Manila: President Ferdinand R. Marcos Jr. on Monday urged Congress to immediately amend the Electric Power Industry Reform Act (EPIRA) of 2001 to bring down the price of electricity in the Philippines. In his penultimate State of the Nation Address (SONA) at the Batasang Pambansa Complex in Quezon City, Marcos highlighted the people's demand for lower electricity prices and called for the removal of systems loss charges from consumer bills.
According to Philippines News Agency, Marcos expressed his view that the systems loss charges, which are automatically passed on to consumers by distribution utilities, should be eliminated. He emphasized that it is unfair for consumers to bear this cost, which is also subject to value-added tax. Marcos called for Congress to act swiftly in amending the EPIRA to prohibit charging systems loss fees to consumers.
In addition to addressing systems loss charges, Marcos requested Congress to facilitate the installation of solar panels and battery storage systems in homes. He urged the passage of the "Sariling Kuryente Act" to make this process simple, easy, and affordable for ordinary Filipinos. Currently, under the Renewable Energy Act of 2008, consumers can install renewable energy facilities, but the program is hindered by lengthy approval processes and complex permits.
Senator Risa Hontiveros welcomed the President's proposal, stating that removing systems loss charges and the corresponding VAT could help reduce household expenses. She described it as a positive step but advocated for broader power-sector reforms to address other charges passed on to consumers.
System loss refers to the cost consumers pay for electricity lost due to technical and non-technical factors. The Energy Regulatory Commission has set a cap for system loss, varying between private distribution utilities and electric cooperatives.
The Department of Energy (DOE) supported the President's call for EPIRA amendments, suggesting that modern infrastructure and technologies could reduce system losses and translate into savings for consumers. The DOE emphasized the need for policies that protect consumers while maintaining a financially sound electricity industry.
Aurora Pacific Economic Zone and Freeport Authority President Gil Taway commended the President's commitment to improving the energy system. He emphasized the significance of power projects planned before the end of the Marcos administration's term in stabilizing the grid and supporting industrial growth through renewable energy sources.
Federal of Philippine Industry Chair Elizabeth Lee also noted that improvements in the energy system could enhance the domestic manufacturing sector's competitiveness within ASEAN, supporting industrial resilience through diverse energy sources.
