Manila: An official of a producers and manufacturers group on Tuesday backed the proposed amendment of the Electric Power Industry Reform Act (EPIRA) to address electricity costs in the Philippines.

According to Philippines News Agency, Federation of Philippine Industries (FPI) chair Elizabeth Lee stated that the proposed EPIRA amendment, emphasized by President Ferdinand R. Marcos Jr. in his fifth State of the Nation Address (SONA), aims to ensure affordable, reliable, and competitively priced power rates in the country. President Marcos also highlighted the necessity to eliminate system loss charges imposed on power consumers, arguing that only the electricity used by consumers should be charged to end-users.

Lee expressed that competitive power rates are crucial for strengthening Philippine manufacturing, attracting investments, expanding exports, creating quality employment, and enhancing the country's overall economic competitiveness. She emphasized the need for a comprehensive technical, regulatory, and economic assessment by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to ensure transparent, equitable, and sustainable policy reforms.

Lee noted that current policies already include accountability measures through ERC-prescribed caps on recoverable losses, with distribution utilities and electric cooperatives absorbing losses beyond allowable thresholds. This system incentivizes utilities to improve operational efficiency and reduce avoidable losses.

Looking ahead, Lee stressed the importance of reforms that encourage investments to reduce technical losses, while also strengthening measures to eliminate non-technical losses through more effective anti-electricity theft enforcement and improved governance. Lee reiterated that affordable and reliable electricity is essential for Philippine manufacturing and economic competitiveness.

FPI fully supports measures to reduce power costs for consumers and businesses, advocating for reforms to system loss charges backed by thorough technical and economic assessments. Lee concluded by highlighting the need to find a balance between providing relief and preserving the financial viability of the sector to ensure long-term energy security, modern infrastructure, and sustainable industrial growth.