Rising electricity costs remain a major concern for households and businesses as power inflation climbed to its highest level in more than three years, prompting the Federation of Philippine Industries (FPI) to support reforms on system loss charges while calling for a careful review of their impact on the energy sector.

Electricity prices rose 16.9 percent in July 2026, the highest since March 2023, adding pressure to operating expenses and household budgets even as overall inflation eased during the month.

FPI said it supports President Ferdinand Marcos Jr.’s push to amend the Electric Power Industry Reform Act (EPIRA) to reduce electricity costs, stressing that affordable and reliable power is critical to strengthening manufacturing, attracting investments, expanding exports and creating jobs.

However, the group emphasized that any changes to system loss charges must be based on a comprehensive technical, regulatory and economic assessment by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC).

“Affordable and reliable electricity is indispensable to Philippine manufacturing and economic competitiveness. FPI fully supports reducing power costs for consumers and businesses, with reforms to system loss charges backed by thorough technical and economic assessments. We need to strike a deliberate balance—providing relief while at the same time, preserving the sector's financial viability to ensure long-term energy security, modern infrastructure, and sustainable industrial growth,” FPI Chairwoman Elizabeth H. Lee said.

FPI noted that system losses are a reality in electricity networks worldwide, covering both technical losses from power transmission and distribution and non-technical losses caused by theft, illegal connections and meter tampering.

The industry group said consumers should not shoulder the burden of inefficiencies, noting that existing regulations already set limits on recoverable losses, with distribution utilities absorbing costs beyond allowable thresholds.

At the same time, FPI urged stronger enforcement against electricity theft and other avoidable losses, saying reforms should also address generation costs, transmission charges, taxes and other components of electricity bills.

The group said a balanced approach is needed to lower power costs while ensuring continued investments in modernizing and strengthening the country’s energy infrastructure.