The House Committee on Energy is moving to review the Electric Power Industry Reform Act (EPIRA) with the goal of removing the controversial "system loss" charges from consumers' electricity bills, according to committee chairperson Rep. Erwin Tulfo.

In a radio interview on DZRH, Tulfo said the issue has gained urgency following President Ferdinand Marcos Jr.'s directive to revisit the policy, saying consumers should no longer shoulder costs from electricity losses they do not directly benefit from.

Tulfo said the committee has scheduled a hearing this Thursday to begin reviewing provisions of EPIRA, which he described as containing several gaps that have allowed consumers to bear additional charges.

"There are provisions in the law that need to be corrected, and one of them is the system loss charge," Tulfo said.

Under the current setup, distribution utilities are allowed to recover certain transmission and distribution losses, commonly referred to as system loss, through charges reflected in electricity bills.

Tulfo explained that these losses may result from electricity dissipating during transmission, damaged power lines, or illegal connections such as electricity theft.

He argued that consumers should not be made to absorb these costs.

To illustrate his point, Tulfo likened the practice to a store owner passing the cost of shoplifted goods to paying customers.

"If a store loses merchandise because of theft, should the next customer be charged for those losses? That shouldn't happen," he said.

The lawmaker also questioned why existing provisions provide limited authority for the Energy Regulatory Commission (ERC) to intervene in pricing and other issues involving power generators and distributors.

As part of the proposed reforms, Tulfo said lawmakers are looking at expanding the regulatory powers of the ERC to strengthen oversight of the power industry.

He noted that no pending bill specifically targets the removal of system loss charges, making the ongoing review of EPIRA the primary legislative vehicle for the proposed changes.

According to Tulfo, eliminating the charge would require amendments to the law, meaning the proposal must go through the standard legislative process, including committee hearings and approval on three readings in Congress.

If the measure advances without major delays, he said the earliest possible implementation could be sometime next year.

Tulfo added that while an executive order could potentially speed up certain reforms, it would not be a straightforward solution because of existing legal provisions governing the power sector.

During the interview, Tulfo also acknowledged reports alleging that some local officials receive free electricity through arrangements with electric cooperatives, though he stopped short of confirming the claims.

He said such allegations should also be looked into as lawmakers continue examining issues affecting electricity consumers and the broader power distribution system.