"I am pleased that this proposal has become part of the President's legislative agenda. We have long said that it is unreasonable for ordinary consumers to pay for electricity that is stolen and for inefficiencies beyond their control," he said.
Now on its fourth filing, Tiangco expressed hope that the President's backing would finally give the measure enough momentum to pass Congress.
"Since 2010, this bill has failed to gain traction. Now that the President himself recognizes that system loss charges should no longer be passed on to consumers, I hope Congress will have the political will to enact this reform," he said.
System loss charges stem from the Electric Power Industry Reform Act of 2001, which allows distribution utilities to recover costs arising from technical and non-technical losses incurred while delivering electricity.
In 2017, regulators capped recoverable system losses at 5.5 percent for private distribution utilities and 8.25 percent for electric cooperatives.
Power distributors, however, warned that removing the charges could affect their financial viability.
Meralco Executive Vice President and Chief Operating Officer Ronnie Aperocho said system loss is an inherent part of operating a power distribution network.
He added that while the company has taken steps to minimize losses, the charges help ensure transmission costs owed to the National Grid Corporation of the Philippines are recovered.
"We look forward to productive discussions, which we hope will carefully consider the impact of reforms on the operations and sustainability of distribution utilities," Aperocho said.
Tiangco said the proposal is intended not only to shield consumers from costs beyond their control but also to provide tangible relief amid persistently high electricity prices.
"If we are serious about lowering electricity costs, charges that are not the fault of the public should be removed. This is a concrete measure that consumers will feel through their monthly bills," he said.
