Palace open to talks on system loss reform

Malacañang on Thursday said the Marcos administration is open to consulting power industry stakeholders as it pursues reforms to remove system loss charges from consumers' electricity bills.

The assurance came after Manila Electric Co. (Meralco) Chairman Manuel V. Pangilinan warned that eliminating system loss charges would impose a significant financial burden on the power industry.

"It’s a big bill for the industry because it cuts across generation, transmission, and distribution. The bill is too big for the industry to absorb all of it. So, there’s got to be that discussion. It’s going to impact the entire power industry in this country," Pangilinan said.

Responding to the remarks, Palace Press Officer Undersecretary Claire Castro said the administration welcomes discussions with affected stakeholders.

"That is a positive sign. While the proposal still requires extensive study and may affect many sectors, it is encouraging that they are open to discussions," Castro said.

She added that the government is working to ensure the reforms will not become overly burdensome to consumers, investors, or utility companies.

Department of Energy Secretary Sharon Garin said the agency is reviewing Energy Regulatory Commission regulations, relevant legislation, and existing policies while conducting consultations with stakeholders.

"Our objective is to lower electricity rates, and I ask for the patience and cooperation of all stakeholders while we craft the necessary policies," Garin said.

Castro also said the government is willing to hear the concerns of rural electric cooperatives, including proposals for tax exemption mechanisms.

During his State of the Nation Address, President Ferdinand Marcos Jr. vowed to pursue amendments to the Electric Power Industry Reform Act (EPIRA) to remove system loss charges from consumers' electricity bills.

Meanwhile, Navotas Rep. Toby Tiangco refiled his long-standing proposal to abolish system loss charges, saying consumers should not bear the cost of electricity losses caused by inefficiencies and power pilferage.

Tiangco refiled House Bill No. 10273, or the System Loss Charges Abolition Act of 2026, which seeks to prohibit distribution utilities from passing system loss charges on to consumers.

The measure was first filed in 2010 and reintroduced in 2013 and 2016.

With Marcos now backing the proposal, Tiangco expressed optimism that Congress would finally pass the measure.

"I am pleased that this proposal is now clearly part of the President's legislative agenda. We have long argued that it is unfair for ordinary consumers to pay for electricity theft and inefficiencies beyond their control," Tiangco said.