electric Power Industry Reform Act (EPIRA) are enacted. Ongchuan, who serves as the vice chairperson of the House Committee on Energy, emphasized that lowering these charges could provide immediate relief to electricity consumers as lawmakers continue their discussions on proposed reforms.

In response to Ongchuan's query, the ERC noted that Section 43(f) of the EPIRA authorizes the commission to determine and adjust allowable system loss caps based on technical considerations, including reducing them when warranted. However, the commission clarified that the complete abolition of system loss charges would require legislative action.

Ongchuan highlighted that the discussion during the hearing raised the possibility of lowering the allowable system loss caps under the ERC's existing powers while Congress works on measures to eliminate the charges altogether. He also raised concerns about the value-added tax (VAT) previously imposed on system loss charges, questioning whether consumers could be entitled to refunds if the charges are eventually abolished. The ERC responded that it had requested the Bureau of Internal Revenue to exclude system loss charges from the VAT tax base but has yet to receive a favorable reply.

System loss charges account for the cost of electricity lost during transmission and distribution due to technical and non-technical factors, with distribution utilities permitted to recover losses only up to the caps prescribed under current regulations. During his fifth State of the Nation Address on July 27, President Ferdinand R. Marcos Jr. urged Congress to amend the EPIRA law promptly, asserting that consumers should no longer bear system loss charges in their electricity bills.