ERC backs Marcos proposal to scrap system loss charges

BAGUIO CITY — The Energy Regulatory Commission (ERC) on Tuesday welcomed President Ferdinand Marcos Jr.'s proposal to remove system loss charges from electricity bills, saying the measure could help lower power costs for Filipino consumers and businesses if implemented.

In a statement, the ERC expressed support for the proposal outlined by the president during his fifth State of the Nation Address (SONA) on July 27, emphasizing the need to reduce electricity costs while maintaining the financial viability of distribution utilities.

A system loss charge is a fee included in electricity bills to cover power losses incurred during transmission and distribution. It accounts for about 5% of household electricity costs and is attributed to technical losses and power theft.

The commission said it supports policy reforms aimed at making the country's power sector more efficient, affordable, and reliable.

The ERC added that implementing the proposal would require the necessary regulatory measures. It said it is prepared to work with Congress, the Department of Energy (DOE), and industry stakeholders to advance the reform.

The agency also reaffirmed its commitment to transparent and accountable regulation that protects consumer interests while ensuring the quality and sustainability of electricity services nationwide.