Malaca±ang: The government is pursuing a balanced approach to its proposed removal of systems loss charges from electricity bills, assuring both consumers and power industry stakeholders that reforms would be carefully crafted to avoid placing undue burden on any sector.
According to Philippines News Agency, Palace Press Officer Claire Castro welcomed the willingness of power industry players to discuss the proposal after President Ferdinand R. Marcos Jr., during his fifth State of the Nation Address (SONA) on Monday, called for amendments to the Electric Power Industry Reform Act (EPIRA) to prohibit charging systems loss to consumers. "Maganda pong senyales iyan (That is a positive sign)," Castro said during a Palace briefing.
"Although marami po talagang pagdaraanan na pag-aaral at maaaring maraming maapektuhan, but at least nakikita po natin na open sila for discussion (There is still much to study and many sectors may be affected, but at least we can see they are open to discussion)," she added. Her remarks came after Meralco Chairman and Chief Executive Officer Manny V. Pangilinan said eliminating systems loss charges would have significant implications for electricity generation, transmission, and distribution firms, adding that discussions would be necessary because of the proposal's industry-wide impact.
Castro said the government has already begun consultations with stakeholders to ensure reforms would lower electricity rates while preserving the stability of the power sector. She cited Energy Secretary Sharon Garin, who said the Department of Energy (DOE) is reviewing existing Energy Regulatory Commission regulations, legislation, and related policies while consulting stakeholders. "The objective is to lower electricity rates, and I ask for patience and cooperation of all stakeholders while we craft the policies," Castro quoted Garin as saying.
Castro said the administration wants to strike a balance between consumer welfare and the viability of utility companies and investors. "Lahat po ito ay inaaral at bubuuin po nang hindi naman po masyadong burdensome din sa iba nating mga kababayan at sa mga investors and utility companies (All these are being carefully studied and crafted so they will not become overly burdensome to our fellow Filipinos, investors and utility companies)," she said.
Castro also responded to calls from rural electric cooperatives for possible government support should the proposal push through. She said all concerns raised by stakeholders would be heard during consultations to ensure that any issues are addressed before reforms are finalized. In his SONA on Monday, Marcos called for the immediate amendment of EPIRA, arguing that consumers should no longer shoulder systems loss charges.
Under existing regulations, distribution utilities and electric cooperatives are allowed to recover a portion of technical and non-technical systems losses through electricity rates, subject to regulatory limits set by the Energy Regulatory Commission.
