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.

Amend EPIRA

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 and the Energy Regulatory Commission.

“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.

A reality in electricity networks worldwide

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.